Warehouse Safety Management – Daraz.pk PDF

Warehouse Safety Management – Daraz.pk
In terms of online retailing all across the Pakistan, Daraz.pk is certainly the pioneer at the
moment. The company operations over the period of five years now includes Pakistan,
Bangladesh, Sri Lanka, Myanmar and Nepal. In the initial stages, the e-commerce platform
launched themselves as a fashion retailer started with the collaboration of a friend group wanting
to try their luck in the world of online shopping introducing top of the line brands and their
related products.
There weren’t any established protocols or patterns when Daraz.pk entered the world of online
shopping. By that time, the end-users were not familiar with either website nor application that
offer such hassle-free online shopping. The vendors and businesses are spread all over the
country as well as the customers. This is where warehouse management and logistics plays an
important role since the operations model of Daraz depends entirely on it. Along with that, there
is an unfortunate high ratio of vendors and suppliers involved in false practices that do not
deliver the product as promised or shown on the website. Some other unfortunate occurrences
include quality issue in product, wrong sizes, faulty products, damaged products etc. Due to such
manipulative activities from sellers, Daraz has suffered a lot in the past years. And ultimately it
affected the customer base since consumers became cautious and started considering online
shopping a risky option. Even to this day, scars of such indecent activities haven’t been
recovered completely.
Observing the humongous number of consumers based in Pakistan, and considering the fact there
isn’t any real competitor in the online marketplace, AliBaba group took over Daraz for a
whopping USD 14 million, back in 2018. Since the multi-national group has acquired Daraz,
there has been certain changes in the operations department as well as management.
In order to ensure timely deliveries, maintaining low costs on products and improving reach to
the customers, it is necessary for a company of this magnitude to have the products in close
proximity, procuring them in ample quantity and storing them in strategically placed warehouses.

Daraz.pk is being operated on a 3PL model of logistics and warehousing, where the product is
sold by one party, procured by another party, and delivered by another party i.e., third-party
logistics company.
The warehouse is divided into two segments; non-bulky warehouse and bulky warehouse. Non-
bulky warehouse deals with the products that are delivered in Daraz.pk’s very own packaging.
On the other hand, bulky warehouse looks after the products that acquire more volume and do
not require packaging, but instead they are wrapped like refrigerators, washing machines and
other bulky items.
For non-bulky items, there are 4 areas present to overlook the operations:
 Inbound and receiving
 Inventory and storage
 Outbound and forwarding to 3PLs
 Quality control department / After-sales department
Whenever a product is received against any purchase order, it first goes through the inbound
department where the quantity of scheduled products is checked and then stocked. In case of
fast-moving consumer goods, shelf life of products is thoroughly checked since Daraz purchases
items containing two-third expiry date. During the inbound process, the system also scans the
dimension of all the items being entered so that racking system can also be organized. The
scanning of dimensions allows the warehouse to observe how much empty space they have left
after storing the items.
Once the products are successfully received, the next step is quality control department. Each
purchase order is assigned to a particular operator present in the warehouse so that in case of
short items or any other mishap, the assigned operator is solely responsible. There is orange
colored in-transit boxes with unique barcodes in the inventory area where items of different
expiry dates are stored separately. This helps the system to encourage the inventory to take out
those items first that are near expiry date so that items that have longer shelf life can be used
later. In addition to that, there is a separate storage for chemical products and edible products.
Likewise, if a customer orders one unit of milk powder and one unit of a toilet cleaner, the
warehouse will have to package both the items separately.