As e-commerce in South Asia is expanding at an exponential rate, it is becoming all the more important for companies in the retail industry to know how to draw customers and gain their trust, especially when it comes to online transactions. Leading South Asian online retailer Daraz has distinguished itself by providing excellent service standards for clients.
The Alibaba-owned company is clearly the market leader in the Pakistani e-commerce landscape. The sustainable economic development of Pakistan is dependent on a robust and low-cost transport and logistics sector.
Enhanced export competitiveness also depends on the efficient performance of this sector. Being an award-winning organization for exemplary business practices, Daraz has improved its innovations and maintained to garner successes over the years.
Daraz has been segmented into three primary logistical verticals, namely Daraz Express, the courier companies, and Logistics Marketplace (LMP).
Daraz Express is a premium shipping service that delivers products across Pakistan in the blink of an eye. Their esteemed buyers do not have to wait patiently for their parcels to be delivered.
A reliable and efficient logistics service, its focus is on providing a seamless shopping experience to ensure that customers receive their orders quickly and safely. This service is particularly beneficial for those who want their items urgently or for time-sensitive occasions.
With an extensive network of warehouses and distribution centers strategically located across its operational regions, it allows for widespread coverage for them to reach customers in both urban and rural (far-flung) areas efficiently.
It also provides customers with real-time tracking information, allowing them to monitor the status of their orders at every step of the delivery process.
This primarily allowed customers to save time and effort by having their orders delivered directly to their doorstep, eliminating the need to visit physical stores.
Ahmed Tanveer, Chief Operations Officer, Daraz, states that the organization now delivering to over 500 locations across Pakistan. This means that if anything goes amiss in the supply chain and logistics, the losses could be enormous.
The second model that Daraz uses to deliver parcels is through traditional logistical partners such as TCS and Leopard and others.
Collaborating with various partners to handle its delivery operations, Daraz has managed to open avenues for them as well, raising the industry bar by and large. These traditional courier companies are established players in the logistics industry and help Daraz efficiently manage the vast number of orders and deliveries across the country.
These companies typically have a well-established network of delivery services, allowing Daraz to reach customers in both urban and rural areas.
With their years of experience in handling deliveries, the process ensures that packages are handled with care and delivered promptly.
With their experience and resources, traditional courier companies are generally reliable in delivering packages within the specified time frame, adding to Daraz’s assets of success.
Daraz continually works on optimizing its logistics operations. The organization may negotiate contracts and service level agreements with their courier partners to ensure better service consistency and faster delivery times.
Daraz does not hesitate to explore innovations in the delivery process, such as using technology for route optimization, last-mile delivery solutions, and potential partnerships with local delivery startups. This brings us to their unique business vertical, LMP.
LMP allows Daraz to deliver in every city and area of Pakistan. It plays an important role in empowering the locals who are interested in starting a logistics business.
The latter delivers Daraz packages utilizing its technology and expertise to run a logistics business.
The model uplifts the local communities by creating business avenues and job opportunities mainly in tier 2 and tier 3 cities of Pakistan, and while doing so, it also helps them ensure that together, Daraz & LMP, provide a good delivery experience to their customer in these cities.
Daraz is still in the works to expand its LMP network as it strives to find more partners in cities located in Punjab, Sindh, and other provinces.
This is particularly important as the locals are well-versed in managing these deliveries, warehousing, and distribution, which complements Daraz’s focus on delivering a seamless shopping experience.
