KADIN INDONESIA

COVID-19 IMPLICATION TO LOGISTICS SERVICE PROVIDER :

Services and Performances

Prepared by :

Dr. Nofrisel, SE, MM, CSLP, ESLog

Head of Permanent Committee on Logistics Service, Supply Chain and Human Resources KADIN INDONESIA

Cikarang, 01 October 2020

SEMINARLOGISTICS & SCM DURING & AFTER

COVID-19 PREDICTION

KADIN INDONESIA

PROFILE :Dr. Nofrisel, SE, MM, CSLP, ESLog

• More than 30 years experience in logistics, retail and supply chain management, SOE and private companies which Logistics and Supply Chain Management Sertification

• Currently active as :• President Director of PT Dewata Freight International, Tbk• President Commissioner of PT Samulos Harmoni Energi Perkasa• President Director of PT Jawa Barat Logistik• Senior Technical Advisor of PT Gatotkaca Trans Systemindo• Senior Technical Advisor of BNPB for National Humanitarian Logistics Cluster• Executive Director of SEMBADA PRATAMA

• Organizations :• KADIN : Head of Permanent Committee of Logistics, Supply Chain and Human Resources• ALI : Chairman of Board Expert• APTRINDO : Deputy Chairman• ALFI : Deputy Chairman of West Java• APINDO : Member of Transportation Team• ISMS : Head of Logistics and Supply Chain

• Lecturer at several universities majoring in Operation Management, Strategic Management and Logistics & Supply Chain Management

• Consultant in Logistics and Supply Chain• Speakers, Moderators and panelist in various conferences, workshops, FGD, both domestics and international

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AGENDA

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1

2

3

4

INTRODUCTION

CONCLUSION

COVID-19 AND OPPORTUNITIES

LOGISTICS VS COVID-19

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INTRODUCTIONS

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Global Economic Growth Projections after Covid-19

Global and Indonesia Economic Growth After SARS, Ebola dan COVID-19

Global Growth 2020

Source : IMF (April 2020)

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National Economic Growth Predictions after Covid-19

5,3%(APBN 2020)

-0,4%(heavy)

2,3%(Medium

level)

Before COVID-19

After COVID-19

2020

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Impacts to People Walfere

(Millions People)

Poverty + 4.86 + 1.89Unemployment +5.23 +2.92

Heavy Scenario

Medium Scenario

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• Covid-19 has created a terrible economic slowdown

• Logistics is one of 12 sectors that are excluded from the PSBB (lockdown) policy, not because of its urgency but also of its nature

• There are always 2 (two) conditions in every crisis, the lucky and the losers

• For some companies, covid-19 is a momentum for a turning point for survival and growth

COVID-19

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COVID-19 : Impacts to business

• As well as serious implications for people’s health, COVID-19 (coronavirus) is significantly impacting businesses and the economy.

• The initial outbreak of the coronavirus in China disrupted global supply chains.• Most small businesses lack the cash reserves to weather a month-long

interruption, and forecasts indicate more than 7 million workers could lose their jobs in just several weeks

• Hospitality, travel and restaurant are three of the biggest industries impacted by COVID-19

• Manufacturing and construction have largely held off on layoff decisions, but these industries could suffer the strain as consumer demand drops

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https://www.businessinsider.com/hotel-industry-could-lose-4-million-jobs-coronavirus-covid19-unemployment-2020-3https://www.businessinsider.com/coronavirus-impact-america-travel-industry-airlines-economy-2020-2https://www.businessinsider.com/housing-market-starts-coronavirus-slams-biggest-dip-since-decline-construction-2020-4

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LOGISTICS VS COVID-19

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• Logistics is one of the business that is predicted to remain booming

• Online based logistics will continue to increase

• The impact of Covid-19 is expected to last 1-2 years

• A company that survives is not a big one, but one that can adapt

• Some companies face cash flow if they do not make changes to innovations and business model changes quickly

• Covid-19 inspired many companies to build new normal in business

LOGISTICS Vs COVID-19

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Covid-19 Implications on Logistics

LOGISTICS

LSP Manufacturing/

Project

Infrastructures

Logistics Actors

(Producer of goods)

Logistics Service

Providers

Bulk-Based

Logistics

Courier-Based

Logistics

• B 2 B

• G 2 G

• B 2 C

• C 2 C

>50%

30%

80%

Source : multi perspectives (2020)

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COVID-19 AND OPPORTUNITIES

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Opportunities

• Product Innovation

• Process innovation and improvement

• Implementation of relevant technologies

• Differentiation and Diversification

• Building capabilities and HR Competencies

• Collaboration and partnerships

• New business model and customers

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LOGISTICS SERVICE :Big Data Management

LOGISTICS SERVICE

INTEGRATION PLATFORM

CARGO SOURCES

Pengolahan

Trading

Konstruksi

Hasil Alam

TRANSPORTER

Kereta Api

Truck

Laut

Udara

WAREHOUSE AND YARD

DistributionCentre

Warehouse

Container Yard

USERS

Petani &Peternak

Trader

Pabrik & Proyek

Importir & Exportir

Several Logistics Service Providers can collaborate on a powerfulbig data and digitization force…

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Industri 4.0 and Logistics Responses

Automation :• Port Management•Warehouse

Management• Transportation

Management•Distribution Center• Courier Service• Cold chain

management• Fulfilment Center• Ect.

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NEW NORMAL :New Direction of Logistics and SCM Development

• Artificial intelligence

• IOT

• Sharing Economy

• eCommerce and online shops

• Ecommerce logistics

Very influential on

the business

model and

operating system

Need to prepare adaptive process

design and business models

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Shared Capacity

Logistics

Intelligent

Connected

End-to-End

Visibility

Financing Value

Chain

Ecosystem

PlatformAutomation

Manufacturer

(FMCG, others)

BUMN/OtherEnterprise

Distributor/

Logistcs Player

Rural/ UMKM

Managed

Logistics

Total ICT

Services

Managed

Logistics

Operation

Services

Managed

Logistics

Business

Services

Distribution Center

Depo

Point

Toko

Warung

EndCustomer

Cross Border

Partners - collaboration

SCM and Value-Added Service

Long-term Platform in Logistics Business

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Logistics Training Framework

Training

Inclass Training

On floor Training

Cross Function

On The Job

Training

Project Assignment

Coaching & Mentoring

Formal

Learning

Informal

Learning

20%

80%

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Explicit and Tacit Knowledge :two factors that influence each other’s business development

Tacit Knowledge- Embedded in individual experience

- Highly personal

- Hard to articulate

Source: Nonaka and Takeuchi (1995)

Explicit Knowledge- Can be articulated

- Expressible in words and numbers

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CONCLUSION

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FIRM SERVICE

QUALITY

NE

TW

OR

K

CA

PA

BIL

ITIE

S

HIGH

HIGH

LOW

LOW

Normal

Operation

Out Perform

Firm

High Firm

Absorptive Capacity

Industrial

Adjustment Policy

Organic

Growth Policy

Source : Nofrisel (2009)

Policy implications

Policy implications

MACRO AND MICRO ALIGNMENT STRATEGIC DIRECTION

Low Firm

Absorptive Capacity

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How to compete in supply chains era?

Adding

customer

value

Reducing

costs, and

expanding

margins

In highly competitive markets, we can compete

by doing one or both of the following:

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Menara Kadin Indonesia 3rd, 24th & 29th FloorH.R. Rasuna Said X-5 Kav 2-3 Jakarta 12950 Indonesia

Phone : +62 21 5274484 (Hunting) Fax : +62 21 5274331, 5274332

TERIMA KASIHDr. Nofrisel, SE, MM, CSLP, ESLog

Email : Nofrisel@yahoo.com

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