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Organizational Theory and Design

Daraz.pk

Group Members:

• Fahad ur Rehman Khan (1496)

• Hamza Vakil

• Ramsha

• Momin Junaid

• Zaira Athar

Submitted to:

Sir Salman Abbasi

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Table of Contents:

Introduction…………………………………………………………………………………………………………………………..….3

ISO Standards…………………………………………………………………………………………………………………………...3

Daraz.pk……………………………………………………………………………………………………………………………….…..4

Vision Statement………………………………………………………………………………………………………………………4

Mission Statement…………………………………………………………………………………………………………….……..4

Products or SOPs…………………………………………………………………………………………………………….………..4

Business Model………………………………………………………………………………………………………………………..5

Organogram…………………………………………………………………………………………………………………………….6

Process at Daraz.pk…………………………………………………………………………………………………..…………….7

Black Friday financial analysis………………………………………………………………………………………….………8

Implementing ISO at Daraz.pk………………………………………………………………………………..……….………8

Conclusion………………………………………………………………………………………………………………….…………10

Recommendation…………………………………………………………………………………………………………….……11

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Introduction

International Organization for Standardization, the name of the organization), is a self-

governing, non-governmental organization, based in in Geneva, Switzerland, the members of

which are the standards organization of the 165 member countries. Consultation the standards

promises customers that all vendor company activities design, manufacturing, production,

purchasing, quality control, packaging, handling, storage, shipping, and customer service – are

appropriately managed and controlled and working according to the standards in order to be

environmental friendly.

ISO Standards

ISO International Standards ensure that products and services are safe, reliable and of good quality.

For business, they are strategic tools that reduce costs by minimizing waste and errors, and

increasing productivity. They help companies to access new markets, level the playing field for

developing countries and facilitate free and fair global trade.

There are number of standards in ISO that are used to specify different areas of operation. Some

of the popular standards are mentioned below:

ISO 9000 - Quality management

Make sure your products and services meet customers' needs with this family of standards.

ISO 14000 - Environmental management

Improve your environmental performance with this family of standards.

ISO 22000 - Food safety management

Inspire confidence in your food products with this family of standards

ISO 26000 - Social responsibility

Help your organization to operate in a socially responsible way with this standard.

ISO 31000 - Risk management

Manage risks that could be negative for your company’s performance with this standard.

ISO 4217 - Currency codes

Avoid confusion when referring to world currencies with this standard.

ISO 20121 - Sustainable events

Manage the social, economic and environmental impacts of your event with this standard.

ISO 27001 - Information security

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Ensure your organization's information is secure with this family of standards.

About Daraz.pk

Daraz.pk is the one of the biggest e-commerce web base in Pakistan. Daraz doing its operation in

Pakistan, Sri Lanka, Bangladesh and Myanmar. Daraz.pk is entirely funded with foreign

investment. It has direct investment from Qatar-based telecommunication company Ooredoo and

Berlin- based Rocket Internet is our parent company. Daraz.pk is the number one destination for

online shopping and product search in the country. It has marked its territory and has defined its

goals to be the leading one-stop shopping destination for all lifestyle needs. Co-founder of

daraz.pk is Muneeb Idrees Maayr went to the University of Virginia for college after which he

moved to New York and did his stint in investment banking. Soon after, he headed back to

Pakistan to take up the start-up route, employing around 600 hundred analysts performing data

analysis on US equities. He sold his operational stake in the summer of 2012 and joined Berlin-

based Rocket Internet’s venture Daraz.pk.

Vision Statement

We want to provide variety of products to our customers at best cheapest price we can gave to

their door steps within a blink of eye. And want to be the most selling market place in Pakistan,

where people will get every possible product from industrial engineering to home decorative.

Mission Statement

Our mission is to be the Pakistan’s best customer oriented company which is providing all the

products online and delivering at their door step.

Products or SOPs

The products and the SOPs at daraz.pk are the following;

• Smartphones

• TVs, Audio theaters and video accessories

• Home Appliances

• Computers

• Gaming consoles

• Cameras

• Sporting goods

• Men’s Fashion

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• Women’s fashion

• Cosmetics

• Home and living

Business Model

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Organogram:

CEO 1 CEO 2

HR Finance Marketing IT

HR Manager Finance

Manager

Marketing

Manager IT

Manager

CRM

Manager

Employees

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Process at Daraz.pk

• Daraz.pk

If the seller wants to sell on daraz.pk, the seller will contact Daraz.pk, daraz.pk will send them

documents and they will come into agreement, now there are two possibilities of selling items on

daraz.pk;

• Seller directly delivers the goods to consumer.

• Seller send them to the Daraz.pk warehouse, and leave the rest on the daraz.pk

Dealing with Inventory

Inventory is being dispatched at Daraz.pk, the inventory comes in big boxes, so the labor will

sort the items by the help of RFID and BARCODE and will deliver it to their warehouses. Then

this inventory is being shifted to the three warehouses which are located at the Clifton, within the

same house.

Warehouse Management

In their warehouses there are shelves, where they store their inventory according to the

alphabetical letters, because they do not store their inventory as per product category. But they

store as per the alphabetical order.

Data Management

They use OMS (Order Management System) for the order processing and inventory

management.

Process of Ordering on Daraz.pk

There is the following procedure though which a person can buy or order at daraz.pk

• Customer will add to cart the things he or she wants to buy

• Customer has to fill up the form of their home address and the payment method (Easy

paisa, credit card or cash on delivery).

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• Customer will get the confirmation call from Daraz.pk

• The agent at Daraz.pk will use Order Management System (OMS) to process the order.

• Customer will get their order in 5 business days.

Delivering goods to consumers

There are three distributers of Daraz.pk

• TCS (Within Karachi)

• Leopard Courier (Outside City – Karachi)

• DHL (For international orders only)

For Sellers on Daraz.pk, either they can give goods to Daraz.pk warehouse, so that they can

deliver it to the consumer.

They can also dispatch it themselves once order is being confirmed at daraz.pk.

Black Friday Financial Analysis 2015/2016

As per the 2015, the Daraz.pk confirmed so many orders which gained them 60 Million Euros

from their black Friday.

But in 2016, they could only make 6 million euros, which means 70% of the sales are gone.

Reason?

The customers returned a lot of products and some customers got the products but all of them are

broken.

Implementation of ISO at Daraz.pk

General elements of Quality Management System (QMS – 9000/9001) includes:

The organization’s quality policy and quality objectives

Dazar.pk gives the 7 to 30 days replacing guarantee to its consumers, only in the following cases;

When the stuff is broken

When the delivered good is sabotaging the ordered good. In other words, if you ordered a

Bag and you got a Mobile.

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When you get the different model.

During 2016 Black Friday, daraz.pk bared the decline of 70% sales just because of these

blunders. Although, in 2015, their black Friday sales were very beneficial.

Quality manual

Daraz.pk’s quality manual states that they keep the quality at their first priority (Rest of the

information has been kept confidential by the manager)

Procedures, instructions, and records

The sorting of raw material is all manual, they goods comes into containers and later identified

with the help of bar codes, then the labor sort them out and transfers it into three warehouses in

which (Call center, small inventory and large inventory) is being placed. And the shelves do not

contain the inventory as per the category listed on website, the selves contain the inventory as

per the alphabetical order (i.e. S for Samsung inventory, Sogo inventory, service shoes etc.)

Efficient warehousing to reduce delay and higher consumer satisfaction which is linked with

the efficient dispatching of material.

Data management

OBS Management software is being applied at Daraz.pk for the order processing and other

software BOB is also applied which is monitoring the companies that are listing their products

on daraz.pk to be sold.

An independent entity or a person can also register online Dforce at daraz.pk to sell their goods,

which is running under BOB management software and is complying with QMS.

Customer satisfaction from product quality

There were 70% decline in 2016 Black Friday sales as compare to the 2015 black Friday, many

orders were backed or returned because they got faulty or broken stuff.

Making sure the best packaging as well as they can outsource their warehousing, to the ISO

certified warehousing.

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Improvement opportunities

Daraz.pk is doing and getting onboard all the suppliers and sole proprietorship entities which are

willing to sell their goods, which comes under entrepreneurship.

They should take only ISO certified suppliers to make themselves ISO certified.

Quality analysis

Daraz.pk earns 30% commission from the people who list their products on their website.

Meanwhile, there are certain suppliers which directly supply the goods once they received, on

their quality, daraz.pk seems to be compromising, because after the dispatch of the order,

daraz.pk would not know that the ordered quality is satisfying the consumer or not.

Each element of a quality management system serves a purpose toward the overall goals of

meeting the customers’ and organization’s requirements. Ensuring each of the elements of a

QMS is present ensures proper execution and function of the QMS.

Daraz.pk. Employees of the Daraz.pk is mostly young and adaptable in nature. We will provide

basic ISO 9001 training by the ISO 9001 Management Representative

Documentation

Developing the ISO 9001 documentation is the most difficult step - if you don't use good

documentation templates. ISO 9001 requires that you should develop the following

documentation:

Quality Policy

Quality Objectives

Quality Manual

Quality Procedures covering the following ISO 9001 Requirements:

(1) Control of Documents,

(2) Control of Records,

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(3) Internal Audit,

(4) Control of Nonconforming Product,

(5) Corrective Action,

(6) Preventive Action.

Implementation and training

Implementing ISO 9001 at Daraz.pk will involve the company's employees. The implementation

will be based on the ISO 9001 documentation that was shown above

The training was given to company’s employees in key ISO 9001 requirements,

New time-saving procedures was introduced to the employees, and employees’ opinions were

review to fine tune their own work processes

Internal Audits

Conducting an internal ISO 9001 audit is not only required but it will also help them to verify

that the company's new ISO 9001 quality system is operational, and that any shortcomings are

identified and subsequently corrected.

Certification

Achieving ISO 9001 certification is our goal, and now Daraz.pk are only one step away from it.

To pass the ISO 9001 certification audit, the daraz.pk Should have ISO 9001 documentation

audited (passing this important part of the certification audit will be easy as the documentation is

based on according to require templates), The company's employees should be ready for the on-

site audit and pass the ISO 9001 certification audit, and help the company to gain the benefits

from the ISO 9001 certificate. The company will get certified from SGS Pakistan.

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Conclusion

• Daraz.pk is one of the biggest selling websites in Pakistan as well as outside Pakistan,

entertaining more than a million users on their website per day.

• Daraz.pk showed the highest grossing firm in the sales of 2015 black Friday.

• Daraz.pk is empowering the individual to companies to list their products on daraz.pk and

sell them online via their website. Daraz.pk earns 30% commission per sale from these

individuals and companies selling their products on daraz.pk website.

• Daraz.pk had to face a lot financial troubles after their CEO Muneeb Mayer left Daraz.pk in

2016. Which is later took over by a German businessman.

• Daraz.pk has implemented OBS management system for the order processing and BOB

management system for the suppliers and vendors monitoring.

• Daraz.pk is lacking the consumer satisfaction due to the quantity, and not having the products

on their website made by the companies which are not ISO certified.

Recommendations

• Daraz.pk should focus on the getting ISO certified suppliers on board. Daraz.pk should only

take the products from the companies that are ISO certified, to comply with the elements of

Quality management system.

• Daraz.pk has to work on consumer satisfaction because due to the declining consumer

satisfaction at daraz.pk, it cost them 70% decline in their sales.

• For the data management, the software is top notch but the professionals should be well

trained to operate their data management software as the whole company is based on it.

• Warehousing is not efficient, it is causing the delay in dispatching the product as the labor

takes a lot of time determining the exact location of the product they are searching for, delays

are linked to the customer dissatisfaction, which is going against the ISO certification.