Analysis of IoT adoption on Trucking Logistics in Various Industry in Indonesia

Abstract

Recent years, Internet of Things (IoT) provides new business opportunity in terms of cost reduction, increase in productivity or efficiency to organization. In the context of supply chains, IoT helps trucking logistics to track their assets' health, location, utilization, efficiency, and visibility. Indonesia, as the largest archipelago country in the world, mainly relying on truck fleet as its main logistics transportation. Thus, IoT adoption could bring Indonesia's growth and safety in the country. Based on logistic performance index 2018, Indonesia position is 46th in logistic management. One of the parameters is technology adoption especially IoT to improve Logistic company, there are limited study that explore the adoption of IoT in trucking logistics. In this study, companies use IoT technology in their trucks, based on Industry types and spatial distribution is analyzed. Factors that could affect the IoT adoption are being discussed. The IoT adoption level obtained from experts' interview. And then used to analyze 161 company adoption across Indonesia. The result shows that IoT adoption level is between 2 and 3 in the scale of 5 with the highest adoption in Cement industry. Industry that operates in Java and Sumatera islands tend to be more mature on IoT adoption level than other islands for Chemical and Cement industry respectively. Government can make use of this study's result to make policy that cover more wider industry types and location to improve the overall trucking logistics performance.