Strategy for Running an Expedition Business with ERP Software

For those of you who often shop online, you may already be familiar with the term expedition. Expedition is the activity of sending letters, goods, and so on.

Expedition and e-commerce are related to each other, when you make a purchase via e-commerce, you need an expedition to send the goods you ordered.

Quoting via Kominfo, the growth in the value of electronic commerce or e-commerce in Indonesia reached 78% and Indonesia is the country with the highest e-commerce growth in the world.

According to databoks, there are 20.8% of Indonesian people who frequently shop online. You could say that this figure is quite a high number.

With so many Indonesians carrying out e-commerce purchasing activities, as an entrepreneur, you can create a strategy for running expedition services in Indonesia.

To find out more about what an expedition is and the right expedition business strategy, read the explanation of the SAP Bandung article below to the end!

What is an Expedition

Expedition is an activity provided by a company in the field of goods transportation services, mail delivery, and so on. This delivery is carried out either by land route, air route or sea route.

Through expedition services, sellers and customers will find it easy to send goods from one city to another. When sending goods via an expedition service, usually the buyer will be charged a delivery fee according to the weight of the goods and the distance to the city to be traveled. 

How Does an Expedition Work?

The workings of an expedition can be divided into several stages, including the following:

· Prepare goods to be sent. The goods to be sent must not violate the terms of the expedition company.

· Packing or packaging goods. Packing must be done correctly so that no goods are damaged during shipping.

· Manage documents for administration and customs, especially for goods sent from abroad.

· Determine the type of transportation to be used, whether by land, sea or air.

Differences in Expedition, Logistics and Freight Forwarding Services

In goods delivery activities, there are three services that you can use. These three services are expedition services, logistics and freight forwarding. However, these three services have differences, including the following.

1. Expedition

Expedition is a service that focuses on goods delivery activities. In general, expedition services are used for small items.

2. Logistics

Logistics are activities that usually handle the delivery needs of larger companies, such as fleet procurement, warehousing, and logistics management in a company.

3. Freight Forwarding

Freight forwarding is an activity of sending goods that is more focused on exports and imports, both from abroad and overseas. Usually goods are sent using freight forwarding services in large quantities.

Expedition Business Opportunities in Indonesia

With the high development of e-commerce in Indonesia, the expedition business certainly has great opportunities. This cannot be separated from the role of the community who often carry out buying and selling activities online.

The presence of e-commerce in society can connect buyers who need goods and sellers who need expedition services to send the buyer's goods.

Apart from that, the expedition business is considered to have affordable capital. With small capital, you can run an expedition business. Currently, many expedition service companies are opening up partnership opportunities starting from IDR 5 million.

1. Carry out promotions

Every time you run a business, of course you need promotion. You can promote the expedition services that you run via social media such as Instagram, WhatsApp, Facebook, and so on.

On social media, you can provide information about ongoing promotions to attract customer interest.

2. Collaborating with Merchants

This second strategy is also considered quite important to carry out in running a business.

In this case, you as someone who has a business in the expedition services sector can collaborate with merchants or several shops that need goods delivery services.

This collaboration will provide two-way benefits, because the seller has a delivery service for the goods sold and you as the expedition party can make a profit.

3. Determine prices adjusted to competitors

As you know, price is an important consideration for customers when using your services. Regarding price, you must be able to determine shipping rates or shipping costs that are not too expensive, but also not too cheap compared to the prices set by existing competitors.

How ERP Software Helps Logistics Business

The current development of the digital era certainly brings many conveniences in various fields. One of the results of digital developments is the creation of ERP software which can make it easier for business people to carry out logistics business activities.

Indonesian ERP software can make it easy for you to present data accurately and in real time. This will certainly make it easier for superiors or responsible parties to make decisions quickly and accurately.

One of the best ERP software that you can use is PipeSys Software. Through the distribution and inventory module provided by PipeSys distribution software, companies will find it easy to implement an inventory automation system in the warehouse effectively and efficiently. You can also find out the entry and exit of goods to and from the expedition warehouse.

By using PipeSys software, you can also monitor stock levels in the warehouse, store all information about warehouse goods, assess inventory, and track company inventory in real time.

Want to control the inventory of goods in the expedition warehouse easily, quickly and accurately? Immediately use PipeSys software now! You can also customize ERP software according to your company's needs.

That's the information about strategies for running an expedition business that you need to know, hopefully the information above can be useful for you!

Consult us about your ERP needs "CLICK HERE"

Tags : SAP Business One Bandung, SAP Business One Bali, SAP Business One Surabaya, SAP Business One Jakarta, SAP Business One Semarang