Digital Influence on Urban Ecommerce Logistics Tehran, 6 July 2017 - - PowerPoint PPT Presentation

Digital Influence on Urban Ecommerce Logistics

Tehran, 6 July 2017

INDONESIA

Source: Indonesia Internet Service Provider Association

132.7 OUT OF 256.2 MILLION POPULATION

IN JAVA ISLAND

PENET NETRA RATION TION

INTERNET PENETRATION

FACILITY USED

Source: Indonesia Internet Service Provider Association

USAGE BEHAVIOR

MAIN PURPOSE FOR INTERNET USE

Source: Indonesia Internet Service Provider Association

REASONS FOR INTERNET USE

Source: Indonesia Internet Service Provider Association

FREQUENT USE

Early Stage

Early Stage

• 2,000.0

4,000.0 6,000.0 8,000.0 10,000.0 12,000.0 14,000.0 16,000.0 2015 2016 2017 2018 2019 2020 2021

eCommerce Retail by Category

Fashion Toys, Hobby & DIY Electronic & Media Furniture & Appliances Food & Personal Care

33.2 35.3 36.6 41.3 42.0 48.9 51.2 49.1 47.7 47.2 58.5 54.4 59.0 34.9 39.5 36.0 41.6 36.8 39.9 39.2 39.1 41.2 46.7 51.7 47.5 52.8 35.9 30.0 36.7 37.9 38.3 40.9 31.3 32.8 34.2 33.4 36.2 36.9 32.0 42.0 38.8 40.9 39.7 34.3 33.7 30.2 28.2 29.6 30.4 32.7 30.8 30.9 24.1 26.7 25.8 29.3 26.3 26.1 24.1 26.8 25.9 27.7 31.5 30.1 30.7 13.5 20.1 27.6 30.4 26.0 25.7 26.5 28.4 27.1 25.8 24.2 26.0 25.2 23.0 21.6 22.0 22.0 20.0 20.9 19.8 19.6 18.0 21.0 24.5 22.3 22.2

• 4.2

4.5 5.5 7.9 7.9 9.6 MAY-16 JUN-16 JUL-16 AUG-16 SEP-16 OCT-16 NOV-16 DEC-16 JAN-17 FEB-17 MAR-17 APR-17 MAY-17

eCommerce Traffic - in million

Lazada ID Tokopedia Elevenia Kaskus Bukalapak Blibli OLX Shopee

Mobility is changing Society and the Way We Shop & Pay

By 2050, 70% of 9.4 billion world’s population is expected to be living and working in urban areas (Ref: UN Population Fund) With this rapid rate of urbanisation, cities around the world are facing increasing strains on urban infrastructures like transportation, water, energy, land and housing

The logistics sector provides an essential function that enables the delivery of goods and services to the population and enables commerce, especially the urban segment, will face an enormous challenge to meet the expectations

Internet penetration soon will reach 100 million users Mobile platform begin to serve wider spectrum of social, commerce, edutainment needs of human being Lifestyle changes towards e-transactions that will severely disrupt retail economy. By 2030 ecommerce is expected to take 25-30% of retail economy

eCommerce Key Drivers Rising Middle Class Improving Infrastructure Increasing Mobile Penetration Convenience & Lifestyle Requirements Growth of several successful e- commerce players Desire to own global brands available on

• ne click away

Wide range of choices of products and categories

Source: Frost & Sullivan; eMarketer; Statistica; Speeda; Singapore Post; Export gov; Boeing World Air Cargo Forecast; Aliresearch; Trade Press; L.E.K. analysis

Source: A.T. Kearney China has reached 12.4% this August 2016 It is estimated to reach almost 2% by now in 2017

It takes 10 years for China to be where they are today

….

Surplus

Hunter / gatherer

Denser populations

Pastoralist / horticulturalist

Specialization

Agricultural

Technology

Industrial

Inequality or DISRUPTIVE

Post-industrial

What now? Shall we call mobile era?

• When courier &

delivery industry moves towards express and cheaper. Logistics economy scale will shift towards smaller packages…

• The challenge is “how

to serve anywhere in Indonesia within 72 hours”

Think Act Behave

Mobility is changing the WAY we:

8.00 9.90 12.26 15.17 18.78 23.24 28.77 35.60 44.07 54.54 67.51 83.56 103.43 128.02 158.45

• 20.00

40.00 60.00 80.00 100.00 120.00 140.00 160.00 180.00

• 0.5

1.0 1.5 2.0 2.5

Thousands

Courier vs eCommerce Value

ECOMMERCE VALUE (T) COURIER VALUE (T)

• GPS & Tracking → provide vivid

visibility of delivery process

• NFC / RFID
• Artificial Intelligence for

coordinated & interactive delivery schedule based on zone & priority → smart routing for last-miles delivery

• Collection consolidation centers

(CCC) → smart first-miles

• Big Data Advance Analytic
• Coordinated O2O shopping

experience

• Reduce traffic congestion by

consolidated operations among courier operators (back-end consolidation)

• Selective drone & robot pickup /

delivery

Value the Legacy – The Real Key Driver: O2O

Legacy Mail & USO Network & Physical Footprint

Hybrid Inbox & Office Solution

Courier Backbone & Last-miles

Express Delivery

Financial Services Remittance Payment

Payment Protocol for eCommerce Blockchain initiatives on remittance

Value offered by POS Indonesia

Cross Border Management Order Processing, Courier & Last-miles Delivery with widest coverage Payment Fulfillment Management Customer Services Fleet Management Back-end Process & Management

POS2PAY COD@POS

Value offered by POS Indonesia

Cross Border Management Order Processing, Courier & Last-miles Delivery with widest coverage Payment Fulfillment Management Customer Services Fleet Management Back-end Process & Management

POS2PAY COD@POS

THE REAL GAME TO MAKE POSTAL SECTOR MORE RELEVANT FOR ECOMMERCE

Origin Countries of eCommerce (import) Indonesia

85% 15%

Origin Countries

China, Japan, South Korea, Singapore & Hongkong Others

• Average promise to buyers

is 10 days to 21 days

• Alibaba / Lazada has put-up

a plan to serve Indonesia market within 72 hours by the end of 2017

• The question is: CAN THEY

WAIT FOR US to resolve POSTAL CROSS-BORDER ISSUES?

Mandatory Content Required by Indonesia Customs

 AWB Number (Barcode)  Submission date  Customs Office Code  Airways name  Flight number  Departure Airport Code  Arrival Airport Code  Country of Origin Code  Number of goods  Sender’s name  Sender’s address  Recipient’s name  Recipient’s address  FOB : in USD, for Hongkong use HKD  CIF : in USD  Netto  Bruto  Number of goods (for each details)  Description of goods (for each details)  Number of packages Customs Declaration and CN 38 should be written clearly in English with Latin character

Indonesia Customs System

Indonesia Customs System

Incomplete & Unfit Customs Declaration

Incomplete & Unfit Customs Declaration

Incomplete & Unfit Customs Declaration

Thank You