Astra Otoparts
Growth Thru Digitalization & Excellence

Astra Otoparts digital transformation initiatives seek to improve its Quality, Cost, Delivery (QCD) levels for long term sustainability.

AIBP 2022 Indonesia Enterprise Innovation Award Winner

Project Summary

PT Astra Otoparts Tbk is a company engaged in the production of automotive spare part is listed on the Indonesia Stock exchange with a market capitalisation of US $370 million (IDR 5.83 trillion) and a subsidiary of Astra International (US $17.36 billion), one of Indonesia’s largest diversified conglomerates.

The Astra Otoparts group consists of manufacturing and trading businesses. The project implementation comes from the manufacturing subsidiary, PT Akebono Brake Astra Indonesia, which produces brake components such as brake pads, and implemented a project to improve the inspection process. The project includes automation in its quality check test coupled with implementation of artificial intelligence. The production of critical equipment requires a good quality control system, hence the quality check test was extremely important.. The initiative implemented resulted in improvement in inspection speed inspection, without compromise on quality.

The group also has a trading division to distribute, promote and sell its products. The trading division implements digitalization along the customer journey, starting from discovery, ordering, payment up to delivery and customer engagement. Digitalization projects including sales force automation, implementing payment gateway, digital transaction supported by warehouse management system, as well as online stores (astraotoshop.com). These initiatives increase the Gross Merchandise Value (GMV) both for B2B and B2C transactions. The application of digital payments have also helped in reducing days in accounts receivables.

Astra Otoparts initiatives so far have been to modernise the current business and elevate their current state to achieve higher Quality, Cost, Delivery (QCD) level for competitiveness. Next in the works is for the group to create new revenue streams through digital transformation efforts for future growth.

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