The rapid growth of electronic commerce in Indonesia, especially during the pandemic, places increasing demands on supply chain infrastructure. However, the country’s logistics industry is highly fragmented. Businesses typically rely on multiple providers for a shipment, and many warehouses are still focused on large cities. Advotics wants to help with software to make it easier to track the entire supply chain and recently closed a $ 2.75 million financing round led by East Ventures.
Founded in 2016 by Boris Sanjaya, Hendi Chandi and Jeffry Tani, Advotics currently has more than 70 clients, from retailers to large companies such as Exxonmobil, Danone, Reckitt Benckiser, Sampoerna, Kalbe and Mulia Group.
According to the research institute Statistics Indonesia, there are around 5 million small and medium-sized manufacturers in Indonesia. They use a supply chain with 15 million small and medium-sized dealers and around 288,000 large distribution companies. This fragmentation means higher costs. Report Linker estimates that logistics costs are between 25% and 30% of Indonesia’s gross domestic product.
In order to make logistics more efficient for its customers, Advotics offers SaaS solutions with which almost the entire supply and logistics chain can be monitored, from inventory to the creation of delivery routes for drivers. It includes a product digitization feature that uses QR codes to track products and prevent counterfeiting. The company’s new funds will be used to launch an online-to-offline system for SMBs and expand the sales team.
Advotics is one of several technology startups that are taking different approaches to tackle Indonesia’s logistics infrastructure. For example, Shipper wants to give sellers access to “logistics at Amazon level”, while Logisly focuses on digitizing truck shipments. Waresix recently acquired Trukita to connect businesses with shippers and the trucking platform. Kargo’s supporters include Uber co-founder Travis Kalanick.