Janio’s VP of Operations & Supply Chain Network Shares How Technology Untangles Logistics Puzzles at INSEAD’s Emerging Markets Conference

Current Status of the market: Opaque and Fragmented

To kick start things, the discussion began with an examination of the current status of the logistics industry, specifically in the eCommerce field. It was identified that eCommerce consumers are restless, eagerly looking out for the arrival of their parcels, resulting in added pressure on eCommerce vendors to ensure their logistics solutions can fulfil delivery promises. However, when it comes to cross-border, with multiple stages on the line – namely warehousing, first mile, export, line-haul, customs clearance, and last mile, yet each logistics solution players having their specialised mode and coverage, it is difficult to find a suitable vendor for every market segment eCommerce businesses target.

One of the most noticeable issues is customs clearance. Every country in Southeast Asia has its own regulations with differences in terms of the type of customs documents used. One item that requires five data fields to clear customs in Thailand may require completely different sets of fields to be imported into Indonesia. Vendors who sell cross-border face delays in customs clearance which might result in a negative customer experience from their end consumers, hence resulting in a loss of future businesses.
Another noteworthy issue is the difference in expertise of each logistics solution provider when it comes to serving various shipping lanes. One might be good at delivering from Singapore to Jakarta, but is unable to adequately deliver shipments from Singapore to the Philippines; another might excel at local deliveries within Singapore yet is unable to service exports.

To have a parcel delivered from country A to country B, businesses face managing multiple vendors with minimum visibility into what might go wrong

Janio’s Solution: Connected and Customisable

Views were exchanged on how Janio’s solution is tackling the issues identified. ‘Janio is essentially a platform that connects logistics players to enable them to do what they’re best at; and on the other hand, for eCommerce businesses to enjoy a one-stop end-to-end yet personalised supply chain solution.’ summarised by Karthik. 

For example, by connecting quality logistics players who specialise in first-mile in Singapore, line-haul from Singapore to Indonesia, and last-mile in Jakarta, Janio can offer cost-effective solutions to eCommerce businesses who are exporting from Singapore into Jakarta. With such solution applied for each part of the supply chain within each trade lane, the platform arms eCommerce businesses with customisable solutions based on their logistics requirements. What’s more, it consolidates the fragmented logistics industry by giving logistics player a platform to access shipping volume that they can deliver with quality, speed and in the most cost-effective way possible. 

Such a plug-and-play model also provides businesses with flexibility to utilise only the necessary supply chain solutions and also gives visibility into the whereabouts of their shipments regardless of which stage of shipping it is at
Regarding how the platform is further optimized, Janio invests in understanding on-the-ground nuances and obtaining local expertise, through continued research into classification of products according to customs regulations country by country so as to smoothen customs clearance. This helps inform how Janio’s tech infrastructure can be developed so as to really address the physical operational problems in a digital manner.

Only by doing so can Janio solves the fundamental problems that have been plaguing the logistics industry. 

Future Outlook: Complete not Compete 

Two main themes were addressed in terms of the future of logistics in Southeast Asia – competition in the ecosystem and sustainability. 

Specifically, Professor Paddy and Karthik shared their views on the trend of marketplaces building in-house logistics capabilities. In line with Janio’s aim to connect the network to create a win-win situation, ‘we concentrate on enabling, optimising and adding value to what each player is good at.’ commented Pitani. For example, the focus of marketplaces are acquisition and transactions, they might have their own fleet that serves their key markets with minimum physical assets in order to avoid heavy investment in areas outside of their core business and hence reduce the risk of assets being under-utilised during non-peak season. Therefore, what Janio does is to enable them to cater to more  transactions when volume exceeds their capacity; better yet, ‘we allow them to continuously serve and grow into markets where they do not have in-house logistics with a flexible and quality logistics solution that they can plug into their supply chain.’ 

When touching on sustainability, Karthik stressed that by working with the right logistics partners, Janio’s tech-powered platform is able to determine the most suitable vendor to execute certain pickup, dropoff or delivery, optimizing deliveries and thereby minimising wastage in terms of fuel cost, manpower, and assets as much as possible.