Waresix, First Startup Integrated with National Logistics System
Waresix, a startup that provides integrated logistics solutions, became one of the first platforms to be integrated with the NLE system.
The government continues to be committed to creating an increasingly efficient logistics ecosystem in Indonesia. To realize this goal, in September last year the government launched the National Logistic Ecosystem (NLE) major program.
This program aims to cut logistics costs to 17% of Gross Domestic Product (GDP). This initiative is expected to be able to reduce costs and price gaps due to the integration of government digital platforms and private players.
Currently, Waresix has operations in more than 200 cities in Indonesia, and manages more than 50,000 trucks and 400 warehouses, and serves more than 250 corporate and MNC clients, especially in the commodity, FMCG, and infrastructure industries. This makes Waresix an ideal partner in implementing NLE initiatives.
“With the experience and technology that Waresix has, we believe we can help improve the country’s logistics supply chain, which is beneficial for both local and foreign companies, by lowering costs and increasing economic competitiveness,” said Edwin Wibowo, Co-Founder & CFO of Waresix.
The Waresix business model has also proven to be resilient during the pandemic. Throughout the first quarter of this year, Waresix recorded an almost doubled performance increase compared to the fourth quarter of last year (quarter to quarter).
This is proof that the Waresix technology platform that connects the company with truck and warehouse owners is able to provide solutions to logistics problems.
Focus on Stimulating Growth Organically and Inorganically
This year, Waresix focuses on promoting growth both organically and inorganically. In December 2020, Waresix acquired Trukita.
This acquisition is Waresix’s expansion into the first-mile logistics segment, namely logistics activities between ports and warehouses. Post-acquisition, the number of trucks increased by 25%.
Waresix believes that NLE can help private logistics players improve their performance. With a population of nearly 270 million, Indonesia is the largest logistics market in Southeast Asia.
Indonesia’s geographical condition which consists of many islands makes the movement of goods not only rely on one mode of transportation. Moreover, infrastructure development has not been evenly distributed. This is one factor in the high cost of logistics in Indonesia.
“Logistics costs in Indonesia can reach almost a quarter of the total national GDP, and are among the most expensive in Asia. The application of technology and digital platforms for the logistics sector is the most possible and needed solution,” continued Edwin.
Furthermore, Edwin provides an illustration, about 80% of trucks operating in Indonesia are managed by small business players. The tracking and verification process is still carried out manually or using temporary communication networks such as Whatsapp.
This causes the fragmentation of supply and demand which in turn causes the utilization of warehouse and truck areas to be not optimal.
To solve this problem, Waresix built a platform that curates supply and demand in the logistics supply chain.
Platform Ensures Information Takes Efficiently and Transparently
The platform offered by Waresix not only connects shippers and business people with the warehouse network and available transportation modes, but also ensures that information between the parties involved takes place efficiently and transparently.
This Waresix technology offers added value to Shippers and Transporters, where Shippers can get fast and reliable transportation access, at a more affordable price.
Meanwhile, for transporters and drivers, the modes of vehicles and trucks can be utilized optimally, thereby increasing their income margin. In addition, to increase efficiency, a monitoring system that is updated in real-time is needed.
With the tracking system provided by Waresix, both the company and the asset owner are able to monitor the movement of goods so as to speed up the delivery verification process.
“We will continue to focus on developing services that can increase efficiency for companies, truck owners and warehouse owners. We believe efficiency improvements are the key to Indonesia’s logistics growth,” concluded Edwin.