Reasons Why Transportation and Logistics Businesses Improves in Quarter I of 2022

Understanding Logistics as an Important Key to Business Success

The terms logistics and logistics management are increasingly well-known and familiar to the public after the Covid-19 pandemic hit the world, including Indonesia. Amid the emerging need to get the needed goods continuously, quickly, and accurately, top-notch logistics activities become the key. Moreover, it also determines the economic growth and development of a country.

As mentioned by logistics expert Donald J. Bowersox in his book Logistics Management, logistics is a science about planning and determining the need for procurement, storage, distribution, and maintenance, and the elimination of materials or tools for production and consumption activities.

Thus, with a good logistics management, business activities will also bear excellent results. And on a broader scale, the success of logistics management will determine the economic growth of a country.

Indonesia has proven it. Based on the data from Statistics Indonesia (Badan Pusat Statistik/BPS), Indonesia’s economic growth in Q1 of 2022 reached 5.01 percent year-on-year (yoy). This success was supported by a number of business sectors. One of the main ones was the recovery in the transportation and warehousing or logistics.  

In Q1 of 2022, transportation and warehousing saw 15.79 percent growth (yoy) with a distribution of 4.62 percent. BPS emphasized that the growth in these sectors was because of the improving mobility of the people, which had an affected public transportation, besides the increasing number and scale of public consumption.

The increase in community mobility can be seen from recently blooming activities after two years of the Covid-19 pandemic. Based on Google Mobility data processed by BPS, people’s mobility in the first three months of 2022 has shown the best improvement since the pandemic.

Aside from this surge in mobility, another factor that contributed to improving the transportation and warehousing sectors is the organization of several events, both at a national and international scale. These events have a huge impact on public transportation. In fact, in Q1 of 2022, the number of air transport passenger grew by 58.13 percent (yoy).

2022 Outlook

2022 is predicted to be the year of economic revival in Indonesia, marked by a continued increase in investment realization, export achievement, tax contribution, and its contribution to the Gross Domestic Product (GDP). The increase in Purchasing Managers Index (PMI) throughout Q1 to Q3 of 2021 is also an important booster.

Last year, Indonesia’s Manufacturing PMI broke the record for the highest ranking in history several times: 53.2 in March, 54.6 in April, 55.3 in May, and a peak of 57.2 in October.

However, all the existing potential will mean nothing for businesses if there is no proper, precise, and efficient logistics management. “It’s hard to imagine any marketing of manufacturing sectors without logistics support. Also, marketing and manufacturing yields would not be as high as it should be without a proper logistics management,” said Donald J. Bowersox.

In a good and modern practice of business operations, not all activities—including logistics—should be tackled by a company alone, as it can involve other institutions or companies as its implementing partners. It is because logistics, transportation, and warehousing have an important role in a supply chain management,  and it is very rare for a product to be manufactured and consumed in a same location.  

A successful supply chain strategy requires a proper transportation management. Therefore, choosing the right logistics company is necessary to achieve the business goal of generating maximum profits.

PT Serasi Autoraya

One of the largest companies in the sector is PT Serasi Autoraya (SERA), a subsidiary of PT Astra International Tbk that is renowned for its transportation and logistics solutions. First established to provide vehicle rental solutions, it has transformed into the largest, industry-leading transportation provider.

With its Astra Fleet Management Solution (AstraFMS), SERA provides businesses in Indonesia with IT-based comprehensive solutions for managing fleet vehicles. The service caters to any fleet management needs, be it passenger vehicles or goods vehicles.

For 32 years, this Astra Group subsidiary has been consistently innovating to improve the quality of its services. SERA’s core businesses include used car dealers, car rentals, and courier service providers under its SELOG brand.

SELOG is established to answer the customers’ needs for comprehensive logistics solutions through a series of diverse services.