The rapid growth of ecommerce in Indonesia, especially during the pandemic, is placing increasing demands on its supply chain infrastructure. But the country's logistics industry is highly fragmented, with companies usually relying on multiple distributors for one shipment, and many warehouses are still concentrated around major cities. Advotics wants to help with software to make the whole supply chain easier to track, and recently closed a USD 2.75 million funding round led by East Ventures.
Founded in 2016, Advotics has now raised a total of USD 5.5 million and currently counts more than 70 clients, ranging from individual resellers to large corporations like Exxonmobil, Danone, Reckitt Benckiser, Sampoerna, Kalbe, and Mulia Group.
According to research institution Statistics Indonesia, there are about 5 million small and medium-sized manufacturers in Indonesia. They use a supply chain with 15 million small to mid-sized distributors and about 288,000 large distribution companies. This fragmentation means higher expenses, with Report Linker estimating that logistics costs range between 25% to 30% of Indonesia’s gross domestic product, Yahoo Finance concluded.
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