aCommerces Opens 17 New Hubs Throughout Indonesia in Only 3 months
aCommerce is launching 17 hubs across Indonesia to shorten the last mile process and cut down cash-on-delivery reconciliation by half. The first hub launched in February earlier this year and now 14 hubs are officially active. Prior to the launches, 89% of products delivered were handled by third party logistics services, prolonging the delivery time for customers due to the separation and rerouting of orders to different cities.
There have been 75,000 orders processed by the hubs in June alone, which highlights the need for them in cities such as Jakarta, Medan and Jayapura.
The goal is to offer better payment capabilities, namely collection on delivery (COD). Over 65% of Indonesia’s population is unbanked and cash-on-delivery is growing but constitutes a relatively small portion at around 15% of total payments
Each hub is located in densely populated areas with high cash on delivery rates. In cities such as Medan, the 4th biggest city in Java, the opening of a direct hub has cut down cash reconciliation time by 75%. In Jayapura, located on the island of Guinea, delivery time has been reduced to half of what it was before the launch of an aCommerce hub.
Having direct access to the live delivery status is also another crucial component. With 3PLs, the tracking team would usually have to chase old update reports, but now, delivery reports can be recorded automatically on the day.
“Cash on delivery rates are very high in Indonesia, especially outside of Jakarta. In Jayapura, the rate for COD is at 88%, which means aCommerce direct hubs facilitate the need of the market”, Mitch Bittermann, aCommerce’s Group Chief Logistics Officer says.
“The landscape of logistics and distribution in Indonesia is gradually changing, especially since the adoption of digital technology and ecommerce in the country. We will continue to analyze the expansion initiatives and the development of delivery business to be our investment priorities in the future. We are not building a conventional courier company, but a technology-based distribution company,” adds Hadi Kuncoro, CEO aCommerce Indonesia