The rapid growth of e-commerce in Indonesia, especially during the pandemic, places increasing demands on its supply chain infrastructure. But the country’s logistics industry is highly fragmented, with businesses typically relying on multiple vendors for shipment, and many warehouses are still concentrated around major cities. Advotics wants to help with software to make the entire supply chain easier to follow and recently closed a $ 2.75 million funding round led by East Ventures.
Founded in 2016 by Boris Sanjaya, Hendi Chandi and Jeffry Tani, Advotics currently has more than 70 clients, ranging from individual resellers to large companies like Exxonmobil, Danone, Reckitt Benckiser, Sampoerna, Kalbe and Mulia Group.
According to the Statistics Indonesia research institute, there are around 5 million small and medium-sized manufacturers in Indonesia. They use a supply chain with 15 million small and medium distributors and approximately 288,000 large distribution companies. This fragmentation means higher expenses, with Report Linker estimating that logistics costs vary between 25% and 30% of Indonesia’s gross domestic product.
To help make logistics more efficient for its customers, Advotics offers SaaS solutions to monitor almost their entire supply and logistics chain, from warehouse inventory to creating delivery routes for drivers. . It includes a product scanning feature that uses QR codes to track products and prevent counterfeiting. The company’s new funding will be used to launch an online-offline system for SMEs and grow its sales team.
Advotics is one of several tech startups taking different approaches to tackle Indonesian logistics infrastructure. For example, Shipper wants to give sellers access to “Amazon-level logistics”, while Logisly focuses on digitizing truck shipments. Waresix recently acquired Trukita to connect businesses to shippers and the truck shipping platform. Kargo supporters include Uber co-founder Travis Kalanick.