Going the distance with e-commerce
Indonesia-focused logistics firm Satsaco Group has had a trying three years, with profits falling on the back of a sluggish economy and a weakened rupiah. But it is on track to turn things around by venturing into e-commerce logistics, a high growth area in Indonesia.
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Claudia Chong
WHEN a leading e-commerce firm first came to them, it was burning S$20,000 to S$30,000 for every round of merchandise air-flown to Indonesia. It was taking its agent one to two weeks to clear the goods, too.
Now, the e-commerce firm has turned to using sea freight instead, allowing goods to reach its Indonesia warehouse within seven days at a third of the previous cost - all on the advice and services of local logistics provider Satsaco Group.
Satsaco, which specialises in freight forwarding to Indonesia, began providing business-to-consumer (B2C) services to e-commerce players only last year. Five years ago, it started catering for business-to-business (B2B) e-commerce fulfilment. And though it is in its early stages, income from the e-commerce segment already accounts for more than half of the company's revenue of S$11.3 million in 2016.
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