CSR Consulting - PRELIMINARY STAGE - DBCC2019 PDF

PALAPA PROJECT - Diponegoro Business Case Competition 2019
CSR Consulting
CSR Consulting
EXECUTIVE SUMMARY
With the mission to offer the best available courier and logistic solution with the most
competitive price digitally, Majapahit.Co is expecting CSR Consulting to develop a strategic business
growth while also developing digital innovation and IT system improvement to support the growth.
The root-cause of Majapahit.co problem is coming from their incompatible new IT system which
cause long and high-cost operation in their overall service lines, and their lack of digital value
differentiation which cause low market growth and market share. The opportunity is rising from
increase millennials and e-commerce market growth with lack of competitor power in e-commerce
fulfillment section and C2C marketplace demand of fulfillment services.
To solve the aforementioned problems and capture the rising demand of e-commerce, CSR
Consulting is suggesting the Majapahit.co to implement PALAPA Project which consists of solutions
for e-commerce fulfillment service (PALAPA Fulfillment), digital logistics (PALAPA E-Commerce)
and integrated transport management solution (PALAPA Transport Manager). The implementation
timeline will range from Planning phase (Q4 of 2019 to Q1 of 2020), Running phase (Q2 to Q4 of
2020) and Q1 of 2021, followed by continuous maintenance phase.
The initial cost of the PALAPA Project development is Rp3.000.000.000. After present cost
and benefit value calculation with Indonesia’s projected interest rate of 5,5% in 2020, it is obtained
that the Cumulative Net Present Value at the year of 2025 yields at Rp 6,211,156,264.24, marking a
44% Return On Investment (ROI).
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TABLE OF CONTENT
EXECUTIVE SUMMARY 1
TABLE OF CONTENT 2
INTRODUCTION 4
THEORETICAL FRAMEWORK 4
CONTENT 4
STRATEGIC VIEWS 4
Company Overview 4
Business Objective & Expected Outcome 5
PROBLEM AND OPPORTUNITY 5
Problem and Opportunity (Analysis) 5
Internal Environment Analysis (PORTER Value Chain) 5
Primary Activities 5
Support Activities 6
Competitive Environment Analysis (Porter’s 5 Forces) 6
External Environment Analysis (PESTLE) 7
Unique Value Analysis (USP) 8
Potential E-Commerce Partners Analysis 8
Problem and Opportunity (Summary) 9
Problem 9
Opportunity 9
RECOMMENDATION 9
Strategic Business Growth 9
Strategic Value Priorities 10
Digital Innovation and IT System Improvement 10
Features Mapping 11
IMPLEMENTATION 12
Project Management Strategy 12
Outcome Management Strategy 13
Financial Management Strategy 13
Risk Management Strategy 13
CONCLUSION 13
SUGGESTION 13
REFERENCES 14
APPENDIX 17
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INTRODUCTION
Majapahit.co is a rising logistics company in Nusantara. The company envisions to become the
top logistics provider in the country, as stated in the CEO’s oath, Sumpah Palapa. Majapahit.co
recently implemented a system which slows their business process. CSR Consulting is offering a
solution to fix the system, and at the same time capturing Nusantara’s rising e-commerce market.
THEORETICAL FRAMEWORK
For solving Majapahit.co case, we are using several frameworks, including: (1) Porter Value
Chain for analyzing internal strengths and weakness of company current business process; (2) Porter
5 Force for analyzing company competitive drivers; (3) PESTLE for analyzing company key threat
and opportunity from Indonesia macro factor; (4) USP Analysis for analyzing company opportunity to
develop key differentiation beyond competitors; (5) Synthesized M&A Methodology for assessing
company potential partners; (6) Value Disciplines Model for emphasizing strategic value that
company need to prioritized
CONTENT
1. STRATEGIC VIEWS
1.1. Company Overview
Mission Offering their various customers the best available courier and logistic solution with
the most competitive price digitally.
Vision Recognized as Indonesia’s leading company in courier express service and hybrid
logistics strategy with innovative products that focus on cost efficiency leadership,
technology, and excellent service.
Shared Majapahit.co has 3 shared values, which is a superior product, excellent service and
Value premium price. To support their value, Majapahit.co focus on cost efficiency
leadership strategy as their value discipline model.
Current Majapahit.Co offered 2 primary services: logistics and distribution services (delivery
Services services with dedicated courier support, warehousing management, spare parts
management service, and end-to-end logistics outsourcing), and mailroom operations
& management (detailed explanation in appendix 1).
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1.2. Business Objective & Expected Outcome

In the current market landscape, Majapahit.co main goals are to grow their market and
increase their market share beyond competitor. To achieve that goal, Majapahit.co current
objective is increasing their sales, developing e-commerce in logistics, and improving their
internal process capability. CSR Consulting is expected to develop a strategic business growth
while also developing digital innovation and IT system improvement to support the growth.
2. PROBLEM AND OPPORTUNITY
2.1. Problem and Opportunity (Analysis)
2.1.1. Internal Environment Analysis (PORTER Value Chain)
S = Strength, W = Weakness. Detail process and capability of Majapahit.co business process in Appendix
2
2.1.1.1. Primary Activities

2.1.1.1.1. Inbound Logistics (S)
Capable to receive inbound on nationwide coverage from more than 100 branches in the
domestic network (S). Serving pick-up services (S). Extend inbound channel from franchise
partners (S). Lack of retail in remote and small cities (W).
2.1.1.1.2. Operations (W)
Long operation time in packing, sorting, backing, and administration (W). Frequent
operation delay when handling high volume goods (W). Inefficient and ineffective
transportation planning, with a considerable amount of manual handling resulting in a
significant long time for all types of services offered (W).
2.1.1.1.3. Outbound Logistics (S)
Optimized last-mile delivery execution with more than 23 hubs/DC spread in each
province and located in the main city near airports (S). National coverage point-to-point
routing for land routes (S). Reliable sea route using cargo services from private and
state-owned companies (S). Broad air route using various airline companies (S). Hard delivery
execution management of 3PL (W).
2.1.1.1.4. Marketing and Sales (W)
Strong marketing activity from publication, joining exhibition events, personal
marketing, and social media marketing (S). Lack of digital sales enablement in capturing
increased market demand for e-commerce in logistics (W). Doesn’t have digital channels
partnership with retail e-commerce (ex: Tokopedia) (W).
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2.1.1.1.5. Service (W)

Offered tracking features (S). Lack of added-value services offering when serving
customer who is a seller in the e-commerce environment (W).
2.1.1.2. Support Activities
2.1.1.2.1. Firm Infrastructure (S)
Well established functional support in accounting, legal, and general management (S).
2.1.1.2.2. Human Resource Management (W)
Limited human resource in operation handling with only 150 personnel in Hubs/DC (W).
2.1.1.2.3. Technology Development (W)
Wide range cover of the current ERP including Human Resource Management,
Warehouse Management, Accounting, and Legal (S). Some business processes isn’t covered
yet by the current TMS (W). Current TMS features aren't compatible to handle all services in a
company-wide manner (W).
2.1.1.2.4. Procurement (S)
Using various 3PL for operating sea and air transportation routes (S). Building the IT
system through IT vendor offering planning and solution services when needed (S).
2.1.2. Competitive Environment Analysis (Porter’s 5 Forces)
H = High Power, L = Low Power, M = Moderate Power. Assessment reference in Appendix 3
2.1.2.1. Supplier Power (M)
Broad supplier options for air and sea logistics (L). Medium-to-Large logistics supplier
size (M). Single supplier partner for IT vendor (H).
2.1.2.2. Buyer Power (H)
High number of buyers (L). High price sensitivity (H). Individual-to-Enterprise size of
buyers (M). Low order frequency from households (H). High demand in delivery speed (H).
2.1.2.3. Competitive Rivalry (H)
High number of competitors (H). Low products differences with competitors (H).
Concentrate market share in 3 biggest competitors (H). Moderate relative market share compares
to the largest competitor (M).
2.1.2.4. Threat of Substitution (M)
Low cost of changing service especially in the digital environment (H). High cost of
changing for warehouse, logistics, and spare parts services. (L).
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2.1.2.5. Threat of New Entry (L)

High initial fixed cost (L). Significant benefit from economies of scale (L).
2.1.3. External Environment Analysis (PESTLE)
O = Opportunity, T = Threat
2.1.3.1. Political (O)
Current Indonesia government is supporting the digital economy development and
e-commerce through upgrading various manufacturing sectors (O).
2.1.3.2. Economical (O)
The growth rate of Indonesia’s GDP in Q1 2019 is at a good state of 5.1% (O). McKinsey
forecast that Indonesia's e-commerce sales will grow eightfold, ($40 billion in formal
e-commerce, $25 billion in social commerce) by 2022 (O).
2.1.3.3. Socio-Cultural (O)
Around 61% of payment method is using bank transfer and around 51% of Nusantarans
access internet through a mobile device (O). Only 49% of Indonesians have access to financial
services (T). Cybersecurity is a serious concern for e-commerce (T). E-commerce in rural areas
has grown substantially with similar buying habits to their urban counterparts (O). Rising
population of millenials (20-35 years) by 24 percent, which is 63.4 million of the total Indonesia
population in productive age (14-64 years).
2.1.3.4. Technological (O)
The government has built infrastructure in the form of fiber optic networks, Palapa Ring
projects and enlarged bandwidth capacity (O). Indonesia has 112% mobile penetration and is the
world’s 4th largest mobile market (O). The internet contributed to 2.5% of GDP in 2016 (O).
Online commerce penetration would rise to 83 percent of internet users in 2022 (O).
2.1.3.5. Legal (O)
Indonesia has a strict rule related to opening a business in bonded logistics center (T). The
government supports import by creating regulations which will minimize dwelling time and
logistics cost (O). Pre-customs clearance check is done by 18 institutions with bad coordination,
causing long dwelling time (T).
2.1.3.6. Environmental (T)
Indonesia is planning to improve railway infrastructure with the development of new tracks
in Java, Sumatra, (BRT) in 29 cities, Sulawesi, and Kalimantan (O). In the Java region, physical
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retailers face higher costs for land and labor (T). Indonesia’s logistics infrastructure lags behind
its regional peers, ranking 46th of 160 globally in 2018, according to the World Bank (T).
2.1.4. Unique Value Analysis (USP)
Detail assessment in Appendix 4
To assess the unique selling point of the company and gather insight about opportunity, five
factors consist of Price, Speed, Safety, Reliability, and Quality is taken into account. (1) Price
has low opportunity due to two of the three biggest rival companies has a competitive pricing for
their service. (2) Speed has high opportunity because most of the biggest competitors are lacking
Speed in their services. But Majapahit.co is also having weakness in this factor due to
company-wide implementation of new transportation management system which isn't perfectly
compatible for all business processes. (3) Safety has moderate opportunity. Even though
Majapahit.co right now implements a tracking system, it is very likely the competitor also offers
similar system. (4) Reliability has moderate opportunity because two of the biggest rival
companies are having good presence in rural areas, but for e-commerce fulfillment service, yet the
biggest competitors is providing the solution to meet the e-commerce demand. (5) Quality has
low opportunity because the services quality given is on par with competitors.
2.1.5. Potential E-Commerce Partners Analysis
Detail assessment in Appendix 5 and 6
To assess potential partners in digital channels, 7 e-commerce consist of C2C and B2C is
analyzed with key consideration of their stand-alone value and partnership added-value. (1)
Lazada has low opportunity because it has already partnered with more than 100 international
logistics companies and has its own e-fulfillment center. (2) Blibli has low opportunity because it
has its own logistics courier, already partnered with 30 logistics companies, and has a widespread
fulfillment center in major cities. (3) Tokopedia has moderate opportunity because it has the
highest marketplace traffic, partnered with only 12 logistics companies, but offers fulfillment
service. (4) Bukalapak has high opportunity because it is the second highest traffic marketplace
in Indonesia, partnered with only 14 logistics companies, and has no fulfillment service. (5)
Shopee has moderate opportunity because it only partnered with 8 logistics companies
(including his own), but has a fulfillment service for the sellers. (6) JD.id has low opportunity
because though it has no fulfillment service, it has a low number of sellers, and doesn’t offer
partnership with many logistics companies (currently only one).
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2.2. Problem and Opportunity (Summary)

2.2.1. Problem
○ With the current condition of Majapahit.co limited human resource, highly varied order
demand and complex transportation models from broad service lines, the incompatible new
IT system is creating lack of automation, data-driven decision, and technology
enablement in each operation process resulting in long and high-cost operation in their
overall service lines.
○ With current condition of Majapahit.co high competitive rivalry and strong buyer power, the
lack of digital value differentiation is making them hard to capture rising demand of
e-commerce buyers and sellers resulting in low market growth and market share.
2.2.2. Opportunity
Customer: High frequency of mobile device usability, increased trend of digital product
discovery, high number of digital transaction and purchasement, and also high demand of fast and
on-time delivery speed. Market: Rising millennials market growth, high e-commerce sales growth
projection, and increased trend of digital partner and integration. Competitor: Majority of big
competitor lacks proper speed in delivering logistics solution and also in e-commerce fulfillment
section. Partners: Potential partners haven’t conduct partnership with too many logistics
companies, and some lacks fulfillment service.
3. RECOMMENDATION
3.1. Strategic Business Growth
For gaining strategic business growth, based on analyzed opportunity, CSR Consulting
recommend Majapahit.Co to grow their business in digital market with:
○ Develop partnership with Bukalapak and sellers in there to offer e-commerce fulfillment
support with integrated and real-time SKU stock update.
Gaining market leadership in capturing specific niche-market demand of Bukalapak sellers
who want to reach more customers and save time and cost in managing their SKU stock.
Taking advantage of Bukalapak demand of not yet developed fulfillment center.
○ Develop partnership with Bukalapak, Tokopedia, and Shopee as C2C marketplace to
offer courier services and add engagement point for Majapahit.co digital services.
Broadening market share with better market position and increasing awareness to interest of
Majapahit.co e-commerce in logistics in high growth market of e-commerce buyers, primarily
consist of millennials segmentation. Stealing some market share from biggest competitor, PT.
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Palembang Sriwijaya, who already have a presence in e-commerce market while also
promoting the digital services from when customers want to track their delivery.
3.2. Strategic Value Priorities
Using value disciplines model for prioritizing strategic value based on analyzed problem to
support the strategic business growth, CSR Consulting recommend Majapahit.co to focus on
operational excellence for solving long and high-cost operation in their overall service lines and
customer intimacy for solving low digital value differentiation. Here is the key success factors for
each value prioritization:
○ Operational Excellence: (1) efficient management of people; (2) minimized errors level; (3)
high automation degree; (4) effective command and control; (5) frictionless communication;
(6) efficient management of transactions ; (7) quick, precise, and responsive decision
○ Customer Intimacy: (1) optimized level of personalization; (2) easily reachable customer
support; (3) easily reachable access point; (4) extensive value at scale; (5) easily
comprehended product education; (6) hassle-free product engagement;
3.3. Digital Innovation and IT System Improvement
As the solution to materialize the strategic value priorities to support the strategic business
growth, CSR Consulting has developed PALAPA Project, consist of:
3.3.1. PALAPA Fulfillment (Store2Go)
PALAPA Fulfillment is an integrated, hassle-free fulfillment solution service for
e-commerce sellers. The solution consists of 5 modules: (1) Inventory Management for painless
inventory management using product SKU with bulk upload support, automatic restock prompt,
and inbound receiving form; (2) Platform Integration for providing seamless integration with
major third-party marketplaces, accounting tools, and even custom integration; (3) Data
Reporting and Analytics for the ability to view and leverage historical data to obtain valuable
insights on future demands for better business decisions; (4) Order Management for an all-in-one
place to manage orders including reverse logistics; (5) Personalized Dashboard to quickly view
important information such as sales performance data.
3.3.2. PALAPA E-Commerce (Majapahit Digital Logistics)
PALAPA E-Commerce (Majapahit Digital Logistics) is a solution enabling
Majapahit.co’s services to be easily accessed through digital platform (e-commerce in logistics).
The solution consists of 3 modules: (1) Shipping Module for using shipping services digitally
including pick-up management and B2B services solution, also support digital label generation in
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the form of barcodes. (2) Tracking Module provides easy tracking for individual deliveries and an
all-in-one dashboard to manage multiple delivery services, accessible via web and mobile
application. (3) Support Module to find nearest Majapahit.co outlets, and provides pricing
simulation with ease.
3.3.3. PALAPA Chatbot (Laras)
Laras is a chatbot with natural language processor capability in further development for
supporting PALAPA Digital Logistics and PALAPA Fulfillment. Laras aims to optimize
Majapahit.Co leadership in customer intimacy as a differentiation value for accelerating and
leveraging sales generation while also building long-lasting relations with customers.
3.3.4. PALAPA Transportation Manager
PALAPA Transportation Manager is a transportation management system aiming to
reduce transportation complexity by integrating logistics management, sales demand, and
warehouse management through Majapahit.co network. Consist of 4 modules, including: (1)
Planning Module for automated planning simulation proposal to achieve cost-reduction and
on-time delivery performance; (2) Execution Module for supporting accurate, dynamic, and
responsive execution to run logistics faster and maximize efficiency; (3) Collaboration Network
Module to streamlined each communication and transaction with driver and external logistic
partner; (4) Analytics & Reporting Module with real-time insight on transportation performance.
3.4. Features Mapping
3.4.1. PALAPA Fulfillment (Store2Go)
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3.4.2. PALAPA E-Commerce (Majapahit Digital Logistics)
3.4.3. PALAPA Chatbot (Laras)
3.4.4. PALAPA Transport Manager
4. IMPLEMENTATION
4.1. Project Management Strategy
Detail of strategy in Appendix 7
Planning phase, consisting primarily of settlement and requirements gathering processes, will
range from Q4 of 2019 to Q1 of 2020. Running phase is where the solutions are developed and
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tested, will range from Q2 to Q4 of 2020, then the project is deployed at Q1 of 2021, followed by
continuous maintenance phase.
4.2. Outcome Management Strategy
Using 2-week scrum iteration methodology, Majapahit.co will manage to deploy PALAPA
Chatbot (Laras) in Q3 of 2020, followed by PALAPA Fulfillment, PALAPA E-Commerce, and
PALAPA Transport Manager in Q4 of 2020, finishing all the project required features.
4.3. Financial Management Strategy
The initial cost of the PALAPA Project development is Rp3.000.000.000. After present cost
and benefit value calculation with Indonesia’s projected interest rate of 5,5% in 2020, it is obtained
that the Cumulative Net Present Value at the year of 2025 yields at Rp 6,211,156,264.24, marking a
44% Return On Investment (ROI).
4.4. Risk Management Strategy
Primary risks of PALAPA Project comes from the possibility of e-commerce’s rejection in
partnership request . The management strategy is to hire M&A expert and growing retention of
e-fulfillment for better portofolio. The other primary risks is poorly integrated solution with existing
system, process, and services. The management strategy is to explicitly standardize acceptance
requirement for User Acceptance Test and Integration Test with alignment to features requirement.
CONCLUSION
The root-cause of Majapahit.co problem is coming from their incompatible new IT system
which cause long and high-cost operation in their overall service lines, and their lack of digital value
differentiation which cause low market growth and market share. The opportunity is rising from
increase millennials and e-commerce market growth with lack of competitor power in e-commerce
fulfillment section and C2C marketplace demand of fulfillment services.
SUGGESTION
To solve the aforementioned problems and capture the rising demand of e-commerce, CSR
Consulting is suggesting the Majapahit.co to implement PALAPA Project which consists of solutions
for e-commerce fulfillment service (PALAPA Fulfillment), digital logistics (PALAPA E-Commerce)
and integrated transport management solution (PALAPA Transport Manager).
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REFERENCES
https://www.mordorintelligence.com/industry-reports/indonesia-freight-logistics-market-study
https://www.ali.web.id/web2/publication_detail.php?id=595
http://www.kemenperin.go.id/artikel/18169/Pemerintah-Kembangkan-Ekonomi-Digital-Berbasis-Indu
stri-dan-e-Commerce
https://www.worldbank.org/in/country/indonesia/publication/june-2019-indonesia-economic-quarterly
https://www.mckinsey.com/featured-insights/asia-pacific/the-digital-archipelago-how-online-commerc
e-is-driving-indonesias-economic-development
https://www.cnnindonesia.com/ekonomi/20160106111843-78-102521/calon-pengelola-pusat-logistik-
berikat-harus-penuhi-4-syarat
https://nasional.kontan.co.id/news/dorong-industri-e-commerce-kemkeu-revisi-aturan-pusat-logistik-b
erikat
https://finance.detik.com/berita-ekonomi-bisnis/d-3841435/pemerintah-permudah-aturan-tata-niaga-ek
spor-impor
https://misterexportir.com/dwelling-time/
https://finance.detik.com/berita-ekonomi-bisnis/d-4373888/bea-cukai-keluarkan-jurus-baru-tekan-biay
a-logistik-dan-dwell-time
https://www.fedex.com/en-us/healthcare/knowledge-center/solutions/how-reverse-logistics-can-increa
se-customer-satisfaction.html
https://investor.id/archive/18-kementerianlembaga-penyebab-dwelling-time-lama
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https://www.cnnindonesia.com/teknologi/20190328145612-185-381481/tokopedia-akan-dirikan-guda
ng-pintar-untuk-pedagang
https://www.thejakartapost.com/news/2019/02/04/poor-logistics-hold-back-indonesian-e-commerce-fr
om-quantum-leap.html
https://www.cekindo.com/sectors/information-technology-in-indonesia
https://www.blibli.com/page/press-release/blibli-com-cetak-pertumbuhan-pemesanan-25-kali-lipat-di-
kuartal-pertama-tahun-2019/
https://www.blibli.com/friends/articles/jalan-jalan-ke-warehouse-mengenal-dapur-blibli-com-lebih-dal
am/
https://pages.lazada.co.id/wow/i/id/sell-on-lazada/jualanonline?spm=a2o4j.home.header.d2.377c4cee
UKqYQ1
https://www.lazada.co.id/about/?spm=a2o4j.11393940.footer_top.6.469a7fbfHJh4WU
https://databoks.katadata.co.id/datapublish/2018/10/22/tokopedia-tetap-memimpin-jumlah-pengunjung
-e-commerce-tw-iii-2018
https://seller.tokopedia.com/edu/
https://ekonomi.kompas.com/read/2018/04/07/175741226/pertumbuhan-merchant-dan-pembeli-tokope
dia-di-medan-signifikan-selama-2017
https://seller.tokopedia.com/edu/tokocabang/
https://seller.tokopedia.com/edu/daftar-layanan-logistik/#
https://seller.tokopedia.com/edu/layanan-pick-up/
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https://ekonomi.bisnis.com/read/20180330/12/755433/mayoritas-penjual-shopee-merupakan-umkm
https://help.shopee.co.id/s/article/Bagaimana-proses-pemenuhan-pesanan-melalui-Service-by-Shopee-
SBS
https://selular.id/2019/03/bukan-lagi-retail-commerce-jd-sekarang-marketplace/
https://www.cemiti.id/2019/05/berjualan-di-jd-id.html
https://www.softwareseni.co.id/biaya-jasa-pembuatan-aplikasi-berbasis-web/
http://ppsdma.bpsdm.dephub.go.id/web/wp-content/uploads/2018/09/Indonesian-Logistics-Overview.
pdf
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APPENDIX
1. DETAIL OF MAJAPAHIT.CO CURRENT SERVICES
● Logistics and Distribution
○ Delivery Services (domestic & international) with Dedicated Courier Support
Majapahit.Co offers reliable solutions for people or companies who wish to execute
delivery operations. Customers could choose the suitable service according to their needs.
The available services are Same Day Service, Overnight Service, Regular Service, Freight
Service, and International Courier Service.
○ Warehousing Management (fulfillment)
Majapahit.Co offers a solution for warehousing management in the form of a system that
could be utilized by clients in order to ensure effectiveness and increase efficiency in its
warehousing activities.
○ Spare Parts Management Service
Majapahit.Co offers a solution for clients or companies requiring spare parts management
system. With proven reliability and supporting infrastructures, Majapahit.Co can ensure a
safe, reliable, and on time replenishments for spare parts to keep the client's business
process running and stay competitive.
○ End-to-End Logistics Outsourcing
Majapahit.Co offers end-to-end logistics solutions in the form of outsourcing to companies
wishing to have total logistics coverage including freight, customs, distribution centers,
fulfillment, last mile, and reverse logistics.
● Mailroom Operations and Management
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2. PORTER’S VALUE CHAIN DETAIL PROCESS AND CAPABILITY
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3. PORTER’S FIVE FORCES SUPPORTING DATA

● Buyer Power
○ Low order frequency from households (20%)
○ Individual-to-Enterprise size of buyers
● Supplier Power
● Competitive Rivalry
○ Market Share
Relative market share = Majapahit.co/PT. Galuh Sundayana = 10/30 = 33%
Company Market Share
Majapahit.co 10%
PT. Palembang Sriwijaya 25%
PT. Tumasik 25%
PT. Galuh Sundayana 30%
Other 10%
● Threat of Substitution
● Threat of New Entry
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4. DETAIL OF USP ANALYSIS

S = Strength, W = Weakness
Majapahit.Co
Factors Explanation
S Reliability - Has a wide range of available services.

- Has a good nationwide presence by having branches in all provinces.
Safety - Recently implemented a TMS system which allowed shipment tracking feature.
W Speed - Corporate wide implementation of a system by the company results in slowing

down some business processes.
PT. Palembang Sriwijaya
Factors Explanation
S Reliability - Working aggressively to upgrade e-commerce fulfillment capability including

conducting collaboration with SingPost, a regional leader in e-commerce
fulfillment and various other players.
- Has a niche of traditional customers in semi-isolated villages far from towns
and cities. Typically deliver letters and send money.
W Speed - Has high possibility for 1-week delay in small areas: Kanjab Islands, Niran,
Karitang, and Siyak (modern days Sumatera & Kep. Riau).
Safety - Less updated system causes customer difficulties in tracking packets.
PT. Galuh Sundayana
Factors Explanation
S Reliability - Has great presence by having many retails for each villages, towns, and cities,
thus widely known by Nusantara citizens.
- Currently investing towards improvement of IT infrastructure, building more
warehouses, training manpower, strengthening vehicle fleets, and developing
existing businesses.
- Have established partnership with Lazada
Price - Has a competitive cheap price.
W Speed - The delivery process takes a while and sometimes longer.
PT. Tumasik
Factors Explanation
S Price - Has a very competitive price because its famously known as “delivery free
fee.”
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W Reliability - Only available in big cities (has low presence).
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5. DETAIL OF DIGITAL PARTNERSHIP ASSESSMENT

H = High Opportunity, L = Low Opportunity, M = Moderate Opportunity
Lazada
Opportunity Explanation
Stand-alone High - International B2C e-commerce with more than 135.000 local
Value and international sellers, 3000 brand, and 560 millions customers
in South Asia. (H)
- Had 36,4 million Indonesia visitors in third quarter of 2018. (H)
- Offers a variety of products ranging from electronic goods to
household goods, toys, fashion, sports equipment and daily
necessities (H)
- Present various payment methods, including cash-on-delivery
(COD) (M)
Partnership Low - Already partnering with more than 100 international logistics
Added- Value partner including Majapahit.co biggest competitors (PT. Galuh
Sundayana) (L)
- Already have their own e-fulfillment services (Fulfilled by
Lazada) (L)
Blibli
Stand-alone High - National B2C e-commerce offering a wide selection of quality

Value products provided by more than 75,000 business partners (H)
- Varying and safe payment method choices with VeriSign
certification and Credit Card Fraud Detection System (M)
- Provide Free Shipping for shipping in the same city (M)
- Had 31,3 million Indonesia visitors in third quarter of 2018. (H)
Partnership Low - Already has its own logistics courier (Blibli Express Service)
Added- Value and has worked with 30 logistics partners (M)
- Already has its own fulfillment center with more than 14
warehouses and 19 hubs spread across major cities in Indonesia
(L)
Tokopedia
Stand-alone High - C2C e-commerce with the highest number of visitors in

Value Indonesia, reaching 153.64 million in the third quarter of 2018
(H)
- Covering 97% of Indonesia market (H)
- Serving wide-range of products including digital product and
22
CSR Consulting
financial instrument with more than 2,7 millions sellers (H)
Partnership Moderate - Has partnering with 12 logistics partner with several of them is
Added- Value offering pick-up services (M)
- Already has its own e-fulfillment services (TokoCabang) with
broad digital capability of SKU management (L)
Bukalapak
Stand-alone High - Serving a wide range of products, including intangible products

Value like BukaReksa, and small shop empowerment (Mitra
Bukalapak) with more than 2,2 million sellers. (H)
- C2C e-commerce with the second highest amount of visitors in
Indonesia, reaching 95,9 million visitors in third quarter of 2018.
(H)
Partnership High - Has no e-fulfillment services. (H)

Added- Value - Has partnered with 14 different logistics provider, with some of
them offering pick-up services. (M)
Shopee
Stand-alone High - Serving a wide range of products including those from official
Value sellers in the Shopee Mall platform with more than 1,6 million
sellers. (H)
- B2C e-commerce with the third highest amount of visitors in
Indonesia, reaching 38,9 million visitors in third quarter of 2018.
(H)
Partnership Moderate - Already has an e-fulfillment service (Service By Shopee). (L)

Added-Value - Already has its own logistics service provider (ShopeeXpress),
and partnered with 7 other logistics service provider. (M)
JD.ID
Stand-alone Moderate - Only begun becoming marketplace in early 2019, offers a wide
Value range of products including luxury items, but has less than 1
million sellers (curated by JD.ID to join). (M)
- B2C e-commerce with 11,4 million Indonesia visitors in third
quarter of 2018. (M)
Partnership Low - Has a warehouse for the goods it sells, but has no fulfillment
Added-Value service for the sellers. (M)
- Doesn’t offer partnership with many logistics service providers,
23
CSR Consulting
instead, partnered only with JX (J-Express). (L)
24
CSR Consulting
6. MARKET SHARE OF E-COMMERCE IN INDONESIA
25
CSR Consulting
7. DETAIL PROJECT MANAGEMENT STRATEGY
‘19 ‘20 ‘21

≥‘22
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Objective and KPIs Settlement
Partnership Agreement Settlement
Business Requirement Document
(BRD) Establishment
Structural management arrangement
People management arrangement
Product and System Requirement
Establishment
IT Vendor Functional Specification
Document (FSD) Affirmation
System and Product Development
Unit and Functionality Testing
Integration Testing
User Acceptance Testing + User
Training
Deployment
User Feedback
System maintenance
Performance target measurement
Strategy (Technology, People, Process)
Evaluation
26
CSR Consulting
8. DETAIL OUTCOME MANAGEMENT STRATEGY
2020
Solution Feature Prio-
rity Apr May Jun Jul Aug
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
PALAPA Fulfillment
Inventory Management Module H
Register Product Catalog
Restock Prompt
Inbound Receiving Form
Bulk SKU Upload
Platform Integration Module H
Marketplace Integration
Accounting Tools Integration
Custom Integration
Data Forecasting and Analytics M

Module
Report and Analysis
Demand Forecasting
PALAPA E-Commerce
Shipping Module H
Generate Digital Label
Pick-up Management
B2B Services Solution
Tracking Module H
Basic Tracking
Delivery Management
PALAPA Chatbot (Laras)
27
CSR Consulting
Chatbot Advisor H
PALAPA Transport Manager
Planning Module H
Centralized Transportation Demand

Management
Execution Module H
RFID-based Wireless IoT
2020
Solution Feature Prio- Jan ‘21
rity Sep Oct Nov Dec
PALAPA Fulfillment 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
Order Management Module M
Order Confirmation, Cancellation,

and Tracking
Reverse Logistics
Personalized Dashboard L
PALAPA E-Commerce
Support Module L
Find Nearest Majapahit.co Outlet

Location
Pricing Simulation
PALAPA Transport Manager
Planning Module H
Route, Courier, Resource Dynamic

Modelling
Automate Pallet Building
Load Simulation Modelling
Execution Module H
28
CSR Consulting
Geo-map Tracking
Integrated Freight Settlement
Multi-model Template Document
Network Module M
Driver Management
Third Party Logistic Collaboration

Portal
Analytics and Reporting Module L
29
CSR Consulting
9. DETAIL OF FINANCIAL PROJECTION
10. DETAIL RISK MANAGEMENT STRATEGY
Risk Root Cause Strategy Responses Probability Impact
Bukalapak Incompatibility Accept Grow retention High High

rejected with first on
e-fulfillment Bukalapak's e-fulfillment
partnership long-term product to
proposal strategy improve portfolio
while also
analyzed other
marketplace
company with
matching demand
Imbalance in Mitigate Hire expert with Medium High

offered value M&A project
background to
give point of view
on partnership
agreement
proposal
Unintegrated Deployed Avoid Make sure all High High
30
CSR Consulting
proposed system being features

transportation compromised requirements is
management in integration covered in BRD,
system with and user while also
overall acceptance explicitly state all
system, testing acceptance
process, and requirements for
services Integration Test
and User
Acceptance Test
in FSD agreement
Overestimated Wrong Mitigate Conduct initial Medium High

e-commerce estimation on primary research
sales e-commerce on buyers and
generation market sellers in
potential e-commerce for
demand
validation
11. COST FORECAST REFERENCES

Macro Delivery CAGR
IT Vendor Cost Rate
31
CSR Consulting
12. MAJAPAHIT DIGITAL LOGISTICS MOCKUP

○ Pricing Simulation
32
CSR Consulting
○ Delivery Management
33
CSR Consulting
○ AskLaras
34
CSR Consulting
○ Create Digital Label
35
CSR Consulting
13. STORE2GO MOCKUP

○ Dashboard
○ Register Product Catalog
36

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PALAPA PROJECT​ - ​Diponegoro Business Case Competition 2019

1.2. Business Objective & Expected Outcome

2.1.1.1. Primary Activities

2.1.1.1.5. Service (W)

2.1.2.5. Threat of New Entry (L)

2.2. Problem and Opportunity (Summary)

3.4.2. PALAPA E-Commerce (Majapahit Digital Logistics)

3.4.3. PALAPA Chatbot (Laras)

3.4.4. PALAPA Transport Manager

2. PORTER’S VALUE CHAIN DETAIL PROCESS AND CAPABILITY

3. PORTER’S FIVE FORCES SUPPORTING DATA

○ Individual-to-Enterprise size of buyers

Company Market Share

PT. Palembang Sriwijaya 25%

PT. Tumasik 25%

PT. Galuh Sundayana 30%

4. DETAIL OF USP ANALYSIS

S Reliability - Has a wide range of available services.

W Speed - Corporate wide implementation of a system by the company results in slowing

PT. Palembang Sriwijaya

S Reliability - Working aggressively to upgrade e-commerce fulfillment capability including

Safety - Less updated system causes customer difficulties in tracking packets.

PT. Galuh Sundayana

Price - Has a competitive cheap price.

W Speed - The delivery process takes a while and sometimes longer.

W Reliability - Only available in big cities (has low presence).

5. DETAIL OF DIGITAL PARTNERSHIP ASSESSMENT

Stand-alone High - ​National B2C e-commerce offering a wide selection of quality

Stand-alone High - ​C2C e-commerce with the highest number of visitors in

financial instrument with more than 2,7 millions sellers ​(H)

Stand-alone High - ​Serving a wide range of products, including intangible products

Partnership High - Has no e-fulfillment services. ​(H)

Partnership Moderate - Already has an e-fulfillment service (Service By Shopee). ​(L)

instead, partnered only with JX (J-Express). ​(L)

6. MARKET SHARE OF E-COMMERCE IN INDONESIA

7. DETAIL PROJECT MANAGEMENT STRATEGY

‘19 ‘20 ‘21

8. DETAIL OUTCOME MANAGEMENT STRATEGY

Inventory Management Module H

Register Product Catalog

Inbound Receiving Form

Bulk SKU Upload

Platform Integration Module H

Accounting Tools Integration

Data Forecasting and Analytics M

Report and Analysis

Generate Digital Label

B2B Services Solution

PALAPA Chatbot (Laras)

PALAPA Transport Manager

Centralized Transportation Demand

RFID-based Wireless IoT

Order Management Module M

Order Confirmation, Cancellation,

Find Nearest Majapahit.co Outlet

PALAPA Transport Manager

Route, Courier, Resource Dynamic

Automate Pallet Building

Load Simulation Modelling

Integrated Freight Settlement

Multi-model Template Document

Third Party Logistic Collaboration

Analytics and Reporting Module L

PALAPA PROJECT - Diponegoro Business Case Competition 2019

Stand-alone High - National B2C e-commerce offering a wide selection of quality

Stand-alone High - C2C e-commerce with the highest number of visitors in

financial instrument with more than 2,7 millions sellers (H)

Stand-alone High - Serving a wide range of products, including intangible products

Partnership High - Has no e-fulfillment services. (H)

Partnership Moderate - Already has an e-fulfillment service (Service By Shopee). (L)

instead, partnered only with JX (J-Express). (L)