Warehouse automation: How two-wheeler giant PT Mitra Pinasthika Mulia (MPM) automates spare parts logistics with Daifuku

From 3 days to just a few hours: The logistics move that leaves the competition behind

Faster, more precise, more profitable: How warehouse automation is redefining the spare parts market

In an era where customers expect same-day delivery and supply chains are increasingly under pressure, the global logistics industry is transforming from a mere storage location into a crucial competitive advantage. Those still relying on error-prone and time-consuming manual processes risk falling behind. A striking example of this transformation is provided by the Indonesian two-wheeler giant PT Mitra Pinasthika Mulia (MPM), the exclusive Honda distributor in one of the world's most densely populated regions.

By consistently switching from a traditional rack warehouse to a state-of-the-art, automated mini-load system (AS/RS), coupled with intelligent goods-to-person technologies, the company achieved a logistical masterpiece: Shipping times shrank from three days to just a few hours, while the error rate was reduced to an absolute minimum. This article delves into why warehouse automation—especially in emerging markets—is no longer simply a matter of cost. It demonstrates how intelligent logistics determines market share in times of crisis and what groundbreaking lessons the global spare parts industry must learn from this Southeast Asian success story.

When machines deliver faster than the competition: Warehouse automation in spare parts logistics for the two-wheeler industry

Those who don't automate lose – why the old warehouse becomes the tombstone of competitive advantage

What was once considered a downstream process is now a strategic differentiator that determines customer loyalty, market share, and ultimately, the survival of companies. The Indonesian Honda motorcycle parts distributor PT Mitra Pinasthika Mulia (MPM) serves as a paradigmatic example of how the introduction of automated warehouse systems not only revolutionizes internal processes but also sets an entire market in motion. As the exclusive distributor of Honda motorcycle spare parts in East Java, MPM succeeded in reducing shipping lead times to a third and increasing shipping accuracy to 99.9 percent by installing a mini-load automated warehouse. This transformation is far more than a technical upgrade—it is a lesson in the economic mechanisms of modern warehouse automation in emerging markets.

The Indonesian two-wheeler market as an economic force field

Indonesia is by far the largest motorcycle market in Southeast Asia and one of the most important worldwide. In 2024, Honda accounted for approximately 72.3 percent of all motorcycle sales in Indonesia, followed by Yamaha with a market share of around 24.4 percent. The island of Java, where MPM is headquartered, alone generated 59.28 percent of the country's total two-wheeler market revenue in 2024, supported by its dense population, concentrated manufacturing capacity, and extensive service network. Dealer networks in major cities like Surabaya and Bandung ensure rapid spare parts availability, minimizing downtime and strengthening brand loyalty. The Indonesian two-wheeler market is projected to grow from US$10.48 billion in 2025 to US$12.46 billion in 2030, representing an annual growth rate of 3.52 percent.

These figures illustrate the scale of the market in which MPM operates. In 2023, nearly five million Honda motorcycles were sold in Indonesia. Each of these machines generates a significant demand for spare parts, maintenance materials, and wear parts throughout its lifecycle. The spare parts business is therefore not merely an adjunct to new vehicle sales, but a distinct business segment with high margins and long-term customer loyalty. PT Mitra Pinasthika Mulia is the exclusive and trusted distributor for Honda motorcycles in East Java and East Nusa Tenggara, also providing after-sales service and genuine spare parts. The company was established as a subsidiary of PT Mitra Pinasthika Mustika Tbk, which belongs to the Saratoga Group, one of Indonesia's leading investment companies. With a network of over 500 employees and numerous branches, MPM forms the backbone of Honda spare parts supply in one of the country's most densely populated regions.

The limitations of manual warehouse logistics in a growing market

MPM's initial situation before automation was typical for many distributors in emerging markets. In the old warehouse in Sidoarjo, located south of the metropolis of Surabaya, goods were stored on pallets in fixed racking systems. This system, which had functioned for years, reached its limits as the number of stock keeping units (SKUs) to be managed steadily increased to meet growing customer demands. The increasing product variety led to greater handling effort and complexity that could no longer be managed with the existing infrastructure.

This scenario is by no means an isolated case. Warehouse operators worldwide are grappling with the consequences of manual processes: labor costs account for 50 to 70 percent of a company's total warehouse budget, making them the single largest operating expense. In manually operated warehouses, order pickers achieve, at best, 100 to 150 items per hour, because the majority of their working time is spent not on actual value creation, but on walking through aisles and searching for items. The error rate of manual order picking is typically between 85 and 95 percent accuracy, which, conversely, means that an error occurs in every twentieth to seventh order. In an industry where a missing or incorrect spare part means a motorcycle is out of service and a customer is lost, these error rates are unacceptable.

For MPM, the situation was further complicated by the fact that the existing process, from order receipt to shipment, took three full working days. In a market where dealers and workshops rely on rapid availability to avoid losing customers, this lead time represented a significant competitive disadvantage. A fundamental transformation was unavoidable.

Automation architecture: Mini-Load AS/RS as the technological backbone

In 2020, MPM constructed a new two-story warehouse on an adjacent property and installed an integrated automation system consisting of a Mini-Load AS/RS (Automated Storage and Retrieval System), sorting transfer vehicles (STVs), and a modern order picking system. The Mini-Load AS/RS comprises two 15-meter-high stacker cranes with a capacity of 14,400 containers. This increased the storage capacity to up to 13,000 SKUs.

Mini-Load automated storage systems are specifically designed for handling smaller load units such as containers, cartons, or trays. They feature a compact, high-density design that maximizes vertical utilization of available storage space and minimizes operations. The stacker cranes automatically retrieve containers from their storage location and transport them to the picking station or directly onto a conveyor system. Compared to manual systems, a Mini-Load AS/RS offers space savings of up to 85 percent and a reduction in manual labor of approximately two-thirds.

The new warehouse at MPM is divided into two functional areas: a floor storage area for fast-moving items on pallets and the AS/RS area for medium- and slow-moving items. Upon receipt, incoming goods are inspected and assigned to the appropriate area based on turnover. Medium- and slow-moving items are repacked from cartons into plastic containers and then stored in the Mini-Load AS/RS area. This differentiated storage strategy, based on ABC analysis, is a key element in maximizing efficiency, as it ensures that high-frequency access occurs with minimal travel distances, while the automated storage system manages the wide variety of less frequently requested items in a space-saving and error-free manner.

Sorting Transfer Vehicle: The connecting pacemaker of material flows

An often underestimated but crucial element of modern warehouse systems are the Sorting Transfer Vehicles (STVs), which at MPM coordinate the material flow between the AS/RS and the picking stations. The STV system is based on rail-guided, intelligent, high-speed vehicles specifically designed for load-specific transport tasks. At MPM, three STV units are installed in a loop configuration on the second floor, efficiently connecting the material flow between the AS/RS and four picking stations.

Daifuku, a leading global provider of intralogistics solutions and a dominant player in the Asia-Pacific region, describes its STV system as a pallet-sorting system that utilizes rail-guided vehicles for fast and efficient material handling. Integrated with AS/RS systems, the STV enables sorting onto conveyors connected to an STV line or loop, optimizing warehouse processes such as transferring goods between automated storage aisles, picking stations, and direction-based sorting for shipping. The vehicles reach speeds of up to 200 meters per minute and dynamically adjust to maximize efficiency while minimizing energy consumption.

The STV is therefore far more than a simple means of transport. It functions as an intelligent pacemaker, synchronizing the various subsystems of the warehouse into a coherent whole. Without this link layer, the high storage and retrieval performance of the AS/RS would be wasted at the interface with order picking. Furthermore, the loop configuration in MPM allows for a high degree of redundancy: If one vehicle fails, the remaining units can maintain supply, increasing system availability and minimizing the risk of operational disruptions.

Goods-to-Person and Put-to-Light: Redefining Order Picking

The real revolution in order processing takes place at the four goods-to-person picking stations, each with a capacity of 2,000 orders per day. The principle behind goods-to-person (GTP) is remarkably simple, yet transformative in its impact: Instead of employees walking through the warehouse to search for and retrieve items, the items are automatically brought to the stationary worker. The picker remains at their station and waits for robots or automation systems to deliver the required items, then takes over the demanding picking and sorting tasks that are still difficult or impossible for machines.

The productivity gains of this approach are substantial. While manual order pickers can handle a maximum of 100 to 150 items per hour, GTP systems can increase the picking rate to 600 to 650 items per hour. Other sources cite an increase in picking rate of 300 percent or more compared to traditional methods. Manual order pickers achieve an average of 60 to 100 picks per hour, while GTP systems can push these rates to over 300.

At MPM, the process works as follows: When a customer order is received, the Warehouse Management System (WMS) sends retrieval commands to the Mini-Load AS/RS. The system retrieves the ordered containers and transports them via conveyor belts to the second floor. From there, the containers are delivered to the picking stations via sorting transfer vehicles. At each station, batch picking is initially carried out, processing several orders simultaneously. Order-specific sorting then takes place using a so-called Digital Assortment System, a put-to-light system mounted behind the pickers.

Put-to-light systems utilize a combination of light indicators and digital displays to guide operators during the order fulfillment process. The light devices direct the operator to the correct placement location for each item, with each location dynamically assigned to an order and an illuminated display indicating where and how many items to place. The primary benefit of this system lies in its ability to significantly reduce order fulfillment errors. The system minimizes human error caused by distraction, fatigue, or incorrect reference readings and provides clear instructions for placement. After an item is scanned, the system automatically guides the operator to the correct placement location.

The products, sorted according to orders, are then packaged and transported to the shipping area on the ground floor, where they are consolidated with fast-moving items, arranged in shipping sequence, and loaded onto trucks. This seamless process chain – from automated retrieval and light-guided picking to shipping consolidation – eliminates virtually all manual searching, walking, and sorting processes and creates a continuous, timed flow of materials.

Measurable results: The economic proof of automation

The quantifiable results of automation at MPM are impressive and can be illustrated by three key performance indicators. First, warehouse capacity has been massively expanded: The company can now manage up to 13,000 SKUs, a huge increase compared to the old system and giving MPM the flexibility to offer a much wider product range. Second, the shipping lead time has been reduced from three days to a third of the previous time, enabling same-day delivery after order receipt. Third, shipping accuracy has increased to 99.9 percent, a figure considered a benchmark in warehouse automation.

These results align seamlessly with industry benchmarks. Automated picking systems increase order fulfillment speed by up to 300 percent. Inventory accuracy reaches up to 99.9 percent through the integration of AI-powered warehouse management software and analytics, while simultaneously increasing throughput by 20 percent or more. Warehouses that have implemented automation technologies see a 25 percent reduction in workplace accidents and a 35 percent increase in productivity.

The return on investment (ROI) of warehouse automation is considered attractive across the industry. Organizations implementing automated warehouse solutions report an average reduction in operating costs of 15 to 20 percent within the first year, while simultaneously increasing storage capacity by 30 percent. Labor costs can be reduced by 25 to 85 percent, depending on the level of automation. For example, a fulfillment warehouse processing approximately 4,500 orders daily reduced the average picking time from 7.5 minutes to 4.1 minutes per order, resulting in a 38 percent increase in efficiency and a 29 percent reduction in operating costs, with an ROI of approximately 19 months.

Competitive advantage in times of crisis: The Covid-19 experience as a stress test

Particularly revealing is the statement from Hari Widodo, Head of Inventory Management and Logistics for MPM's spare parts division. He pointed out that despite the severe crisis the entire motorcycle parts industry experienced due to Covid-19, MPM's sales did not decline as sharply as those of its competitors. He attributed this directly to the shorter delivery times made possible by automation.

This observation underscores a fundamental economic relationship that becomes particularly evident during times of crisis: In periods of declining demand, customers concentrate their remaining orders on the most reliable and fastest suppliers. When all suppliers offer a similar product range at comparable prices, delivery speed becomes the decisive differentiator. MPM's ability to ship orders on the same day, while competitors took several days, gave the company a structural advantage that translated into market share gains during the crisis.

This effect is no coincidence. Companies that have invested in automating their warehouses report improvements in last-mile delivery times of 20 to 40 percent. Automation allows warehouses to extend cut-off times for same-day or next-day shipping because orders can be processed in minutes instead of hours. The predictability that automation brings to warehouse processes has fundamentally changed how last-mile logistics providers plan their resources. For MPM, this meant that dealers in East Java received their Honda spare parts faster than parts from other brands or alternative sources, strengthening their commitment to the Honda ecosystem.

The global warehouse automation market: dimensions and dynamics

MPM's investment is embedded in a global megatrend. The worldwide market for automated storage and retrieval systems (AS/RS) was valued at approximately US$9.58 billion in 2025 and is projected to grow to US$17.4 billion by 2034, representing a compound annual growth rate (CAGR) of 7.0 percent. Other analysts see the market as even more dynamic: one estimate projects market volume of US$16.60 billion by 2033, with a CAGR of 7.79 percent, while others anticipate US$20.24 billion by 2034, with a CAGR of 8.7 percent.

The overall market for warehouse automation is far larger. It reached a volume of US$23.92 billion in 2025 and is projected to grow to US$47 billion by 2030, at a CAGR of 14.4 percent. Automated storage and retrieval systems are expected to be deployed in over 92,000 warehouses and distribution centers worldwide by 2025, driven by increasing throughput requirements, urban storage space limitations, and the cost pressures associated with manual operations.

The Asia-Pacific region, which includes Indonesia, is experiencing particularly strong growth. The Asia-Pacific warehouse automation market was projected to reach US$14.5 billion in 2025, growing at a robust CAGR of 15.2 percent. Daifuku Co., Ltd., Murata Machinery, Swisslog, and Toyota Material Handling are among the leading suppliers in the region. Specifically for Southeast Asia, the warehouse automation market is estimated at US$0.91 billion in 2026 and is expected to grow to US$1.63 billion by 2031, at a CAGR of 12.36 percent. Key suppliers in this region include Daifuku, Dematic (KION Group), Swisslog (KUKA), SSI Schaefer, and Vanderlande Industries.

Spare parts logistics as a strategic discipline: Industry trends and future prospects

Automotive spare parts logistics is undergoing a profound transformation driven by several converging trends. The global spare parts logistics market was valued at US$23.2 billion in 2025 and is projected to grow at a CAGR of 5.2 percent through 2035. The automotive parts segment alone accounted for approximately US$9.23 billion in 2025 and is expected to grow at a CAGR of 4.5 percent. This expansion is supported by increasing vehicle registrations, a growing interest in older models, and the rise of online spare parts sales.

The key trends shaping this market include customer expectations for fast delivery, often with same-day or next-day shipping. Companies are investing in advanced warehouse management systems that enable real-time tracking and intelligent order fulfillment. AI-powered demand forecasting and inventory optimization gained significant traction in 2023, followed by the expansion of robotic automation in picking and packing processes in 2024, and increased integration of IoT sensors for real-time condition monitoring of sensitive automotive components in warehouses in 2025.

The increasing importance of real-time tracking and visibility of spare parts is identified as one of the main drivers of market growth. Improved transparency enables companies to accurately monitor inventory levels and shipping status throughout the entire supply chain. This transparency minimizes stockouts, delivery delays, and misplaced components, ensuring availability at the required location and time.

Indonesia's logistical transformation pressure: Island nation with infrastructure ambitions

The MPM case cannot be considered in isolation from Indonesia's specific logistical challenges. Spanning more than 17,000 islands, it is the world's largest archipelago. The World Bank estimates Indonesia's logistics costs at 23 to 25 percent of its gross domestic product – one of the highest figures in Asia. Therefore, any efficiency gains in logistics directly impact its competitiveness.

The Indonesian government is investing heavily in infrastructure to strengthen the country's role in global trade. Recent projects include airports, seaports, toll roads, and special economic zones, creating a more integrated logistics network across Java, Sumatra, Kalimantan, and beyond. The government is also expanding the Tol Laut maritime highway to ensure regular container services between the main islands. Within the context of global manufacturers' China-plus-one diversification strategy, Indonesia is increasingly seen as an attractive location, further driving demand for maritime transport and port infrastructure.

For a company like MPM, which ships spare parts from its central warehouse in Sidoarjo to dealers and retailers throughout East Java—and beyond to East Nusa Tenggara—this geographical fragmentation means that any time saved in the warehouse accelerates the entire downstream supply chain. When the internal process from order receipt to loading onto the truck is reduced from three days to just a few hours, the goods can begin their long journey to remote island destinations on the same day. In a country where the last mile is often literally over water, this time advantage in the warehouse is invaluable.

The economic logic of automation decisions in emerging economies

MPM's decision to invest in warehouse automation in the midst of the Covid-19 pandemic may seem counterintuitive at first glance. However, it follows a sound economic logic that goes beyond short-term cost calculations. In emerging markets like Indonesia, where logistics costs represent a disproportionate share of GDP, every efficiency gain acts as leverage across the entire value chain.

The investment logic for warehouse automation in Southeast Asia is driven by several factors: rising labor costs, which make automation increasingly cost-effective compared to manual labor; the need for improved accuracy and speed in order fulfillment; and government initiatives to promote Industry 4.0. The Southeast Asian warehouse automation market is projected to grow from US$0.72 billion in 2025 to US$1.84 billion by 2033, representing an annual growth rate of 12.51 percent.

Several economic justifications for investing in MPM can be identified. The direct ROI results from the reduction of working hours and the associated personnel costs, the increase in throughput without a proportional increase in costs, and the reduction of error costs due to 99.9% shipping accuracy. The indirect ROI manifests itself in customer loyalty through shorter delivery times, the ability to carry a broader product range and thus cover more demand scenarios, and – as the Covid-19 experience has shown – in crisis resilience, which enables market share gains during downturns.

Industry-wide, the average ROI for automation implementations is estimated at 20 percent within the first two years. Case studies show a 42 percent reduction in operating expenses over five years compared to manual processes. By strategically automating the highest-volume zones, companies can achieve immediate reductions in labor and error costs of 20 to 30 percent as early as the first week.

The next stage: Pallet AS/RS and the vision of a fully integrated warehouse

MPM has already announced the next step: the installation of a pallet AS/RS to automate the handling of heavier items such as oils and tires. This expansion is a logical progression and follows the pattern of phased automation, where the most complex and error-prone processes are automated first – in this case, the handling of the large SKU variety of medium- and slow-moving small parts – and the system is then extended to other product categories.

A pallet AS/RS would allow MPM to transfer even heavy and bulky items from the floor storage area into an automated system. This would further reduce remaining manual processes, increase space efficiency even more, and, above all, enable end-to-end automation from goods receipt to shipping for the entire product range. Integrating pallet and mini-load AS/RS systems into a shared WMS environment creates the foundation for fully orchestrated order processing, where the system automatically decides from which storage areas items are retrieved and how they are consolidated for shipment.

This vision of a fully integrated warehouse aligns with global trends. Companies that initially implemented isolated automation modules are increasingly moving towards end-to-end automated processes. The integration of AI-powered warehouse management software and real-time analytics further enhances the performance of physical automation by enabling predictive inventory planning, intelligent order sequencing, and predictive maintenance.

Lessons for global spare parts logistics: From Sidoarjo to the world

The MPM case provides insights that extend far beyond the borders of Indonesia or the two-wheeler industry. Firstly, it demonstrates that warehouse automation is not the sole domain of highly developed industrialized nations, but can create a disproportionate competitive advantage, particularly in emerging markets with high logistics costs and fragmented infrastructure. Secondly, it shows that the ROI of automation lies not only in reducing labor costs, but primarily in the strategic dimension of shorter delivery times, increased accuracy, and the resulting customer loyalty. Thirdly, it proves that a phased automation approach – first mini-load for small parts, then pallet AS/RS for heavy loads – alleviates the financial pressure of one-off large-scale investments while simultaneously enabling continuous improvement.

Today, warehouse automation is no longer a question of if, but of when and how. In a market environment where same-day delivery is becoming the norm rather than the exception, where 99.9 percent shipping accuracy is no longer a unique selling point but a minimum requirement, and where every third cent of Indonesia's GDP flows into logistics, investing in automated warehouse systems is no longer a strategic option—it's an economic necessity. MPM learned this lesson early and is now reaping the rewards in the form of market share, customer loyalty, and resilience to crises. This example vividly demonstrates that in modern spare parts logistics, it's no longer the biggest player who wins, but the fastest.

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