1.

Sourcing Strategy:
Zouk is planning to launch a new line of eco-friendly bags. These bags require the following
materials:

● Recycled polyester fabric

● Vegan leather straps
● High-quality metal zippers

Task:

● Identify three factors you would consider when selecting suppliers for these
materials.
● Suggest a strategy to ensure these suppliers align with Zouk’s sustainability goals and
ethical Standards.

As per the market research done, with the help of Google, there are a few parameters will
parameters that will be essential for the above (1st) Task.

A. To check the efficiency of the supplier's record in the market and feedback from the live
dealer contacts.
B. Need to check the quality of the material from a few vendors and compare factors like
1) Raw Material Quality
2) Strength of the Material on Stretching
3) Sustainability for a long-term good review
4) Cost as per the market standards
C. Check for the contract terms with vendor and ethical standards.

As per the market research done, with the help of Google, there are a few parameters will
parameters that will be essential for the above (2nd) Task.

A. Since Zouk is an Indian company highlighting the Indian designs and earthy feel to the
designs, the vendor should meet the expectations and should be proud of being a
corresponding business
B. To set standards on a strict basis and to be non-negotiable in terms of quality and logistics.
C. Regular quality checks are to be carried out regarding raw material collection for the
vendor and timely delivery of TAT.
D. Offer Long-term partnership programs to build relationships and future contracts
2. Cost Optimization Scenario:
One of Zouk’s primary suppliers has increased the price of recycled polyester fabric by 15%,
citing market shortages.
Task:

Propose two actions you would take to manage costs while maintaining production timelines and
quality standards.

As per the Scenario that I have faced in Zepto, would like to write 2 important steps which I took
to have a proper cost margin.

A. Negotiation with the supplier to check what % he can reduce his cost which will be
profitable to us for a growing business, or is he inflaming the cost for the 2X profits.
B. Check for multiple vendors, who are providing the same material at a good cost, while not
compromising on the quality of the material.
C. We even carried out an RA (Reverse Auction) Where per the company P/L we would put a
cost margin and if any of the vendors can meet that task would be appointed for future
contracts.
3. Vendor Management Case Study:
You notice that a key supplier has consistently delayed deliveries, affecting production
schedules.
Task:

Draft an email to this supplier addressing the issue and proposing a resolution.

Subject: - * IMPORTANT* - Delay in Delivery and no process adherence

Respected Sir/Ma’am,

I am writing this mail to bring a very important discussion to your notice, As per the subject we
have done an internal quality and process audit, where we have found that there are quality issues
and no timely delivery done from your end to our warehouse.

Due to the above issue, we have process delays which are leading to delayed operations and
productivity is taking a hit. Being an operations manager would not accept this, as per the
contracts, if there are delays, we will be marking a 10% penalty from future shipments if received
late and any Quality complaints.

Please find the following pointers that are to be followed for proper future transshipments.

1. Improved Communication: We would appreciate a more transparent communication

channel regarding shipment schedules and any potential delays. This will help us plan
better and mitigate any disruptions.
2. Delivery Schedule Review: Conduct a joint review of the current delivery schedule to
identify the root causes of these delays and develop a revised plan that ensures timely
deliveries.
3. Performance Monitoring: Implement a performance monitoring system with agreed-upon
Key Performance Indicators (KPIs) to track delivery timelines and address any issues
proactively.
4. Backup Plan: Consider establishing a contingency plan for critical deliveries to ensure that
any unforeseen delays can be managed without impacting our production schedules.
4. Inventory Control Analysis:
The current stock levels in Zouk’s warehouse show the following:

● 50% of materials have been unused for 3+ months.

● Certain materials are being reordered frequently due to stockouts.

Task: Identify two issues with the current inventory management system.

Suggest measures to optimize stock levels and prevent wastage.

In Zepto, Over-ordering of packing material is an issue that we used to face for future production
or upcoming inventory for new products, so over there we used a few ideas and will be sharing a
few for the above issue.

A. As we can see there is 50% of the material is unused as per the Quarter audit done by the
team, this indicates that the ordering team has ordered supplies at a 17% higher rate each
month for the last 3 months.
Since the forecast is being provided by the planning team, we need to check our
calculations and formulas which we are using to get a correct number, and to check the
inventory monthly followed by Internal audits for correct inventory flow for inward and
outward.

B. To optimize this gap, we need to get the numbers correct right from the start and a
thorough cross-check for the leaders to be done.
If we have a tool that measures the inventory and live in and out stock, then we need to
make it more accurate, and if there is no system, that records inventory, then the purchase
of such inventory is mandatory.
 5. Dispatch Coordination:
A batch of raw materials is scheduled for dispatch to the production team. However, a
sudden request from the design team requires additional materials from the same batch.
Task:

● Explain how you would adjust the dispatch schedule to accommodate the new
request while minimizing delays to production.

This situation is something that I have never faced since if there is any impromptu request
from any of the departments, it should have been filled with buffer stock.

A. Since I have 2 Request that are to be completed promptly, I would check for the
criticality of the request from both teams, and if there is a percentage division to be
done in stock, will be done, so that both the teams will receive stock as per request
to sustain for some time or for some production.
B. Then, since we need to check for the stock for future production, will be aligning
vendor to produce this raw material at a 5% hike just for 1 production and would
request a faster delivery for one transshipment for once
C. Seeing the forecast of the material, will be planning the stock as per the forecast and
will request all teams to have proper planning for not facing last-minute churn.
 6. Reporting and Metrics:
As a Procurement Team Lead, you are responsible for reporting key metrics to
management.
Task:

● List three critical KPIs you would track and explain why these are essential for
procurement and supply chain efficiency.

A. To track delivery time from the day of order placement and if there is any delay to be
expected, need to keep back-up stock.
B. To check for inventory health and do weekly or monthly stock checks or inventory
Audits, which will provide us with an understanding of space utilization
C. To check for the productivity of the associates who do the picking and packing of
inventory, check for loaders at the dock for timely unloading.
D. Check for the quality associate who will make sure the quality of the product is
similar to what was agreed.