WERHOS: Small and Medium Enterprise Distribution Center

Indonesia is one of the fastest growing e-commerce markets in Asia. Therefore Indonesian government targeting that in 2020 there will be 8 million Small Medium Enterprise Go-Digital. The E-commerce transaction in Indonesia in 2020 will grow to USD 130 Billion or growing 420% from 2016. It is the result from marketplace platform such as, Tokopedia, Shopee, and Bukalapak. This growth will affect SME industry, including it is logistics, infrastructure, and human resources. There are still many problems in Indonesian’s SME industry. One of them is the low quality of human resources resulting in low productivity. Lack of access to funding also become the limiting factor to Indonesian’s SME in providing logistic and warehousing solution thus making low efficiency in operation. In this Business Plan, Werhos is a Distribution Center geared with Real-Time Inventory Management System creating efficiency in time, funds, resources, and space to SME or online shops that selling their things online. Werhos providing Inventory management service with real-time system, which includes inbound process, packaging process, and outbound process to delivery provider. Werhos have some differences with conventional warehouse management especially in integration. Werhos integrated with live-application directly representing the real-time inventory that customers can access anytime from their devices. Werhos’ Warehouse is also one of the first in Indonesia utilizing Carousel-System to improve productivity. This carousel system can fulfill up to 6000 items per hour with minimal human involvement. Werhos’ feasibility study projected this company in 5 years. Werhos net present value (NPV) estimated at Rp 20.012.085.284 using Liquidation Value in the 5th year. In most likely scenario, Werhos have 14% MIRR, 25,85 ROA, and 41,37% ROE in the 5th year. Based on analysis and projection we made, Werhos operation, marketing, and strategic activity cost are covered with 5 year payback period.