Kiến thức căn bản cho công tác quản lý đơn hàng ngành may - Basic knowledge for merchandising

Definition of merchandiserThe main role of a garments merchandiser is to collect garments export order export L/C, produce the garments, export the garments and earn profit, to perform t

Basic knowledge for

Merchandising

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Name : MAZADUL HASAN SHESHIR

ID: 2010000400008

Batch: 13th Batch (Session 2009-2013) Department: Wet Processing Technology Email: mazadulhasan@yahoo.com

Blog: www Textilelab.blogspot.com

Southeast University

Department of Textile Engineering

PREPARED BY © right

MERCHANDISING DEPARTMENT OF KNIT CONCERN GROUP

Total Textile Process at a Glance

Merchandiser

↓ Negotiation with buyer & collect order

↓ Costing

↓ Sample making (according to buyer requirement)

↓ Get approval &Placement of order

↓ Getting started (In-house preparation of accessories)

↓ Line balancing

↓ Commencing production

↓ Production Monitoring

↓ Inspection

↓ Buyer’s Inspection (After Finishing)

↓ Preparation of banking & documentation

↓ Shipment/delivery

Process Flow-Chart of Merchandising

Definition of merchandiser

The main role of a garments merchandiser is to collect garments export order (export L/C), produce the garments, export the garments and earn profit, to perform those functions successfully needs lot of knowledge, experience & tremendous effort for a merchandiser The term merchandising is defined as follows:

Definition of merchandising

• The term merchandising related with trade

• Trade means buying & selling

• The person who is involved with trade, he/she is a merchandiser

• And the activities of a merchandiser is known as a merchandising

Definition of merchandiser

Responsibilities of Senior Merchandiser

Qualities of a merchandiser

1 Language skill

2 Computer skill

3 Marketing skill

4 Right consumption knowledge of various goods

5 Costing knowledge of raw materials

6 Order getting ability (That is if the merchandiser is known by actual rate of raw materials, so that he can negotiate perfectly with buyer In this way, the possibility of getting order is hundred percent.)

7 Sincere & responsible

8 Hard worker

Qualities of a merchandiser

Garment finishing process flow chart

Garment process flow chart

Production planning process flow chart

Garment Size

Basic Component of a pant

Basic Component of a shirt

Some Factors Related to Buying Side:

Customer: Those who buy the ultimate product are called customers Customer

of a product may be the consumer of this product or not.

Consumer: Those who use the ultimate product are called consumers Consumer

of a product may be the consumer of this product or not.

Buyer: Those who buy the product from other in large quantity are called buyers Whole Seller: Those who sell the product to the retailer are called whole-sellers.

Retailer: Those who sell the product directly to the customer are called retailers.

Importers: Those who buy or import the product from foreign or overseas country in large quantity are called importers.

Some Factors Related to Buying Side:

Some Factors Related to Selling Side:

Seller: Those who sell the product to the others are called seller.

Manufacturer: Those who manufacturer the product are called manufacturers.

Exporter: Those who sell or export the product to the buyer of foreign country are called exporters.

Trader: Those who establish liaison between buyer and manufacturer are called traders.

Some Factors Related to Selling Side:

1.Li& Fung

2 Synergies

3Linmark

4 Complex tile

5 ZXY Apparel Buying Solution

6 Asmara

7 Texbo.

Buying House:

Buying house means Buyer’s liaison office or trader office Traders are of two

types-1 Foreign Trader

2 Local Trader

Local:

1 Team Sourcing

2 Centro tex.

List of Traders:

Name of Some Important Buyer of Bangladesh:

Generally buyers of USA, Europe, Canada, Australia, Japan, India are the main buyers of Garments and Textile product of Bangladesh.

Name of some important buyers of these countries are described

below-Name of Some Important Buyer of Bangladesh:

Name of Some USA Buyers:

 GAP

 Adidas

 Walmart

 Levi’s (Brand: Dockler, Denizer, Levi’strauss)

 VF Asia (Brand: Lee, Wrangler )

 PVH -Phillips Von Heuson (Brand: CK)

Name of Some European Buyers:

Name of Australian Buyers:

Seasons of Export in USA:

Specialty :

Turkey: This country is suitable for highly de corative and fancy garments.

China: Buyers select China for decorative garments and short time shipment.

India: Buyers select India for decorative garments.

Vietnuma: Buyers select Vietnum for plain printed T-Shiort.

Combodia: Buyers select Vietnum for plain printed T-Shiort.

Bangladesh: Bangladesh is a Lower Developing Country with GSP facilitiy Buyers import various types of garments from Bangladesh.

Major Garments Manufacturer Countries:

The Generalized System of Preferences (known as GSP for short) is a scheme whereby

a wide range of industrial and agricultural products originating in certain developing countries are given preferential access to the markets of the European Union

Preferential treatment is given in the form of reduced or zero rates of customs duties The GSP scheme is specifically designed to benefit certain developing countries and integrate them into the world economy

Since 1971, the EU has had rules ensuring that exporters from developing countries pay lower duties on some or all of what they sell to the EU This gives them vital access

to EU markets contributing to the growth of their economies This scheme is known as the "Generalized System of Preferences"

Today Bangladesh offers a very flexible and feasible production base for its customers

in EU, America and Australia The EU market is quota free for apparels and goods are eligible for the GSP facilities As an LDC member Bangladesh also obtain special Tariff benefit from Canada (18% import Tax free)

Specification contains the following

factors:- Design or Sketch of garments

 Fabric

Type- Composition

 Color

 Construction

 GSM or Ozs Per Square Yards

 Any other instruction

 Accessories Detail

 Any Kind of Instruction

 Garments Size ( called “Measurement Chart” or “Size Chart” )

Specification File:

The file which contain the specification of product is called the “Specification File” or

“Technical Package” or Tech-pack” or “PDM” (Product Development Manual) or

“Order Sheet” or “Product Package” Specification File is issued by the buyer and collected by the manufacturer

GARMENTS EXPORT PROCEDURE

L/C or Letter of Credit is a confirmation which is prepared by the buyer ( bank of

buyer ) and issued to the manufacturer It has financial value L/C is of two

types- Master L/C &

 Back to Back L/C

When a L/C is opened to import goods directly from the exporter is called master L/C

It is issued by the buyer (bank of buyer) to the manufacturer

6.T & A Calendar Making:

T & A or “ Time and Action” calendar is made by the manufacturer to complete the production within a specific period of time

7.Fabric & Accessories Booking:

After making of T & A calendar, fabric & accessories booking is necessary

Without fabric, all materials used in garments is called “Accessories” or “Trimmings” Accessories includes-

 Silica Gee Bag

 Plastic Clip so on

GARMENTS EXPORT PROCEDURE

Master L/C Back to Back L/C

Master L/C is prepared by the buyer to

import goods from the manufacturer Back to Back L/C is prepared by the manufacturer to collect raw materials for

the production

This L/C is issued by the buyer to the

manufacturer This L/C is issued by the manufacturer to the raw material suppliers

It is the basic L/C It depends on master L/C

Prepared for the import of goods from the

exporter Prepared to collect raw material from the supplier

It has higher financial value than the Back

to Back L/C It has lower financial value than the Master L/C ( 70-80% of Master L/C )

8.Back to Back L/C:

Back to Back L/ C is prepared by the manufacturer to collect raw materials from the suppliers It has 70-80% financial value of Master L/C

GARMENTS EXPORT PROCEDURE

Difference Between Master L/C and Back to Back L/C:

•This type of sample is made by the manufacturer by available fabric and accessories.

•This sample is made before or after order confirmation

Purpose:

Here buyer checks whether the factory can make the garments

 Fit Sample:

Features:

•This type of sample is made by the manufacturer by available fabric and accessories

•This sample is made after order confirmation

Purpose:

Here buyer checks the fitness or measurement of the garments

GARMENTS EXPORT PROCEDURE

 PP Sample:

Features:

•This type of sample is made by the manufacturer by actual fabric and accessories

•This sample is made after order confirmation

•This sample must be approved by the buyer before production

Purpose:

Bulk production is done following PP sample

 Size Set Sample:

Features:

•This type of sample is made in all sizes

•These samples are sent to the buyer

•These samples are made in all sizes

Here buyer compares Production Sample with the PP Sample

GARMENTS EXPORT PROCEDURE

Garments Test Sample:

Common Tests of Garments: Common tests of garments are as follows

• Dimensional Stability Tests

• Sewing Strength Tests

• Button Attaching Tests

• Spirality Tests

• Color Fastness Tests

• Abrasion Tests

• Radiation of Materials Tests

Testing Houses may be local or international They test the garments and send the test report to the buyer to inform the quality of product producing by the manufacturer

GARMENTS EXPORT PROCEDURE

 Shipment Samples:

Features:

•These samples are not so mandatory

•These are sent to the buyer after the shipment of the products

GARMENTS EXPORT PROCEDURE

Name of Some Currier:

Samples or any other important documents necessary for export are sent by the currier

Name of Some Currier:

10 Fabric & Trims in House:

Here confirms all fabrics and accessories in their hand

11 Innovatory Checking & Report Making:

The term innovatory checking is applied for checking the quality & quantity of

fabrics and accessories in house After checking a report is made with the test data

12 PP Meeting:

This meeting is held just before going to the bulk production This meeting is

conducted by following

13 Pattern and Marker Making of Bulk Production:

Pattern is a hard paper which is made by following each individual components for a style of garments

Marker is a thin paper which contains all components of different sizes for a particular style of garments

14 Trial Cutting:

Little amount ( for 200-300 pieces of garments ) of fabrics are cut for checking the efficiency and production cost of the garments

15.Bulk Cutting:

Here total fabrics required for bulk production are cut

16 Numbering –Bundling & Sorting:

After cutting of fabrics numbering, Bundling and sorting process are done Then cut pieces are sent to the sewing section

GARMENTS EXPORT PROCEDURE

17 Production Line Set-up:

Production line set-up is the arrangement of sewing machines where the input of the first machine is cutting part of the fabrics and the output of the last machine is

complete garments Production line may be straight or V-shaped or face to face or any other suitable type

18 Sewing:

Cutting pieces are attached by sewing to make the complete garments Different types

of sewing machines are used in production line

21 Final Inspection:

Final inspection is conducted by the –

Self Inspection: Conducted by the factory QC

Third Party Inspection: Conducted by the testing houses

Name of Some Testing Houses:

Functions of Testing Houses:

•Testing of Fabric

•Testing of Garments

•Testing of Trims

•Garments factory Auditing for Compliance

GARMENTS EXPORT PROCEDURE

Any type of rules and regulations that must be followed by an ideal factory These include-

 Time of Work

 Environment of Work Place

 Salary & Wages

 Facilities ( Dining, Child care, Toilet )

 Treatment of Liquid WasteFactories may be classified as-

 Compliant

 Semi Compliant &

 Non Compliant

Compliance:

In-line Inspection:

During production, buyer QC will come and check the product quality and suggest

to over-come any type of problem This type of inspection is called In-line Inspection.

On-line Inspection:

Inspection at the end of the production line during production is called On-line Inspection.

This inspection is conducted by the factory QC

GARMENTS EXPORT PROCEDURE

Logistic Firms:

The firms or agents which take the responsibility to receive the goods from the manufacturer company at the port and send to the buyer or buyer agent are called Logistic Agent

 They also called Freight Forwarding Agent or Forwarder

 Buyer pays to the Logistic Agent

Names of Some Logistic Firms:

Costing and Negotiations:

Merchandiser must have a negotiating power on the price to convince his buyers on

specific price to lessen the chances of loss If price is negotiated then its time to sample approval from buyer

The aim of negotiation/approach

"Win Win solution" Both parties are benefited

The skill for negotiation:

1 Discovering common interest and removal of personal issues

2 Questioning skill

3 Listening effectively

4 Understanding body language

5 Observation and judgment

6 Influencing skills

Export Procedure

1 INVOICE: In Invoice following criteria is required

1 Consignee and Applicant Addresses

2 Garment Description

3 Garment Price and Total Invoice value

4 Net and Gross Weight of Garments

5 PO (purchase order) no

3 Garment Style and color

4 Net and Gross weight of Garments

5 No Of Pieces in the Carton and Carton Dimension also other necessary information, which gives help for the custom clearance

After the completion of the Visa process, we submit the docs in the Bank for the

negotiation/ collection The docs are prepared according to the L/C or the buyer

requirement

Export Procedure

8 DOCUMENTS FOR THE BUYER

Export department also prepare documents for the buyer for the custom clearance

of the shipment at the destination

9 PAYMENT PROCEDURE

After the negotiation/ collection procedure of the docs, bank dispatches the same to L/C opening bank, to realize the payment Foreign bank is bound to realize the same within the 10 to 15 days REBATE CLAIM

10 COMMERCIAL INVOIVCE

In the commercial invoice all the details are mentioned required under conditions of L/C for the custom clearance and other necessary purposes

11 PACKING LIST

It consists of color, weight, product code/other, coding numbers, no of cartons,

carton dimension, and carton packing

12 BILL OF LADING/ AIRWAY

This is according to the L/C terms and conditions

Types of sample/Stages of sample:

1 Proto Type Sample: This is the first sample given to the buyer The sample is

prepared according to requirement of buyer and this is the rough sample The range of sample is about 1-2 to vary according to the requirement of buyer

Comments on Proto Type:

Buyer gives his comments on sample and also recommends the changes in sample

2 Counter Proto Sample:

This sample is based on the comments received from the buyer For this sample, 2-3 pieces are required

3 Salesman Sample:

Buyer sends the samples in market by salesman to get market feedback from

customers it is done on 250-500 pieces or may exceed depending on season and

customer Buyer has to sell these garments to check and view

Comments on Salesman Sample:

Feedback on sample from customer is send to merchandiser/ manufacturer