Cutting-edge tech transforming Lanka’s logistics landscape

Effectively managing the flow of logistical operations is one of the key factors that can determine the success or failure of a business and this is especially true of businesses engaged in e-commerce operations.

As the world of e-commerce grows rapidly, meeting the evolving needs of digitally savvy buyers becomes more challenging. From a seamless product browsing experience, to accurate order processing, to speedy delivery, the requirements of today’s online shopper can only be met through the implementation of fully optimized e-commerce supply chain processes that understand and address these needs.

Daraz has taken significant steps to develop one of the most advanced, high-tech logistics and operational networks for e-commerce deliveries in Sri Lanka.

Daraz Express, an outcome of this effort, is responsible for delivering over 50,000 packages on average daily, to around 48 locations across Sri Lanka with an average delivery lead time of 2-3 days.

This intricate logistics and operations network aims to meet current and future expectations of both buyers and sellers and be on par with the latest local, regional and global trends. This approach enables the agile management of technology, resources, and costs, resulting in excellent online shopping experiences.

E-commerce customers today expect complete visibility and transparency on the status of their package from the time of order to time of delivery and every touch point in–between.

To meet this expectation, Daraz has leveraged technology to create several in-platform features, such as ‘out for delivery’ alerts on the day of delivery and a second reminder to the customer an hour before delivery, along with real-time order tracking and information provided directly to the customer.

Moreover, through the Daraz application, customers can view where their package is from the time the seller drops it off for delivery to when it is out for delivery.

For e-commerce operations, warehouses and distribution centres are designed to accommodate packages of all sizes. Daraz’s sorting centre in Colombo includes several counters for seller drop offs that sellers can use to scan and log in their packages for processing and the layouts of the sorting centre and the warehouses are created for quick movement of packages, with optimized zone movements to handle around 85,000 packages a day, allowing for a higher number of orders to be processed with greater efficiency, while also ensuring the safety of employees.

All packages are segmented into delivery zones, packed and dispatched to the relevant hub within a strict 24-hour period.

Firstly, to allow quicker drop offs from sellers, Daraz operates 48 logistics hubs across the island, located in both urban and rural areas. These hubs are tasked with efficiently distributing seller packages to consumers throughout the island and play a pivotal role in dispatching packages dropped off by sellers to sorting centers, to be processed for efficient last mile delivery.

Packages are delivered by one of Daraz’s own Delivery Express (DEX) riders, an external Last Mile Partner (LMP) rider or a courier service. The timely delivery of orders is vital in meeting customer expectations and building trust in e-commerce, which leads to repeat orders.

Secondly, Daraz also implements cutting-edge route optimization techniques alongside advanced geo-fencing technology to streamline logistics and operational processes, ensuring swift and efficient delivery across diverse geographical regions.

Last-mile delivery (the final stage of delivery to the customer) is the most critical stage of the logistics operation, as consumers place great value on convenience.

The performance of last mile delivery can often be the differentiator between customer satisfaction or displeasure, which has led to constant innovation in strategies to excel at this.

Daraz operates over 40 collection points across Sri Lanka, allowing consumers to pick up their packages. Daraz also hopes to introduce digitized lockers for pickups, to allow customers to pick up packages at their convenience.

In sum, focusing on quick delivery, streamlined and agile processes and changing customer needs will always play a key role in the success of e-commerce.

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