Seeking Technologies to Reduce Distribution Cost

Workflow Optimization, Logistics, Transport/ fleet Optimization, Warehouse Optimization, Analytics

Anugrah Argon Medica (AAM) (Indonesia)


Anugrah Argon Medica (AAM) is a leading distribution company in Indonesia of pharmaceuticals, consumer health and and medical device products. The Company distributes the products to various healthcare facilities --16,000 pharmacies, 2,600 hospitals, > 39,000 traditional, modern markets and specialty stores throughout Indonesia. They are also one of the largest suppliers to Indonesia’s Universal Health Coverage (UHC) Program. Although the UHC has caused an increase in new patients, it has also created increasing price erosion and lowered distribution margin. In order to maintain business sustainability, AAM aims to use technology to lower distribution costs (i.e. both transportation and warehouse costs) without compromising fulfillment and service quality. They are open to co-develop, test and adopt technological solutions to increase their current capacity in terms of value and volume whilst keeping costs low.

AAM is seeking for technologies and solutions to decrease their distribution costs. Currently, the company has 39 branches with 34 retail warehouses, 1 Regional Distribution Center, 1 National warehouse to cover the wide network and provide direct coverage. There are existing inventory management systems in the warehouses and deliveries are completed via air, sea and land transport to secondary and tertiary cities within the country.


The technology or solution should be able to optimize routes, maximize capacity and lower expenses. Solutions should not require additional investment to infrastructure. 

Possible technologies and combinations of include the following, but not limited to:

  • Route Optimization
  • Transports/ fleets Optimization
  • Workflow Optimization
  • Warehouse Optimization
  • Artificial Intelligence & Data Analytics