The document discusses how operating multiple fulfillment centers across Indonesia's major cities can help e-commerce companies improve delivery times, lower costs, and better serve customers outside of Jakarta. It provides examples of how major companies like Amazon and Walmart use distributed fulfillment networks. Implementing a multi-center approach integrated with technology and supply chain analytics can optimize inventory levels across regions and help companies focus on growing existing nonlocal markets.

1. GETTING CLOSE
TO YOUR CUSTOMER WITH
MULTIPLE FULFILLMENT
CENTERS
Operating to 1000 islands of INDONESIA
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Table of Content
CONDITION
NOW
DISTRIBUTED
APPROACH
TECHNOLOGY CONCLUSION

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Delivery Time
Average delivery time 4
days 20 hours
Condition Now
CLSA mid 2015
Fulfillment in Indonesia
Mostly only exist in Jabodetabek
( Single Fulfillment )
1,420 Km to Medan
663 Km to Surabaya
Jabodetabek

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Condition Now
0
2
4
6
8
10
12
Jakarta Surabaya Medan
eCommerce Delivery (days)
Delivery Time (days)
Population (mio)
Condition Now
CLSA mid 2015

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0
1
2
3
4
5
6
Jakarta Surabaya Medan
eCommerce Delivery (days)
Delivery Time (days)
Sales Contribution %
Free Delivery (4-7 days)
Free Delivery (1-2 days)
More profit
111%Transport cost
Jabodetabek  Surabaya
-5% Storage cost
Jabodetabek vs Surabaya

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Potential market to tap on
Condition Now
eMarketer December 2015
65,6 %
Indonesia #2 fastest
growing e-commerce
in Asia after india
Growth in 2015
44 %
Non – Jakarta
sales account
and increasing
10 %
Online retail sales
forecast is growing
Online retail sales
Forecast 2019
$ 20
Outer Java tends to spend
US$20 more in online
shopping than people in
Jakarta and Java
Spend more

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The
Challenges
Make your outside Jakarta
customers spend the same
delivery cost as Jakarta.
Get the product faster (delivery time)
Increase customer satisfaction
Grow your existing market

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Advance eCommerce
amazon.com has implemented
Multi Fulfillment Centers
In 28 States
Amazon Fulfillment Centers

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Advance eCommerce
Walmart combined store DC
With eCommerce FC
Walmart store

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Multi Fulfillment Centers in Indonesia
Close to your
customer
Potential to Grow
your market
Outside jakarta
Faster
Delivery
Lower
Cost
Customer outside Jakarta

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Using Multi Fulfillment Centers
Transform your
operation
electronicaly
Multiple DC and
operation
Real time visibility Intelligence reporting
Higher customer satisfaction

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Single Fulfillment Centers
Multi Fulfillment Centers in Indonesia
Supplier
FC Customer
Multi Fulfillment Centers
Supplier
FC Customer
FC Satellite FC Satellite

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Invest Your Own FC
Multi Fulfillment Centers in Indonesia
Resource, technology, assets, time
Feel more in control
Outsource to 3PL
Lower cost, faster
Service level control

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Multi Fulfillment Centers in Indonesia
FC 1 FC 2 FC 3 FC n
Order Management System
Online Store
TMS
Offline Store
Future Expansion
Intelligence
Reporting
Supply Chain
Analyst

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Supply Chain Analyst
Optimized
Inventory
balance
Stock Days
By Region Inventory
visibility
reports
Fulfillment
Report
Delivery Lead
Time
By Region
By Date
Top 10 items (qty and value)
Normal and promotion sales
By region by date
Projected sales*
Sales Reports

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Supply Chain Analyst
AREA 1 AREA N
Optimized Inventory Balance
AREA 2 (MAIN)

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Conclusion
Distributed approach potentially increase
your customer satisfaction
Focus on existing market outside Jakarta
Technology to consolidate and coordinate
Supply chain analyst to optimize
the inventory level

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What 8commerce do
eCommerce technology & fulfillment
that integrated and automated all
process across digital marketing,
store operation & fulfillment centers

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Our Advantages
Revenue sharing
for dedicated
online store
(saves at least IDR
400 mio in 2 years)
Sales focused,
performance
marketing
(KPI in online sales
conversion)
Integrated
marketing and
operation
Proactive store
operation
Fulfillment Center
in 7 main
Indonesia cities
(deliver faster and
more efficiently)

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eCommerce System
Scalable, secure, high availability
eCommerce system
IBM technology
And Magento technology
Performance
Marketing
KPI on traffic to sales conversion
UI/UX designer
IBM partner
Revenue share model
(dedicated site)
Organic marketing Social media,
email marketing
Paid marketing
(GDN, SEM, remarketing)
Yearly marketing strategy
> monthly > follow up
Integrated marketing and operation

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Store Operations
Proactive order management
Product cataloging and content
management
Fulfillment Center
Multi location (7 main cities)
– faster, lower cost
Multi channel
Customer service (pre & post sales)
Payment (3rd party)
Infor WMS
Real time stock information
Order status update, Detailed tracking
ISO 9001, 14001, OHSAS 18001
Shared resources
Return handling
Decades of experience

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8commerce Assets

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THANKS AND LETS COLLABORATE!
RONNY RITONGADI
ronny.suryadi@8commerce.com
+62811821009
www.8commerce.com
85.000 sqm DC
99,8% stock accuracy
7 main cities
600+ fleets