Bangalore-based contract manufacturing company Zetwerk, to navigate the challenges in managing lead time, has developed two proprietary operating systems -- Zetwerk Order Management System (ZOS) and Zetwerk Integrated Supply Operations (ZISO) which also manages customer inquiries and streamlines supply chain management.

“These systems have significantly enhanced operational efficiency, resulting in maximum quality compliance and improved on-time delivery rates,” Amrit Acharya, CEO and co-founder, Zetwerk told businessline.

The biggest challenge for a manufacturing company is managing lead time. Unlike quick commerce services that promise delivery within 30 minutes, manufacturing orders can take up to three months to fulfill.

The extended timeframes and financial investments make it crucial for manufacturing companies to find better solutions that improve timelines, reduce costs, and enhance quality.

ZOS analyses engineering drawings to extract details like dimensions and materials and calculates costs based on current prices and item complexity.

The price quotes are updated in real-time to match customer needs. It manages the entire order process from procurement to delivery and works with ZISO to track and manage orders completely.

“From an operational standpoint, there were times when we were not prepared for the shipment to come in. Those instances have come down to zero now. The risk of demurrage or the charges incurred when cargo remains in a port or terminal beyond the allotted free period, has also decreased.”

“Earlier, because tracking was complex, we would typically incur costs on the port, which has also reduced to zero. Cost, quality, and time are our three pillars, and this tool saves both cost and time,” said Rahul Aggarwal, VP of Engineering at Zetwerk.

He added, “In our industry, people are not used to getting updates because everybody follows up. We either update the customers or solve problems from our end, while also informing them about the delays to maintain trust and predictability.”

In a non-tech environment, all these processes would be managed manually, often using Excel sheets. This process is time-consuming and prone to errors.

“With the ZOS platform, we bridge the gap between customers and suppliers. Our technology provides real-time updates and transparency, allowing customers to monitor the progress of their orders without the need for unnecessary travel or delays,” said Amrit Raj, Chief Marketing Officer, Zetwerk.

He added, “These tools can reduce a process that typically takes 2-3 weeks to something customers can see immediately.”

When the company receives an inquiry, it typically includes a CAD file detailing the component’s specifications like height, weight, and dimensions.

Zetwerk’s system automatically processes this information, determines the best price for manufacturing the component, and identifies the most suitable suppliers. Once the customer selects the details and checks the calculated quote, the platform displays the manufacturing cost.

ZISO digitises the production process and manages domestic and international shipping by offering route suggestions and tracking capabilities.

The system integrates global commodity pricing providing real-time updates on production status, including raw material procurement, manufacturing progress, and dispatch readiness. Additionally, it offers real-time updates and photographs of the production process helping customers with an audit trail.

Adding that the company does not intend to capitalise on this system for the time being, the CEO said, “The advantage of building this is we are our best customer. When you build products for large customers, there’s no concept of a minimum viable product.”

“We will think about externalising it. This system also allows us to scale quickly because when we enter a new geography or a micro market, the base infrastructure layer is already built. We are able to plug in with software on day one which is partially what has helped us scale.”

Zetwerk serves customers in several industries such as Oil & Gas, Energy, Infrastructure, Apparel, Renewables, Electric Vehicles, apparel, consumer electronics, and aerospace & defense businesses.

The company, which is currently valued at $2.8 billion, turned EBITDA positive in July 2021 and a year later, acquired three companies in the industrial space, followed by the acquisition of Unimacts to enter the US renewables market.

The company has raised $650 million in funds from the likes of Avenir Private Advisors, Peak XV Partners, and Lightspeed India among others.

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