It evaluates the current state of material purchasing at Un-Available through the purchasing process in two stages: development of fabric and trim, and preparation of fabric and trim for
INTRODUCTION
Rationale of the research
Effective material purchasing is crucial for the efficiency of production and the overall growth of Vietnamese garment enterprises, as it directly impacts operational effectiveness and company development.
In the value chain of a business, the supply of materials is the critical first stage that underpins all subsequent activities This involves the purchasing and management of materials, which is essential for creating value and enhancing the business's competitive edge in the market Effective materials purchasing encompasses sourcing and overseeing the flow of materials from acquisition to storage prior to production For manufacturing enterprises, this task is vital for maintaining smooth operations; any mistakes in the materials purchasing process can lead to substantial financial losses and harm the company's reputation.
Many Vietnamese textile enterprises rely on 70% to 75% of their input materials from foreign suppliers, leading to increased costs due to transportation, customs, and other import-related expenses This results in raw material costs that are approximately 25-30% higher than those in China and India, making the purchasing process for materials increasingly critical for these businesses.
The Vietnamese garment industry, including Un-Available Company Limited, must implement innovative, long-term strategies to strengthen its competitive edge Consequently, the graduation thesis titled "Analysis of the Purchasing Process for Garment Materials in Un-Available Co., Ltd" holds both theoretical and practical importance, offering valuable insights that will significantly aid in the development of sourcing input materials for the Vietnamese garment sector.
Research purposes
Systematising and clarifying the theoretical basis of material purchasing management in garment enterprises
Researching the purchasing of garment materials at Un-Available Company to affirm the importance of purchasing in order implementation
Proposing solutions to enhance garment materials purchasing at
Scope of the research
The research at Un-Available Company Limited aims to analyze and evaluate the garment materials purchasing process, ultimately providing actionable solutions for improvement.
Time: The research will cover the period from December 2023 to May 2024.
Research methods
Observational Research: observing the purchasing activities in real-time to understand the practical aspects, potential bottlenecks, and day-to-day challenges
Document Analysis: Analyzing relevant documents, such as purchasing policies, contracts, and records, to gain insights into the formalized aspects of the purchasing process
The author will utilize resources from Un-Available, university textbooks, and various online materials, including books and newspapers, to conduct an in-depth analysis and synthesis of information This approach aims to create a detailed and effective process for purchasing garment materials.
THEORETICAL FRAMEWORK OF GARMENT MATERIALS
Introduction to material purchasing in the textile industry
2.1.1 Overview of materials purchasing a Definition of purchasing
In today's business landscape, purchasing is recognized as a vital function that greatly contributes to a company's overall value and significance This understanding can differ significantly depending on the industry and specific research goals Common definitions of purchasing highlight its essential role in organizational success.
Purchasing is the process of overseeing an organization’s raw material resources and acquiring all essential goods, services, skills, and knowledge required to effectively operate and maintain the core functions of the business, while consistently ensuring optimal conditions are achieved.
Procurement involves the sourcing, purchasing, and delivery of products and services from suppliers to businesses, playing a crucial role in the manufacturing supply chain In this context, purchased parts and materials account for more than 60% of the total cost of finished goods, while in retail, this figure can soar to as high as 90%.
The purchasing process is the structured series of steps that businesses follow to complete transactions, distinguishing them from individual consumers This formal procedure often includes conducting thorough research, collaborating with different departments, negotiating terms, and processing payments efficiently.
Procurement and purchasing processes are closely interconnected, yet they serve distinct functions Procurement emphasizes strategic activities such as research and negotiation, while purchasing is primarily focused on the actual acquisition of goods and services Understanding these differences is crucial for effective supply chain management.
Materials are essential in the production process, serving as the physical foundation for products and a crucial input in manufacturing They play a direct role in production and significantly influence product quality Companies strive to keep minimal material inventory to avoid waste and reduce storage costs, as materials can become obsolete or damaged Available in diverse forms and sizes, materials are integral to a wide array of goods.
Materials are essential inputs that form the basis of production activities and are the most widely used resources in manufacturing, both in terms of quantity and cost.
The significance of materials in a company's production processes is well-recognized, as their availability in adequate quality and quantity directly impacts the suitability, timeliness, and overall quality of the final products.
The quality of garment products is heavily influenced by the value of materials, which constitute a significant portion of the overall product The classification of these materials varies according to the specific requirements of the garments Generally, materials are categorized into two primary groups: fabrics and trims, based on their roles and characteristics in garment production.
Fabric is the primary material in garments, forming the product's framework and covering a significant surface area Produced through weaving machines or various fiber interlacing methods, fabric constitutes 70% to 80% of a garment factory's production costs It is a versatile fiber-based material that can vary in thickness, texture, and weight Fabrics can be categorized by their origin, manufacturing methods, and design, highlighting their diverse applications in the fashion industry.
+ Natural fibers: Fabrics derived from natural sources like cotton or wool + Synthetic fibers: Fabrics artificially manufactured like polyester or nylon
+ Homogeneous fabric (plain fabric): Uniform in composition and surface, usually woven in a plain weave
+ Heterogeneous fabric (blended or mixed fabric): Contains multiple types of fibers, such as polyester and cotton
+ Regular fabric: Everyday fabrics used for general clothing or civilian purposes, with standard quality and value
+ High-end fabric: Specially manufactured with high quality and expensive, often used by wealthy individuals
+ Knitted fabric: Formed by the interlocking of loops created by needles
+ Woven fabric: Formed by interlacing two sets of yarns at right angles
+ Non-woven fabric: Created by bonding fibers together mechanically (needle punching, knitting) or with adhesives
+ Greige fabric: Fabric that has just been woven and not yet processed
+ Finished fabric: Fabric that has undergone processing like cleaning, dyeing, wrinkle resistance, etc., and is ready for sewing or other uses
By finishing properties: Antibacterial fabric, flame-resistant fabric, waterproof fabric, UV-resistant fabric, wrinkle-resistant fabric, luminous fabric, coated fabric
+ Plain fabric: Smooth surface with a simple weave
+ Brushed fabric: Fabric with a soft nap on the surface
+ Multi-layered fabric: Thick fabric used for coats, trousers, etc
+ Velvet fabric: Fabric with raised fibers or loops on the surface, giving it a soft texture despite being thick and heavy
By weaving style: Plain weave, twill weave (tulle), satin weave (sateen), jacquard, tricot, atlas, velvet, mesh, high-elasticity fabric, lace
By finished products: Shirt fabric, trouser fabric, jacket fabric, lingerie fabric, hat fabric, bag fabric, shoe fabric, canvas, parachute fabric, interior fabric
+ Main fabric: Forms the main shape of the garment
+ Lining fabric: Used inside garments or to support shaping
+ Sheer fabric: Thin, semi-transparent fabric that may become transparent when wet
+ Brocade fabric: Fabric with decorative patterns and vibrant colors, often used for luxurious garments for the wealthy
+ Colored fabric: Available in various colors, which can come from the fiber's natural color, dyeing the fibers, the fabric, or the finished product b.Trims
Accessories are essential in garment production as they connect materials and elevate the overall aesthetics of the final products Trims, which are supplementary materials incorporated during the design and manufacturing stages of clothing, significantly enhance the visual appeal and functionality of garments.
Trims are highly diverse, available in various forms such as sheets (lining fabric, interfacing), strands (threads, elastic bands), beads, and semi-finished products (ribbons, lace, labels) They are made from a wide range of materials, including paper (for interfacing), padding (like shoulder pads), metal (buttons), plastic (zippers), and fabric (linings, labels).
2.1.3 Objectives and roles of materials purchasing activities in garment enterprises a Objectives of materials purchasing
Garment materials play a crucial role in production, making it essential for purchasing to secure an adequate supply of necessary materials In addition to meeting quantity requirements, these materials must align with the specific types and specifications needed by the enterprise To maintain a stable and sufficient supply, materials purchasing should implement contingency plans that prevent disruptions in production activities.
Ensuring the quality of garment materials is as important as their quantity, as it directly impacts the final product's quality High-quality materials are essential for producing superior products, making the purchasing of materials a key factor in achieving quality objectives.
When purchasing garment materials, the emphasis extends beyond merely acquiring high-quality materials; it also involves securing materials that align with production needs while adhering to the company's budget Consequently, a key objective of materials procurement is to obtain materials at low costs The purchasing team plays a crucial role in sourcing cost-effective materials, which allows for more flexible and competitive product pricing, ultimately boosting the enterprise's competitiveness in the market.
Introduction to Un-Available Company Limited
2.2.1 Formation and development history a Overall introduction
International Name: UN-AVAILABLE CO., LTD
Abbreviation: UN-AVAILABLE CO., LTD
Location: Part of Lot I/3, Street No.7, Vinh Loc Industrial Park, Binh Hung Hoa
B Ward, Binh Tan District, Ho Chi Minh City, Viet Nam
Website: http://www.un-available.net/
Email: contact@un-available.net
Figure 2.1 Logo of Un-Available
Figure 2.3 Website of Un-Available b Formation and development history
In 2004, Un–Available partners initiated the establishment of a manufacturing facility in Ho Chi Minh City, Vietnam, discovering a community of like-minded brands dedicated to producing quality garments and fostering enduring customer relationships These brands, seeking a progressive manufacturing partner, found a collaborative ally in Un–Available, forming lasting partnerships from the outset.
Established on May 14, 2004, Un-Available Co Ltd is headquartered in a small- scale manufacturing facility located at 31 Cuu Long Street, Ward 2, Tan Binh District,
Ho Chi Minh City hosts a manufacturing facility equipped with around 10 types of machinery and equipment dedicated to production The company employs a workforce of 43 individuals, consisting of 40 Vietnamese and 3 foreign staff members Notably, 80% of the company's products are exported, primarily targeting the Australian market.
In 2008, Un-Available launched its own printing facility, providing a range of printing techniques that cater to both simple and intricate designs Since then, the printing department has evolved significantly, incorporating advanced digital printing machines to better satisfy customer needs.
In 2016, the company made a significant investment to expand its printing facility and packaging department to meet increasing product output demands This expansion also included the construction of new departments and showrooms designed for meetings and product displays.
By mid-2017, the number of employees had increased to around 400, and the manufacturing plant had expanded to include another production line to meet customer demands
As of December 31, 2018, the company employed 453 individuals, including 400 skilled workers across six processes in knitwear and woven garment production It features dedicated teams for laundry, packaging, fabric, and warehouse management, along with specialized quality control staff monitoring cutting, production, and finishing stages, as well as experienced personnel overseeing printing and embroidery The business, design, and CAD pattern-making departments are equipped to handle production orders ranging from 150 to over 50,000 samples.
Presently, the headquarters and manufacturing facility are located at Part of Lot I/3, Street No.7, Vinh Loc Industrial Park, Binh Hung Hoa B Ward, Binh Tan District,
Ho Chi Minh City, Viet Nam – where all garment products are manufactured, serving numerous customers in the fashion industry
This result comes from a team effort seen between our numerous departments; Merchandising, Client team, Purchasing, Printing, Planning, Finance, Human Resource,
QC and the Factory floor itself
Un-Available specializes in creating low to mid-volume garments for fashion-forward brands, resulting in numerous successful collaborations They take pride in partnering with renowned labels such as Corteiz, Europe, Publish, Prada, Aime Leon Dore, MrBeast, Munster, Palace Skateboards, Flight Club, and Saturdays NYC.
Figure 2.4 Some of Un-Available’s customers b Main products
Un-Available Company Limited leads the streetwear apparel industry with a diverse collection of urban-style garments that prioritize both comfort and contemporary aesthetics Their lineup features essential items like short sleeve tees, joggers, hoodies, crewnecks, woven shirts, and long sleeve tees, each crafted to meet the high standards of discerning customers while ensuring unmatched functionality.
Un-Available operates a state-of-the-art printing facility that utilizes advanced machinery to execute intricate designs on various fabric substrates This capability allows the company to meet the diverse preferences of its clients by producing custom designs and graphics with precision and vibrancy From bold graphics on hoodies to subtle motifs on crewnecks, Un-Available guarantees that each garment reflects individuality and creativity.
Un-Available enhances its dedication to style and functionality with a diverse array of accessories and bags, including sleek crossbody bags and eye-catching hats Each piece is meticulously crafted to reflect the brand's commitment to quality and detail These accessories beautifully complement the apparel, enabling customers to showcase their unique style with confidence and flair.
Un-Available Company Limited stands out as a leader in the streetwear industry, blending innovation with tradition to craft a unique style Committed to customization and a diverse range of products, the company challenges the norms of urban fashion, encouraging individuals to celebrate their uniqueness and express their true selves through their clothing and accessories.
2.2.2 Un-Available vision, mission, and core value a Vision
Un-Available aims to create a future that prioritizes positive impacts on humanity by emphasizing exceptional manufacturing practices, sustainable services, innovation, collaboration, and social justice The company understands the societal implications of its actions and is committed to accountability in every decision it makes.
At Un-Available, responsibility is a core principle that shapes every aspect of its operations The company recognizes the significant impact of its actions and is dedicated to aligning its steps with its values to benefit society This commitment goes beyond compliance, as Un-Available actively seeks to improve its practices and reduce its environmental and social footprint.
Collaboration is essential to Un-Available's vision, as the company believes that meaningful progress is achieved through partnerships with like-minded individuals, organizations, and communities By cultivating a culture of collaboration, Un-Available harnesses collective expertise and resources to address complex challenges and promote sustainable change on a global scale.
Un-Available Company Limited is dedicated to creating top-tier products that excel in quality and design, offering customers a competitive edge through exceptional value By prioritizing creativity and quality, Un-Available not only drives innovation in the streetwear industry but also sets trends and standards for consumers.
Encouraging ownership among team members fosters collaboration and teamwork within the organization This approach cultivates a creative work environment where individuals can share their ideas and skills, leading to the development of unique and competitive products.
ANALYZING AND EVALUATING THE CURRENT SITUATION
Introduction to the purchasing department in Un-Available Company Limited 27 1 Structure of the Purchasing Department
3.1.1 Structure of the Purchasing Department
Figure 3.1 Organization chart of the purchasing department
In Un-Available, the responsibilities are clearly outlined, with the purchasing manager tasked with policy-making and overseeing the efficient management of the purchasing department To enhance effectiveness, it is crucial to determine the optimal grouping of purchasing activities within the organizational structure.
Purchasing officers operate under the guidance of a purchasing manager, with teams structured around specific commodity or material categories Each officer is assigned a distinct range of items, such as one focusing on fabrics, another on accessories and trims, and a third on non-production items.
This type of organizational structure offers some advantages
- Specialization in a particular range of goods
- Avoid duplication of market research
- This structure facilitates data collection and communication inside the department and with other departments of the company as a whole
- Liaison with suppliers is often improved by adopting this system
3.1.2 Tasks of the department and each member
3.1.2.1 The Function of the Purchasing Department
The purchasing department plays a crucial role in achieving daily operational goals by ensuring that businesses acquire essential items, including garment materials like fabric, trims, and accessories, as well as supplies for employees and technology Efficient procurement of these goods is vital for maintaining productivity in production processes and ensuring timely delivery of products to customers.
The purchasing manager leads the purchasing department, overseeing staff and collaborating with executives to manage the budget effectively By maintaining strong communication with department heads, the purchasing manager ensures a clear understanding of their needs and the significance of their purchases within the organization.
Job duties for managers may include:
- Collaborate with the human resources department to identify, interview, and hire employees
- Instruct employees while following company guidelines in the employee handbook
- Organize training and professional development opportunities for all employees to participate in
- Evaluate employee performance by using a performance management system and setting goals for employees during each quarter
- Delegate tasks to employees and give feedback regularly on their performance
- Communicate department information to employees via one-on-one and team meetings b Supervisor
Managers and supervisors are key leadership roles within an organization, both focused on planning, delegating tasks, and managing employees to meet deadlines While managers typically take on a strategic role by making decisions, setting goals, and overseeing team success, supervisors are tasked with administering specific tasks and ensuring they are completed accurately and punctually Often regarded as the right hand of managers, supervisors play a crucial role in the operational success of a team.
A production supervisor in an apparel manufacturing company plays a crucial role in ensuring efficient operations by making decisions approved by management They collaborate closely with employees to align daily tasks with the company's manufacturing objectives, driving productivity and operational success.
Job duties for production supervisors in an apparel manufacturing company may include:
- Establish production goals and set deadlines in accordance with company targets and client orders
- Oversee the production process to ensure workers understand their roles and delegate tasks, maintaining quality and efficiency
- Provide guidance and feedback to production workers to enhance performance and ensure adherence to quality standards
- Handle inquiries and resolve complaints from both internal staff and external stakeholders, such as clients or suppliers
- Manage employee schedules to ensure adequate staffing levels and maintain accurate personnel records
- Compile and submit production reports to the purchasing manager, highlighting achievements and areas for improvement
- Identify and recommend employees for promotions or bonuses based on performance and contribution to production goals
- Assist in the training of new production staff, ensuring compliance with company policies and safety regulations c Fabric purchaser
The fabric purchaser plays a crucial role in sourcing and acquiring materials essential for garment production By leveraging effective negotiation skills and managing supplier relationships, they successfully navigate the procurement process to obtain high-quality fabrics at competitive prices.
The role of fabric purchaser can be described as:
- Receive internal purchase orders or customer requests from merchandising
- Check with suppliers and place orders overseas During this process, negotiations are needed to ensure goods are delivered according to the plan and at the most reasonable price
- Check and arrange for goods to arrive at the company
- Manage the shipping documents for incoming goods
- Collaborate with the quality control department to solve material issues such as defects, quality issues, unapproved sample errors, or missing shipments c Trims purchaser
The trims purchaser is vital in managing the procurement of trims and accessories for garments, ensuring a seamless supply chain through strong supplier partnerships and efficient order management This strategic collaboration with production teams is essential for optimizing inventory and adapting to the ever-changing demands of manufacturing Ultimately, the trims and accessories purchasing officer significantly impacts the quality and aesthetic of the final garment products.
The Fabric and Trims Developer is essential for innovating and testing new fabrics that align with the changing needs of fashion and functional apparel This role involves close collaboration with fabric and trims purchasers to create unique materials, including sustainable fabrics and smart textiles, tailored to customer specifications Given the technical complexities of these fabrics, the developer's expertise is vital in ensuring that the materials meet precise customer requirements.
The non-production purchaser plays a crucial role in acquiring goods and services essential for the overall operation of a business, even though these items are not directly involved in the production process This includes purchasing office supplies like stationery, printer paper, pens, and notebooks, as well as information technology services that support business functions.
(computers, software licenses, internet services, et cetera) or cleaning supplies chemicals, detergents, mops, brooms, et cetera) g Outsource controller
The Outsource Controller is responsible for all external printing orders receiving from the Merchandise team
The team is responsible for creating and executing purchase orders for external printing and washing treatments to fulfill client requests and shipment schedules The controller plays a crucial role in ensuring that the development process is efficient, supplying the merchandising team with essential materials and information to meet deadlines and successfully deliver products to customers.
The tasks of the outsource controller can be described as:
- Receive internal purchaser orders from Merchandising
- Negotiate the best prices and lead time
- Make a plan with the factory and suppliers to be sure we can get the bulk on time
- Need to proceed with the first output approval of printing testing and wash testing
- Track external production plans, follow the process, and solve the problems with suppliers
- Report every day on the system everything sent and received back with correct information and outline what is next h Material and outsource planner
The role of Planning Materials and Outsourcing Staff is to facilitate communication between the Purchasing/Outsource team and the Factory Planning team This individual ensures that priorities are clearly understood and effectively communicated, enabling the purchasing and outsourcing teams to collaborate efficiently with suppliers.
- Work on planning the sample of raw material and help get priority from the merchandise manager or planning manager
- Get information from the purchasing team (fabric, trim) about the order being processed Work with the planning department about the priority style and when fabric and trim are needed
Collaborate with the fabric and trim purchaser to determine the supplier's shipping and stocking dates, ensuring to communicate the company's requirements and prioritize customer needs effectively.
- When trim and fabric are delivered to Un-Available, give priority to what needs to be checked first
- Update all the information to the purchasing team and department on time and work closely with the production planning and the manager
- Get the file with all the outsourced orders and styles
- Work with the factory to determine when panels will be ready for printing and washing treatments
- Inform the outsource team about the date when they can receive panels after the treatment process (printing/washing) to help them work with the supplier
- Ask the merchandiser to share the timing they need for each treatment and update it to the factory planner
- Work with the planning manager to get priority and update with the outsource controller team
- Outsource planners need to update all plans on the system to be sure everybody can follow them correctly i Admin
Admin supports the purchasing department by keeping workspaces and information organized and accessible
The tasks of the admin can be described as:
- Run calendar Control inflow: people/ signatures/ phone calls/ meetings
- Control travel: booking hotel/ flights/ Airline reward points/ Credit card points transfer/ incoming guests and necessary arrangements/ special offers
- Prepare schedules meetings: Monthly management meeting and external off- site strategy meeting
- Produce data reports, and help to monitor departmental performance.
Analyzing the garment materials purchasing process at Un-Available Company
To maintain consistency and continuity in garment production, it is essential to systematically organize the purchasing of materials in a specific sequence This structured approach enables all stakeholders to effectively monitor progress and promptly address any issues that arise.
Typically, there are two supplier types: nominated and non-nominated
Nominated suppliers are recommended by buyers for specific orders, allowing buyers to maintain better control over their products during the purchasing process This strategy has gained popularity in recent years, resulting in enhanced consistency in product quality and timely deliveries, irrespective of the manufacturing company involved.
- Purchasers do not develop samples because the customers have already approved samples with the nominated supplier Therefore, the purchasing employee's role during the development phase is minimal
- Purchasers conduct transactions with the nominated supplier and place orders according to customer requirements
- Purchasers do not concern themselves with the purchase price as the customer has accepted the supplier's pricing
- Monitor delivery progress and make payments to the nominated supplier
- In case of quality issues, purchasers inform the nominated supplier and the customer
Therefore, for nominated suppliers, the main responsibility of purchasers is conducting and managing the bulk order
A non-nominated supplier refers to a vendor that has not been officially selected by a buyer or brand In certain cases, customers request manufacturers to source materials and develop products, prompting purchasers to evaluate various vendors, both within and outside their company’s database, to select the most suitable option based on specific needs.
- Purchasers work directly with the supplier during the development
- They conduct transactions with the supplier and place orders according to customer requirements
- They pay attention to purchase price, delivery terms, payment terms, product quality, etc
- They monitor delivery progress and make payments to the supplier
- In case of quality issues, they collaborate with the supplier to find solutions If the issue cannot be resolved, they must contact the customer
The purchasing process has two main stages: development and preparing garment materials for bulk production
To ensure consistency and continuity in the production process, the acquisition of clothing materials should be strategically planned This approach enables all stakeholders to effectively monitor progress and address any issues promptly and logically.
The sample development process is one of the crucial procedures aimed at Un
Available ensures timely delivery of product samples to customers, meeting both deadlines and quality standards to enhance client satisfaction and build trust in Un-Available's capacity for large production orders While this process mainly applies to fabric, it is less common for accessories due to the reliance on nominated suppliers, which means that development steps are typically managed directly by the customer and the supplier.
The steps in Un-Available's purchasing development process are listed below
Figure 3.2 Development of fabric process flow chart
3.2.1.1 Receive requests for material development and information checking
The customer provides essential product development details, such as fabric samples, trims, and accessories, along with the expected timeframe for sample delivery Subsequently, the purchasing employee processes the fabric or accessory development request received from the merchandising department.
For the Holiday 2024 season, the customer is seeking a new supplier to create a fabric blend consisting of 91% Polyester and 9% Spandex To initiate the sample development process, the customer provides the original swatch and color standard to the merchandiser.
Below is the information about the fabric the customer wants to develop:
Figure 3.3 Sample request from the customer
Figure 3.4 Original swatch customer sent
Based on the order's requirements, the merchandiser department forwards the material development information, including details of fabrics and the original swatch to the purchasing department
After receiving the request, the purchasing employee checks and compares the information about the required materials in the "Materials category" file
When materials are listed in the "Materials category" file, the purchasing employee negotiates price and quality standards with suppliers based on the target price provided by the customer or Client department, ensuring the "Materials category" file is updated with the latest information.
The purchasing employee will retrieve a stored sample for development, attach an identification tag, and document the necessary details Afterward, this information will be forwarded to the merchandiser, who will work with the client team and customer to finalize the development sample and provide feedback to the purchasing employee.
If there are any changes to the information, the updated details will be sent to the customer for their approval Should the customer not approve the changes, the purchasing employee must collaborate with the customer to reach a satisfactory solution.
If materials are not found in the "Materials category" file, the purchasing employee updates the system to document the development process for future management and reference Subsequently, the employee searches for a supplier that meets the necessary requirements.
Figure 3.5 Material category list - Fabric
Material category list includes below information
- Supplier: this column specifies the name of the supplier from whom the fabric was sourced It is essential for supplier management and tracking the origins of different materials
- ART: stands for "Article" number, a unique identifier assigned to each type of fabric It helps in cataloging and referencing specific fabric types within the company's inventory system
- Fabric content: this column provides the composition of the fabric For example,
"98C 2SPX" means the fabric is made of 98% cotton (C) and 2% spandex (SPX)
The weight of fabric is a crucial factor, typically measured in ounces (OZ) or grams per square meter (GSM), as indicated in the "UNIT WEIGHT" column Understanding fabric weight is essential for selecting the right material for various applications.
The unit weight of fabric is indicated in either ounces (OZ) or grams per square meter (GSM), with different industries favoring one measurement for standardization purposes.
- Width: This column lists the width of the fabric, typically measured in inches or centimeters
- Origin: This column indicates the country of origin of the fiber and yarn Knowing the origin is important for compliance with trade regulations, tariffs
In this case, the fabric RD1032149 that the customer wants to develop for the Holiday 2024 season is a completely new sample and is not included in the "Material category" list
To identify the ideal supplier, Un-Available follows a structured supplier selection process that includes three key steps: gathering comprehensive information about potential suppliers, narrowing down the list of candidates, and thoroughly evaluating and selecting the most suitable suppliers.
First, the purchasing employee gathers information about suppliers and then classifies and lists potential suppliers
To identify potential suppliers, a purchaser should analyze the existing suppliers the company currently collaborates with, as established relationships can enhance credibility However, it's essential to also seek out new, promising suppliers through various channels such as commercial magazines, fabric exhibitions, and online resources.
General evaluation of garment raw materials purchasing activities at Un-
term At sight Deferred payment
6 Responds to problems Over 8 hours Between 4-8 hours Under 4 hours 1
7 Transaction period Under 1 year From 1-3 years Over 3 years 1
There are many problems with the quality
There are some problems with the quality
There is no problem with quality
The final evaluation of the supplier is determined by a comprehensive score derived from specific criteria, ensuring that the chosen supplier satisfies two essential conditions.
- Average score = (total score * coefficient) / total coefficient
3.3 General evaluation of garment materials purchasing activities at Un-Available 3.3.1 Successes
After two decades of growth, Un-Available has consistently enhanced its operations, solidifying its domestic market position The company's evolving business and production activities, especially in purchasing, have been meticulously refined to align with its expanding scale and the demands of an integrated business environment Following my internship, I identified several advantages in the company's material purchasing processes.
- Organizational structure of the purchasing department
The purchasing department features a stable and unified structure with a streamlined system that enhances efficiency It is organized into specialized groups, including fabric and trims purchasing teams, which are further divided into sub-groups like interlining, thread, and label purchasing This organizational approach prevents employees from feeling overwhelmed by distributing tasks effectively, eliminating unnecessary steps and redundancy, thereby maximizing individual contributions within the department.
- Coordination with other departments in the company
The purchasing department has actively engaged in collaborative activities with various departments, particularly quality control and merchandising This teamwork has led to significant improvements in the procurement of raw materials, enhancing the overall efficiency and effectiveness of the purchasing process.
Un-Available currently manages its purchasing process without using an ERP system, resulting in most purchasing activities being updated via various Excel files
Microsoft Excel is an invaluable tool for calculations, statistics, and data storage, particularly for small-scale projects However, after 18 years of development, Un-Available often relies on Excel excessively Typically, a single individual manages daily order updates in Excel files and shares this information across various departments.
On a typical morning, office workers often receive 7-8 Excel files via email, which they need to share with relevant parties, risking missed or delayed information For instance, purchasers may receive shipping documents from suppliers but fail to forward them promptly to forwarders due to oversight, leading to customs clearance delays and potential port storage fees To enhance this process, it is essential to implement software that automates email distribution to ensure timely communication.
The quality of human resources poses a significant challenge for Un-Available's purchasing activities, as most purchasers have economics backgrounds and lack experience in textile and apparel materials This deficiency hampers their ability to effectively address materials-related issues, impacting overall purchasing efficiency To meet customer quality standards during the development stage, purchasing officers must possess comprehensive knowledge of garment materials Therefore, enhancing the quality of human resources is crucial for improving purchasing activities.
The standard fabric defect list at Un-Available includes only common defects, lacking comprehensive documentation on their causes, prevention measures, and solutions This gap complicates the process for purchasers managing fabric-related issues.
To effectively address fabric defects, purchasers must invest additional time in identifying their specific causes and understanding the various types of defects This process may require collaboration with technical, production, or operations departments to make informed decisions regarding necessary replacements or repairs.
To enhance fabric defect management, a clear and detailed standard list is crucial for minimizing risks and maximizing efficiency This list should encompass thorough information on the causes of defects, preventive strategies, and specific solutions By doing so, it will empower purchasers and relevant departments to swiftly and effectively resolve issues.
3.4 Solutions to improve the garment materials purchasing process at Un- Available
Enhancing the purchasing process is crucial for business growth, especially as a company expands At Un-Available, advancements in purchasing activities have been made, leading to notable successes However, challenges remain in the purchasing process that need to be addressed.
The current information system structure of the company fails to meet essential requirements, leading to synchronization issues between departments To address these challenges, it is crucial to develop an improved system that enhances inter-departmental communication and efficiency.
Secondly, some purchaser lack knowledge about garment materials, so they need additional training
Thirdly, there is also a lack of guidelines on handling fabric defects, which necessitates the creation of more comprehensive manual for handling defective materials
3.4.1 Solution for information system infrastructure
Un-Available is facing considerable resource wastage and high operating costs because it has not yet implemented an Enterprise Resource Planning (ERP) system for its purchasing processes To mitigate these challenges, the company urgently needs to adopt a modern ERP solution.
The existing booking system relies on email communication with suppliers and forwarders, leading to a cumbersome workload This method complicates the management and tracking of historical data, making it challenging to maintain an organized record of all transactions.
The author recommends that the company enhance its shipment booking process by implementing an ERP system, which will facilitate efficient management of each booking With an ERP system, the company can effectively track and manage all data and historical records related to shipments.
Table 3.8: Example before and after using ERP for vessel/ truck booking
Step Before ERP applies to shipment After using ERP
The supplier initiates the booking by emailing a shipping request to the forwarder
The forwarder communicates with purchaser via email to arrange the booking
Shippers register the Shipping Request (S/R) through ERP Purchaser confirms the booking on ERP
The forwarder initiates the scheduling process by emailing the relevant details to the purchasing team
The purchasing team communicates with the supplier to finalize the schedule
The suitable vessel/ container booking will be automatically matched for purchaser checking
Multiple email exchanges are required to confirm the schedule and ensure all parties are aligned
The forwarder initiates the customs clearance process by emailing the necessary documents to the purchasing team and the shipper
The supplier shares the commercial invoice, and packing list with the forwarder and purchaser
The purchaser reviews and approves the documents via email
Multiple email exchanges are necessary to finalize and confirm the customs clearance
Shippers and forwarders upload shipping documents on ERP
Automatic email alerts are sent for all shipping documents and customs clearance
CONCLUSION AND RECCOMMENDATIONS
Conclusion
In the evolving garment market, Un-Available Company faces increased competition, necessitating improved efficiency, labor productivity, and market competitiveness Effective purchasing of garment materials is crucial, as it ensures timely and quality supplies, stabilizes production, reduces costs, and enhances the company's market position and reputation Through an internship and graduation thesis at Un-Available Company, the student has gained valuable insights into the significance of material purchasing, resulting in several key outcomes within the thesis scope.
This thesis systematically enhances theoretical understanding of purchasing by organizing key concepts related to material procurement, examining the characteristics of materials in the garment industry, and outlining the objectives and significance of material purchasing activities within garment enterprises.
This thesis offers a comprehensive analysis of the internship company and its purchasing department, focusing on the existing material purchasing process at Un-Available Company It examines two critical stages: the development of fabric and trim, and the preparation of these materials for bulk garment production.
To enhance the material purchasing process at Un-Available, it is crucial to develop a knowledgeable workforce specialized in garment material procurement Implementing information technology solutions, like ERP software, can significantly boost efficiency in purchasing interactions Furthermore, creating a standardized manual for problem-solving will serve as an effective tool to streamline and improve the overall material purchasing process.
Despite the notable successes of the thesis, it encountered challenges due to research limitations, leading to unresolved issues The reliance on customer-specified materials and pre-existing suppliers, along with company confidentiality requirements, hindered the collection of detailed information and images for each stage of the purchasing process Consequently, the thesis presents evidence for only certain aspects of the project However, acquiring comprehensive documentation from the purchasing department and suppliers could significantly enhance the thesis's overall value.
The research methods and tools utilized in the thesis lack the robustness necessary for drawing accurate and comprehensive conclusions regarding the purchasing process Consequently, this oversight results in the neglect of several critical factors that are vital for understanding and enhancing this process To achieve greater accuracy and comprehensiveness, it is essential to employ more robust research methods that can effectively identify the influencing factors and potential opportunities for improvement in the purchasing process.
To enhance the persuasiveness and effectiveness of research findings, it is crucial to incorporate comparisons with other companies or industries This approach highlights the strengths and weaknesses of the current purchasing process against established standards Without such comparisons, improvement proposals may lack a practical foundation, diminishing their potential impact Thus, integrating multidimensional comparisons within the same field is essential for improving the quality and applicability of the research.
The thesis identifies key shortcomings stemming from inadequate data collection, limited research capabilities, and a lack of comparative analysis with other companies The author seeks support, feedback, and collaboration from teachers, scientists, colleagues, and interested individuals or organizations to enhance the quality of future research.
Recommendations
Following an internship at Un-Available Company, the author recognized the critical importance of language and communication skills alongside professional knowledge in today's world It is hoped that the school will offer more opportunities for Garment Technology students to enhance their language abilities, such as by strengthening the department's English clubs, organizing regular English proficiency assessments, and expanding academic English initiatives.
To broaden your knowledge base, focus on both your major and foreign languages, enabling access to valuable international information Engage in training courses and company field trips to gain insights into market needs and business demands, which will help clarify your career orientation.
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