📊 Level 9Chapter 27 of 30 · 7 min read · +50 XP

Operations, supply chain and manufacturing basics

How physical businesses work: sourcing, inventory, quality, logistics, contract manufacturing and the metrics that keep operations healthy.

For many businesses (D2C brands, quick commerce, food, manufacturing, logistics), operations is the product. Zepto’s ten-minute promise, Licious’s cold chain and Zetwerk’s factory network are all operational moats.

Map the flow

Draw your process from order → sourcing → production → quality check → storage → delivery → after-sales. For each step, write who does it, how long it takes and what can go wrong. Bottlenecks become obvious.

Sourcing and suppliers

  • Find suppliers through industry clusters, trade directories, B2B marketplaces, government e-marketplaces and trade fairs.
  • Evaluate on quality, reliability, price, capacity and payment terms, in that order.
  • Visit the factory. Ask for samples and references.
  • Always have a backup supplier for critical inputs.

Contract vs own manufacturing

Contract manufacturing Own facility
Upfront capital Low High (land, machinery, licences)
Control over quality Medium High
Margins Lower Higher at scale
Speed to start Fast Slow

Many brands start with contract manufacturers and build their own capacity once demand is proven. Check the licences your category needs: FSSAI for food, BIS for many products, pollution-control clearances for factories, and others.

Inventory

  • Too little means stock-outs and lost sales. Too much means cash tied up and spoilage.
  • Track inventory days and stock-out rate, and reorder based on sales velocity and supplier lead times.
  • Perishables need tighter planning and cold storage.

Logistics

Choose between in-house fleets, third-party logistics (3PL) partners and marketplace fulfilment. Measure on-time delivery, cost per order and damage/return rates. Density (more orders per route) is the biggest lever on cost.

Quality

Define standards, inspect incoming materials, run checks during production, and track the defect rate. Fix root causes, not just symptoms.

Your takeaway

Map your operations, de-risk suppliers and track a few metrics weekly. You’ve finished Level 9. Final level: scale to unicorn.

🎯 Your missions

Tick them off as you go — saved on this device.

🧠 Quick quiz +30 XP

1. Contract manufacturing lets a startup…
2. Why keep a backup supplier?
3. 'Inventory days' measures…

Level 9 progress 0/3

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