TELEMART

“Our customers Our priority”

ANGELA SHAH
07055
Contents
BUSINESS PROFILE ........................................................................................................................................ 2
DISTRIBUTION STRATEGY.............................................................................................................................. 2
DISTRIBUTION CHALLENGES ......................................................................................................................... 4
1- Time constraint................................................................................................................................. 4
2- International products delivery time............................................................................................... 4
3- Inventory Accumulation due to delaying of parcels dispatched by vendors ................................. 4
4- Courier’s negligence while carrying parcel ...................................................................................... 4
5- Remote Areas Delivery..................................................................................................................... 5
OTHER CHALLENGES ..................................................................................................................................... 5
6- Courier service over charging .......................................................................................................... 5
7- International shipping costs ............................................................................................................. 5
8- Cashflow disturbance ....................................................................................................................... 5
IT initiatives for development of an integrated system and cost cutting ..................................................... 5
Innovative Supply chain strategies: .............................................................................................................. 6
1- Introducing customer support department .................................................................................... 6
2- API integration with third party logistics for easy tracking for both customer and company. ..... 6
Future Strategy ............................................................................................................................................. 6
References .................................................................................................................................................... 7

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 TELEMART
BUSINESS PROFILE

Telemart is the second largest E-commerce company in Pakistan. It is currently operating under
an umbrella of its respective parent company called “Tradelink enterprise”, the company with
more than 25 years of experience in distribution and retailing. It is a one-stop shop solution for
various shopping needs of consumers through diversified sale mediums, covering and
representing all the leading brands across more than 20+ categories. Their USP is their high
control over their quality checks, detailed scrutiny of vendors, providing genuine and authentic
products, providing competitive prices, and a great shopping experience. It operates on 4
different business models i.e., Online(www.telemart.pk), Wholesale (100+ business customers
across Pakistan), Retail (6+outlets in Pakistan), and Corporate clients. Variety of their product
portfolio includes Mobile phones, TVs and Video, Clothing, Medicines, DSLRs, Home appliances
etc.

DISTRIBUTION STRATEGY

For an Ecommerce business, their distribution strategy holds a significant importance due to
the nature of their business, hence they have to make sure that vendor and customer both are
happy and delivery reaches the customer safely in due time. Telemart’s “Vendor onboarding
strategy” is unique on its own which differentiates them from their competition. Every day 200-
300 vendors apply to get listed on their website. Their criteria make sure that they sell the
original new product or are distributor’s official reseller, used or preloved items are not allowed
for selling through their platform. Once vendor is on board and MOUs are signed, the website
shows their products. Then when a customer places their order through a website, order lands
on the system and vendor is informed. He then dispatches the requested item. Drop shipping
model is not allowed, therefore all the items go through Telemart’s warehouse, where quality
assurance is done. Their warehouse is located at Shaheed-e-millat road. After its approved its

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dispatched through Courier services (TCS, leopard), or Telemart’s own riders. 95% of handling is
done through third party logistics. Once a product is dispatched from their warehouse, a
supports team is there to look after any query that occur afterwards, like reattempts,
reconfirmation etc. If there are any returns, then they either get it picked from the customer or
customer drops it to the respective courier and then replacement or refund process starts.
Normal delivery process takes up to 2-5 days, and return process takes 7-10 days. Process is
faster is delivery is for major stations like Karachi, Lahore, Islamabad, Rawalpindi, Quetta,
Peshawar, and Multan.

Then their retail business model follows the same route, however if they have current listings of
1.5 lac+ items, they cannot stock all of them in their retail outlet, so when a customer walks in
to “Sadda Telemart Outlet” and tell they want this. If they have it, they hand it over right away
but if not then they immediately order it from vendor and deliver it to their customer’s
doorstep. In a wholesale setting they purchase items in bulk and cash to get the best discounts
possible. Their corporate clients list includes Alfalah Bank, Food Panda, Careem, Faysal Bank
etc.

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DISTRIBUTION CHALLENGES

1- Time constraint is the biggest challenge Telemart is facing currently. Vendors who
live in different cities or far off, send in products late to Telemart’s warehouse or send in
wrong sizes. Which impacts their committed time to the customer and hurts their
goodwill and brand name if customer gives out negative reviews.
2- International products delivery time is also effected due to Covid’19.
Restrictions, delay of flights all this effect their delivery times to the customer.
3- Inventory Accumulation due to delaying of parcels dispatched by
vendors, therefore customer refuse to accept it. For e.g., Currently they have Samsung
screens worth 5 lac in their inventory because vendor dispatched them late. 1.5-2million
rupee inventory stuck in warehouse in form of physical inventory.
4- Courier’s negligence while carrying parcel resulting in damaged products.
Many losses are right off as bad debts on regular basis. Claims are settled after a long

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 time, which hurts working cashflow of business. For e.g., courier has damaged inventory
of 3 million rupees.
5- Remote Areas Delivery remains as a challenge, because of not having a proper
infrastructure, and not every courier service has access to every vicinity. Therefore, it
remains as a challenge to delivery Timely and safely without the product being
damaged.

OTHER CHALLENGES

6- Courier service over charging for parcels delivered. For instance, recently they
charged 72000Rs for 4000Rs worth of parcel. So additional charges are to be checked
regularly and posed as a supply chain challenge for the company.
7- International shipping costs going up significantly per kg, cargo, which is also
affecting their price points, and how much they can import at a time and at what costs.
8- Cashflow disturbance because on courier’s negligence and inventory accumulation
marketing, budget is spent on freeing up inventory rather than promoting new
products, then unexpected raise in custom officer’s fee, incurring double cost if vendor
dispatches wrong products, all this hurts cashflow and in turn business and its profits.

IT initiatives for development of an integrated system and cost

cutting
Telemart is known for incorporating technology at its every step, and making their systems
revolutionized. They have built their own customized ERP solution, in which they have
integrated all departments. Pre covid’19 all of this was done manually and by a huge labor work
force. In which they their website was not integrated with their ERP systems. So, they used to
manually import and export files to check it against the orders. However due to covid’19 they
saw a huge influx of orders, it became inevitable for them to not integrate their systems for

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efficient management of orders and inventory count. Once systems were automated, they got
freed from a large amount of work force, reducing their costs.

Innovative Supply chain strategies:

1- Introducing customer support department

Initially it was not easy to track whether third party logistics really made a delivery
attempt to the customer, or they just marked it a return. Also keeping track of while
customers were not accepting the parcel they ordered. So Telemart introduced
Customer Support department to improve their Supply chain process, efficiency, time,
and cost. Whenever 3PL registers a return with the company, this support department
make sure that return is not processed and stays at the destination station before they
confirm the status with the customer. Once it is done then they process returns or
attempt whatever is required.

2- API integration with third party logistics for easy tracking for both
customer and company. This is to be launched now soon, in which there is detailed
integration between the company and courier service by Telemart’s developer. So that
real time changes in the system can be notified by both the parties instantly and course
of action due can be taken.

Future Strategy

Telemart plans to expand into its own distribution logistics like Daraz’s Dex. For every
Ecommerce company delivery time is a very important issue, and related issues like rejections
on doorstep, returns, cancellations, overcharging by courier company. Having their own
network of riders and logistic service will give them more control and efficiency over delivery
and addressing related challenges. This will also over come certain distribution challenges
mentioned above like overcharging of freight costs, mishandling of parcels, ensuring timely
delivery, and avoiding scams of fake attempts. Because in the end it is the customer experience

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that matters the most since the customer is purchasing from Telemart and not the vendor
itself, so all the duty lies with the responsibility that comes with the name of Telemart. Apart
from this Real time tracking initiative is also taken to enhance the customer experience and
quality of service and delivery.

References

To conduct this Supply chain analysis, I conducted an interview with Abdul Rauf Essa – CEO of Telemart.

Alongside some secondary research.

Retail outlet-franchise: location

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