Professional Documents
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Prod 2987917636 081221 0958
Prod 2987917636 081221 0958
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Opportunities
Shipping/logistic is an infrastructure and also a strategic piece that Medisend needs in order to establish itself as a B2B marketplace in the
pharmacy industry.
By crafting the proper shipping experience, we can keep buyers and sellers in the sourcing and selling activities within Medisend to prevent
them from transacting outside of the platform.
By having shipping capabilities, Medisend can have more control over the shipping experience, such as delivery SLA, shipping status
transparency (tracking), and branding.
Goals
1. Alignment to OKR Q2 2021 B2B - Medisend OKR
a. O-1: Medisend to find market acceptance fit
b. O-2: Medisend to provide pharmacies great sourcing experience
c. KR-2.b: Provide same day delivery for orders made before 10am
2. To automate shipping process as much as possible
3. To provide transparency of shipping status to buyers (pharmacies), sellers (distributors), and Medisend
4. To attract distributors and pharmacies to use Medisend
5. To provide logistic infrastructure for buyers and sellers as a marketplace
6. To have control on the shipping experience
Context
From the beginning up to now, Medisend uses manual operations to do delivery - this is Medisend Delivery 1.0. This document is about
Medisend Delivery 2.0, in which we are going to automate the delivery process.
Market/Business Understanding
Delivery
Currently distributors (i.e. sellers) offer free service for same-day and next-day delivery. Some distributors also offer free service for cito-
delivery.
Pharmacies (i.e. buyers) don’t care who does the delivery. They care about getting the right product, at the right time.
Based on our interviews with some pharmacies in Jakarta, so far they are already satisfied with the shipping service from distributors.
Tracking of Delivery
Based on our interviews with three pharmacies, they don’t need to see live tracking. They only want to know the status of the ordered
item and when will it arrive.
Currently Medisend uses two delivery vendors: Sicepat and Rara Delivery.
We mostly use Rara Delivery because they send us the signed invoice/proof of delivery for free.
Sicepat charges us 5k IDR for delivering each signed invoice. Due to this, Sicepat is on 2nd priority and we use it rarely.
To handle higher volume more effectively and efficiently, we need to trigger them via API. Rara Delivery has open API that can be
integrated-with in less than a week - so they claimed. On the other hand, Halodoc has recently done integration with Shipper API, which
Medisend can consider to use. We need to run cost-benefit analysis to see which vendor is suitable for Medisend.
As of the creation of this document, Rara Delivery charges us:
18k IDR for in-town delivery. This is flat up to 5kg. We pay 1.5k IDR per additional kilogram.
23k IDR for out-town delivery up to 50km. This is flat up to 5kg. We pay 1.5k IDR per additional kilogram.
Some competitors (e.g. Emos) use own-courier. According to some pharmacies we spoke to, dealing with an issue (e.g. near expiry
date, unacceptable condition of packaging, etc.) is easier if the courier is owned by the distributor. We can consider this factor when we
have reasonable volume of orders to have our own courier.
Currently our shipping cost is about 1.4% of our GMV
Currently our packages are picked up by Rara Delivery every weekday at 10am and 2pm. Orders made before 12pm can be sent on the
same day
Currrent Flow
Invoice
Currently distributors and pharmacies are using hardcopy for invoices and proof of delivery; Medisend too. Some of the pharmacies we
interviewed see this as a pain point, which is an opportunity for Medisend to improve by providing softcopy that pharmacies can
download/print anytime when needed.
Volume
As per May 2021, Medisend sends out an average of 30 packages per day.
Mondays we can send up to 60 packages, because there is no delivery in the weekend.
Currently the average basket size is 1.4m IDR. To reach the aspirational goal of reaching 12b IDR at the end of Q2 2021, we need to
send an average of 95 packages per day.
In comparison, Emos sends out 800-1000 packages per day
Investment
Currently our shipping cost is approximately 1.4% of the GMV or 17.550.000 IDR. This comes from:
900 deliveries per month; 30 deliveries per day
Proportion of in-town and out-town deliveries are 70% and 30% respectively
In-town and out-town delivery costs are 18k and 23k IDR respectively
With shipping cost at 1.4% of GMV, when we reach the aspirational GMV of 12b IDR, the cost would be 168m IDR per month or 2b IDR
per year
Shall we invest in own-courier? Will the benefit outweigh the cost?
The more order volume and buyers we get, the higher is the chance to get network effect. When we have the critical mass -the
minimum amount of orders to not making loss on makes sense to where we can lower the delivery cost because
Proposed Flows
High-Level View
This is the flow that we can use to discuss with business stakeholders, minus the technical details.
As this flow is still WiP and being discussed with stakeholders, there might some changes on the flow above. Latest update can be found here.
Distributor View
TBA
Ops View
TBA
Tech View
TBA
Delivery Providers
Medisend as B2B platform cannot use just any delivery provider, because it has more requirements than B2C, such as returning delivery
papers.
Shipper doesn't have API for B2B delivery, because their current API only connects with 3PLs. Hence our options are Rara
Delivery and Paxel
AnterAja and Sicepat can’t handle return documents
Lalamove doesn’t cater to scheduled bulk pickup
This leaves Medisend with:
Rara Delivery, and
Paxel
In the future Medisend would need to employ multiple delivery providers to increase coverage and options
As for the first provider, Medisend will use Rara Delivery
Pros:
Handle 3x more volume with same-day service, due to flexibility in pickup time and courier delivers directly to
customers. Currently Medisend orders are from warehouse in Jakarta to pharmacies in Jabodetabek, hence intracity is
sufficient
Reliable service
Cons:
No intercity delivery
Paxel has potential to be our second delivery provider
Pros:
Richer API
Intercity delivery
Cons:
Limited pickup time for same-day service due to hub-system
API Documentations
Rara Delivery:
Market/Business Constraints
Due to the nature of the delivery requirements where we need to collect documents upon delivery (purchase order, signed delivery order,
signed invoice), we have smaller options for the delivery vendor.
By using vendors for delivery, it might be difficult to optimize the cost in the future as volume increases.
When Medisend is already mature as a platform, given the nature of the business with relatively small amount of pickup points,
we can consider to use our own fleet.
At the moment shipping is done by distributors, either with their own fleet or 3rd party service. In order to change the status quo, we need
to convince them that it’s beneficial for them to let us do the shipping for them. In exchange for that, we ask them to:
Give higher priority to orders that come from Medisend (because they get orders from multiple channels)
Follow Medisend packaging guideline
Follow Medisend operational procedure
Competitors Analysis
1. SwipeRx uses Paxel for delivery
2.
2. Emos uses mix couriers:
a. All deliveries are taken care by Enseval. Enseval is a PBF like MAI.
b. Enseval has own motorbike, small truck, big truck (with agregated load optimization)
c. Emos has several distributors in the system. For delivery from other distributors than Kalbe/Enseval, the distribution is decided
based on cost, either using own fleet or delivered by the distributor directly.
UX Research
Few questions to be clarified via UX Research:
Note on WA: Despite that Medisend will send WA message as a verified business, user can still block us if they want to or perhaps accidentally.
This however should not be an issue for us, because through the sales agent or PIC, we can suggest users to accept our WA messages.
Success Definition
Success Metrics
1. Completed deliveries
2. Fulfilment of delivery SLA
Requirements to Success
https://docs.google.com/spreadsheets/d/1PGec3o3Zkkp_IgqBF1lYAw3ap4yqIOayw2zqkihh2BA/edit
To Do
Item/Description PIC ETA Stat Note
us
1 Sounding big picture strategy with B2B Done Done in B2B Weekly
squad
2 Align flow with Business and Ops Done Medisend Ops (Wayan) is in the loop
3 Align flow with distributors. Get the support Done Current flow has been reviewed by MAI and MBS.
we need from them to make this work Next step: Review the next iteration that includes
more operational details
4 Choose delivery vendor(s) for API Done Vendors are being reviewed
integration
5 Align flow with Tech Done GTM and flow has been presented. Alignment to
continue as the detail develops
7 Align with UXR Done Need to present the GTM and ask if UXR can help to
conduct research on things related to few innovations
we want to do, e.g. on digitalizing invoices and
documents.
11 Finalized SOP with Ops and MAI Product: wk34 Done SOP (in Bahasa only):https://docs.google.com
/presentation/d
@ Hartono Sugih (Unlicensed) /1qz4LAeTbA9pwpvz8ZWNZvTd3wgYy5DjXz9EKch3
7qf4/edit#slide=id.p
@ Maria Rara Irihana Samosir SOP for launch and daily operations have been
discussed and agreed with Ops and MAI.
Ops:
SOP for payment verification still to be added. cc:
MAI:
@ Eko Muryanto
Ops:
14 Implan Ops is needed to run the operation Ops: wk34 Done Wayan has determined the Implan Ops person. Sugih
on Distibutor’s warehouse: and Rara will conduct the training.
@ I Wayan Kardita
Implan ops for MAI to be determined
Train implan ops
Training:
@ Hartono Sugih (Unlicensed)
@ Maria Rara Irihana Samosir
15 Product to finalise trial launch plan on Product: wk33 Done Launch plan: https://docs.google.com/presentation/d
Production with MAI and Medisend Ops /1j9nfqRr-m8T9_RpaqvHCBom-
@ Hartono Sugih (Unlicensed) n0J_QZkIIrFKpyvbJYo/edit#slide=id.
ge9a509daf2_0_22
MAI:
@ Eko Muryanto
Medisend Ops:
@ I Wayan Kardita
16 Mapping Pharmacies Intercity & Intracity @ Syifa Amalia Ahsan Sept Done https://docs.google.com/spreadsheets/d
Delivery Area 23 /1XwZAjqdPXvTMun2QqRTHH0dCb3bZmR3e/edit?
usp=gmail_thread&rtpof=true&sd=true&ts=61499fd4
19 Clarify with MAI the current flow for Product: wk35 Done
payment to Rara Delivery.
@ Hartono Sugih (Unlicensed)
Finalise
@ Maria Rara Irihana Samosir
The current flow needs to be adapted for
finance controlling after API integration
MAI:
@ Eko Muryanto
20 Full-blown rollout. Enable “Ship via Product: wk38 Done Only if the trial on production went well.
Medisend” for all pickup time of MAI.
@ Maria Rara Irihana Samosir
Ops:
@ I Wayan Kardita