GudangAda connects wholesalers to retailers in Indonesia

GudangAda is a B2B ecommerce platform in Indonesia — connecting wholesalers directly to retailers. It plans to transform the fragmented retail environment and empower FMCG supply chain intermediaries, rather than replacing them.

The startup ensures faster inventory turns, improved price visibility, and provides a wider selection of goods. It aims to cut transaction and operational costs for both wholesalers and the retailers —and offers access to data analytics and inventory management tools.

GudangAda covers 500 cities across Indonesia, including Jakarta, Bandung, Lampung, Medan, and Semarang.

Sales force

The company focuses on acquiring wholesalers first, who then help with retail recruitment. It has signed up 80,000 large retailers and works with 20,000 wholesalers. To spearhead the recruitment drive, it employs a sales force split into two sections: salespeople who visit wholesalers and retailers directly, and representatives who are stationed at the wholesale outlet and can demonstrate the app to visiting retailers.

Challenges

In an interview with Tech in Asia, the startup mentioned that convincing a wholesaler to switch to digital ordering, is one of the biggest challenges. It is currently also relying on wholesalers for deliveries — and they are often too busy to fulfill orders and complete the delivery process.

Indonesia’s traditional trade remains very cash-driven, and the startup’s only payment option is bank transfers. Wholesalers and retailers are also concerned about the tax implications and the need to declare earnings to the tax authorities — further complicating digital adoption.

Future plans

GudangAda is rolling out its own logistics services — delivering goods from the wholesaler to the retailer. The company is also planning to provide financial services and a subscription-based software-as-a-service (SaaS) to help retailers manage their finances and inventory management.

B2B supply chains in Indonesia face working capital challenges, struggle with manual processes, and inefficient inventory management systems — that are often paper-based.

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