Kaizen: Daraz should instill the concept of continuous improvement in its work culture, even

the packing and handling guy, the delivery person should be encouraged to innovate.

Standardized Work: Daraz should ensure that every person is clear about his role, responsibility
and the outcome of his work. It should not rely on the individual heroics because in ambiguous
and complex situations like Black Friday, the absence of role clarity can create chaos.

Tools:
Andon Board: Daraz can install electronic sign (visual) screens that will display the real time
tracking of customer parcel. In case of Cross-dock model, this will reduce ambiguity by
informing the quality control, handling and delivery person to be aware.
5S: If the workplace (warehouses) is clearly organized then it makes it easier to recognize when
there is a deviation i.e. something is missing (or) is out of order. Thus, Daraz can eliminate
waste and reduce lead times by using 5S to visually control the defect

Q3. What can Daraz learn from Amazon to start online grocery business in Pakistan?
Daraz should apply the follow learning from Amazon while launching an online grocery store:
 It needs to know who its competitors are, and what their competitive advantage is. Pakistan
has Metro (Warehouse), Kitchen cuisine (gourmet foods), Al Fatah (supermarket), and other
small scale local grocery stores. Thus, Daraz should define its value preposition, and then
ensure that it is providing greater value than its competitor’s i.e. higher convenience,
product quality and variety, and competitive prices.
 It should continuously experiment using the scientific method before it undertakes a
strategic decision. It should identify the variables (Convenience, Price hike) to test and if the
results prove that the decision is adding value to its customer and is aligned with its
strategic vision, then proceed to adopt it.
 Since it lacks previous knowledge, it should start its operations on a small scale i.e. one of
the tier-1 cities. It should gain experience in this segment, identify the key pain points of the
customers, and the key success factors. And once it achieves operational excellence and
profitability in the existing location, then decide on whether it want to explore further
avenues for growth (or) exploit the current region for effectiveness and efficiency.
 Daraz should leverage its existing resources as Amazon did. It should coordinate with
existing vendors, revamp its delivery and warehouse infrastructure to fulfill the fresh
produce needs of its customers. Furthermore, it can cater to the demand uncertainty by
aligning its other categories logistics to that of the grocery.
 Since Daraz is in Pakistan, it needs to ensure that the capabilities of its customers are
aligned to their new roles. Unlike the electronics, media category, the people who purchase
grocery items for their families (mainly parents) are old fashioned and may not have
knowledge about online platforms.