According to FTI Consulting, the global logistics market is projected to grow at a 6.8% CAGR during 2022-2030. And APAC will be the largest logistics market globally, holding ~45% of the total market share, and is expected to outperform other regions in the future due to positive outlook for emerging economies in the region. Asia is expected to contribute ~50% of global trade growth by 2030.
Driven by favorable trade agreements, external political factors, national policies, and relatively lower operational and labor costs, leading companies across various industries have initiated plans to expand into the Asia-Pacific region in recent years. Some manufacturing enterprises have even relocated their supply chains to the SEA region. Therefore, the transportation of goods will subsequently increase, which will also require diversified logistics support, further accelerating the potential of logistics value chains in the Asia-Pacific region.
However, the Asia-Pacific logistics and transportation industry faces multiple challenges: traditional management practices & tools, changing consumer demands, skyrocketing customer expectations, and ongoing competitive pressures. These factors are driving companies to transform to digitalization.
Therefore, optimizing time costs, reducing trial-and-error costs, and swiftly integrating with local markets in transportation management have become crucial strategies for businesses.
Client Introduction
As an innovative express transportation enterprise under a global logistics service provider, this client started its service in Indonesia in 2015, and rapidly rose to prominence with its own strong logistics resources and perfect business strategy. It provides leading integrated logistics solutions for global manufacturing, trading enterprises, cross-border e-commerce companies as well as individual consumers around the world.
In Indonesia, the client faced various management problems such as carrier, transportation, and billing, and hoped to enhance its existing management system with the help of oTMS’s transportation management system to digitally solve the problems of order allocation, difficult carrier management, lack of monitoring tools for the shipping process, uncontrollable efficiency, and chaotic manual billing management.
oTMS Solution
Given Indonesia’s status as the Land of Thousand Islands, logistics in the region often involves multi-segment transportation between islands, necessitating various transportation modes. oTMS tailored solutions to address the client’s specific needs, including:
- Unified order management, encompassing order integration, splitting, and segmenting to support multiple customer sales orders.
- Automatically assignment and management of carriers in a unified way according to the configuration of projects, regions and other rules.
- Real-time transport visibility for road, and express modes achieved through multiple means suitable to specific scenarios and use cases incl. Comprehensive transport exceptions management.
- Online and streamlined freight procurement workflow allows for quick quotes and approvals with logs of historical activities. This ensures 100% auditability and compliance.
- Business intelligence insights and analysis of transportation data to optimize multi-dimensional transportation management.
By empowering its Indonesian market with the oTMS transportation management system, the client has achieved unified order management, efficient transportation operations, cost savings, improved customer experience, and enhanced digital logistics management efficiency, bolstering its service competitiveness.
