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Take Off with GO Express

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Table of Contents

• Introduction• Current outlook of GO Express• Analysis of GO Express• Strategy Analysis• Recommendation

“How can Garuda Indonesia Cargo generate more revenue from the GO Express service?”

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Introduction

• Julian Polderman• Student at the Amsterdam University of Applied Sciences• Living Lab Logistics Indonesia – the Netherlands• Garuda Indonesia Cargo

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City to Door atau Sales Outlet to Door (CSC dan Outlet Pandu)

Door to Door (Hanya melalui Contact Center

Garuda)

Defining GO Express

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Problem Statement

• Opportunity in the Logistics market• 13% growth per year since 2007• Airfreight growth was 15% in 2014

• Low contribution to total revenue• Below 5% contribution• 0,05% of the total issued airway bills

• Growth continues in 2015• April 2015: 151 products

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Analysis of GO Express

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Internal Analysis

Added service to the customer• Garuda Indonesia Airlines• Priority cargo• Providing flight number

Inbound Logistics Operations Outbound Logistics Marketing & Sales After-Service Sales

GO Express Value Chain of PorterMarginProcurement

SupportActivities

< < Technological Development > >PrimaryActivities

Human Resource ManagementFirm Infrastructure

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Internal Analysis

Missed service to the customer• There is no aftersales• Uses IT System of Pandu Logistics

Inbound Logistics Operations Outbound Logistics Marketing & Sales After-Service Sales

GO Express Value Chain of PorterMarginProcurement

SupportActivities

< < Technological Development > >PrimaryActivities

Human Resource ManagementFirm Infrastructure

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External Analysis

Market Growth• Yearly GDP growth-rate: 6,1%

• Middle class doubles within 10 years

• Courier market growth 2014: 13,1%

Market Share in 2014GO Express

• 663 packages

• 117 million IDR revenue

VS

JNE

• 96 millon packages

• 2,78 trillon IDR revenue

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External Analysis

• Five Forces of Porter

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External Analysis

• Operating license door to door• Asperindo to manage unity

among its members

• Brand loyalty• Expected service level

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External Analysis

• Lot of competitors• Competitors’ advantage in experience• Competitors are also customers (domestic agents)• Aero Express

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SWOT analysis

Strengths Weaknesses         Garuda Indonesia Airlines          Logistics License         Providing Flight Number          IT System         Priority Cargo          Amount of Priority Products         Extra Checkpoints          Aftersales

Opportunities Threats         Courier Market          Market Share         Implementation of the Barcode         After Sales

         Competing with Domestic Sales Agents

SWOT Analysis of GO Express

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Strategy Analysis

A Reinvigorated Strategy• Focus strategy on the customer loyalty• Equalize the service level to Garuda Indonesia standards• Differentiate into another market segment

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Recommendation

2015 2016 2017

Operational TacticalRecommendation

Implementing Aftersales

Improve IT System

Strengthen Papua Network

Back to Core Business, Wider the GO Express Network

Outsourcing GO Express to PT Aerojasa Cargo

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Terima Kasih