NEW BUSINESS STRATEGY TO IMPROVE THE OCCUPANCY LEVEL IN WAREHOUSES OF DAAN MOGOT ERAPRIMA THROUGH THE CONCEPT OF SHARING ECONOMY, ENABLED BY A DIGITAL PLATFORM

• Main Author: Tanuwidjaja, Effendy
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/55160
• Institution: Institut Teknologi Bandung

The property sector in Indonesia has experienced a drastic decline on the demand side in recent years. With the large availability of spaces in the market especially in the commercial properties, people are starting to look for new solutions and alternatives amidst the many vacant business spaces in Indonesia. Daan Mogot Eraprima is a Warehousing Complex that has developed and currently managing 300 warehouse units in Jalan Daan Mogot Km 21, Tangerang City, Banten, Indonesia. Since 2011, Daan Mogot Eraprima only focused on selling warehouse units to buyers, but along with many empty warehouses, the property developer started to enter leasing out warehouses so as to earn recurring income. The current warehouse renting model the company adopt is dedicated warehouse to a single tenant and long-term leasing. However, along with the declining demand for such renting model, the company is looking new strategy to keep their warehouses at optimal utilization and to keep occupancy at higher level. This final project is to research on the concept of Sharing Economy in warehousing business and then make recommendation for Daan Mogot Eraprima. With the concept of Sharing Economy, Daan Mogot Eraprima is pursuing a strategy to offer partial and flexible rent to its customers. To formulate the right strategy, the author uses primary data research through direct questionnaire responses and interviews on top of studying secondary data available. Through the course of this project, it has been identified that the most suitable Sharing Economy model that the company can implement is Shared Warehousing service. In line with Indonesia’s booming e-commerce and growing shift from offline to online services, on-demand warehousing becomes a necessary trend where more businesses are now focusing on fulfilment rather than offline retail. However, in order to effectively capture this new demand, Daan Mogot Eraprima needs to develop a digital platform which enables exchanges between supply and demand that is oriented towards customer experience. With its low sustainable competency in the technology area, it is then recommended to Daan Mogot Eraprima to form a collaboration up with a local property startup Rentfix which offers an online marketplace platform for Indonesia market. By implementing the Shared Warehousing service through a digital platform, Daan Mogot Eraprima is likely to benefit from the access over ownership trend, and optimized its warehouses, gain more revenue through higher occupancy level.