Majapahit's Integrative Strategy to Conquer

Nusantara's Logistic Market

Diponegoro Business Case Competition

2019
KONOHA SEVEN
Kenny Anderson ( kennyandersonn@yahoo.com )

Joey Irvine Julianto

Fara Jetira Purba

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ABSTRACT

Majapahit.Co is a company specialized in Courier and Logistics which take the opportunity of E-
commerce. But Majapahit.Co has realized that there is big and wide opportunity in the industry, and it
has been dealing with 3 main rivals. Between them, Majapahit is the newplayer. So, the writer asks the
key question: what strategy can Majapahit do to increase brand awareness? How can Majapahit create
promising E-commerce? And what can it do to create the right internal management system? The writer
conducted a series of analyses to solve the problem. First the writer conducted a market research to see
the market behavior. From the survey taken, we see the main critical points that the customers want in
this industry are credibility, price, time certainty, and also wide service area. From that statement, the
writer gave parameters to these points. The writer then compared Majapahit to its three competitors in
term of those critical to quality factors. From those series of assessments, the writer formulated an
integrative solution that consisted of concentric strategy that repairs the system as a whole, with: building
massive information and care, enhancing and optimizing the system of the company, activating the
website and digital media, and expanding Majapahit’s coverage. There are also intensive strategies for
getting Majapahit into the market, by Majapahit rebranding, and digital media marketing, also engaging
more customer through local promotions. Lastly, there are innovative strategies to build the ecosystem,
by collaborating with digital wallet payment, franchise and merchant leaderboards, and customer loyalty
package.

Keywords: credibility, IT, Majahapit .

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Introduction: Company Profile – Problem Definition

Situation

The existence of logistics and courier industry become a needs in nowadays. The shifting of
lifestyle and technology open new opportunities in so many factors. One of the lifestyle is about the
trend of using e-commerce. It creates individual sellers and many other business eager to satisfy e-
consumers demand. Majapahit.Co is a company specialized in Courier and Logistics which take this
opportunity. The quality and performance are largely determined by customers, so this company
adequate services based on customer needs and expectations. The high competition in this industry make
Majapahit has to consider several things to boost customer loyalty, credibility and optimizung
distributions. Their vision is to be recognized as “The Top Nusantara’s Courier Express and Logistics
with innovative products that focus on Cost Efficiency Leadership, technology and excelent service”.
The main values that the company would like to be shown are the superior products, with excellent
service and premium price.

Complication

The big and wide opportunity in logistics and courier industry has been a challenge for all of the
industry which try to enter this industry. Majapahit has realized that it has been dealing with 3 main
rivals, PT.Galuh Sundayana. PT. Palembang Sriwijaya, and PT.Tumasik. Also between these three
competitors, Majapahit is a newplayer. The competitors have so many advantages, especially based on
the track record. As we know, track record is so importand to build credibility, which is one of the most
important factors that customer consider to choose logistics and courier services. The other problem is
about the system that Majapahit try toimplement have caused the whole operation to slow down.
Operations are displaying many abnormalities, mainly, idle times arenslowing process down. It becomes
the opposite of their objective to maintain the operating procedures and process equally. Majapahit has
tried to make innovative way to achieve their mission but in the implementation they still face many
problem.

Key Question:

1. What strategy can Majapahit do to increase brand awareness?

2. How Majapahit can create a promising E-commerce in logistics to levitate it’s business?

3. What can Majapahit do to create the right internal management system for the company?

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Problem Formulation
1. Market Research: Finding the Critical Factors
To find out the needs of customers, we conducted a survey with 87 respondents. The survey
consisted of three main questions, one of which is related to customer needs that influenced the
choice of couriers.
How often in a month do you use delivery services?
What is important to you when choosing a
courier? 8
1-3
12 32
Credibility 85 4-6

Price 83 7-9

Availability 65 35 >9

Fast 74
Safe 73
Which courier service do you use the most?
Certainty of Time 80
JNE
Trackable 72 10 18 J&T Express
Easy Delivery Procedure 72 20 IDL
Wide Service Area 13 Grab Express
80
Go-Send
Others 15 17 9
Pos Indonesia
0 20 40 60 80 100

Pic 1. survey results from 87 respondents (source: writer’s survey)

From 87 respondents, based on which factors are taken into consideration by respondents in
choosing a courier, credibility ranks first in consideration of choosing a courier, followed by price
in the second place and tied in the third place are certainty of delivery time and wide service area.
In this case, the certainty of time is defined as whether it is delivered on time according to the
delivery time chosen by the customer when choosing the shipping option.

The next two questions are singlevote, meaning from 87 respondents, each can only choose
one option for each question given. Questions asked related to the frequency of use of the delivery
service, as well as the courier service that was frequently used by respondents. From these questions
it was found that most respondents used delivery services 4-6 times in one month. Followed by
frequencies 1-3 times in one month. This shows that people do not use shipping services too often.
Then, for the information about courier services that are often used, in other words the main
competitor of Majapahit, it can be seen from the chart above that for shipping goods, Go-Send is
more often used. Followed by JNE courier service in second place. Close at the third place is Grab

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Express, followed by J&T Express at the fourth place, Pos Indonesia at the fifth place, and IDL at
the last place. From the insight, the writers formulate the requirements by using CTQ.

2. Critical to Quality: Level of Requirements

In order to understand the people and market condition, based on survey, there is some aspect that
affect customer to decide wheter or not they will use a logistic and courier service. This critical to
quality summarize several factor into 4 parameters that they need to fulfill so they can achieve
user satisfaction. That is credibility, price, certainty of time, and wide service area.

Pic 2. CTQ Diagram (source: writer’s formulation)

As we know, Majapahit has 3 main rivals that become a serious challenge that can affect their growth to
become the Top Nusantara’s Courier Express and Logistics. The main rivals that is worth to be
considered is PT. Galuh Sundayana, PT.Palembang Sriwijaya, and PT. Tumasik. Here we analyze the
competitive matrix of Majapahit compared with its three rivals, based on 4 critical factors that has been
patterned before.

PT.Galuh PT. Palembang

Critical Majapahit.Co PT. Tumasik
Weight Sundayana Sriwijaya
Success Factor
Rating Score Rating Score Rating Score Rating Score

Credibility 0.30 2 0.60 4 1.20 4 1.20 4 1.20

Price 0.20 4 0.80 3 0.60 3 0.60 3 0.60

Wide Service
0.20 2 0.40 3 0.60 3 0.60 4 0.80
Area

Certainty of
0.30 3 0.90 3 0.90 2 0.60 2 0.60
Time
TOTAL 1 2.70 3.3 3.00 3.20
Pic 3. Competitive Profile Matrix
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The first factor is about credibility. It is so important for us to know wheter or not the company is trusted.
This factors give the big effect on the customer’s choice because the packages has to be delivered safely
to the destination without damage. Majapahit get small score in this factor because it is a newplayer, so
it has not had a long and great track record llike another rivals who have entered this industry first.

And then about the price, Majapahit has a competitive advantage in this factors because it has premium
prices for it service as its value, and another competitors has the same position in this factors. The price
of all of this services are still reasonable for the quality that they offer. About the wide service area,
Majapahit has only 23 hubs around Indonesia, of course the competitors who has entered this industry
first has spread its services wider than Majapahit. For the certainty of the time, Majapahit has a great
performance compared with Tumasik and Palembang. From the total score Majapahit is still in the last
position. It means Majapahit still has so many rooms to grow and develop. Especially to build the brand
awareness to customer so it will has a well credibility to its customer.

Strategy Formulation
1. PESTLE Analysis: Understanding the External Factors
Considering that there are certain factors from the external that will affect the strategy, the writer
formulate external analysis using PESTLE. From the PESTLE Analysis (Appendix 2), it can be seen
that there are a huge market in Indonesia especially in the SMEs but there are some limitation
regarding regulation and social condition in Indonesia.
2. TOWS Matrix Analysis: Formulating the Strategy
From the SWOT Analysis (Appendix 1), the writer formulates the strategies for Majapahit using
TOWS Matrix

O T
• The advanced of technology can be • The threat of competitor can be a motivation for organizational
used to gain more customer, offer the commitment and habit to be better to sustain the business
services easily, especially to the new • Majapahit has to increase its brand awareness little by little to
W customer. compete with the big brands
• It will be easy to gain many customers • Majapahit has to improve its operation system so it can be one of
by cooperating with e-commerce which the main strength of Majapahit, this way Majapahit can compete
can be targeted easily not only in terms of pricing, but also service.
• The advanced of technology can allow • The high awareness of Majapahit about its position can give a
Majapahit to understand customer big positive impact.
needs easily • Majapahit has to build a system that can give an unique point for
• Majapahit have to brace itself to gain
customer so it can give easiness to enter the market
S more customer and win the competition
• Majapahit can brand itself more with its • Develop system carefully and put attention to the possibility of
3 values: superior product, excellent system failure that can give an impact to corporate.
service, and premium price to compete
with its competitor and gain customers.
Pic 4. TOWS Matrix (Source: Writer’s Formulation)

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Solution
To give the holistic strategy from the TOWS Matrix, the writers divides the strategy into three
phases: concentric strategy, intensive strategy and innovative strategy. Concentric strategy is aimed to
answer the problems and weaknesses of Majapahit. to meet the standard of customers and competitors.
The next strategy is intensive strategy to strengthen the competitive advantage and widen the market of
Majapahit. Then, innovative strategy is conducted to give more value for the customer so the customer
can differentiate our product with the other competitors.

A. Concentric Strategy: Whole Repairing

1. Massive Information and Care
1.1. Care Center
Majapahit could make a good relationship with the customers by enhancing the meeting
point of communication with the customers especially by ‘care center’. Care center is a
system of communication by utilizing social media and others type of digital services with
the customers. Therefore, Majapahit should create a live chat on its website and also utilize
Instagram, WhatsApp and Twitter to ease the customers to gather information they needed
to use the Majapahit’s services in the first place. Besides, Majapahit could create a
suggestion box in order to understand the voice of customers. This will also help Majapahit
to have a brand image in the society.
1.2. Informative Entertainment
Information is a fundamental things in creating a good relationship with the customers.
Therefore, Majapahit should escalate the information on the social media and website such
as using Instagram highlight to describe their services, prices, FAQ, contact, etc. or
Instagram fun fact post such as How to Wrap Things Right, Tips to Get Cheaper Freight,
New Way to be Rich: Logistic Franchisee, This or That, Mini Quizzes, etc. This will make
the customers become notice and understand the services and the company clearly so the
customers will become educated and reduce misinformation for new customers either for
the consumers and also franchisee.
2. Enhance and Optimize the System of Company in Majapahit
2.1. Improve Functional Work through Integration with Digital Skills
2.1.1. Real Time Updates on Corporate Data
Data is very important regarding the decision and functions optimization in a
company especially for Majapahit. Therefore, Majapahit should be able to

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implement a real-time updates in corporate data such as feedbacks on the

existing/newest services, change in demographic behaviors, etc. that will encourage
data-driven behavior in the company and help the company to be more cost
efficiency and better decision making process.
2.1.2. AI-assisted Decision Making
As a logistic company that should have an efficient process, Majapahit should be
able to implement an AI-assisted decision making system in the company that will
help the company to obtain more efficiency regarding route, capacity, number of
shipment, freight and encourage a bolder and faster decision making due to
validation of AI-assistant as well as concise data to support the decision.
2.1.3. Cross-Functional Transparancy
The slow of information transfer and flow from each department will keep the
company from a fast decision making . Majapahit should implement a workplace
system within the company where each department can update and notice each
actions and problems fixed by each department as well as new update in the
company. This will help Majapahit to open more room for collaboration and
evaluation with the transparency display of datas accessed and the decision that
follows and also allows better customer-centric approach.
2.2. Big Data Usage for Customer-Profiling and Pattern Determination
Majapahit could use big data to find the existing behavior and trend of the society
(customers) as well as new unreachable market such as the SMEs market in Indonesia and
learn more of the pattern of users to add more services to Majapahit. Besides, Majapahit
could have an insight on which period the promotion should be increased and personalized
offers through customers identification, maximize user experience and conduct a better
strategy in the future.
3. Website and Digital Media Activation
Majapahit should leverage its infrastructure especially in the reaching the customers and also
create a trusted and reliable brand image for the society and in the era of technology, the function
of digital media of a company is very important in helping the company to achieve it. Therefore,
Majapahit should be able to activate more features in its website such as FAQ, Find Nearest
Agent, Testimony and Suggestion Boz as well as News Update. Then, social media activation
strategy should be conducted such as activation of Instagram, Twitter and Youtube to give the
current update and create more engagement for the customers.
4. Expand the Coverage Area of Majapahit’s Agent
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To be able to get the trust from the customers, Majapahit should be able to expand its courrier
agent to be able to reach the customers easily. In the other hands, there have been many large
well-known and loyal competitors in the industry. Therefore, there are some actions should be
taken by Majapahit:
4.1. Creating Local Community to Boost Market Reach and Education
To be able to compete with its competitor, Majapahit should create a local community of
the people that usually using courier expressand franchisee working on the courier logistic
express and support them. They will be given training and also education as well as
advantages with Majapahit. Thus, this will enhance the market reach of the people and
boost the coverage area of Majapahit’s agent by the people who was interested to become
the franchisee.
4.2. Collaborate with Venture Capital/ Funding Company for Supporting Franchisee
As many people in remote areas don’t have enough fund to become a franchisee and also
access to get fund, Majapahit could collaborate with the local venture capital/local funding
or lending company to help the people in getting setup capital to franchise in Majapahit.
Then, the franchisee should pay an amount of money monthly to the funding/lending
company in return till the capital was paid off. This will help people who want to become
a franchisee and expand the covarage area of Majapahit’s agent services.
B. Intensive Strategy: Getting into the Market
1. Majapahit’s Rebranding: When Low Price meets Quality
As credibility is the most important factors for many customers and also franchisee, Majapahit
should be able to diminish the misperception in the society of low price in return of the good
quality. Besides, Majapahit’s services should be re-known by the society in order to get the
market pie from the society and it should also emphasized that Majapahit has the cheapest price
among the competitors. Therefore, Majapahit should re-brand itself and the services so the
society will know the services and many people also attract to franchise to Majapahit with
LowPriceHighQuality.
2. Digital Media Marketing
2.1. Social Media Campaign and Instagram Photo Challenge
To gain awareness from people in Indonesia, we will make Video Campaign on Youtube
and Instagram. Nowadays, many people use Internet and Social Media as their daily
activities. In fact, 85% people in Indonesia pick Youtube as their main platfom to watch
videos instead of Netflix and Television. Not only youtube, Indonesia is one of the most
users of Instagram with 59% users is 18-24 years old and minimum access once per week.
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These are a great opportunity for us to make a campaign on Youtube and Instagram. For
the photo contest, people who have doing a transaction can post a picture with the goods
before and after delivering with the sender and receiver in the picture and write a caption
about why using the services of Majapahit with #LowPricewithQuality
#MajapahitMurahCepatBerkualitas and mention to Majapahit IG’s Account. The winner
will get a chance to get free delivery services for Majapahit.
2.2. Majapahit’s Influencer and Ambassador
Nowadays, people are much more influenced by social media than older generations.
Friends and influencers’ behavior on social media is replacing existing expert systems.
Therefore, Majapahit needs to have an influencer on social media to influence the people
such as Rius Vernandes, Fitra Eri, etc. Then, Majapahit also needs an ambassador to
influence certain segments (eg: SMEs) such as cooperating with one of the local SMEs to
encourage the other people in the community of SMEs to use Majapahit as well. By then,
the services of Majapahit can be known by all people in all segmentation and create a brand
awareness in the society.
2.3. Majapahit’s Web Series: Sadvertising
Majapahit could create 5-7 episodes of short movies that are uploaded once every week
for a month or two on Majapahit Youtube account. The content should be very educational
but still does not make people realize they are being patronized. It can be started with
sadvertising (sad advertising) to attract the attention from viewers and can relate to their
daily life. The content can be about the Life Behind Majapahit’s Agent and Courier so that
people will get a better brand image and awareness for Majapahit. Besides, Majapahit
could also empower and promote the SMEs or company that use Majapahit on its Youtube
so that many tenants will also attracted to use Majapahit in its business.
3. Engaging More Customers through Local Promotion
Regarding the low price of Majapahit, Majapahit still should be able to create an awareness
for its low price and existence in the industry. Therefore, Majapahit should make promotions
such as:
3.1. Majapahit New User’s Free Shipping
To create an awareness for new customers, Majapahit could give free shipping promotion
for new users with terms and conditions that they have to post on Instagram/Instastory
about Majapahit Free Shipping Event and mention three of their friends and Majapahit.
Prize will be given daily for them who are lucky.
3.2. Majapahit Birthday Mega Shipping & E-commerce Special Event
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Majapahit also could give promotion in its birthday such as Rp 1 only for today (terms and
condition applied) and also collaborating in e-commerce special event such as e-commerce
CSR, birthday event and seminars. This would create a one time yet large deal awareness
for the public to know the services.
C. Innovative Strategy: Building the Ecosystem (Supporting E-Commerce: Store2Go)
1. Collaborating with Digital Wallet Payment
To create an ecosystem for Majapahit which could accomodate the services and customer
loyalty in the future, Majapahit could collaborate with the digital wallet payment in Indonesia
such as GoPay or OVO to ease the people in getting an easiness of services and payment
regarding the delivery and services of Majapahit. This will help the customers to gain easiness
for repetitive transaction and create a recurring revenue for Majapahit. This collaboration will
also become a new step to realize a system of e-commerce in logistics.
2. Franchisee & Merchant Leaderboard and Appreciation
To increase the number of franchisee and maintain a good services of customers in all agents in
Indonesia, Majapahit could make a monthly appreciation for agents/franchisee who gives the
best services for the customers by regions. The top agent/merchant using Store2Go will get new
rating promotion on Majapahit’s social media so the agent/franchisee will get more advantages
such as free system upgrade/ resources (laptop, printer, etc.)
3. Customer Loyalty Package: Subscription and Membership
Majapahit could give an offering with subscription model which customers are able to send
goods for a certain number of times in accordance to which subscription package they take. For
example, pay IDR 500,000 for 30 services regular delivery in Java Island, available until xx. By
then, Majapahit could ensure future revenue and usage of the services in the future. Majapahit
also could create an e-membership card for loyal customers and they could get advantages such
as free 1 services/month. This will maintain the loyalty of Majapahit’s customers.

Strategy Sustainability
A. Risk and Benefit Assessment
To ensure that the strategy will be sustainable and very impactful, the writers also analyze the
upcoming risk so it will prevent future losses. The largest the difference of X and Y have the
highest priority.

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Strategy Benefit X Risk Y Anticipation

Many of the people don’t Create a timeline of
Massive Providing a clear information
aware of the information posting and updating
Information and and credibility as well as 7 2
and information are not new information on each
Care brand image in the society
always updated media
Improve company’s Collaborate the
Improve
integration with each New system requires new advantages of the old
Functional
department and increase changing in some of the system with the new
Work through 9 4
efficiency within the flow of organizational functions implemented system so
Integration with
information and bold the and structure change will not be
Digital Skills
decision making affecting overall process
Educate and encourage people The impact of the Focusing the digital
Digital Media to start using Majapahit’s marketing didn’t really marketing for several
8 2
Marketing services and create brand target the right market or times for different
awareness in the society audience segmentation needed
Creating Local Choose a community
Ease Majapahit to gain the Hard to control the internal
Community to leader in the area that is
market attention and widen things in the community
Boost Market 7 4 responsible for the
the coverage area within the especially in the
Reach and community as well as the
country village/remote areas
Education company
Big Data Usage Personalized offers through Protect the confidential
Misused of the data by
for Customer- customers identification, datas and share the data
certain parties in the
Profiling and maximize user experience and 9 3 with given access when
managerial/operational
Pattern conduct a better strategy in the requested by certain
body in the company
Determination future. department
The unloyalty of Emphasizing on the low
Engaging More Creating a one time yet large
Indonesia’s customers will cost of the freight and
Customers deal awareness among the
8 make customers tend to 3 encourage the customers
through Local society and encourage the use
seek other courier services to take the subscription
Promotion of Majapahit services
with promotion after it end model
Help the customers to gain
Merchant/ partner company Create a clear yet giving
Collaborating easiness for repetitive
won’t cooperate and take added value
with Digital transaction and create a 9 5
advantages in the future and contract/agreement for
Wallet Payment recurring revenue for
fraud both parties
Majapahit
Customer
Target this strategy for
Loyalty Many individual customers
the market with high
Package: Maintain loyalty of the that rarely deliver goods
8 4 transaction such as B2B,
Subscription customers in the future use this
e-commerce and large
and subscription/membership
companies
Membership

B. Financial Analysis
To ensure that the strategy is feasible and can be conducted, we create a cost analysis from the
strategy plan. The projected growth is counted with the Analytical Hierarchy Process Computing
Software and Monte Carlo Simulation was made to make the result become more objective.
(Appendix 3).
C. Timeline Control
The strategy also can be conducted and get its optimum benefit if it is run within the timeline.
(Appendix 4)
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References

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Majewski J. (2002), Informatyka dla logistyki. Biblioteka Logistyka pp.51-52, Poznań

Marasco, A. (2007), The party logistics: A literature review, International Journal of Production
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Moerkens L., Pollock W. (2000), A Structured Approach to Logistics Improvement, CSR

Saaty, T.L. (1994), How to make a decision: the analytic hierarchy process, Interfaces pp. 19-43.

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Triantaphyllou E., Shu B., Nieto Sanchez S., Ray T. (1998), Multi-Criteria Decision Making: An
Operations Research Approach, Encyclopedia of Electrical and Electronics Engineering, New
York, pp. 175-186.

Turskis Z., Zavadskas E. K., Peldschus F.(2009), Multi-criteria optimization system for decision
making in construction design and management, Engineering Economics pp. 7–17.

Yang J. B. (2001), Rule and utility based evidential reasoning approach for multiple attribute decision
analysis under uncertainty, European

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Appendices

1. SWOT Analysis of Majapahit

Strength
• Majapahit has 3 values that the company would like to be shown, superior product, excellent
service, and premium price.
• Majapahit is implementing system for courier, cargo and logistics, which can do many things
for saving time and money.
• Majapahit has seen and realize the high competition in this industry so they has consider several
things to win the market.
• Majapahit has 23 hubs spread across the main island, the location in key cities may shorten lead
time
Weakness
• Majapahit.co doesn’t have a very high brand awareness, it can hinder the activities in attracting
customer
• Majapahit’s IT system is department and operation specialized, when this system is
implemented in the whole company scale this can cause the slowing down of the operation and
business process.
• There is idle time in the operation process that can cause the slowing down on the entire
operation, so Majapahit can plan and further optimize its operation system
Opportunity
• There’s a growth of people that will be the target market
• The rising customer income means that customer’s buying power will also increase
• The surfacing of many e-commerce platform can boost the delivery industry sales greatly
• The advanced technology can be used for every segment of business even in marketing,
production system, etc.
Threat
• Established companies, People may be shy to shift away from familiar delivery services and
give their business to Majapahit.co. Until trust is established with the consumer, it may be
difficult to break into the market.
• The easiness to enter this industry means that there will be other competitors which offer the
same value

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• The fast development of technology, so the technology of the system must be improved
constantly
2. PESTLE Analysis of Majapahit (Full)

1. Political
• Indonesia has just passed the election period, the post-election atmosphere that still tends to
heat up can have some indirect effects on business.
• ALFI, Indonesia Logistic and Forwarding Association demands the chosen president to
make a body specialized in logistics to further improve the logistic infrastructure and
ecosystem in Indonesia. This will improve the logistic and courier industry the company
works in,
2. Economic
• 8% increase each year of GDP per capita forecast of Indonesia until 2022 will push on
Indonesian purchase power.
• Based on, Indonesia will grow in its middle class economy and thus will encourage the
economy of Indonesia in overall
3. Social-Cultural
• The number of online shoppers in Indonesia has continued to increase over the past few
years. In 2018, the number of online shopper is estimated to reach 11.9 percent of the total
population in Indonesia,
• Indonesia is increasing in its middle-class population. This middle class population can boost
the business as the purchasing power in the e-commerce sector is pretty big.
4. Technological
• 81% of Indonesian respondents in Jakpat said that cell phone is important for them
• Cell phone user penetration in Indonesia will grow each year and reach 40.5% of Indonesia
population in year 2022
• According to a recent study by polling conducted by Indonesia in collaboration with APJII,
the number of internet users in Indonesia increased by 10% last year. The study shows that
171 million people, or 64.8% of the total population of 264 million Indonesians, were already
connected to the internet in 2018.
5. Legal
• Majapahit.co. has to comply with legal requirements of the country. These include patents,
copyrights, and consumer protection laws. Some of these legal conditions can be beneficial
for Majapahit.co, but can also result in huge costs for them. Fulfilling these legal

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requirements help majapahit.co in maintaining their brand name and save them from possible
law suits in the future.
6. Environmental
• The logistics or transportation industry involves the use of vehicles; they contribute a lot to
the air pollution which is damaging to the environment as well as the company’s reputation.
Due to this, they might lose out on customers if they develop this perception about
Majapahit.co. Majapahit.co can recover from these loses by investing in CSR activities as
they are currently involved in waste-management solutions and recycling and implementing
these solutions in all their supply chains. This will gain them consumer trust and thus profits.

3. Financial Analysis

4. Timeline of Implementation

5. System Integration Proposed to Majapahit (Intelligence Transport System)

According to Pillac et al, during the last decade, a significant development of “smart” information
technologies for vehicle routing management has emerged, based on technological advances in more
accurate geographic information systems, new-generation of computers with increased processing
capabilities, and developments of better planning systems and techniques.
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The Ministerio de Fomento en España, defines intelligent transport systems as “... a set of advanced
applications inside information technology, electronics and communications that, from a social
economic and environmental standpoint, are designed to improve transport mobility, safety and
productivity, by optimizing the use of existing infrastructure, increasing energy efficiency and
improving the capacity of the transport system. Intelligent Transport Systems aim to respond, from a
multimodal perspective, to the transportation needs, applying ICT (Information and communication
technologies)”. Intelligent Transportation Systems are part of ICT, however Perego et al.argue that
some authors use the term ITS and ICT for transport without distinction. Therefore, the reader
interested in exploring this subject should take note of this clarification and perform their analysis
using the two possible names.

With the use of ITS, transport operations are performed optimally in terms of traffic flow (speed and
time routes). Jarašuniené states that the integration of ITS allows the exchange and coordination of
information, information acquisition and integration between vehicles and the road infrastructure, the
exchange of information with private sectors (logistics service providers), and the exchange with non-
transport-related organizations, such as electronic payment institutions.

Then, Intelligent Transportation Systems are the interconnection of different information systems
aimed to capture, communicate, compute and assist decision-making, allowing to properly manage
the flow of vehicles and transportation means. For the proper management of a transport system, the
integration of technologies such as the Internet, electronic data exchange, wireless communications,
computer technology, programming, and technologies designed to capture and analyze the required
information.

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Systems available for ITS are:

Automatic Incident Detection - AID: These systems reduce incident detection time and response time
to them. They also allow determining the possibility that an accident may have occurred or may occur, by
tracking traffic patterns. These systems are not designed to replace the monitoring centers, but to help their
management
Weigh in Motion - WIM: These systems are designed to determine the weight of vehicles in motion.
They can help control the care of roads, since an overweight vehicle is a factor for their premature deterioration.
These systems work thanks to the location of load cells, piezoelectric systems or flexible bands. Figure 3 shows
a photograph of a flexible band WIM system
Advanced Traffic Management Systems - ATMS: These systems are in charge of acquiring real-
time information about traffic conditions, data analysis, travel time predictions, emergency response
management and providing this information to users through information systems of the city traffic control or
other means such as Advanced Traveller information Systems - ATIS. Those are responsible for providing
traffic information, which can be used by users to improve their transportation mode selection, routes and
decision-making in general. These systems allow the reduction of distances, fuel consumption and pollution.
Electronic payment and Automated Vehicle Identification - AVI: These systems allow the real demand and
the current amount of trucks circulating in real time to be known, making it possible to control the flow of
transport within the city.
Advanced Fleet Management Systems -AFMS: These systems allow the positioning and use of
freight to be planned, resulting in the system's optimization and its control in real-time. According to
Benjelloun et al. “Advanced Fleet Management Systems can contribute significantly to the efficiency and
ultimate success of cities' logistics systems”.
6. Digitalization in Indonesia

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