Indonesia is one of the fastest growing and largest economies in South East Asia. With it's 260 million inhabitants, Indonesia offers a very large market for any eCommerce start up willing to take the risk.

One of the problems associated with eCommerce in Indonesia is the Archipelagic nature of Indonesia's Islands. It would be hard for producers in Sumatra to ship products to their customers in Java or Sulawesi for example. Shipping would take a long time and would probably cost a lot of money.

This shortcoming can be remedied by building urban warehouses where producers and suppliers can stock products near their customers. This can increase the response time and broaden the market share of eCommerce companies to people that wants and needs same day delivery.

However, this policy presents several problems in and of itself. And the question still remains, at the end of the day, is it worth it?

This video is made for MB4023 Supply Chain Management class in Bandung Institute of Technology. In this assignment, we have to explain supply chain concepts and contextualize it to real world activities.

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