Cainiao Network, (Cainiao), the logistics arm of Alibaba Group, has partnered with Daraz, to automate the South Asian e-commerce platform's two smart distribution centres in Pakistan.

In a statement, Cainiao said the distribution centres will be equipped with innovative smart technologies, such as an automatic assembly line and smart distribution set-up.

 Cainiao Distribution Center for Daraz

It will also utilise Cainiao's proprietary solutions, including e-PLC, control algorithm, and WCS, to ensure operational quality and stability.

"The project marks a new milestone for Cainiao as its first deeply integrated network of distribution centres in South Asia," the Chinese logistics company said, adding that to date, Cainiao has built hundreds of automated distribution centres of varying scales in the Chinese mainland, and 10 smart distribution hubs across Europe, Asia, and America.

"As Daraz's official logistics partner, we are committed to growing its logistics capabilities in the region. By extending our technology to the logistics ecosystem in South Asia and beyond, we hope to also raise awareness of our smart logistics offerings and technology applications to help the industry and our overseas partners close the gap in digitalisation, become more competitive, and meet the growing demand for e-commerce," said Dr Ding Hongwei, general manager, Cainiao Technology.

Cainiao noted that South Asia is one of the most exciting regions with access to over 500 million people and untapped growth potential.

It said strong consumption momentum in South Asia, an emerging market for e-commerce, has spurred the rapid growth of the business.

Over the past two years, Cainiao said the business grew by 85% in GMV, with revenue surges during the 11.11 global shopping festival.

E-commerce growth in Pakistan

Cainiao noted that the shifting consumer behaviour toward online shopping represents immense opportunities for e-commerce merchants in the region.

"Strengthening our logistics infrastructure and technology is critical in scaling our operations in Pakistan. By tapping on smart technology, Daraz is able to enhance our customers' experience by providing more efficient logistics distribution. We look forward to continuing our partnership with Cainiao to grow our logistics capabilities," said Bjarke Mikkelsen, Daraz Group's chief executive officer and founder.

Ahmed Tanveer, chief operating officer for Daraz Pakistan added that this technology is coming to Pakistan for the first time and will bring immense knowledge sharing to the industry and help Pakistan in its efforts towards digitization.

"Along with that, this automation will increase Daraz's sorting capacity by over 4x and decrease manual errors by over 90%. We are very excited to welcome Cainiao and look forward to working with them to bring global best-in-class technology and logistics solutions to Pakistan," Tanveer further said.