Deliveree Releases ‘Partial Load’, Rely Algorithm for Optimization Service
Logistics marketplace startup Deliveree announced a Partial Load service to accommodate the needs of businesses that want to send goods, cargo, and even large/small packages without having to rent a full vehicle.
This solution digitizes partial loading services that are already present in conventional logistics companies by utilizing smart algorithms.
Deliveree Indonesia Senior Supply Associate Denaldy Nataniel said, since Deliveree Indonesia arrived in 2015, it has been relying on one main solution for One Vehicle (Full Truckload/FTL).
This solution has the limitation that businesses have to pay rent for one vehicle to be paid in full, even if they only use part of the capacity of one vehicle.
This Partial Loading (Less Than Truckload/LTL), he continued, is a choice that can be used by all businesses of various scales, including MSMEs that have budget limitations.
Businesses only pay a fee per weight of load. This solution is already present in Thailand and the Philippines will be Deliveree’s next target.
“This partial loading has been done by conventional logistics companies, but it takes days because they need a warehouse for sorting. Meanwhile, we use algorithm technology for sorting, so we don’t need a warehouse,” he explained in a virtual press conference, Wednesday (22/9).
Partial Load Supports Cost and Time Efficiency
When an order is placed, the Deliveree algorithm will calculate the most optimal and efficient route from the combined cargo of businesspeople with other businesses.
This has an impact on cost efficiency and the fastest delivery estimate because it considers distance and time. The entire ordering process is done either through the app or the website.
Business people need to enter a detailed identity related to the cargo to be sent, be it the dimensions of the goods, weight, type of packaging, delivery location, delivery date, and so on.
The minimum and maximum loads accepted for Partial Load are 18 kg to 18 tonnes. The cargo will be picked up the day after the order is made, and will be delivered as soon as possible, or maximum for delivery in the next two weeks.
However, at this initial stage, it only serves delivery in parts of Sumatra, Greater Jakarta, Banten, West Java, Yogyakarta, Semarang, and Surabaya. “Next month this service will cover all regions in Java and then present nationally.”
Deputy Head of Business Development for Deliveree Indonesia, Raynov Chandra, added that the Partial Load solution is an addition for business partners who have been using Deliveree services.
So far, various services and features that have been released always pay attention to the needs of businesspeople in the field.
Therefore, he claims that Deliveree is the dominating player for logistics solutions for businesses. Various companies that have used Deliveree’s services are Tokopedia to Dekoruma.
“This Partial Load can be used for any scale of business. For example, in furniture, there is already something packaged in a cardboard box that can be used for partial loading because it is considered more economical to use a smaller vehicle,” he said.
Every day the company takes active orders of up to thousands. Currently, Deliveree has more than 35 thousand active vehicles with a total application download of more than 2.3 million downloads. Deliveree’s largest fleets are CDD, CDE, Heavy Fuso, and carry types for small cargo shipments.
Smart Logistics Solution
Although logistics is the backbone of national and international trade, the sector is facing many challenges in Indonesia, such as inadequate infrastructure, and the lack of reliable communication and information technology networks.
According to Mordor Intelligence, logistics costs vary widely between 25% and 30% of Indonesia’s GDP, compared to developing economies, equivalent to 5%. This means that shipping goods from one city to another in Indonesia can be expensive and challenging.
Citing another report released by PwC entitled Shifting Patterns: Future of The Logistics Industry, the lack of a “digital culture” and training is the biggest challenge for conventional transportation and logistics companies.
This allows emerging tech startups to fill gaps and capture business opportunities. They can digitize core operations to create intelligent logistics systems.