According to the latest set of statistics, courier and logistics services in Indonesia have been registering an impressive rate of revenue growth every year. This figure typically lies between 30% and 40%. This growth has largely been attributed to the high rate of growth of the country’s logistics business, in particular the growth which has been registered in the industrial logistics and shipping goods sectors in Indonesia. Most courier and logistics companies in Indonesia are typically operated by small and medium-sized companies. For this reason, the courier service industry in Indonesia is categorized as a fragmented industry because no company has a truly large and dominating market share which would have a serious impact upon the policy direction of the sector.
One of the primary factors driving the significant growth of courier services in Indonesia is the growing e-commerce business that demands delivery of products to be sold between customers. This growth of e-commerce has in turn increased the demand for courier services across Indonesia. Therefore, to cope with the increased demand, courier service companies have been adopting new technologies which will see them keep up with the increasing level of competition which exists in Indonesia today.
Why Courier Services Are Necessary
The changes which have become evident through changes in world trade patterns, the most significant being the emergence of online trading systems commonly referred to as e-commerce, have necessitated the need for courier services. The rapid development of e-commerce has been powered by the spread of information and communication technology, including the development of mobile applications and the availability of relatively inexpensive Internet connections. With the increasing number of Internet users in Indonesia, more people are shifting to online shopping, making it necessary for businesses to adopt courier services. An increasingly tight and competitive business environment underpinned by factors such as market penetration by new competitors as well as the increasing demand for satisfactory services has also greatly contributed to the adoption of courier services by most businesses in Indonesia.
In addition, in order to increase turnover while at the same time managing operational costs, courier services across Indonesia have begun to expand their operations internationally. To fully meet the customer requirements and needs, it has become necessary for such companies to adopt the use of courier services. This allows them to offer tailor-made services to their customers while at the same time attracting new ones with the different packages they offer such as cheaper rates pick-up services with insurance coverage as well as real-time data and tracking.