Daraz Inaugurates Pakistan’s First Smart Distribution Centres in South Asia

Daraz, Pakistan’s leading e-commerce platform, in partnership with Cainiao Network, (“Cainiao”), the logistics arm of Alibaba Group, has launched the country’s first automated smart distribution centres in Karachi and Lahore. These would be one of the most technologically advanced logistics facilities in South Asia, and mark Cainiao’s first deeply integrated distribution centre network in the region.

The distribution centres will be equipped with innovative smart technologies, such as an automatic assembly line and smart distribution set-up. It will utilise Cainiao’s proprietary solutions, including e-PLC, control algorithm, WCS, to ensure operational quality and stability. The facilities span over 50,000 sq. metres and hold the capacity to process 428,400 orders per day. To date, Cainiao has built hundreds of automated distribution centres of varying scales in China, and 10 smart distribution hubs across Europe, Asia, and America.

“We constantly innovate our operations and technology in Pakistan to continue scaling and enhancing our customer experience. Our partnership with Cainiao marks a milestone for not only us but Pakistan, as Daraz introduces smart technology in the country to bring more efficiency in our logistics. Launching our centres in Karachi and Lahore is a key step of this partnership, and we look forward to growing it in future”. said Mr Bjarke Mikkelsen, Daraz Group Chief Executive Officer and Founder.

The event saw attendance of corporate leaders who were given a tour of the facility by Ehsan Saya, Managing Director, Daraz Pakistan. Investment opportunities, entrepreneurship and digital innovations were discussed as key benefits to the local economy during the visit. Earlier this month, Mr. Asif Ikram, Secretary Information, Science and Technology Sindh visited the distribution centre tour for an exclusive visit of the premises and congratulated Daraz on this development and stated that the facility will bring a revolution in supply chain management in the country.

“It is a very proud moment for us at Daraz, as we launch global best-in-class technology in Pakistan after months of hard work. Innovation is the core of our operations, and we are confident our partnership with Cainiao will prove to be a game changer not only for us but the entire ecosystem. These smart distribution centres will increase Daraz’s sorting capacity by over 4.2x and decrease manual errors by over 90%, thus benefiting our entire business and improving the customer experience.” said Mr Ahmed Tanveer, Chief Operating Officer for Daraz Pakistan

Speaking about why they chose Pakistan as the first location in South Asia to set up their smart distribution centres, Dr. Ding Hongwei, General Manager, Cainiao Technology, said “Our great confidence in the investment in Pakistan comes from its significant growth and high potential of digital sector, and strong support from local government in infrastructure and policy as well. The smooth cooperation with Daraz proved our right choice to launch our first project in Pakistan given Daraz’s strong determination in the digital transformation. We believe that, with years of practically proven by the world’s largest ecommerce market in China, Cainiao’s leading logistics technology could support our partners in South Asia to speed up their digital transformation.”