Two Business Models the Forwarders

Logistics and forwarding business players in Indonesia, especially members of Indonesia Logistics and Forwarders’ Association (ALFI/ILFA), are expected to do innovation and business reform amid the coronavirus (covid-19) outbreak in a bid to keep business survival and growth.

ALFI Chairman Yukki Nugrahawan Hanafi suggests two new busines model in logistics in responding the business during the coronavirus outbreak. The two models include business digitalization and business reform in any aspects of the business.

“We have to open our business with new things, including new vision, new strategy, new branding, new organization structuring, new job desk, new cash flow model, et cetera,” Yukki said in his opening speech for the ALFI virtual meeting via zoom, today, June 11.

To realize those new visions and strategies, Yukki suggested application of digitalization in any aspects of the logistics business and business reform which also should be done overall the business aspects.

“We have to reform in human resources, cash flow management, service delivery, etc,” he said.

Yukki noted that the pandemic has made the future business of logistics and forwarding more challenging. “ASEAN Connectivity and new government policies in responding the pandemic are among others of our future challenges,” he said.

Yukki also explained that ALFI/ILFA Headquarter has intensively communicated with the government relating the problem the logistics business facing during the pandemic and has asked for incentives including tax relaxation in this sector.

“We have intensively done communication with the government. We have also asked for incentives for this sector,” Yukki said.

Echoing the view, ALFI/ILFA General Secretary Akbar Johan reminded all members to do business transformation, both during and after (post)-pandemic. “It includes transformation in our cash flow management,” Akbar Johan said.

Amid the coronavirus outbreak, ALFI/ILFA Headquarter conducted a virtual meeting with all chapters (33 DPWs) and some selected members on June 11, 2020. The virtual meeting was officially opened by Minister of Transportation Budi Karya Sumadi.

On his remark speech Budi Karya appreciates this virtual meeting expecting all ALFI members to keep solidity and to run the logistics business during the new normal period while following the covid-19 protocols.

“Hopefully, all logistics and forwarders can run business smoothly during this new normal period while still following any protocols of covid-19,” Budi Karya said.

He also appreciates the ALFI/ILFA contribution in the transportation sector and logistics distribution for this country, especially during the pandemic outbreak. “Thanks for high contribution in transportation sector, during this pandemic in particular,” he said, asking all ALFI/ILFA members to continue giving contribution in this sector.

Some DPW Heads appreciates this virtual meeting, expecting that this meeting will become a moment to share information, especially information relating the logistics business during the pandemic and during the new normal.

Most of the DPWs expect the logistics business to continue services during the pandemic. Some also expect the meeting will encourage all logistics and forwarding business players to keep solidity during this pandemic.