Kamadjaja Logistics Reduce Operational Costs and Increase Work Effectiveness with Microsoft Cloud-Based Technology Solutions

 |   Indonesia News Center

Transformasi digital Kamadjaja Logistics

Jakarta, 7 September 2021 – As an integrated logistics solution provider that has answered the needs of inventory management, distribution, and supply chain solutions from hundreds of leading companies in Indonesia for more than 50 years, Kamadjaja Logistics has successfully maintained its service quality. This enables companies to manage inventory and deliver their customers’ products safely, securely and on time, while staying focused on their business operations and sales. The process to consistently maintain its service quality is not easy, but thanks to the digital transformation that Kamadjaja Logistics has carried out, they have managed to develop an operational activity system integrated with Microsoft’s cloud-based technology solutions.

“In managing the logistics business, there are many stages that we need to go through. Starting from processing customer logistics data that is spread across various cities, ensuring the inventory and distribution process run smoothly, to managing so many financial transactions. All of these are done to ensure that products can reach customers safely and on time,” said Ivan Kamadjaja, CEO of PT Kamadjaja Logistics.

One of Kamadjaja Logistics’ main strategies to create systematic and integrated operational activities is by digitalizing its business processes. Not only for work effectiveness, but also to improve operational cost efficiency. This is because operational cost efficiency can help reducing costs that will later be charged to customers.

“Just like how technology has brought changes in market behavior, technology has also driven changes in how organizations work. Today, customers want a service that is simple, seamless, and personalized. For this reason, digital transformation for businesses that can answer this need plays a very important role,” Ivan continued.

In carrying out its digital transformation, Kamadjaja Logistics divided it into five main stages. First, task efficiency for individual task completion through fundamental connectivity and more efficient communication. Second, functional efficiency by maximizing work automation and collaboration. Third, system efficiency that focuses on digitalizing core system functions through the cloud, so that the work system is more agile in the face of change. Fourth, organizational efficiency and agility, where enterprise applications are migrated to the cloud and all systems are effectively integrated. Fifth, the efficiency and resilience of the ecosystem to be able to respond to market changes and the demands of the company’s operations quickly, as well as to support automatic and cross-sectoral coordination between stakeholders.

“Through these stages, we became more focused on the follow-up actions we had to take. Some of the transformations that we have successfully carried out to date, for example, is how the records of business transactions from tens or hundreds of locations can now be integrated directly with Microsoft Dynamics 365 Finance and Operations, so that data can be updated in real time. Then, submission and approval of budgets can be done simply through a mobile application created through PowerApps, thereby increasing the speed of the working process by up to three times. In addition, the data analysis process between departments can be carried out faster thanks to data centralization and the AI ​​feature in Power BI,” Ivan continued.

Thanks to this digitalization, Kamadjaja Logistics succeeded in continuing its business development. As a result, the company currently has more than 39 distribution centers spread across 15 major cities in Indonesia to make shipments to more than 355 cities in the country.

“Technology, especially the cloud, has reimagined organizational operations. If we can use it well, we can get various benefits. From collaboration across time and location that allows hybrid work to happen, work automation to avoid repetitive work so workers can focus on strategic tasks, to analytics and data insights for business development. Operational costs can also be reduced by up to 14% because everything runs automatically in a secure cloud environment. We just pay according to our monthly usage,” Ivan concluded.

Doing digital transformation is not easy. However, the pandemic has accelerated this transformation. At Kamadjaja Logistics itself, the use of mobile applications for work has reached 90-100%, an increase of 50-70% from before the pandemic which was in the range of 30-40%. In the future, Kamadjaja Logistics aims to explore the AI ​​features that currently exist to improve work effectiveness and efficiency in all lines of the company’s operations.

Vony Tjiu, Corporate Commercial Director of Microsoft Indonesia said, “The transformation at Kamadjaja Logistics is a real example of how the pandemic has accelerated the company’s digital transformation. This means the transformation needs to be prepared from now on in clear stages, so that the process is effective. Guidance from leaders and digital skills also play an important role here. At Microsoft, we are ready to empower every person and every organization on the planet to achieve more. Together, let’s accelerate digital transformation so that we can support the digital economy of Indonesia.”