Bizzy Distribution Business Intro - Oct 2019

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Bizzy Distribution

Business Profile
Previously known as Sinarmas Distribusi
Nusantara (SDN)
Bizzy Distribution is a full-service distributor with a strong digital distribution
focus & strategy

Previously known as

Full Service (Core) Distributor Digital Distribution & Strategy


One single platform, for all distributors & principal needs,
providing digital services and creating value at every step
of the supply chain.
Multi-Channel
Sales
Delivery & Trade Marketing
Payment Services
Collection Platform
WMS
TMS
ERP

Manufacturers Employees Distributors Retailers Consumers


Invoicing Display
& Brands & partners
Merchandising
Warehousing

1 Copyright © 2018 Bizzy


Full Service (Core) Distribution
Bizzy Distribution as a full service distributor
Established in 1993 with deep roots distributing in the Indonesia market.
Under the legal entity of PT Sinarmas Distribusi Nusantara.

COMPANY OVERVIEW
• #1 Best Coverage Expansion
Distributor For CMI on 2017
◼ Full service distributor for 25 years
• Awarded Best Java Distributor and
◼ Sales and distribution to GT, MT and FSBC channels Fastest Coverage Growth in LMT Java
on 2019 by Upfield (Blueband)
◼ Nationwide coverage with 26 branch locations and 100
sub-dist. with 200,000+ direct & indirect touchpoints • Sustained YoY growth for both revenue
(30%) and outlet coverage at branches
◼ Serves both internal and external brands
• Digitized Workforce of 400+ field sales team &
o Internal – SMART (Filma cooking oil), SWT (Pristine),
100+ drivers at our 26 branches nationwide.
CMI (Sinar Dunia)
• Digitized retailer platform (Tokosmart.id) which
o External – Gulaku, M150, Nestle Pure Life, Blueband,
has connected over 35,000+ stores as of October
Unilever Food Solutions, Unilever, Reckitt Beckinser,
GSK, Monde, ASW, Enesis • Live Data For Principal Teams

3 Copyright © 2018 Bizzy


Full Service (Core) Distribution has a nationwide direct coverage footprint
Growing our direct coverage to over 130,000 direct outlets

Manado, Measuremen
Sulawesi Utara Statistic
t

No. of Branches 26

No. of Trucks 190


Branch No. of warehouses 27
infra.
Total warehouse size 38,790 m2
statistics
Total pal. positions warehouse 24,936 PP
Palembang Banjarmasin

No. of retail
Outlet Type
outlets
Lampung
Retailers 105,325

Wholesalers 16,742
Branch field Local Modern Trade 5,388
sales coverage Food Service 11,232
Denpasar, Bali
statistics
Total 138,687
26 Active Branches
Figures updated as of 17 Sept 2019.
2 New Branches are due to go live in 2019

3 New Branches are due to go live in 2020

4 Copyright © 2018 Bizzy


Bizzy Distribution Business Partners
Strategy shift towards being brand agnostic and to attain product depth in each category

Kitchen Beverage & Snacks Stationary Personal & Homecare

Cooking Oil Assorted Spices Margarine


Alkaline Water Mineral Water Carbonated Soft Drinks Paper Unilever Reckitt Beckinser

Soy Sauce Dried Noodle Coconut Cream

Coconut Drink Teh Tarik Enesis drinks Energizer Drink Notebook Tapes GlaxoSmithKline (GSK) Wet Tissues

Baking Mix Fried Onions Korean Noodles

Assorted Chips Colored pencil Baby Diapers

Chocolate Powder Unilever Food


Sugar
Solutions

ASW Biscuits Monde Corn Puff Adult Diapers Baby Personal Care
and Wafers Biscuits

5Corned Beef Sardines Baking Powder Copyright © 2018 Bizzy


Digital Distribution & Strategy
Bizzy Distribution is investing deep into Digital Capabilities to serve
Principals better; First example is in retailer self service app (i.e TokoSmart)
ERP
TMS
WMS Retailers install TokoSmart on
Backend their smartphones.
Distributors Retailers

Direct access to re-purchase Best pricing given via Ability to act as digital agent
fast moving goods, better cashback mechanism (gained and earn more money
customer service. from digital process through digital services
efficiency) as well as direct
Wider selection of goods access to promos
7 Copyright © 2018 Bizzy
Latest TokoSmart.id Milestone as of 28th October – Launched in Jan 2019
TokoSmart Summary Statistics as of 28th October Bizzy Distribution Sales to Retailers
Traditional vs. TokoSmart retailers (post-conversion)

Sales / month # of Orders/month

+19% +30%
26 35,375
Locations Launched Outlets Ordered

# of SKUs/month Gross Profit/month

+20% +12%
111,840 IDR 245.7 bn
Sales Orders in GMV

8 Copyright © 2018 Bizzy


Digital Vision: Innovating, empowering, and creating value in every step of
the dist. supply chain and sharing it with all players

Platform

Manufacturers / Brands Distributors Employees & partners Retailers Consumers

Become a leading digital distributor & retailer platform


(leveraging on existing supply chain)

Helping brands target Digitizing 1,000,000 retailers,


consumers most effectively helping them grow their earnings
#1 Distribution operations platform #2 Retailer platform

Efficient Transparent Direct sales & Higher More money Access to Better Wider variety Better priced
supply chain performance promo lever productivity making Financing customer of selection goods
opportunities service

9 Copyright © 2018 Bizzy


Digital Distribution Platform’s vision is to integrate and create value in every
step of the distribution supply chain and sharing it with all players
Digital Distribution Platform can be simplified around two big inter-linked initiatives
#1 Distribution Operations Platform #2 Retailer Platform

Wholesalers

Retailers

Transport
Smart warehouse Salesmen
management, fleet
management productivity
and route optimization
management
Modern Trade

Vendor management & Self-service purchase, Wallet enabled


analytics for brands direct from distributors. Digital POS

Distribution operations platform drives for best-in-class ops Retailer platform aims to drive for more sales
productivity in every part of distribution, from auto-replenishment productivity of the retailer, from 24/7 purchasing,
to brand owners to warehouse and outbound delivery optimized merchandizing, stock management to
management to driver and salesmen management. sell out (POS) with e-wallet capabilities
10 Copyright © 2018 Bizzy
Digital Distribution Platform addresses pain-points across the distribution
network by utilizing our existing assets as a sandbox
Principal Distribution operations Retailers Consumer
(Manufacturers and Brands)

Wholesalers
Principal 1

Principal 2
Retailers

Principal 3
Modern Trade

Principal Pain Points Distributor Pain Points Retailer Pain Points


▪ Lack of sell through ▪ Underutilized warehouse capacity ▪ Cost of sales
visibility for ▪ Underutilized delivery trucks ▪ Demand for SKU variety
principles, brands ▪ Manual proof of delivery process ▪ Access to funding
and manufacturers. ▪ Traditional sales force and cash collection process ▪ Traditional stock and
inventory management

11 Copyright © 2018 Bizzy


Distribution Operations Platform aims to improve operations productivity,
transparency and efficiency of distribution companies
Distribution Operations Platform Field Salesman App
Principal Report Portal
Salesmen equipped with smartphone
For Principals to view, monitor
and app that guides them in selling to
and analyze the sales
retailers.
performance at the retailer level
(e.g. share of wallet data )
• Performance management
via location tracking, and
Transport
transaction monitoring.
Smart warehouse Salesmen • Better customer
management, fleet
management productivity
and route optimization
management
management via direct
mobile chat
• Dynamic route
Principal management & management to optimize
analytics for brands efficiency

Distribution Ops Platform


Warehouse Management Content Management System Transport Management
System To manage customer, pricing, System
To enhance inventory and vendor data To optimize fleet routing
management capabilities and delivery

12 Copyright © 2018 Bizzy


Bizzy Distribution Retailer Platform focuses on front facing applications,
aimed to drive for more sales productivity of the retailer
TokoSmart Retailers Platform ePOS

TokoSmart cuts down inefficiencies by smartPOS helps retailers better manage


allowing retailers to purchase directly to their business as well as to act as data
distributors via the application. collection points to benefit principals and
distributors, and retailers.
• Direct access to re-purchase fast
moving goods • Point of Sales and inventory
Wholesalers
• Wider selection of goods management for retailers
• Direct access to promos • Transaction data collection
• Data analytics and credit scoring
• Digital product transactions
(e.g. pulsa)
Retailers

Modern Trade

Self-service purchase, Wallet enabled


direct from distributors. Digital POS

13 Copyright © 2018 Bizzy


Digital Distribution Platform’s end goal is to integrate all distributors and
principals in a marketplace platform model that enables transparent, efficient,
and accountable commerce for all stakeholders

Wholesalers
Principal 1 Distribution 1 Distribution 1 Distribution 1

Retailers
Principal 2

Modern Trade
Principal 3 Distribution 2 Distribution 2 Distribution 2

Analytics for Smart Warehouse Bizzy Field


TruckWay
Brands Force

▪ Real-time dashboard with ▪ Consolidated visibility ▪ Drive cost efficiency at ▪ Salesmen management ▪ Allows retailers to purchase ▪ Retail inventory
recursive feedback loop of inventory across all desired customer SLA and monitoring directly from a distributor via management system
▪ Machine learning driven ▪ Opportunity to scale up
locations with through efficient mobile app ▪ Data collection
through crowdsourcing
demand forecasting optimized demand and transport planning and of salesmen ▪ Digitally managed fulfillment
▪ Platform to launch and supply planning asset sharing services for Distributors
manage direct promo
14 Copyright © 2018 Bizzy
Digital Distribution Platform will seek to monetize across different points
within the supply chain where value is created in the ecosystem

Manufacturer / Distributors, Wholesalers,


3PL
Brand Warehouse Owners Retailers, Modern
Trades
Monetization Plan

Direct ▪ Analytics from retailers’ ▪ Profit sharing with fleet ▪ Profit sharing with ▪ Analytics from ePOS
monetization of transaction data owners on additional owners of storage transactions
the platform
▪ Margin from Brand revenue facilities on additional ▪ Digital goods aggregation
SKUs revenue via ePOS
▪ Store front Marketing

External parties
leveraging Bizzy ▪ Financing and insurance ▪ Financing and insurance ▪ Financing and Insurance
platform ▪ Money transfer

Timing on Monetization

15 Copyright © 2018 Bizzy


Bizzy has already started building strong platform foundations on top of key
brands to serve Distribution’s principals and customers better

Analytics Distribution Salesmen Retail


for Brands Ops. Platform management Platform

Principal Report Portal Distribution Ops Platform Field Salesman App TokoSmart
Transport Management Salesmen equipped with smartphone Allows retailers to purchase directly
For Principals to view, monitor
System and app that guides them in selling to from Bizzy distribution via their own
and analyze the sales
To manage delivery fleet retailers. Smartphone.
performance
Milestones Improvements1
Prformance management
via location tracking, and 26 locations
transaction monitoring. +19%
launched

Close relationship between


Content Management System sales and customers, via in-
25,528 outlets
+30%
ordered
To manage pricing, customer, person visit and mobile chat.

etc data on sales applications Dynamic route 63,165 sales +20%


management and orders
customer to optimize
salesmen daily efficiency
and visit cycle IDR 155bio in +12%
GMV

1Tokosmart outlets vs Global Average


outlets (Jan – Jun ‘19 vs LY)
16 Copyright © 2018 Bizzy
Our Competitive Difference (1/2) – TokoSmart is competitive against market
Bizzy Distribution is an evolving distributor player which is aligned to driving sustainable growth for
brands vs most of the new aggressive eCommerce players that destroys channel balance instead
Market Penetration Competitors in CPG Goods1 Benchmark against Mitra Bukalapak
▪ Traditional core distribution still has a competitive offering against most aggressive
competitor (Bukalapak) due to B2B nature of market:
Competitive Lever TokoSmart (Bizzy) Mitra Bukalapak (BL)
Price (comparison 99% - 110% of core dist price
99% of core dist price,
basis 2L Filma list (depending on date).
without strata discounts
Pouch) 103.5% as of 14 May 19.
Exclusive and expanding
Product range selectively to maintain price Broad-based product range
competitiveness
14 Days TOP with ability to
Payment Terms All CBD
pay earlier via VA
1 day delivery + service level
Service Level 2 days from delivery (working
penalty fee given to retailer if
agreement on 1 day)
BL makes late delivery
Will have salesmen tagged to N.A (Key feedback from
outlet (reduced visit retailers, besides price
Customer Service frequency via tri-way in-app sensitive retailers, most
chat with retailer, salesmen retailers do not re-order
17 1. Estimate as of May’19 Copyright © 2018 Bizzy
and chatbot / HO cust. svc.) without salesmen)
Our Competitive Difference (2/2) – Bizzy Dist is an ecosystem player…
Bizzy Distribution is an evolving distributor player which is aligned to driving sustainable growth for
brands vs most of the new aggressive eCommerce players that destroys channel balance instead

Two models in the market


The different approaches this two major retailers are taking will influence supply chain cross-industry

Enable an ecosystem Obtain full ownership


Alibaba Amazon
Co-ordinate / Digitize the supply chain Combine legacy and own delivery network
Enable an ecosystem Build and own
Drive offline/online shopping experience Primarily online

Alibaba LST Bukalpak Alibaba Oceangoing Warung Pintar JD.ID


“Self-Service App” Ecommerce centric, partners Cai Niao (Supply chain) Digital wholesaler with Franchised physical storefronts E-commerce w full supply
100% ecosystem play Tigaraksa on supply chain 30% owned, 70% ecosystem full supply chain (closer to owned) chain ownership
Full
Ecosystem
ownership

TokoSmart.id Core distribution


(“Self-Service Digital POS & supply chain
App”), supply (“Airbnb Alfamart), platform (30%
chain through supply chain owned branches,
distribution through distribution 70% LD
platform platform ecosystem)

18 Copyright © 2018 Bizzy


Partnerships
Bizzy Distribution is looking for partnerships on 4 levels
1. Full Distribution 2. Digital Distribution Only 3. TokoSmart Marketplace

For a designated territory, Bizzy For a designated territory, Bizzy Similar to Brands selling on
provides full sales & distribution: provides digital only sales & eCommerce platforms, Bizzy
• Offline sales via salesmen visits distribution: provides:
with fully digitized workforce • Online sales on digital platform • Online sales on digital platform,
• Online sales on digital platform • Distribution of goods orders passed to brand’s existing
• Distribution of goods distributors or local vendors via
Retailer via Bizzy as
API or web-portal
TokoSmart Distributor • See next slides for more details
Retailer via Brand’s Distributor
TokoSmart or local producers

4. Third-Party Ecosystems

Same partnership model as above in 1-3, but with 3rd party ecosystems either white-labelled (powered by) Bizzy
solution or curated retail digital partner of Bizzy. See next slides for more details.

20 Copyright © 2018 Bizzy


TokoSmart Marketplace – what is it and how does it work? (1/2)
TokoSmart Marketplace looks to most efficiently connect the distributor to the retailer eco-system via a curated marketplace

What is TokoSmart Marketplace?


(1) connect brand’s distributors or local (2) via a territory based multi (3) curated partners as close to source
producers direct to retailers via TokoSmart location supply chain mode as possible to cut supply chain points
(i.e 1 SKU : 1 vendor)
Retailer via Brand’s Distributor
TokoSmart or local producers
Distributor A Distributor B Brand / Manufacturer Main Dist. Retailer
gets order gets order
from area A from area B
Local producer

How does it work?


Bizzy as
Distributor

Marketplace

Brand’s Distributor
or local producers
(a) SKUs will be shown in (b) Orders will be split at checkout stage to either (c) Distributors will accept and manage orders via webportal (default,
21 “marketplace” category TokoSmart (Bizzy Distribution fulfilled) or ©
Copyright to2018
Distributor
Bizzy to be further enhanced) or via APIs connecting to distributor’s own
DMS
TokoSmart Marketplace – what are the benefits? (2/2)
Marketplace model expands the retail ecosystem for brands & distributors and allows 24/7 online ordering and visibility to brands

Brand Owners &


Local producers Bizzy Distribution
Distributors
- 24/7 availability of ordering - 24/7 availability of ordering - Larger retail ecosystem
allowed to distributors allowed to local producers reach, monetization via
distributing own products to
- Larger retail ecosystem - Larger retail ecosystem
stores
reach reach
- Enriched engagement with
- Direct trade promo setup
retailers
and visibility of performance
- Visibility of service levels to
brands (especially for star
outlets)

Vision is to keep marketplace transactions free, monetization to be via future value added services that
increases brand performance
22 Copyright © 2018 Bizzy
3rdParty Ecosystems: As an ecosystem player, Bizzy will provide its platform
and app as a ‘white-label’ for other retailer networks and connect to other
digital retailer networks as well in the future

Mockup of the whitelabel Tokosmart app for a retailer network partner

Brand owners that either gives us full


distribution, digital distribution or lists
on TokoSmart marketplace will be
automatically cross listed to our
white-label partners and potentially
other partner applications

Current 3rd party ecosystem partner:


- Nucommerce (powered by Bizzy)
representing Nahdlatul Ulama
organization, targeting NU 28,000
pesantren’s, 22,000 koperasi’s and
NU member tokos.

23 Copyright © 2018 Bizzy


Our Team
Bizzy Group and Digital Distribution Platform Team
Andrew Mawikere | Group CEO Our Team’s Experience
• As CEO of Bizzy Group, Andrew is highly driven by its mission to underpin a clean economy by powering an inclusive digital
business ecosystem. With his expertise in technology and financial services, Andrew currently leads Bizzy Group in building
Indonesia’s first integrated digital supply chain platform.

• Previous work experience include: Mbiz.co.id, Astra International, Temasek International, and JP Morgan.

David Tendian | Group CFO


• A highly regarded figure in the finance industry, David currently oversees Bizzy Group’s Finance, Accounting, and Tax Department.
He is also spearheading the Group’s Investor Relations and Strategic Planning initiatives.

• Previous work experience includes: Adaro Energy, Pricewaterhouse Coopers, Standard Chartered Bank, Citibank, Chase Manhattan
Bank, Citibank, and The Sakura Bank

Glenn Lai | VP of Digital Distribution & Digital Logistics


• Having spent most of his career using analytics to drive strategic decision making (e.g using linear optimization models to change
pricing strategy across the value chain), Glenn today drives new value creation both internally and externally through merging new
business models / new ways of working with latest technology as the commercial owner of the digital distribution & logistics
businesses

• Previous work experience include Golden Agri-Resource (GAR), 3M and OCBC Bank

Arnold Egg | Chief Product Management & Innovation, Bizzy Group


• Perhaps the most illustrious member of the team, Arnold injects the digital and entrepreneurial DNA to our team. As a serial
entrepreneur, Arnold is excited by the ability to work on large scale innovation and digitization across the Indonesian B2B supply
chain with Bizzy

• Previous work experience include: OLX Indonesia, Lippo Digital (OVO, MatahariMall, Mbiz), HP and tokobagus.com

Denny Jansen | Chief Technology Officer, Bizzy Group


• Denny, a seasoned veteran in leading engineering teams in agile settings, helps us with building a squad based engineering
organization that builds via a high quality, high ownership and dynamic culture with the ability to scale.

• Previous work experience include OVO, OLX Indonesia, OLX Global and tokobagus.com

25
Full Service (Core) Distribution Team
Harsinto Huang | Distribution CEO Our Team’s Experience
• As CEO of Bizzy Distribution, Harsinto is driven by the mission to develop a world class distribution business to best serve brands.
Having been in the FMCG industry with experience in Commercial, Operations and Technological functions in the past, Harsinto is
best suited to bring distribution into the digital era and help brands grow exponentially in the process.

• Previous work experience includes: TigaPilar Sejahtera Food, HM Sampoerna/Philip Morris, TNT Indonesia

Roni Setiawan | Distribution CFO


• Roni is responsible for financial planning, risk management, accounting and tax for distribution. He and his team’s goal is to support
and provide insightful information for the business to make the right decisions and is also excited in driving process improvement via
digital innovation to increase speed and accuracy of decision making.

• Previous experience includes: Schlumberger, PT Smart Tbk, KPMG Indonesia

Mokh Asrul Akhdi | Head of Commercial Distribution


• Asrul, a true-blue field commander who has grown his expertise in sales leadership bottom up, is energized by the opportunity to put
his experience to work and drive the regional distribution teams to scale and improve to be leading the industry in effectiveness.

• Previous work experience include TPS food, Unilever and Danone

Toga Suryanto | Head of Logistics


• Toga is our head of logistics and dedicated to control product shipment and stock management across Indonesia. With 13 years of
experience in logistics industry, he helps our partners ensure all goods arrive on time and in full at designated destination as well as
maintaining quality.

• Previous work experience include TNT, Wicaksana, Wira Logistics and RPX Group

Tjen Romi | Head of Strategic Partnerships


• As the head of Strategic Partnerships, Romi is actively developing joint business success with brands. With a keen commercial,
strategic and operational sense as well as a deep analytical background, he brings to principals win-win solutions that will drive joint
growth with Bizzy Distribution.

• Previous work experience include XL Axiata Tbk, Salim Group, and PT Conbloc Indonesia
26
PT. Sinarmas Distribusi Nusantara
BSD Green Office Park 9 (GOP 9), 1st Floor, Wing B
Jl. BSD Grand Boulevard BSD City, Tangerang 15345

Bizzy.co.id 021-5056 0021 support@bizzy.co.id

Bizzy Indonesia Bizzy-Indonesia Bizzy.co.id/blog


Appendix
Bizzy Distribution Direct Coverage – Java

Tangerang
Cibitung
Jakarta 1

Cirebon Pati

Tegal Semarang Mojokerto


Surabaya

Probolinggo
Bogor
Jakarta
Selatan Bandung
Tasikmalaya Purwokerto
Magelang
Solo
Details for Yogyakarta
Distribution Coverage Madiun Kediri
Jember
Malang
Banyuwangi

29 Copyright © 2018 Bizzy


Bizzy Distribution Coverage – Sumatera

Medan

Details for
Distribution Coverage

30 Copyright © 2018 Bizzy


Bizzy Distribution Direct Coverage – Kalimantan

Samarinda

Details for
Distribution Coverage Makassar

31 Copyright © 2018 Bizzy


Digital Distribution Platform will serve all distributors and principals’ needs,
reduce inefficiency via automation, and unlock capabilities using intelligence

Existing sales teams & e-distribution outlets: direct


Crowdsourced hunters: crowdsource farmers: online order (auto replenishment
canvassing & profiling servicing existing offline outlets for TokoSmart w ePOS)

Retailers
Manufacturer / Brands Distributor Partners Consumers
Outlets not in radar
of brand today

Traditional outlets
(GT, LMT etc) e-distribution outlets
e-distribution outlets acting as stock points
(TokoSmart & Digital Toko)
Real-time dashboard with Franchised distributors:
recursive feedback loop: trade warehouse & logistics assets
and consumer insights owned by partners, digitally
managed by us

ML-driven demand Smart order-to-cash (O2C) Modern trade outlets


forecasting: automated, workflow: adaptable automation
accurate & efficient supply chain (minimal administrative effort)
management e-commerce and e-retailers

Direct promo and sales team Smart, optimal milk run &
investment levers: demand WMS-driven stock
augmentation & direct interface management: efficient SLA
to distribution platform Direct interface/ brands:
Direct interface/OCR:
seamlessly serving modern seamless product listing and
ML-driven demand and supply ordering from e-commerce
planning: optimal inventory trade
management (cost-to-serve)
32 Copyright © 2018 Bizzy
Our Competitive Difference (3/3) – …and most of the capabilities are centered
around operations excellence with multiple potential monetization models
Bizzy Digital Distribution 2019 can be simplified around two big inter-linked initiatives

#2 Retailer
#1 Distribution
Platform
operations platform

Vendor management & Smart warehouse Transport management, Salesmen productivity Self-service purchase, Wallet enabled Digital POS to
analytics for brands management fleet and route optimization management direct from distributors. help manage retailer’s business.

Retailer platform drives for more sales


Distribution operations platform drives for best-in-class ops productivity productivity of the retailer, from 24/7
in every part of distribution, from auto-replenishment to brand owners to purchasing to optimized merchandizing to stock
warehouse and outbound delivery management to driver and salesmen management to sell out (POS) with e-wallets to
management. storefront management (planogram & brand ad
placements)

33 Copyright © 2018 Bizzy

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