IMPLEMENTATION OF COST OPTIMIZATION FRAMEWORK TO IMPROVE OPERATIONAL BUSINESS METRICS IN PT ASAL DUA RODA

• Main Author: ALEXANDER (NIM 29316037), JOHANES
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/28288
• Institution: Institut Teknologi Bandung

PT Asal Dua Roda is a company which was founded in 2016 and focuses on providing motorcycle ride hailing services in the Jakarta area. Currently, PT Asal Dua Roda has a mission to improve the Order Conversion Rate (OCR), which is one of the most important metrics used by the company. During the process, PT Asal Dua Roda found out that cost flexibility is needed to attract both customers and drivers, which is achieved via cashless discounts and completed order bonuses. When the cost flexibility feature is implemented, the cost structure itself did not immediately change, resulting the cost structure became irrelevant when compared with the actual conditions. Therefore, PT Asal Dua Roda used the MECE (mutually exclusive collectively exhaustive) framework to redesign the cost structure; while management decision processes were also changed by implementing a scientific method to using data as a baseline (data-driven decision). By using the new cost optimization framework, the operational team was able to optimize the costs effectively in three main areas: (i) order subsidy (ii) cashless subsidy and (iii) bonus subsidy. After six months of its implementation (August 2017 – February 2018), order and cashless subsidy was reduced to around 68% and 58% respectively, while bonus subsidy is increased to around 36%. Although bonus subsidy is increasing, PT Asal Dua Roda can decide their next steps based on the new operational cost structure and the operational team will have a clear picture on the next part steps to optimise the cost structure.