THE IMPLICATION OF E-COMMERCE DIVERSIFICATION TO THIRD PARTY LOGISTICS IN INDONESIA (A Case Study of RPX and PT Pos Indonesia)

Abstract

Being a trend in Indonesia, e-commerce industry hasn’t just brought a significant impact to Indonesia online shopping to consumer but also to Third Party Logistics (3PL) players in Indonesia. As we known one of the key points of e-commerce is delivery service, which is predicted to be a profitable market for those 3PL players. But, e-commerce has started to diversify into logistics area by building its own for provide best e-commerce related service to stays competitive. Therefore this study wants to find out whether the role of e-commerce with its own logistics has changed into threat to 3PL companies or not in Indonesia. To disclose the impact of diversification, this study use qualitative method with data collection from in-depth interview with representative of related companies, the companies use in this research are RPX and PT Pos Indonesia. As the result, the position of e-commerce toward 3PL players can be both profitable and threat in case of B2C e-commerce that has its own logistics. Where the e-commerce gives a threat to 3PL sales portion by depend mainly on its own logistics, while 3PL is outsourced for shipping to difficult area as solution to face Indonesia archipelago geography challenge. In other hand, with the rises of e-commerce companies and orders, also archipelago challenge, e-commerce logistics market will still be a profitable business for both logistics and non-logistics companies.