• PT Pos Indonesia is targeting land cargo

    This is a demand. In the current era of globalization, cargo transportation services become one of the important elements for business actors. These services are needed to distribute products and reach consumers to various regions.

    Internet presence is also a leverage. When people used to come to the store and bring home the goods purchased, now people live click online and goods delivered to the home address in good condition. In short, the speed factor, the security and the delivery coverage, are the reasons cargo business is needed

    With this reason also, PT Pos Indonesia (Posindo) is aggressively developing cargo business. One of the targeted is the land cargo business. Early last August, the red plate logistics company launched a soft launching service called Post Land Retail Cargo.

    This is a freight forwarding service by landline for retail products in bulk. Weight of goods delivered at least 30 kilograms (kg) up to a maximum of 250 kg.

    Director of Logistic Integration of PT Pos Indonesia Barkah Hadimoeljono said the development of this service is the result of a study conducted since last year. Posindo sees still few players who provide this service but the demand is quite large. “This product is based on the needs of the community, especially traders, small and medium enterprises (SMEs) and cooperatives,” he said.

    Based on the road map of Posindo’s land cargo business development, in the first two months, management will prioritize the preparation of operating and network capacity. This service will be provided in 20 post offices in Jabodetabek, West Java, Central Java and East Java. Only next year, this service will be provided almost all post offices.

    Barkah added that in carrying out the land cargo service, Posindo uses the company’s internal capacity. Both in terms of fleet of transport vehicles including using the services of PT Kereta Api Indonesia and warehousing.

    Well, for this product ogled the community, Posindo has prepared two main strategies. First, the addition of services. Just like any other cargo service, items delivered can be tracked using the app. The difference, Posindo also provides pick-up service, delivery, until the packaging of goods. Consumers are also welcome to choose the goods shipped, to be delivered or picked up at the nearest post office.

    Second, the price is cheaper than competitors. Management is not willing to mention shipping rates. Only, Barkah said the tariff can be cheap because business process is designed efficiently. Post cargo using tagline: Cheap-Easy-Trusted. “Speaking of cargo should talk efficiency, we adjust the operational process and take advantage of existing capacity,” he said, with the tone of promotion.

    The entry of Posindo to land cargo is not without reason. So far, Posindo has provided sea cargo and air cargo services by holding state-owned transportation. However, after deploying the service, Posindo felt that it has not reached all regions optimally. Understandably, air cargo and sea cargo services can only serve cities with ports or airports only.

    In addition, this business breakthrough is part of the transformation. Posindo wants to expand its logistics and cargo business optimally as compensation for the decrease of mail and courier delivery business.

    This year, Posindo will transform the business digitization. Funds prepared for this revamping reached Rp 1 trillion. After making operational improvements by improving the processing center system throughout Indonesia, Posindo will also pursue speed with certainty, security, competitive, accessibility, and branding shift.

    In security system, Posindo will develop the goods tracking system in real time. Pursuing its competitors, consumers will be able to access the tracking easily, via a smart phone.

    Barkah revealed, at this time, management has not determined the target and contribution of land cargo to their overall income. You see, management is still the focus of network building.

    But Posindo admitted quite optimistic, that this service will be selected by the community. The reason is that the land cargo is supported by 4,800 post office networks, plus 24,500 service points in the form of post offices and 49,000 postal agencies. “The target of Indonesia’s postal cargo service is the community, especially the traders can get added value from this service,” said Barkah.

    Changed has become a must for conventional companies to face the competition. However, changing does not mean leaving the competence owned. Competence becomes an advantage that must be maintained.

    The average postal companies around the world have also turned business into financial services and logistics business. Because, they have the advantage that can be sold that is, their network or channel that has spread to distant areas.

    For Yuswohady’s Marketing and Management Observer, the entry of PT Pos Indonesia (Posindo) to the land cargo service is a must. Because Posindo does have the competence in the field of land logistics. So, they just use internal capacity, from the ground transportation and warehousing they have built. Moreover, the presence of e-commerce and online transactions provide ease of transactions and also increase the flow of goods movement.

    Well, step Posindo working on retail logistics services bulky or bulky is considered as the right strategy to become a source of revenue. The targeted segment is also a promising segment, namely small and medium enterprises (SMEs), traders and cooperatives that grow very rapidly. “This is a business to business (B2B) approach that promises great margins. Unlike the B2B with large corporations where they have bargaining positions to request discounts on Pos Indonesia so that margins are reduced, “said Yuswohady.

    By entering the land cargo business, Posindo is sure to provide efficiency in the form of cheap price. Because, Posindo no longer need to invest big building networks, which they have long. This is Posindo’s advantage, because its competitors have to build a network and it affects the price given to consumers.

    The challenge in the logistics business is to maintain the quality of service because they sell service solutions. Goods sent should be traceable and received on time. “This business needs good management. Pos Indonesia must be able, they have long in this business, “said Yuswohady

    ———
    Sources: http://industri.kontan.co.id/news/pt-pos-menyasar-kargo-darat?page=1
    Translated by Aryputra Pande

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