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Basic knowledge for merchandising

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Basic knowledge for merchandising

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  1. Basic knowledge for Merchandising ©right

  2. PREPARED BY ©right 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

  3. MERCHANDISING DEPARTMENT OF KNIT CONCERN GROUP

  4. Total Textile Process at a Glance

  5. Process Flow-Chart of Merchandising 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

  6. Definition of merchandiser 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

  7. Responsibilities of Senior Merchandiser Responsibilities of Senior Merchandiser 1. Sample development 2. Price negotiation 3. Order confirmation 4. L/C opening 5. Opening summery 6. Sourcing 7. Material collection 8. Production planning 9. Production monitoring 10. Quality assurance 11. Arrange final inspection 12. Arrange shipment

  8. Qualities of a 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

  9. Garment finishing process flow chart

  10. Garment process flow chart

  11. Production planning process flow chart

  12. Garment Size

  13. Basic Component of a pant

  14. Basic Component of a shirt

  15. Basic Component of a shirt

  16. Some Factors Related to Buying Side: 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.

  17. Some Factors Related to Selling 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.

  18. List of Traders: Multinational: Local: 1.Li& Fung 1. Team Sourcing 2. Synergies 2. Centro tex. 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

  19. Name of Some Important Buyer of Bangladesh: 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-

  20. 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)  Peri Ellis  Academy  Banana  Old Navy  US Polo  Nike  American Eagle

  21. Name of Some Important Buyer of Bangladesh: Name of Some European Buyers:  H & M  Hugo Boss  Zara  Mango (Turnkey)  Puma  European Eagle  C & A  M &S  Esprit  Terco  Decathlon  Sains Burry  Carretow  NKD  Tema  Lindex

  22. Name of Some Important Buyer of Bangladesh: Name of Australian Buyers:  K-mark Name of Some Japanese Buyers:  Uniquelo  Huloson Bay Name of Some Indian Buyers:  Black Berry  Mahendra ( Brand: Peter England )  ITC  Ramond

  23. Name of Some Important Buyer of Bangladesh:

  24. Name of Some Important Buyer of Bangladesh:

  25. Seasons of Export: Seasons of Export in USA: 1. Spring 2. Summer 3. Fall Seasons of Export in Europe:

  26. Major Garments Manufacturer Countries: 1. Bangladesh 2. China 3. Vietnam 4. Combodia 5. Pakistan 6. Thailand 7. Indonesia 8. Turkey 9. India 10.Shrilanka 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.

  27. GSP 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). FOB: FOB means Free on Board. It is the value of the product which is fixed without cost of transportation of this product. CIF: FOB means Free on Board. It is the value of the product which is fixed including the cost of transportation and insurance of this product.

  28. GARMENTS EXPORT PROCEDURE 1.Space Availability: Space availability or time agreement is the availability of availability of production floor for the production of garments. 2.Costing: Costing means the way of calculating the cost of production of garments. Costing is done considering-  Fabric price  Accessories price &  C&M Cost  Way of Costing:  Costing can be done by-  Original Sample  Specification

  29. GARMENTS EXPORT PROCEDURE 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.

  30. GARMENTS EXPORT PROCEDURE BOM Sheet: The pages of specification file contain fabric and accessories detail is called BOM ( Bill of Material ) Sheet. 3.Order Confirmation: Order confirmation is issued by the buyer to the manufacturer which contains Tech- pack. 4.Purchase Order: PO or purchase order is issued by the buyer to the manufacturer. 5.Master L/C: 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.

  31. GARMENTS EXPORT PROCEDURE 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-  Sewing Thread  Button  Interlining  Zipper  Label  Tissue Paper  Ball head pin  Hager  Carton  Rib and  Silica Gee Bag  Plastic Clip so on.

  32. GARMENTS EXPORT PROCEDURE 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. Difference Between Master L/C and Back to Back L/C: 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 manufacturer to the raw material suppliers. It depends on master L/C Prepared to collect raw material from the supplier. It has lower financial value than the Master L/C ( 70-80% of Master L/C ). This L/C is issued by the buyer to the manufacturer. It is the basic L/C. Prepared for the import of goods from the exporter. It has higher financial value than the Back to Back L/C.

  33. GARMENTS EXPORT PROCEDURE 9.Sampling: Sample is the small quantity which represents the bulk. The process of collecting or making sample is called “Sampling”. Types of Garments Sample  Features: •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. Proto 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. Fit Sample:

  34. GARMENTS EXPORT PROCEDURE  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. Purpose: This sample is used for PP meeting.  Production Sample: Features: •These samples are collected from the production floor while bulk production is running. •These are sent to the buyer. Purpose: Here buyer compares Production Sample with the PP Sample. PP Sample:

  35. GARMENTS EXPORT PROCEDURE Garments Test Sample: Features:  These samples are collected from the production floor while bulk production is running.  These are sent to the testing house. Purpose: Here Testing House tests different aspects of the garments and sends “test report” to the buyer. 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.

  36. GARMENTS EXPORT PROCEDURE  Features: •These samples are not so mandatory. •These are sent to the buyer after the shipment of the products. Purpose: Here buyer compares the Production Sample with the Shipment Sample. Shipment Samples:  If buyer collect sample garments of specific design for specific season which are displayed in the retail shop to justify the demand of these samples, then these are called Salesman Sample. Salesman Samples:

  37. 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: 1. DHL 2. Aramex 3. TNT 4. Fedex 5. UPS 6. Sky net 7. DPEX

  38. GARMENTS EXPORT PROCEDURE 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 persons-  Buying House QC  Factory QC  Buying House Merchandiser  Factory Merchandiser  Cutting Master  Pattern Master  Production Manager  Sample man

  39. GARMENTS EXPORT PROCEDURE 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.

  40. 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. 19. Finishing: Finishing includes- ironing, accessories attaching, label attaching, ironing etc. 20. Pre-Final Inspection: This type of inspection is done by factory QC. It may be at the end of the production line or in the lab.

  41. GARMENTS EXPORT PROCEDURE 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

  42. Compliance: Compliance: 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 Waste Factories may be classified as-  Compliant  Semi Compliant &  Non Compliant

  43. GARMENTS EXPORT PROCEDURE 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

  44. Logistic Firms: 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: 1. Maersk 2. APL 3. MGH 4. Damco 5. Expolonca 6. Crown Logistic 7. NMC Corporation

  45. C & F Agent: C & F Agent: The firms or agents which handle all kinds of customs related formalities are called C & F Agent. Factory pays to the C & F Agents. 1. Unit Price 2. Total Price

  46. Document For Payment 1.Commercial Invoice: A sheet contains- 1. Buyer Details 2. Manufacturer Details 3. Item Details 4. Unit Price 5. Total Price 2.Packing List: It is the list of packed products according to the size, color and content in each package. 3.Bill of Lading: The document witch is issued by the Freight Forwarding Agent to the manufacturer containing detail about product sent and transportation company. e.g. AW/B- Air Way Bill. ICD: ICD means Inland Container Depot. The goods which are not suitable to transport in carton because of introducing crease marks are transported hanging in ICD.

  47. Document For Payment

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