In an effort to create a sustainable e-commerce ecosystem in the country, Daraz is entering into a strategic partnership with TCS. In this e-commerce framework, this is a natural partnership where the largest e-commerce platform joins hands with the largest logistics company in the country, working together to enhance and improve the customer experience.
In the dynamic economy of Pakistan, many businesses over the pandemic have moved towards selling online to keep their businesses alive. This has a direct co-relation with the growth in the logistical sectors as the increase in orders impacts the rise of deliveries. Worldwide, people have adapted to this trend and have accustomed themselves to the growing e-commerce industry.
“The biggest challenge is still around infrastructure. TCS has historically borne most of the cost of investing and developing the industry because the modes are only now improving and the aircraft sustainability which in mainly the infrastructure,” shared Said Harris Jamali, CEO, TCS Private Limited Group.
He added, “From our perspective, the digital transformation is the biggest step which we took in the 4-decade journey that we had. It is important to have real-time visibility of not just our network but our last-mile captains, heroes who have made a huge change. We have also undergone a major fleet expansion by increasing by 30% this year. As an express company, we own our network which helps in controlling the dynamics of the quality of service provided.”
COVID has pushed multiple businesses to explore different platforms to sell online. According to the data released by the State Bank of Pakistan, the country’s e-commerce market has seen a year-on-year growth of 78.3% in volume and 33.3% in value in the fiscal year of 2020 (from July 1, 2019, to June 30, 2020). At Daraz, the rise of sellers increased by more than 50% which shows the nationwide adaptability of digitalization.
Ahmed Tanveer, Chief Operating Officer, Daraz said, “E-commerce is growing at a very fast pace now specifically after COVID-19 and one of the top challenges in the growth has been logistics and its infrastructure in our country. When we started with Daraz, the already existing logistics infrastructure was set up for envelope delivery which doesn’t cover the complicated process of an e-commerce delivery namely fast delivery, cash on delivery, and reverse journey.”
“Daraz played a major role in improving this by introducing DEX, which is a tailor-made e-commerce courier delivering 60% of Daraz packages, in this journey the already existing leaders like TCS played a major role as well and we feel lucky and proud to have them by outside as a strategic partner in solving this challenge,” he added.
The record-breaking jump in total retail sales may come as a surprise considering the coronavirus pandemic’s negative impact on in-store shopping. These significant shifts require a demand for improved infrastructure for logistical companies in Pakistan.
This has had a positive impact on businesses that adapted to digital change. It has fundamental economics which drives this journey as the cost incurred for individual households are optimized by providing centralized logistics service to them.