A Chat With EloKu Founder Didi Setiadi on Building a Logistics Startup

As the e-commerce industry blooms in Indonesia, logistics can be an issue especially for a country that comprises more than 13 thousand islands. EloKu aims to be a solution to fill that gap in order all stakes can track where their document or goods and when it can be estimated arrived. EloKu allows you to track and trace your goods via your Android, iPhone or mobile browser accurately.

Their mission is to be a supporting player for the logistics industry aiming to strengthen logistics ecosystem become modern, efficient and effective. Didi Setiadi, Founder and CEO of EloKu believes a strong logistical network will impact economic growth since economic growth is alone determined by the way that country’s logistics system works. DailySocial had a short chat with Setiadi, talking about his background, his company and his future plans. Check out our interview with Setiadi below.

What is the founder(s) background? How did you get in to the tech scene?

[Didi Setiadi] For about 14 years, I spent my career in the telecommunications industry. It was a great path for my life until the business landscape changed in that telecommunication business shrunk and applications take the role as money maker. Nokia and Nokia Siemens Networks as my last employers inspired me that to innovate for benefit of the people and devices connected then result real business. Hence, when I decided towards retirement before I hit forty, I established my first technology startup, PRASIMAX. It is actually unique and customized electronics device designer startup. Literally, it is remaining tech stuff in telco area. Another co-founder is Argo Wibowo, founder of Kafegaul.com and betawi.net. He is more knowledgeable in tech industry.

What made you come up with an idea to develop Eloku?

[Didi Setiadi] The idea of Eloku was trigered, frankly, when I went through Founder Institute (FI) in May 2012. My original idea I proposed for that program was actually mobile commerce with anti fraud solution, but mentors and directors at Founder Institute drilled us to be more relevant with current business challenges and emerging market in digital world such as e-commerce. Eloku is expected to solve delivery issues in fulfilment process.

What do you think about Eloku's current positioning in the ecommerce industry and what's your future plan for Eloku?

[Didi Setiadi] Supply chain, cargo movers, express courier and logistics in Indonesia need to be improved and enhanced properly, this industry really impact to economy. Eloku plays the role only as the ENABLER to transform traditional way into electronic integrated process for courier and logistics companies. No one plays on this area except the global logistics and forwarder ones for their internal business process. In terms of service offering, Eloku departs from realtime tracking and tracing solution by bridging between courier company and its customer like e-commerce. Because almost e-commerce players want to transfer risk to courier once shopper click the BUY BUTTON then afterward shopper can track their goods. Else, Eloku can be an independent party for e-commerce to measure precisely performance indicators of couriers.

As a player in the e-commerce industry, what do you think the industry needs in order for the e-commerce industry to grow?

[Didi Setiadi] I think e-commerce industry is growing rapidly already. We hope there will be a mutual benefit and innovative business model where Eloku, e-commerce, and courier service can create value proposition and new experience for customers. Ultimately, industry keep sustaining grow.

What do you think is the biggest challenge for Eloku?

[Didi Setiadi] Capital expenditure is the biggest challenge. Because we have to provide hardware devices that are always connected to the Eloku SaaS, this is not cheap. This challenge was identified when we developed and validated the idea, but I stay with that as Eloku’s secret sauce. Second one is the organizational culture of couriers and logistics companies. It is not easy to change culture from traditional way to modern business process.

Where do you see Eloku in three years?

[Didi Setiadi] Currently we engage with Telkom Solution Convergence for partnership. If this plan comes true, Telkom will provide IaaS and PaaS as well as sales force team to leverage business. Eloku will focus on application platform and product development. There are few prospects in place at Telkom that need to be executed from this in Q1-2013. Medium term, Eloku will propose to Telkom supporting General Election Comittee (KPU) as logistics supervisor for the legislative and presidential election in 2014.

–

This e-commerce channel is brought to you by Veritrans Indonesia. Veritrans makes online transactions easier, faster and more secure. No setup fee, no monthly fee and no hidden fee. To know more about Veritrans Indonesia, please visit their website http://veritrans.co.id