ENGLISH ASSIGNMENT FOR THE LOGISTICS SECTOR

IN THE ERA OF SOCIETY 5.0

STUDY

ENGLISH II

SUPPORTING LECTURER : MR. Abdullah

TITLE :

LOGISTICS SECTOR IN SOCIETY 5.0 ERA CHANGES,OPPORTUNITIES,

AND CHALLENGES

BY

MARPINA NINGSIH (202213030)

MARDIANA GRACE F.(202213021)
MELTY ANDANI M. (202213008)

STUDI PROGRAM D3 LOGISTICS MANAGEMENT

PALM OIL POLYTECHNIC CITRA WIDYA EDUCATION

Bekasi, 02 April 2023

 ENGLISH ASSIGNMENT FOR THE LOGISTICS SECTOR
IN THE ERA OF SOCIETY 5.0

FOREWORD

Praise and Gratitude I pray to the presence of God Almighty who has bestowed
His grace, so that the preparation of this paper on the logistics sector in the 5.0 era
as an assignment from an English course can be completed.

I would like to thank all parties who have helped in the process of making the
logistics sector paper in the 5.0 era according to the plans and targets that have
been determined. I realize that this paper is far from perfect. Therefore it is highly
expected criticism and suggestions from readers. Finally, I hope that this paper
will be useful for readers.

Bekasi, 02 April 2023

Team Writer

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 ENGLISH ASSIGNMENT FOR THE LOGISTICS SECTOR
IN THE ERA OF SOCIETY 5.0

LIST OF CONTENTS

FOREWORD...................................................................................................... II

LIST OF CONTENTS....................................................................................... III

CHAPTER I INTRODUCTION...................................................................... 4

A. Background............................................................................................ 4
B. Problem Objective................................................................................. 5
C. Formulation of the problem.................................................................. 6

CHAPTER II DISCUSSION

A. Changes that occurred in the logistics sector in the era of society 5.0

1.1 Updating the logistics service model.............................................. 7

1.2 Migration of operational activities from Onsite to Online..............7
1.3 A new era for the continuity of the logistics business in the era
of society 5.0....................................................................................8
B. Opportunities for digitizing the logistics sector..................................8
C. The challenges of digitizing the logistics sector...................................9
D. Overview of the Industrial Revolution 4.0...........................................10
E. Society 5.0 at a Glance The era of disruption or the era
of the Industrial Revolution 4.0............................................................10

CHAPTER III CLOSING

A. CONCLUSION AND RECOMMENDATIONS.................................12

BIBLIOGRAPHY..............................................................................................13

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 ENGLISH ASSIGNMENT FOR THE LOGISTICS SECTOR
IN THE ERA OF SOCIETY 5.0

CHAPTER 1

INTRODUCTION

A. Background

Society 5.0 is a concept from the Japanese government as a form of concern about
the degradation of the human role in the Industrial Revolution 5.0 era. The
Japanese government introduced the concept of Society 5.0 as a concept that
defines that technology and humans will coexist in order to improve the quality of
human life in a sustainable manner while the industrial revolution 1.0 brought
considerable change, in which jobs that were previously carried out roughly by
human hands were slowly being replaced by steam-powered machines. The era of
the industrial revolution 1.0 ended, marked by the discovery of electricity around
the 1870s. This era is called the industrial revolution 2.0. Big names like Thomas
Alva Edison, Nikola Tesla, and so on came to color this era. It was in this era that
the manufacturing industry was able to assemble objects such as modern lamps,
cars, planes, telegraphs, and so on. After the industrial revolution 2.0 ended, a
new era emerged called the era of the industrial revolution 3.0. In this era, the
industrial world is getting more efficient with automation in various ways. This
era gave birth to technologies such as computers, the internet, software, and
others. Then in the 21st century, we are all in the 4.0 era. Several sources say the
industrial revolution 4.0 began in 2011, when high-tech projects began to be
worked on by several parties. The era of the industrial revolution 4.0 that we are
currently living in has given rise to various kinds of cutting-edge technology, and
will continue to develop in the coming years.

Examples of the application of Society 5.0, according to the Japanese government,

include the use of drones in various areas, especially to reach disaster areas and
the use of interconnected household appliances to increase comfort in everyday
life. In contrast to Japan, Indonesia's condition is very different. Not only from an
economic and material standpoint, but also from a social and cultural standpoint.
So that Indonesia's process towards Society 5.0 needs to be adjusted. Based on
data from the World Digital Competitive Ranking 2021, Indonesia's
competitiveness in digital terms is in 56th place out of 62 countries. Therefore, to
increase competitiveness, not only the public, but also the public service sector,
such as the logistics industry, need to be digitally literate. The logistics and e-
commerce industries are an inseparable unit. Because in e-commerce business
processes, there are two essential things covered by logistics, namely sourcing and
delivery. Sourcing is needed to obtain and collect goods from suppliers or
merchants to be traded online. While delivery is the process of sending goods to
customers to meet the deadline. This is the moment of revival of the logistics
industry in Indonesia! In the industrial era 4.0, Indonesia's logistics sector

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IN THE ERA OF SOCIETY 5.0

continues to beautify itself to welcome the era of Society 5.0 which is in sight.
The impact of digitalization seems to have changed Indonesia's logistics sector in
a better direction. In the Logistics Performance Index (LPI) ranking, Indonesia's
logistics assessment was in 75th position in 2010. Meanwhile in 2018 the figure
shot up to 48. In ASEAN, Indonesia is in fifth position behind Singapore,
Thailand, Vietnam and Malaysia. This position is predicted to continue to
improve in line with the digitalization of Indonesia's logistics sector in the digital
era. However, the logistics sector experienced ups and downs at the beginning of
the pandemic era in the early semester of 2020. According to data from the
Indonesian Logistics Association (ALI), all logistics companies in Indonesia
experienced a 50 percent decrease in transactions. In fact, during the same period,
the decline in logistics volume reached 60-70 percent because at that time the
government adopted a Large-Scale Social Restrictions (PSBB) policy to prevent
transmission of COVID-19. However, on the one hand, business-to-consumer
(B2C) and customer-to-customer (C2C) logistics services are actually
experiencing growth even though the scale is small due to an increase in
transactions for sending food and medical supplies despite large-scale social
restrictions. Currently, Indonesia's logistics is entering a new era due to the
pandemic. Logistics companies inevitably have to rack their brains to carry out the
digitalization process optimally and innovate by utilizing Internet of Things (IoT)
technology, big data, cloud and Artificial Intelligence (AI). In fact, the Minister of
State-Owned Enterprises (BUMN) Eric Thohir strongly supports the digitization
of the logistics supply chain in order to restore the national economy after the
COVID-19 pandemic which has been endemic since March 2020. What's more,
the Indonesian people will continue to maintain a stay at home economy as a trend
in the future. future. Quoted from McKinsey (2016), the supply chain digitization
process allows companies to fulfill customer desires, overcome supply-side
constraints and increase the efficiency of the supply process itself. This means that
if the supply chain has gone digital, the logistics process will be faster, more
efficient, more flexible, and the delivery of goods will be faster and more
accurate. What's more, McKinsey also predicts that e-commerce transactions will
reach 1.6 billion transactions in 2022.

B. Problem Objective

To find out about the logistics sector in the 5.0 era that will came in its time and in
the importance of the role of the logistics sector in Indonesia itself.

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IN THE ERA OF SOCIETY 5.0

C .Formulation of the problem

We take the title of discussing the logistics sector in the era of society 5.0:
changes, opportunities and challenges to find out about the renewal of the
logistics service model in the era of society 5.0 which implements end to end
integrated supply chain management. An example of this system application is a
warehouse management B2B system that allows management warehouse in real
time, accurate and optimized. Migration of operational activities from Onsite to
Online, To turn an onsite business into an online business especially in the
logistics sector, is definitely not as easy as turning your palm. Experts and
adequate equipment are needed to migrate the business. An example of a logistics
business migration application is the creation of Android and iOS-based
applications for logistics businesses such as JNE, JNT, Sicepat and so on. A new
era for the continuity of the logistics business in the era of society 5.0, The
application of AI, IoT and Machine Learning will lead to a business concept that
is able to have insight into consumer needs before the demand existsZ.
Opportunities for digitizing the logistics sector Opportunities for digitizing the
logistics sector will have an impact on increasing transactions for logistics service
providers (3PL and 4PL) and many more.

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IN THE ERA OF SOCIETY 5.0

CHAPTER II

DISCUSSION

A. Changes that occurred in the logistics sector in the era of society 5.0

1.1 Updating the logistics service model

One of the interesting packages in the era of society 5.0 is the

implementation of end-to-end integrated supply chain management. This system
allows companies to have an integrated distribution chain starting from the
supplier, production, distribution, to customer stages. The system will make it
easier for companies starting from the administrative process of recording the
flow of goods in and out of the warehouse, integrated databases to marketing.

An example of the application of this system is a warehouse management

system for B2B consumers which enables real-time, accurate and optimized
warehouse management. Especially in terms of recording and mutation of goods.

In addition, current technology allows one device to be connected to other

devices with a wireless internet system so that recording, tracking, and movement
of goods can be done in an integrated and real time manner. In the end, the
implementation of a first in first out (FIFO) system will run according to the
applicable theoretical rules because it is well monitored by a system.

1.2 Migration of operational activities from Onsite to Online

To turn an onsite business into an online business, especially in the

logistics sector, is definitely not as easy as turning your palm. Experts and
adequate equipment are needed to migrate the business. However, by investing in
technology and qualified resources, the transition process will run smoothly and
will certainly save operational costs if it goes well.

An example of a logistics business migration application is the creation of

Android and iOS-based applications for logistics businesses such as JNE, JNT,
Sicepat and so on. Even more rapidly, in the current supply chain management
business, many marketplace businesses have emerged such as Lazada, Tokopedia,
Shopee and JD.ID which are capable of providing various household needs that
have accommodated the Internet of Things and Machine Learning so that they are
able to coordinate the supply chain from start to finish. the product is received by
the customer.

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1.3 A new era for the continuity of the logistics business in the era of society
5.0

The application of AI, IoT and Machine Learning will lead to a business
concept that is able to have insight into consumer needs before the demand exists.
Currently, the use of technology is able to improve the performance and service of
the logistics business in a better, more modern, faster, more reliable and more
cost-effective direction.

B. Opportunities for digitizing the logistics sector

Opportunities for digitizing the logistics sector will have an impact on

increasing transactions for logistics service providers (3PL and 4PL). Like JNE,
which reported that it had exceeded its target of delivering 1 million goods per
day. Meanwhile J&T Express recorded 16.5 million packages during the 11.11
Online Shopping Festival period. Fantastic!

Digitization also provides new ways for 3PL and 4PL to collaborate in
terms of outsourcing with other companies. This collaboration can increase added
value to customers and increase company profits. With digitalization,
opportunities to collaborate are not only with domestic companies but also abroad.
3PL and 4PL collaboration with other companies is usually carried out in several
aspects such as domestic and international transportation, warehousing, freight
forwarding, technology and information to management and fulfillment.

The digitization process also makes it possible for logistics service

providers to create innovations that can increase customer satisfaction by
maximizing Internet of Things (IoT) technology, big data, cloud and Artificial
Intelligence (AI). Such as the delivery revolution with drones which is currently
being promoted by Indonesia. Delivery with this drone in the future can reach the
3T (Disadvantaged, Frontier and Outermost) and disaster-prone areas. From the
results of a study by the Ministry of Transportation Balitbanghub with ITB,
sending logistics using drones will save up to 30 percent in logistics costs. In
addition, drones will also speed up delivery times and can reach all areas, not
difficult to reach via land routes.

Digitization has also started at ports with the implementation of the

Inaportnet system version 2.0 and Delivery Order Online at ports since 2019. The
Ministry of Transportation has implemented the Inaportnet system at 16 ports and
the number will increase over time. These two digital services have had an
extraordinary impact on services at ports. Imagine, the reporting process that
previously took one day can now be done in just 10 minutes. In addition, the
information process for ships and goods has become more transparent and can be
monitored in real time.

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C. The challenges of digitizing the logistics sector

Indonesia's logistics digitization opportunities can certainly be realized if

the actors in this sector can also handle various challenges. This challenge must be
the main concern of many parties so that the efforts of the logistics sector as the
backbone of the Indonesian economy are maintained. What's more, technology is
very influential on consumer behavior which can change drastically. Of course,
logistics actors must pay attention to many things in order to create a sustainable
business.

One aspect that is the main challenge in the Indonesian logistics industry is
cost. In 2019, Katadata once made a report if Indonesia's logistics costs to Gross
Domestic Product (GDP) tended to be high, reaching 24 percent. Whereas in
2021, the percentage will be at 23.5 percent. Although it has decreased, this figure
is far higher than other countries. Let's compare it with Malaysia, which has a
logistics cost ratio of only 13 percent of GDP.

What are the main causes of logistics costs in Indonesia being far more
expensive than neighboring countries?

The answer is the complexity of the bureaucracy in the process of applying

for a business license. Like it or not, business actors have to pay extra to solve the
problem. Logistics entrepreneurs will also be faced with high investment costs to
provide production equipment, robotics, technology and transportation to adapt to
the digital era.

Expensive costs can also be caused by uneven infrastructure development

in Indonesia. As an archipelagic country and the seventh largest in the world,
Indonesia is still faced with unequal development. Whereas infrastructure is the
main pillar in the efficiency of the logistics process. The process of sending goods
to customers will be slow and logistics costs will be much more expensive.

The next aspect related to the challenges of digitizing logistics is human

resource management (HR), which still needs to be improved.

We live in the era of Society 5.0, but there are still many logistics
companies that still survive with the old and conventional systems because human
resources are not yet adaptive to technology. Imagine if these industry players
were still playing the old way of logistics management. The process of
transportation, inventory, warehousing and packaging of goods is done manually.
Apart from slowing down the process, of course this also has an impact on
increasing costs and reducing added value for customers. The low quality of
human resources will also have an impact on the lack of innovation. In the midst

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of an era of intense digital competition, innovation is urgently needed so that

customers are loyal to the products and services offered.

Improving the quality of human resources must also be considered because

according to the Indonesian Logistics Association (ALI), digitizing logistics will
have an impact on reducing the role of humans. If a logistics company has
implemented computer and robotic technology, it means that daily operational
activities no longer require human labour. Therefore, human resources must be
able to adjust to changing eras by increasing competence so they can do jobs that
cannot be done by robots. For example learning to make applications or maintain
systems so that the logistics process runs without a hitch.

The Indonesian logistics sector has a bright future because it is supported

by many positive aspects in digital growth. Dynamic consumer behavior, a high
number of e-commerce users in the world and the increasing performance of
Indonesia's logistics in the world index. However, there are still many industry
players and human resources who are still unable to keep up with the rapidly
developing dynamics of technology. If this is allowed to continue, of course it will
hamper the pace of the logistics sector as an important pillar of the Indonesian
economy.

D. Overview of the Industrial Revolution 4.0

Fourth Industrial Revolution is a fundamental shift in how we produce,

consume and relate to one another, driven by the convergence of the physical
world, the digital world and human beings(Prof. Klaus Schwab). The industrial
revolution 4.0 isfundamental shifts in human life in how production, consumption,
and relate to one another others, driven from the convergence of physical, digital
and man himself Every revolution of course bring many significant changes and
huge impact that comes with it. Plus with the rapid and rapid development of
technology integrate multiple dimensions such as physical and digital.The scale
and complexity is also very wide because of the variety line involved in it.
Change is not only in the fields industry but also in almost every field it
encompasses economic, political, social, cultural and can also reach state level.

E.Society 5.0 at a Glance The era of disruption or the era of the Industrial
Revolution 4.0

Digital technology is the driving force for the movement of the Industrial
Revolution 4.0, artificial intelligence combined with the internet of things (IoT)
which is backed up with big data is capable of processing data on a gigantic scale
and describing a condition virtually and provide solutions for appropriate,
effective and efficient decision making. The Society 5.0 concept is a refinement of
the previous concepts. If we look at starting from Society 1.0, humans were in the

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era of hunting and knowing writing, in Society 2.0 where humans entered the
agricultural era where they started to know farming. Then Society 3.0 was the
industrial era where humans started using machines to support their daily
activities, after that came Society 4.0, namely humans using computers and the
internet as part of their lives. Society 4.0 helps a lot of human needs by accessing
and sharing information via the internet. And Society 5.0 is an era where all
technology becomes part of humans themselves. The internet is not just for
sharing information but for living life.

CHAPTER III

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IN THE ERA OF SOCIETY 5.0

CLOSING

A. CONCLUSION AND RECOMMENDATIONS

From the above paper it can be concluded that the logistics sector in the world has
begun to enter the revolutionary phase of the 5.0 era, where in the 5.0 era the
logistics industry has started to use renewed logistics service models, migration of
operational activities from onsite to online, a new era for the continuity of the
logistics business in the era of society. 5.0

To go to the 5.0 era from the 4.0 era is not easy because there are several
obstacles in Indonesia, unlike in Japan. To get to the 5.0 era, Indonesia also needs
adjustments to revolutionary changes in the 5.0 era where during the 4.0 era it has
entered the era of technology which also reduces the human workforce, we
ourselves know that some Indonesian people are still old-fashioned in technology
and they still use human resources. people to find their source of income.
However, if there is socialization of the existing changes and explaining the
benefits that we will get in this 5.0 entry era, it is very likely that they will get
used to and accept this era.

BIBLIOGRAPHY

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Sumber : https://www.mceasy.com/blog/bisnis/manajemen-pengiriman/sektor-
logistik-di-era-society-5-0-perubahan-peluang-dan-tantangannya/

https://sasanadigital.com/mengintip-perkembangan-revolusi-industri-mulai-era 1-
0-sampai-4-0/

https://www.kompas.id/baca/opini/2021/12/15/sistem-logistik-era-industri-4-0

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