Warung Pintar Uses Supply Chain Technology to Distribute Social
Warung Pintar Group initiated Smart Assistance, an integrated social assistance infrastructure starting from the ordering system, provision, delivery, to the distribution of aid to beneficiaries.
As a mutual cooperation effort to support the community and government in helping sectors affected by Covid-19 in Indonesia, Warung Pintar Group utilizes the digital supply chain ecosystem for distribution channels for the distribution of social assistance (bansos).
Smart Assistance is the first social assistance distribution service in Indonesia that offers technology-based integrated solutions from upstream to downstream. This initiation is a form of optimizing the digital ecosystem presented by Warung Pintar Group so that it can be utilized and has an impact for wider purposes, especially in the midst of a pandemic.
The CEO of Warung Pintar Group, Agung Bezharie Hadinegoro, explained that the technology called Pintar Assistance is a concrete effort by the company to ensure that the Warung Pintar Group has a wider impact on the Indonesian people.
Pintar Assistance is a concrete effort by the company to ensure that the Warung Pintar Group has a wider impact on the Indonesian people.
“This is also a form of our support for the government’s commitment to continue to encourage the acceleration of the distribution of social assistance in order to reduce the burden on people affected by the COVID-19 pandemic, especially in the midst of the extension of PPKM Level 4 until August 2, 2021,” Agung said in a statement, Tuesday (28/7/2021).
Initiated in May 2020, Smart Assistance has distributed nearly IDR 20 billion to at least 250,000 social assistance beneficiaries located in more than 20 cities and regencies. Assistance distributed by collaborators has several delivery system options according to its purpose.
The assistance includes food assistance or subsidies for employees, dormitory or orphanage needs, health protocol facilities for MSME actors who are struggling in the midst of a pandemic, to business capital assistance and business development education to support the Government’s National Economic Recovery Program.
20 Institutions Cooperate with Warung Pintar
More than 20 institutions have been recorded to have collaborated with the Warung Pintar Group, including Bank Indonesia, Kompas Cyber Media, Rumah Yatim, Baznas (Bazis) DKI Jakarta, and dozens of other partners.
Doni Primanto Joewono, Deputy Governor of Bank Indonesia, said that the Bank Indonesia Social Program with the Warung Pintar Group is a breakthrough that can become a role model for other economic empowerment programs for MSMEs, especially small shops and ultra-micro businesses.
To date, Bank Indonesia itself has utilized Smart Assistance to implement a community-based empowerment program for 3,000 beneficiaries whose stall businesses have been affected by the Covid-19 pandemic.
Offer More Integrated Digital Solutions
Warung Pintar is now transforming into Warung Pintar Group to present the most complete and inclusive solution to integrate all players in the stalls business ecosystem in Indonesia.
This ecosystem includes shop owners, grocery stores, wholesalers, distributors, and brands as well as to strengthen their role and prepare for Indonesia’s economic acceleration after the Covid-19 pandemic.
Based on the results of an internal Warung Pintar Group survey, at the beginning of the pandemic, 93 percent of shop owners experienced a decline in sales of up to 28 percent.
74% (approximately USD 267 billion) of Indonesian retail business occurs in traditional channels, and the number of stalls is 60% of that figure. Warung is also the main distribution channel with a contribution to GDP four times higher than e-commerce.
The main problems with stalls are the multi-layered distribution system that reduces efficiency by 20-25%, the information is fragmented and asymmetrical which causes no data visibility thus hampering growth for all parties, and many players trying to bring solutions to only one side.