Archives: Case Studies

Background

A Fortune 1000 Original Equipment Manufacturer (OEM) specializing in work lifts and platforms
used in construction operates a complex global supply chain supporting multiple production
sites across the United States and internationally. The company requires cost-effective and
highly reliable safety-critical components, including fabrications and castings.

Challenges

The OEM faced several supply chain challenges, including:

• Global Supply Chain Management
• Tariff Engineering
• Global Sourcing
• Cost Savings
• Warehousing & Logistics Operations Centers (LOCs)
• Logistics Optimization
• Quality Control
• Just-In-Time (JIT) Delivery

Challenge: Cost Savings

When launching production for a new series of fabrications, the OEM’s selected supplier
imposed a significant cost increase. The company turned to Zetwerk to quickly re-source and
achieve cost savings and cost avoidance.

Key Initiatives

Zetwerk leveraged its pre-approved supply base and:

• Identified a cost-effective supplier that met the necessary technical and quality
  standards.
• Developed a New Product Introduction (NPI) schedule and a Production Part
  Approval Process (PPAP) qualification plan within a 16-week timeframe.
• Procured long-lead custom raw materials from the incumbent vendor to ensure
  continuity.
• Mitigated long-term raw material exposure (~$70,000) by coordinating inventory transfer
  between suppliers.
• Seamlessly managed the transition from the old supplier to the new supplier.

Results

• $935,000 in annual cost avoidance
• $183,000 in additional annual cost savings
• $1.118 million in total annual impact
• Successfully ramped up production within the quoted lead times while managing
  inventory transitions efficiently.

Challenge: Quality Control

The OEM encountered an issue with aluminum die-casting surface quality for a safety-critical
component. The absence of a standardized method for surface quality assessment posed a risk
of production stoppages and inventory obsolescence.

Key Initiatives

Zetwerk facilitated collaboration between customer and supplier quality teams to:

• Define a visual quality standard based on supplier capabilities and the customer’s
  finite element analysis (FEA) and aesthetic requirements.
• mplement process improvement initiatives at the supplier location to enhance
  production yields.
• Conduct containment, sorting, and disposition of all U.S.-based inventory to ensure
  compliance.

Results

• Prevented production line stoppages.
• Minimized inventory obsolescence.
• Improved part per million (PPM) defect rates:
  • Inbound PPM (2021): 21,350
  • Outbound PPM (2021): 3,151

Challenge: Tariff Engineering & Logistics Operations
Centers (LOCs)

With the implementation of countervailing and anti-dumping duties (AD/CVD) on products
imported from China—incurring penalties of up to 85% of part value—the OEM required an
immediate solution to mitigate cost increases.

Key Initiatives

Zetwerk partnered with trade attorneys and:

• Developed a tariff mitigation strategy to eliminate AD/CVD costs.
• Coordinated with Chinese suppliers to implement necessary modifications.
• Revised purchasing and inventory management systems to support restructured product
  classifications.
• Re-engineered supplier packaging to align with the new import requirements
• Established necessary assembly processes and secured equipment to support the
  revised supply chain strategy.

Results

• 100% mitigation of AD/CVD costs.
• $500,000+ in savings in 2021, with continued savings in 2022.
• Investment in an additional LOC to enhance customer operations beyond 2022.

Challenge: Global Sourcing

The OEM sought to reduce in-house manufacturing costs, as its supply base was deemed
non-competitive due to Section 301 tariffs. New global suppliers had to be identified and
qualified to maintain profitability.

Key Initiatives

Zetwerk initiated a comprehensive global sourcing strategy by:

• Issuing RFQs for 120 fabricated components to its supply base.
• Identifying cost-effective suppliers in India and Korea for both light and heavy
  fabrications.
• Conducting virtual supplier quality audits.
• Completing weld and paint qualification audits and identifying a new in-country paint
  material provider.
• Collaborating with the OEM to revise standards to accommodate global steel
  specifications.

Results

• Eliminated reliance on high-cost internal manufacturing.
• Expanded supplier options beyond those impacted by tariffs.
• $3 million in annual cost savings on fabricated components.

Conclusion

Through its strategic sourcing, quality control improvements, and tariff engineering solutions,
Zetwerk provided a transformative impact on the OEM’s supply chain. The collaboration led to multi-million-dollar cost savings, increased supply chain resilience, and seamless
production transitions, reinforcing Zetwerk’s role as a critical partner in the OEM’s operational
success.

Background

TERRA91 has established itself as the largest MoU holder with NALCO, India’s premier
Aluminium producer. We have leveraged this partnership to secure the maximum quantity of
Aluminium compared to any other buyer in the country.

Challenge

To maintain our leadership position in the Aluminium market, we needed to ensure a steady
supply of Aluminium from NALCO, while efficiently distributing it across the country. This
required meticulous planning, strong logistics, and a focus on building long-term customer
relationships.

Solution

TERRA91’s strategy included:

1. Strategic Partnership : Securing the largest MoU with NALCO guaranteed a steady and
   large-scale supply of Aluminium.
2. Distribution Excellence : With offices in 8 states and distribution capabilities in 12
   states, we ensured the metal was delivered efficiently to customers across India.
3. Customer Engagement : We have built strong, long-term relationships with our
   customers by providing consistent and reliable Aluminium supplies.

Results

• Market Leadership : TERRA91 became the largest MoU holder with NALCO, securing
  more Aluminium than any other buyer in India.
• Customer Loyalty : The company’s ability to meet customer demands efficiently led to
  high customer retention and loyalty.
• Revenue Growth : The strong partnership with NALCO and the efficient distribution of
  Aluminium significantly contributed to TERRA91’s revenue growth in FY 23-24.

Background

TERRA91, a commodity trading firm in India, has expanded globally by developing a robust
distribution network. With offices in eight key states and a presence in twelve, we have become
a significant player in distributing metals, petrochemicals, and industrial chemicals.

Challenge

To efficiently manage the logistics and distribution of over 20 commodities, including Zinc,
Aluminium, Copper, and various petrochemicals, across a vast geographical area, TERRA91
needed to establish a seamless supply chain. The challenge was to ensure timely deliveries and
manage inventory in 25+ warehouses nationally.

Solution

TERRA91 implemented a multi-faceted approach to overcome these challenges:

1. Network Expansion: TERRA91 expanded its operations by establishing offices in
   important locations such as Bangalore, Hyderabad, and Mumbai. Additionally, we
   extended our distribution network to 12 states, including Kolkata, Raipur, and Lucknow.
2. Warehouse Optimization: We optimized our warehouse operations, ensuring that the
   25+ facilities were picked to reduce lead times and costs.
3. Technology Integration: TERRA91 integrated advanced logistics and inventory
   management systems to monitor stock levels, streamline distribution processes, and
   ensure timely deliveries.

Impact:

• Nationwide Reach : TERRA91 successfully distributed materials to 27 states and 6
  Union Territories in FY 23-24, leaving only Mizoram, Ladakh, and Lakshadweep as the
  untapped regions.
• Satisfaction : The efficient distribution network led to onboarding ~1000 new
  customers in FY 23-24, bringing the total number of unique customers to 1600+.
• Growth : The expansion and optimization of the distribution network
  contributed to TERRA91’s trading volumes, with 4 lac MT of ferrous materials, 1.1 lac
  MT of base metals, and 2.2 lac MT of petrochemicals traded in FY 23-24.

A prominent private developer in the renewable energy sector engaged ZETWERK to execute a solar energy project in Tuticorin, Tamil Nadu. The project required ZETWERK to source and deliver state-of-the- art Monocrystalline BI-Facial Dual Glass SS8-72HD – 540/545 Wp Solar PV Modules to produce 153.6 MW green power. Situated in Tamil Nadu, Tuticorin is well suited for harnessing clean energy, aligning with India’s renewable energy ambitions.

Challenge

ZETWERK encountered several challenges while managing the order. The project’s timeline of five months necessitated precise planning and execution to ensure timely delivery. A challenge emerged during the pre-dispatch inspection (PDI), which initially failed, requiring swift corrective measures. This setback prompted ZETWERK to prioritize the order at the manufacturing facility in Vietnam and expedite production to meet delivery deadlines.

Impact

The deployment of high-efficiency Monocrystalline Bi- facial dual glass Solar PV Modules will generate solar power of 153.6 MW. The estimated annual CO2 emissions savings will amount to 72,960,000 kg of CO2 emissions per year, equivalent to planting over 3.3 million trees, or 25,500 metric tonnes of coal, or 23,500 metric tonnes of oil annually. Furthermore, ZETWERK’s efficient project management contributed to local economic development in Tuticorin by creating job opportunities and fostering growth in the renewable energy sector.

Advantage

ZETWERK’s strategic approach and strong partnerships were instrumental in overcoming challenges and ensuring the success of this solar energy project. By collaborating with a supplier in Vietnam, logistics for ocean freight, engaging a third- party inspection agency, customs clearance, and managing a fleet of 459 trucks, ZETWERK met the delivery timeline. Adhering to quality standards such as IR Class and Indian Customs regulations ensured seamless project execution and regulatory compliance.

This project in Tuticorin not only advances clean energy but also contributes to local economic growth and significant CO2 emissions savings. We are proud to support India’s green energy goals and drive sustainable development.

ABHAY ADHYA

BU Head- Renewables

A leading Indian oil PSU company’s Oxo Alcohol Refinery in Gujarat required the design, engineering, fabrication, testing, and transportation of BuOH Isomer Columns with Internals and Ladder Platforms on a Lumpsum Turnkey basis. These columns are critical for compound separation and the project presented multifaceted technical challenges.

Challenge

Designing and fabricating 4.1m diameter, 58.5m long, 45mm thick process columns required advanced structural analysis, FEA, and stress calculations. High- strength alloys were selected to meet ASME Section II, Part A standards and ISO 10474/EN 10204 certifications, ensuring corrosion resistance. Manufacturing demanded cutting-edge welding, 100% radiography for hydrogen service, and post-weld heat treatment, adhering to ASME Sec VIII Div. 1 standard. Regulatory compliance involved ASME standards, Licensor’s specs, Jacobs’ requirements, QA protocols, third-party inspections, and thorough documentation.

Impact

The project incorporated technical advancements using advanced materials, stress-relieved welding, and techniques such as non-destructive testing and hardness surveys. Economically, it created employment opportunities, engaged local suppliers and contractors, and stimulated growth through infrastructure development. The project demonstrated commitment to sustainability and regulatory compliance by adhering to stringent environmental regulations, including nitrogen blanketing during transportation, controlled chloride content in hydro- testing, and corrosion allowance considerations.

Advantage

ZETWERK’s material expertise in sourcing and integrating ASME-standard materials ensured durability and compliance. Advanced manufacturing techniques like additive manufacturing, stress-relieved welding, and rigorous quality control (ultrasonic testing, radiography) produced high-quality components. Our logistical tracking capabilities ensured the safe, timely delivery of oversized equipment. Compliance with environmental regulations highlighted ZETWERK’s commitment to sustainable engineering practices.

Our expertise ensures the safe and timely delivery of critical equipment, while our dedication to environmental stewardship underscores our commitment to sustainable engineering practices.

VIJAY PERI

BU Head – Oil & Gas

A leading PSU required BI-Facial SS8-72HD -545/550 WP Modules to generate 378MW for a project in Bhuj, Gujarat. These high-efficiency solar modules are designed to capture sunlight from both sides, increasing energy yield and optimizing space utilization, marking a shift towards cleaner energy production, and aligning with national and global sustainability goals.

Challenge

The project faced multiple technical and logistical considerations. The delivery timeline of five months, considering the modules were to be imported from Asia during the Chinese New Year required precise planning and execution. This was especially critical since it affects production speed while maintaining the exact technical specifications mandated by the tender. Coordinating with multiple vendors and agencies further added complexity to the project’s execution, necessitating seamless coordination and communication channels.

Impact

The project will reduce carbon emissions and mitigate climate change effects. The high-efficiency modules are expected to save an estimated 179,550,000 kg of CO2 emissions per year, equivalent to planting over 8 million trees or saving around 63,000 metric tonnes of coal or 58,000 metric tonnes of oil annually. This reduction in carbon emissions aligns with India’s commitment to sustainability and its broader objective of transitioning towards renewable energy sources.

Advantage

ZETWERK orchestrated a comprehensive supply chain strategy, sourcing specialized solar modules, coordinating logistics for custom clearance and land transportation, and engaging a third-party inspection agency to uphold quality standards. Managing a fleet of 1114 trucks for transportation required detailed planning and coordination, which ZETWERK executed, ensuring timely delivery and installation of the solar modules. Our technical expertise was evident in addressing production challenges during the Chinese New Year period, ensuring that production speed was maintained without compromising quality or specifications.

Our ability to deliver high-efficiency solar modules within stringent timelines showcases ZETWERK’s expertise and dedication to supporting India’s renewable energy goals.

ABHAY ADHYA

Business Unit Head – Renewables

A large PSU in natural gas processing and distribution in Usar, Maharashtra, required for their PDH Unit, columns of 1.38 meters diameter x 18.6 meters length x 40 millimeters thickness to operate at temperatures as low as -190°C (- 320°F) for handling Liquid Nitrogen. The use of advanced materials capable of withstanding extreme temperatures and corrosive environments was imperative for the project’s success.

Challenge

The project encountered multifaceted challenges arising from demanding technical specifications and safety regulations. Fabricating columns capable of operating at –190°C (-320°F) while ensuring structural integrity and safety necessitated advanced engineering solutions. Compliance with ASME Boiler and Pressure Vessel Code (BPVC) standards for pressure vessel design and international safety protocols for handling cryogenic fluids, added complexity to the project. Specialized welding techniques like TIG (Tungsten Inert Gas) welding were crucial for creating leak-proof joints. Integrating additive manufacturing processes for complex components and adhering to stringent quality control measures posed significant challenges.

Impact

Completing this project has demonstrated technological advancements in the natural gas processing sector through innovative engineering solutions for extreme environments. The project also created employment opportunities and supported infrastructure development in Maharashtra. Adherence to safety regulations, including Occupational Safety and Health Administration (OSHA) guidelines underscored a commitment to worker safety and environmental responsibility.

Advantage

ZETWERK’s involvement in this project was instrumental in overcoming the challenges and delivering exceptional results. Our expertise in residual design, engineering, supply chain management, and manufacturing excellence enabled us to meet the project’s stringent requirements within the specified time frame.

Our capabilities in additive manufacturing, material integration, and regulatory compliance ensured the quality and reliability of the columns with heavy thickness to operate in extreme environments.

As a company committed to pushing the boundaries of engineering excellence, we are proud to have successfully delivered the columns for the Usar PDH Unit.

VIJAY PERI

Business Head – Oil & Gas