Optimizing Fragile Items Delivery and Revamping Return Policies to Boost Operational Efficiency for Daraz

Abstract

This project on potential improvements in supply chain operations of Daraz aims to address some important operational challenges within the company. It is a work mainly focusing on the enhancement of packaging for fragile glass items, a strategic revamp of the return policy, and the implementation of an efficient system to monitor product expiry dates. The primary objective of this project is to improve operational efficiency while simultaneously enhancing the overall customer experience. Firstly, in the perspective of packaging, we identified the issue that revolves around the lack of distinct packaging for fragile glass items, resulting in potential damages during handling and transportation. The proposed solution leads to introducing a color-coded packaging system that will be providing easy recognition and substantially reducing the risk of damage. Secondly, for the return policy, the existing framework can be changed or revamped, as most of the time it is contributing to customer dissatisfaction and increased cost. The proposed solution involves the implementation of an on-the-spot product check at the time of delivery. This allows customers to promptly return products that are found unsatisfactory, streamlining the return process, and leading to increased customer satisfaction and loyalty. Lastly, third point of this project addresses the need for a systematic approach to monitor product expiry dates. The current lack of a efficient process is identified as a potential risk to inventory management. The proposed solution includes the integration of an automated system to monitor and update product expiry dates in real-time, contributing to effective inventory management and reducing the risk of selling expired products. Methodologically, a quick survey involving 15 respondents was conducted to assess perceptions about the effectiveness of the current packaging. Additionally, discussions and observations were carried out to identify and analyse issues related to the return policy and expiry date monitoring. The outcomes of this project include a reduction in the likelihood of damages to fragile items through the implementation of color-coded packaging, increased customer satisfaction and loyalty through the revamped return policy, and enhanced inventory management through automated expiry date monitoring. These proposed solutions align with industry best practices and are expected to contribute significantly to the overall improvement of our company's operational processes.