Advotics Supply Chain Startup Receives Investment from East Ventures
Advotics announced its latest funding through a funding round led by East Ventures. The software-as-a-service (SaaS) provider startup focuses on providing data-driven supply chain solutions for brands and SMEs.
“There are millions of manufacturing and distribution companies in Indonesia, from small companies to giant companies. We believe that the corporate software market in Indonesia, which currently has a value of US$ 3 billion, will continue to grow as more companies join the trend of digital transformation” said Boris Sanjaya, CEO, and Co-founder at Advotics.
Advotics helps brands to understand, monitor, and manage their supply chain systems by providing an integrated platform across distribution points. Indonesia, according to Advotics, is a large market for the technology solution business for corporations.
The company also estimates that the software market value for corporations in Indonesia will reach USD 3 billion. That number will get bigger and bigger as more companies move towards digitization. Advotics has worked with more than 70 companies in various industrial sectors including FMCG, automotive, and construction materials.
These startup clients range from SMEs to multinational corporations such as Exxonmobil, Danone, Reckitt Benckiser, Sampoerna, Kalbe and Mulia Group. Meanwhile, Advotics has 9 SaaS products that provide a variety of solutions that can be applied at the stages of production, warehousing and distribution.
“Advotics is also able to provide solutions to supply chain problems that have long troubled companies in terms of warehouse operations, efficient delivery of goods, and delivery of sales teams, by utilizing advanced technology. All of this is not possible just by relying on conventional supply chain models,” he said. Jeffry Tani, CPO and Co-founder at Advotics.
Expansion into the MSMEs Market
By using a QR code printed on the product packaging, the company helps brands track the movement of goods at each distribution point, including information about sales team activity and stock vacancies. Advotics has also developed their system to include solutions for inventory, routing, and collection.
The company will use this investment to expand the scope of solutions to the SME market, by providing an integrated online-to-offline system. This investment will also be used in the expansion of the company’s sales team.
“Armed with our experience in providing practical solutions using the latest technology, we are confident that Advotics’ digital solutions that are ready to use, easy to use, and always connected can help SMEs to be more competitive,” said Hendi Chandi, CTO and Co-founder at Advotics.
According to Digital Indonesia 2021, there are more than 202.6 million internet users in Indonesia which is equivalent to 73.7 percent of the population. Digital transformation opens up new ways of life and work in the country that help consumers and businesses increase efficiency and productivity.
“The Advotics team is not only able to survive amid the pandemic, but is getting stronger. We are confident that this funding will accelerate the achievement of Advotics’ mission, which is the digitization of Indonesia’s supply chain and distribution ecosystem,” said Willson Cuaca, Co-founder and Managing Partner at East Ventures.
Geographical Factors Become Challenges in Indonesia
Last year, Advotics released its latest report entitled Key Distribution Challenges in Indonesia, revealing that product availability in the market is the biggest challenge for companies in terms of distribution, despite having strong product awareness, advertising investment and good product quality.
Advotics said that Indonesia’s geography as an archipelago is a challenge for companies to distribute goods. On the other hand, the development of both offline and online sales channels adds to the depth of complexity of the product flow complexity which is important for companies to pay attention to in order to ensure product availability in every direct sale.
The report presents the five biggest challenges in distribution and how to overcome them via modern technology. This report is a development of the results of a survey of local to multinational companies in the manufacturing industry with a network of hundreds of thousands of stores throughout Indonesia.