role of merchandising due to covid-converted
impact of covid-19 in merchandising, sampling process, step of merchandising, communication skill of merchandising, Marketing & merchandising, Costing, Brac university, presentation on role of merchandising, PGD-KIM-Intek-5
1. Assignment
On
Role of merchandising & due to pandemic of COVID-19
Date of Submission: Jan 5, 2021
Submitted to:
Dr. Shanawez Hossain
Course teacher,
KIM 103
BIGD
BRAC University
Submitted by:
Md. Feroz Mahmud
ID: 20381101
Sec: A
Batch: 13
Brac University
2. Title and subtitle:
Role of merchandising & due to pandemic of COVID-19: An analysis from
UTOPIAN (garments Buying House)
Background:
Merchandising is a specialized management functions within the fashion industry. It is the
business that moves the world fashion from designer’s showroom to retail sales floor and
in to the hands of consume.
UTOPIAN is a reputed Garments buying house, its working with different types of foreign buyers
as like CASTRO Model Ltd (Israel), Unidog ( Germany) etc.
we are working with different types factory to collect our order as per buyer requirement. We
receive PO knit & woven both types of fabric and make different types of product, like Mens T-
Shirt, Polo-shirt, shorts, Jacket, shirt, Fashionable Tank-Top, Ladies Tee, tank-top, Night Dress and
lingerie item, for baby department we make above all item
Now a day due to Covid-19 Pandemic we are in tough situation, From Merchandising portion
totally change the working step in our organization.
Research Objectives:
With this background the main objective of this paper is to find out the Working
Procedure change in merchandising due to pandemic of COVID-19, particularly
UTOPAN Buying House. Some related objectives are:
(i) Sample management
Vendors are expected to supply samples to UTOPIAN LTD. free of charge for use in development
of the product, range selection, quality testing & approval, and for marketing activities where
applicable. Vendors should pay for the cost of sending samples to our customers’ in USA, UK or
in Europe by courier as requested
Sampling Process
1. Hard lines
Detailed information regarding quality standards and test requirements for specific products and approved
laboratories are stated in respective UTOPIAN LTD. Product Specification Requirements (PSR). Please
3. consult the related merchandiser for details of relevant PSR(s). All samples must be clearly marked and
tagged for their purpose.
a. Style sample
• This is the offer sample (based on specification and design as in Inquiry) by Vendor to ensure that the
offers meet the commercialexpectation.
• Sample should be in correct (where possible) or similar material to Inquiry.
b. Counter sample (Pre-productionsample)
• This is for approval of all components in order for vendors to start mass production. This includes the
product itself and the user manual of products (where applicable).
• Lab test report should be submitted to UTOPIAN LTD. 1 week after counter- sample submission.
• Sample to be approved by UTOPIAN LTD. and sealed back to vendors/factories for production reference
and QC inspection standard at Final Random Inspection (FRI) before shipment release. It is not allowed to
start production only after Lab test report and counter sample are both approved.
• Unless otherwise specified, a minimum of 3 samples each style for counter
sample approval is required.
• If samples do not conform to the standards required, vendors need to provide revised samples
incorporating UTOPIAN LTD. comments and re-submit revised samples. This will be repeated until UTOPIAN
LTD. is satisfied with the quality (applicable to Style and Counter Samplingstage).
c. Shipment sample
• Shipment samples should be drawn by UTOPIAN LTD. representatives (QC inspectors or otherwise
specified) from the inspectionlot.
• This must include consumer packaging and represents the actual productsto be shipped.
• Unless otherwise agreed or specified, a minimum of 3 shipment samples is required for initialshipment.
Note that any shipped product that does not meet the Sealed Counter Sample standard might be liable for
rejection by UTOPIAN LTD.
d. Photo Sample / Fair Sample (Selected productsonly)
• These are samples requested by UTOPIAN LTD. for press, catalogue or internal
trade fair purpose.
Samples should be with identical outlook to approved style sample.
2. Soft lines: Apparel:
Vendor should submit related and valid testing reports to Quality Department of UTOPIAN LTD. for review
and evaluation. Detailed information regarding test requirements for specific products and approved
laboratories are stated in respective UTOPIAN LTD. Product Specification Requirements (PSR).
UTOPIAN LTD. requires to receive original test report as well as tested specimen for all Physical tests
performed on Apparel.
4. • Style Sample:
• Style sample must be made based on the specifications in the Inquiry and Design sketch;
• This serves for approval for style, fitting and measurements as required in Inquiry.
• Styles samples must use fabrics and trims in correct quality of available colors. If only similar quality is used,
vendors must advise UTOPIAN LTD. merchandiser in advance for approval,
• Size Set (applicable for Garmentonly)
• Size set samples must be made based on the comments on style samples regarding fitting.
• Size set samples should be made of fabrics and trims in correct quality of availablecolor
• Quality / Color sample
• Lap dips: For approval of color
• Quality cutting: For approval of quality, composition and construction;
• Strike off: For approval ofprint
• Hand Loom: For approval of yarndyed weave
• Trims: For approval of trims such as buttons, zippers, toggles, appliqués etc.
• Counter Sample / Pre-productionSample
• Clothing & Accessories: Made from bulk material and bulk trims in correct qualities and colors based on the
specifications and approvals on the last comments of style/Size Set/Color &
Quality samples. Additional sample required for 3rd. Party lab-testing.
• Sample to be approved by UTOPIAN LTD. and sealed back to vendors/factories for production
commencement and QC inspection standard beforeshipment
• Shipment Sample
• Shipment samples must be drawn from production line during Final Random Inspection (FRI) in correct
labeling and packaging. For waived FRI, shipment samples should be submitted by vendor to UTOPIAN LTD.
forapproval.
• Shipment will only be released upon approval of shipment samples.
• Photo sample/Fair sample
• On the inquiry, we will specify the deadline, quantity and size of the photo samples needed for every
style.
• These samples must be made in fabrics and trims in correct quality and required colors, and
submitted by thedeadline.
5. (ii) Analyzing process of order management in emergency
Information for UTOPIAN LTD.system
Once your offers have been selected by our customers’, in order for us to place purchase
orders with your company and to pay for your products it is necessary to arrange a vendor
registration in ours. The following documents and information are required:
A. Purchase Agreement and its relevant appendices (This will be issued by the merchandiser
according to your company’s specifics when our management confirms to start the trading
relationship with your company).
B. Specific vendor registration form
(i) UTOPIAN LTD. – UTOPIAN LTD.-Supplier Registration
C. UTOPIAN LTD.requires all vendors that operate in Bangladesh or any country with an
enlistment system.
D. Documents supporting satisfactory, factory audit results: social compliance and quality
system need to be examined by UTOPIAN LTD.
1.1 Initial assessment offactory
For our initial assessment of your factory’s quality system and social compliance, we would
require vendor to submit UTOPIAN LTD. Factory Pre-scan Checklist:
This is a desk top questionnaire when no earlier visit to your factories by our Merchandising
Team before.
1.2 Purchase Order (PO)placement
Once the setup of your vendor account has been completed in our IT systems, and our OpCo’shave accepted
your offers, we will issue to you a Purchase Order (PO) and it looks like:
UTOPIAN LTD. PO
(in case official PO is not ready yet)
6. You should check all of the order details carefully and sign the PO to indicate your acceptance of the order.
You are also required to send us Sales Contract (SC) or Proforma Invoice (PI) showing PO details. The PO,
and SC/PI should then be returned by emailing a scanned copy to your relevant UTOPIAN LTD. merchandising
department in your regions.
1.3 Sample management
Vendors are expected to supply samples to UTOPIAN LTD. free of charge for use in development of the
product, range selection, quality testing & approval, and for marketing activities where applicable. Vendors
should pay for the cost of sending samples to our customers’ in USA, UK or in Europe by courier as
requested.
7. 7
(iii) Analyzing process of production in Factory End for on time shipment/ Buyer-
CASTRO
General TNA/ Production Process For
On time Shipment
Order confirmed Date 08-Dec-20
Total Lead Time 100 Days
Counter sample Comments Comments rcvd 15-Dec-20 7 ~ 10 days from PO Received
Lab Dips
1st Submit date 13-Dec-20 3 ~ 5 days days from PO Received
1st Comments 28-Dec-20 15 days from Lab-Dip Submission
Lab Dips 2nd Submission
2nd Submit date 31-Dec-20 3 ~ 5 days days from PO Received
2nd Comments 15-Jan-21 15 days from Lab-Dip Submission
Size sets sample
Submit date 30-Dec-20 15 days from Counter Sample comments received
Comments 14-Jan-21 15 days from Size Set Sample Submission
Print Grading & Strike
Off
Submit date 17-Jan-21 3 days from Size Set Sample comments Received
Comments rcvd 01-Feb-21 15 days from Strike Off / Grading Submission
Bulk Shade Blanket
Submit 04-Feb-21 20 days from Lab-Dip Approval comments Received
Comments Dt 06-Feb-21 2 days from submission of Bulk Shade Blanket
LAB TEST Report, Ready date 06-Jan-21 10 days from Size Set Sample Submission
PP sample
In ase of Size Set rejection
Submit date 21-Jan-21 7 days from Size Set Sample comments Received
Comments 05-Feb-21 15 days from PP Sample Submission
Bulk Accessories In house 03-Feb-21
Shipment sample
Submit date 12-Feb-21
Comments 24-Feb-21
Production plan
PP meeting 08-Feb-21
Cutting start 10-Feb-21
Sewing Start 12-Feb-21
In line inspection 16-Feb-21
Bulk Garments Test
report 28-Jan-21
Final inspection 03-Mar-21 15 days at least for production
Ex - Factory 07-Mar-21 4 Days After Final Inspection
FOB Date 18-Mar-21 FOB Date (On Board)
Remarks
8. 8
Merchandiser managing customer for sampling Approval.
The Concept of Textile Merchandising: Merchandising in textile is not synonymous with merchandising
being practiced in consumer product companies. It is much broader in its scope, activities and
responsibilities.
Retail Merchandise: The term merchandising in retailing refers to the total process of stock planning,
management and control. The merchandising needs a good numeric skill and ability to make trends,
relationships and co-relationship within regular sales and stock. The responsibilities of merchandiser are
changes from company to company, according to structure they adopt. The traditional merchandising
role is integrated with the buying, which merchandising team has responsible for both the planning and
stock allocation. The structure of traditional is shown in figure 3.
Textile Mills and Buying House:
• Merchandising can be termed as heart of making a product fail or pass
• Merchandising can be a difference between winning or losing a project/customer.
• Merchandising means finding new customers and markets.
• Merchandising means retaining the customers and extracting more orders from them
• Merchandising means making the customers delighted/satisfied on one hand and brining profits for
the company on other.
• Merchandising means making communication bridge between the company and its customers.
• Merchandising means completion of project/order placed by the buyer as per its requirements in right
time, quality and quantity.
9. 9
Merchant execute order in tough situation.
Flow chart of activities
Flow chart of activities gives you a clear and overall picture of merchandiser’s function within and outside
an organization.
It starts from marketing and reception of a request until dispatch of an order and getting buyer’s
feedback after using the product. The request can be of cotton, yarn, fabric or garment. The job of
merchandising becomes complicate and important with the increase of value addition (Naseer, 2008).
10. 10
Process flow of Merchandising
The process starts when a customer sends initial inquiry/purchase order which is may be a simple fax
describing briefly the target price *FOB (Freight on Board) and product detailed package from a buyer
describing in detail. Now the merchandiser will first make a preliminary meeting with the all department
managers to see if the company has the capability to product that product in terms of man and
machines. Then merchandiser makes a cost sheet to see if the product is feasible or not in terms of cost
and revenue. For this purpose, a cost sheet is prepared, keeping in view the styling and accessories to be
used on the product. After finalizing the cost sheet is send to senior merchandise manager for approval.
The approval is mainly granted keeping profit in view. Once an order is received in the form of PO
(purchase order), it is mentioned in order booking status. Order status is necessary to maintain the track
of records, capacity optimization (Yousufi, 2010).
The main advantages to establish the Order Booking Status are following (Yousufi, 2010)
• Makes order follow up easier
• Allow better planning
• Helps in contingency optimization
• Helps in contingency planning
• Improves time management
• Improves coordination
• Helps in financial forecasting
Now the merchandiser will first make OC (order confirmation) against PO mean for internal working of
the order PO is converted into OC, because in PO customer use his own wording which is difficult to
comprehend for every one Now the OC with approved sample is send to PPC (Production Planning &
Control) department because PPC will have to plan against the order. After sending all the details to PPC
department merchandiser give follow up to the order and will also inform customer with the passage of
time. Whenever any of the department feels any problem regarding order they will contact with
merchandising department. Mostly the merchandiser focus is on production department because in
production many of the problems occur like color, shades, wash etc (Yousufi, 2010).
I. Sampling: It is the complete process through which sampling approvals are taken. It starts from a
marketing sample, proto sample approval sample and ends at shipment sample depending on the buyer
as different buyer have different sampling requirements. Sampling department makes samples on
merchandiser demand and later these samples are sent to customer for selection purpose.
Merchandisers keep a voracious eye during sample making upon workers (Yousufi, 2010).
II. Information Management & Forwarding: All information received from the buyer is forwarded to the
relevant department in the factory as to PPC package, checklist, accessories etc. information is provided
which in terms is processed by the PPC and is forwarded to the relevant departments to start
production (Yousufi, 2010).
11. 11
III. Updating of OBS OBS: could Management Information System lead document in case it is not properly
updated. Special checks need to be maintained for proper upgrading of the OBS ad if data on the OBS is
incorrect capacity and management could be seriously affected (Yousufi, 2010).
Conclusion
The role of merchandiser in textile industry has been vital since the beginning of the trade, the only thing
that has changed is the shape of the supply chain in modern world which is clearly in a process of shifting
from supply chain concept to value chain, or in other words, from brand oriented to customer oriented.
This shift has increased the responsibilities of merchandisers along the whole supply chain, both at the
supplier end and the retailer end. The major problem still faced at both ends of the supply chain is the
lack of coordination and communication, at this stage emerges the role of middle man, the buying house
or so called the agents. The merchandiser at the buying house act as a channel between the retailers and
the suppliers, without this channel according to our study it’s extremely difficult to meet the demands
posed by the retailer and it is mainly because of the lack of coordination which is perceivable as buying
houses have good relations and contacts with the suppliers which is key to good coordination’s and which
is a tricky thing for all retailers
References
Hossain, S. 2008. RMG sector in Bangladesh, Available in www.rmg.org accessed on 15th
November, 2020
UTOPIAN- https://utopian-bd.com/
https://garmentsmerchandising.com/textile-merchandising-an-ultimate-tool-for-the-textile-
business/
Main Ref for below
Kashif, M. (2010, May 3). Role of Merchanndiser. (Z. Saqib, Interviewer)
Odequist, N. (2010, May 19). Role of Merchandiser. (Z. Saqib, Interviewer)
Yousufi, H. (2010, May 26). Role of Merchandiser. (Z. Saqib, Interviewer)