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Logistics Flashback 2022: Kargo Tech's Role in Indonesia's Logistics Ecosystem

As is well known, the dynamics of the logistics sector in 2022 is very volatile, starting from the zero ODOL 2023 policy discourse to increasing fuel rates. Even so, there are several achievements that should be celebrated, such as the recovery of the transportation and warehousing sector since the first quarter of 2022 by 15.79% which increased again in the second quarter of 2022 and third quarter of 2022 by 21.27% and 25.81% (Agency Center for Statistics, 2022).

In fact, Supply Chain Indonesia on its online website predicts that the contribution of the logistics sector in 2023 will continue to be positive and contribute IDR 1,090.2 trillion to Indonesia's Gross Domestic Product (GDP).

Kargo Tech as part of the Indonesian logistics ecosystem also contributes & provides end-to-end logistics solutions from first-mile, mid-mile to last-mile for all logistics players. Various innovations have been successfully carried out, such as technology adoption, market development, and cooperation with external parties to boost performance from both the Shipper and Transporter sides.

Celebrating the Cargo Tech Milestone

2022 Kargo Tech Achievements

In 2022, various innovations and achievements have been successfully carried out in terms of demand-supply, operations, to technology adoption as a reflection of Kargo Tech's commitment to continue to develop itself and accommodate the needs of all parties.

All achievements this year show that Kargo Tech's capacity has been further strengthened by positive growth in terms of business specifically for first-mile & mid-mile shipments of up to 900% with 84 new shippers and 120 new transporters joined and active in the Kargo Tech ecosystem.

Since the beginning of the year, Kargo Tech has consistently provided service land services with wide area coverage throughout Indonesia, competitive prices, as well as guaranteed insurance. For first-mile shipments, Kargo Tech managed to ship 500 TEUs of containers per month. As for the last-mile delivery itself, it consistently manages to make daily deliveries of up to 550 dedicated trucks per day.

"By the end of 2022, we can be sure that Kargo Tech has succeeded in delivering up to approximately 4,000 - 6,000 DO for first-mile to last-mile shipments," said Andry Wijaya as Head of Strategic Enterprise Fulfillment . This large shipment was also driven by growing demand outside Java to Sumatra, Sulawesi and Bali-Nusa Islands. This expansion of shipments out of Java itself is one of Kargo Tech's major achievements in ensuring inter-island and inter-city connectivity for the Indonesian logistics ecosystem.

This year, all Cargo tech delivery services have succeeded in expanding outside Java, specifically to the Bali region. Especially for last-mile services, we have succeeded in driving market penetration to traditional distributors as our shippers," said Edward Hilman as Head of SME Sales. Development of the Kargo Tech market & services is of course balanced by the operational capabilities of the Kargo Tech team for all shipping services at rates, This operational achievement is actually inseparable from development from the internal side as well as the adoption of technology in the internal system for 100% of ongoing projects which reduces human decisions by up to 7%.

Celebrating a Shipper Milestone with Kargo Tech

In 2022, Kargo Tech has established many partnerships with shippers across different industrial backgrounds, from FMCG, pharmaceuticals, traditional distributors, electronics to start-ups/corporate. Various improvements were achieved through constructive cooperation between the two parties.

Broadly speaking, the following achievements have been achieved by several Shippers who are members of the Kargo Tech ecosystem,

Testimonial Shipper Cargo Tech

In terms of fulfillment, according to the motto #LetKargoHandle, Kargo Tech continues to strive for operational capacity to assist Shippers with shipping matters which allows Shippers to focus on productivity._11100000-0000 -0000-0000-000000000111_

We chose Kargo Tech not only because it excels in meeting the success rate but also in terms of its capability as a transportation support which is fully responsible for the availability of drivers, fuel, and maintenance trucks, collecting documents for travel permits so we can focus more on our main task, namely managing and selling goods," said Donny Iskandar, Head of Logistics at Garuda Foods.

Apart from the fulfillment aspect, Kargo Tech also offers logistics digitization solutions to drive efficiency and visibility for Shippers as experienced by Danone since working with Kargo Tech. Kargo Tech's collaboration with Danone through the Kargo Nexus platform has proven to have a positive impact, such as reducing the manual process of confirming drivers & orders by up to 90% while increasing visibility by up to 5X better.

“In Indonesia, one of the main challenges we face in the field is the amount of time and planning required to coordinate between vendors and drivers. With Kargo's latest technology solutions, we can save time because vendors and drivers can interact directly through one platform. Thanks to Kargo, now Danone no longer needs to chase truck providers by phone or email. Now, the delivery status is displayed neatly and is very easy for us to access," explained Muhammad Riefqi, C&P Sr. Danone Logistics Manager.



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