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INTERNSHIP ON
INDUSTRIAL TRAINING & PARACTICE ON GARMENTS MERCHANDISING AT PURBASHA
COMPOSITE TEX LTD.
INTERNSHIP ON
INDUSTRIAL TRAINING & PARACTICE ON GARMENTS MERCHANDISING AT PURBASHA
COMPOSITE TEX LTD.
Prepared For:
Professor Faruque M. Masud (Chairman)
Department of Fashion Design and Technology
Uttara University
Prepared By:
MD. RAFEUZZAMAN
ID: 2201401055
Batch: 23th
March 29, 2024.
Department of Fashion Design and Technology Uttara University
Uttara, Dhaka.
LETTER OF TRANSMITTAL
March 29, 2024.
Professor Faruque M.Masud Chairman
Department of Fashion Design and Technology
Uttara University.
Subject: INTERNSHIP REPORT
Dear sir,
I am very pleased to submit this internship report on the topic “INDUSTRIAL TRAINING &
PARACTICE ON GARMENTS MERCHANDISING AT PURBASHA COMPOSITE TEX
LTD”. That you have approved and assigned as compulsory requirements of IE. I think that this
internship report has helped me a lot in enhancing the knowledge about the respective subject matter, as
well as empowering my skills. I have really enjoyed working on this paper and hope that this effort will
meet the level of institutional expectation.
I am very glad that you have given me this opportunity to prepare this internship report and I hope you
will accept my internship report considering the limitations.
Thanking You,
Sincerely,
MD. RAFEUZZAMAN
ID : 2201401055
Batch: 23th
Department of Fashion Design and Technology
Uttara, Dhaka.
DECLARATION
I hereby declare that the work presented in the internship project has carried out by me and has not been
previously submitted to any other University / College / Organization for an academic qualification /
certificate / diploma or degree.
I further undertake to indemnify the University against any loss or damage arising from breach of the
foregoing obligation.
MD. RAFEUZZAMAN
ID: 2201401055
Batch: 23th
Department of Fashion Design and Technology
Uttara, Dhaka.
ABSTRACT
Internship program is an integral part to fulfillment of B.S.C (Hons) degree in Uttara University. This
program is actually a connection of academic and professional life dealings. For coordinating my
internship I was placed in a garments and my topic is “INDUSTRIAL TRAINING & PARACTICE ON
GARMENTS MERCHANDISING AT PURBASHA COMPOSITE TEX LTD.”. Merchandising is
most important for textile sector. A textile company fully depends on its merchandising department. A
good merchandising system or process can easily improve the quality of a product that very much
choice able to the buyer. After analyze and investigate the merchandising functions and activities at
Purbasha Composite Tex Ltd. Ltd. I finally prepared this report. I devoted my utmost effort and
attention to learn the merchandising functions and activities of the company.
Merchandising department is the heart among all the working departments in a Export concern
company, because Merchandising is the only department having maximum control over the departments
and total responsibility for Profit and loss of the company. Mainly I followed close observation method
to complete my study. I have been able to learn a lot about merchandising during this study. Particularly
I tried to gather knowledge on activities and responsibilities of a Merchandiser, their ordering
procedure, different types of L/C, consumption and calculation of different products, shipping terms,
trims & accessories. Finally I tried to have an overall clear concept of garment trade & importance of a
merchandiser on it.
I have rendered my all knowledge to present this report on the Merchandising functions and activities
Of Purbasa composite text Ltd. In this study, it is shown that how this company conducts their present
merchandising system. From the study of the Garments Merchandising of Purbasa composite text Ltd. it
is found that the company rear potentiality to develop their merchandising system.
Acknowledgements
At first, I would like to express my deepest gratitude to Almighty Allah for giving me the strength to
complete the task within the schedule time.
I would like to offer my deep gratitude, compliments and heartfelt thanks to our respectable teacher and
my internship supervisor Prof. Farruque M. Masud, Chairman, Department of Fashion Design and
Technology , Uttara University, whose constant supervision and guidance enabled me to prepare this
dissertation paper . I am indebted to him for his proper management, excellent support, inspiration and
guidance throughout the study.
My gratitude also goes to Mr. Alamin, Assistant General Manager, Design and Merchandising
department , Purbasa composite text limited, for providing necessary help and guidance.
I am ever grateful to all of my teachers of Fashion Design Department of Uttara University, who helped
and guided me to complete this dissertation paper.
Finally, a silent stream of gratitude is for my most adorned parents whose blessing is always with me in
this world.
Table of Contents
LETTER OF TRANSMITTAL----------------------------------------------------------------------------
DECLARATION-----------------------------------------------------------------------------------------------
ABSTRACT ACKNOWLEDGEMENT -------------------------------------------------------------------
EXECUTIVE SUMMARY-----------------------------------------------------------------------------------
1. INTRODUCTION------------------------------------------------------------------------------------01
1.1 Background of the Study---------------------------------------------------------------------01
1.2 Statement of the Study-----------------------------------------------------------------------02
1.3 Objectives of the Study ----------------------------------------------------------------------02
1.4 Limitations of the Study ---------------------------------------------------------------------02
1.5 Methodology ----------------------------------------------------------------------------------03
2. INTRODUCTION TO ORGANIZATION ------------------------------------------------------04
2.1 History of Purbasa composite text Ltd -----------------------------------------------------05
2.2 General Information of Purbasa composite text Ltd -------------------------------------06
2.3 Organogram of Office -----------------------------------------------------------------------07
2.4 Organogram of Admin and Production -------------------------------- -------------------08
2.5 Organogram of Garments Division---------------------------------------------------------09
2.6 Achievements ---------------------------------------------------------------------------------10
2.7 Buyers------------------------------------------------------------------------------------------10
2.8 Turnover in Million $ ------------------------------------------------------------------------11
2.9 Social Compliances---------------------------------------------------------------------------11
3. INTRODUCTION TO MERCHANDISING ---------------------------------------------------12
3.1 Concept of Merchandising-------------------------------------------------------------------12
3.2 Major Responsibilities of a Merchandiser-------------------------------------------------13
3.3 Qualities of a Merchandiser -----------------------------------------------------------------13
3.4 Function of a Merchandiser------------------------------------------------------------------13
3.5 Purpose Of Merchandising-------------------------------------------------------------------14
3.6 Merchandising Management--------------------------------------------------- -------------14
3.7 Objectives of Merchandising----------------------------------------------------- -----------14
3.8 The Present Scenario of Merchandising System of Cotton Club BD. Ltd-------------15
3.9 Flow Chart of Merchandising----------------------------------------------------------------15
3.10 Function and activities of Merchandising Department-----------------------------------16
3.11 Merchandising Activities on Quality Control------------------------- --------------------19
3.12 Order Follow Up Procedure------------------------------------------------------------------20
3.13 Order Confirmation----- ----------------------------------------------------------------------20
3.14 Confirmation of the Production--------------------------------------------------------------21
3.15 Merchandising Activities on Goods Delivery to Buyers Destination-------------------21
4. UNDERSTANDING SAMPLE FOR MERCHANDISER----------------------------------------22
4.1 Sampling Process--------------------------------------------------------------------------------------22
4.2 Purpose of the Sampling Process-------------------------------------------------------------------22
4.3 Sequence of Sampling--------------------------------------------------------------------------------23
4.4 Responsibilities of Sampling Department -------------------------------------- ----------------23
4.5 The Details Attached to the Garment Sample-------------------------------------- --------------24
4.6 Steps of Garment Sample Approval----------------------------------------------------------------24
4.7 Types of Sample Prepared---------------------------------------------------------------------------25
5. BUSINESS DEVELOPMENT AND PROCEDURE------------------------------------------------28
5.1. Flow Chart of Business Development------------------------------------------------- ------------28
5.2. First Email to Buyer for Business Development-------------------------------------------------29
5.3. Feed –back from Buyer in Response to First Email---------------------------------------------30
5.4. Sending Quality Samples to New Buyer for Better Understanding of
Workmanship of Factory---------------------------------------------------------------------------30
5.5. Approval Procedure of Sales Samples-------------------------------------------------------------31
5.6. Cost Sheet & Consumption Sheet Preparation----------------------------------------------------31
5.7. Consumption Calculation of Fabrics, Accessories & Cartoons--------------------------------35
5.8. Negotiate the Price with the Buyer-----------------------------------------------------------------38
5.9. Master L/C checking procedure & important items should be included in40
Master L/C-------------------------------------------------------------------------------------------40
5.10. M L/C Check List Items and Those Items Must be Included in This L/C-----------------40
5.11. Master L/C confirmation Procedure-------------------------------------------------------------40
5.12. E-mail to Suppliers for Samples of Yarn, Fabrics & Different types of
Accessories for Buyer Approval--------------------------------------------------------------------41
5.13. Buyer Approval Procedure of Fabrics, Color & Accessories--------------------------------41
5.14. Procedure of Receiving of Price Quotations for Fabrics & Accessories-------------------42
5.15. Price Negotiation Procedure with Different Suppliers----------------------------------------43
5.16. Writing to Suppliers for Price Negotiation Meeting------------------------------------------43
5.17. Writing Agenda for Price Negotiation Meeting-----------------------------------------------43
5.18. Writing Minutes after Price Negotiation Meeting with Suppliers Required Price
Confirmation from Suppliers--------------------------------------------------------------------------44
5.19. Presentation of Comparative Statement (CS) Related with Different Suppliers
for Fabrics & Accessories-----------------------------------------------------------------------------44
5.20. Preparation of Data Bank, of Suppliers for Different Items---------------------------------44
5.21. Preparation of Supplier for Different Items----------------------------------------------------45
5.22. Booking or Requisition to Supply Chain Department for Different Items
Along with Approval from Buyers-------------------------------------------------------------------45
5.23. Insurance of P.O to Suppliers for Fabrics & Accessories------------------------------------45
5.24. Items Should be Included in P.O.-----------------------------------------------------------------46
5.25. P.I Collection Procedure from Suppliers & Checking of P.I---------------------------------46
5.26. Daily Production Report from Suppliers to Match with Factory Production
. Planning----------------------------------------------------------------------------------------------------46
5.27. QC Management System for Monitoring of Suppliers Production-------------------------47
5.28. Preparation of Production Files for Production Starting-------------------------------------47
5.29. Sending Procedure of Pre-production Samples Approved by Buyers,
Production file & Pattern to Incharge of Factory--------------------------------- ---------------48
5.30. Preparation & Conducting of Pre- production Meeting in Factory-----------------------48
5.31. Trims Card Preparation and Submission------------------------------------------------------48
5.32. Preparation of Shipping Samples & Sending to Buyer through Proper Packing &
Documentation-----------------------------------------------------------------------------------------49
5.33. Preparation of Packing List after Final Inspection--------------------------------- ---------49
5.34. Invitation to Third Party like SGS for Final Inspection------------------------------------50
5.35. Selection of Shipping, Forwarding & Consolidation Company for Smooth50
Shipment-------------------------------------------------------------------------------------------------50
5.36. Time & Action plan preparations---------------------------------------------------------------51
5.37. Helping Commercial Department for Making Proper Documentation for
Submission in Bank-----------------------------------------------------------------------------------52
5.38. Trims card Preparation---------------------------------------------------------------------------52
5.39. Monthly Merchandising report-----------------------------------------------------------------53
5.40. Writing Future Business Plan---------------------------------------------------------------------53
6. CONSUMPTION AND COSTING FOR MERCHANDISER----------------------------------54
6.1. Types of Apparel Costing--------------------------------------------------------------------------54
6.2. Elements of Cost---------------------------------------------------------------------------------------54
6.3. Information Required for Costing-----------------------------------------------------------------55
6.4. Factors Influencing the Costing Process---------------------------------------------------------55
6.5. Fabric Costing Parameters---------------------------- ---------------------------------------------55
6.6. Costing Process of T-shirt--------------------------------------------------------------------------56
6.7. Approximate Sewing Thread Consumption of Different Items------------------------------64
6.8. Machine Wise Sewing Thread Consumption/Inch---------------------------------------------64
7. UNDERSTANDING TRIMS AND ACCESSORIES FOR MERCHANDISER--------------65
7.1. Trims---------------------------------------------------------------------------------------------------65
7.2. Accessories--------------------------------------------------------------------------------------------66
7.3. List of Trims and Accessories----------------------------------------------------------------------66
7.4. Buttons-------------------------------------------------------------------------------------------------67
7.5. Button Linge Number and Calculation------------------------------------------------- ----------67
7.6. Buttons Size and Their Use in Garments---------------------------------------------------------67
7.7. Different Types of Button---------------------------------------------------------------------------67
7.8. Zipper------------------------------------------------------------------------------------------ --------69
7.9. Different Types of Zipper---------------------------------------------------------------------------69
7.10. Quality of Zipper---------------------------------------------------------------------------------70
7.11. Label------------------------------------------------------------------------------------------------70
7.12. Types of Label Based on Construction--------------------------------------------------------70
7.13. Different Types of Label------------------------------------------------------------------------70
7.14. Sewing Thread----------------------------------------------------------------- -------------------71
7.15. Types of Sewing Thread-------------------------------------------------------------------------71
7.16. Lining-----------------------------------------------------------------------------------------------71
7.17. Interlining------------------------------------------------------------------------------------------71
7.18. Types of Interlining---------------------------------------- --------------------------------------72
7.19. Packing Accessories------------------------------------------------------------------------------72
7.20. Types of Carton-----------------------------------------------------------------------------------72
7.21. Poly Bag---------------------------------------------------------------------------------------------------73
7.22. Material Used in Poly Bag-----------------------------------------------------------------------------73
7.23. Types of Poly Bag---------------------------------------------------------------------------------------73
8. COMMUNICATION AND NEGOTIATION FOR MERCHANDISER-------------------------74
8.1. Communication Skills for a Merchandiser ----------------------------------------------------------74
8.2. Listening Skills ------------------------------------------------------------------------------------------74
8.3. Writing Skills---------------------------------------------------------------------------------------------75
8.4. Speaking Skills-------------------------------------------------------------------------------------------75
8.5. Presentation Skills---------------------------------------------------------------------------------------75
8.6. E-mail Etiquette for a Merchandiser------------------------------------------------------------------76
8.7. Negotiation Skills----------------------------------------------------------------------------------------76
8.8. Improving Negotiation Skills--------------------------------------------------------------------------76
8.9. Negotiation Process & Ending of Negotiation------------------------------------------------------77
8.10. Negotiation Requirements of Both Parties-------------------------------------------------------78
8.11. Prepare Meeting for the Negotiation--------------------------------------------------------------78
8.12. Discuss the Offer-------------------------------------------------------------------------------------78
8.13. Making an Agreement-------------------------------------------------------------------------------78
CONCLUSIONS-----------------------------------------------------------------------------------------------------79
BIBLIOGRAPH-- ------------------------------------------------------------------------------------------------------80
1
1. INTRODUCTION
B.S.C. (Hons), department of Fashion Design and Technology, Uttara University introduced
internship program in the final semester under the supervision of honorable chairman of the
department .For this research the selected organization is Purbasa composite text Ltd. Located at
Jamirdia, Valuka, Mymensingh, Bangladesh, for the selected research subject Industrial Training
and Practice on Garments Merchandising at Purbasa composite text Ltd. During the Internship
period I have focused on merchandising functions and activities of the company. The study will
cover the practice, procedures and technique followed by the merchandiser in the preparation of
order to shipment in Purbasa composite text Ltd.
The Merchandising is the important activities, term and section of a garment that is not possible
to run and deliver successfully. The term “merchandising” is well known to the persons specially
involved in garments trade. The term merchandising has been derived from the term
merchandise. Merchandise means good that are bought & sold.
Merchandising is a specialized management function within the fashion and apparel industry. It
is the business that moves the world fashion from designing showroom to the retail sales floor
and into the hand of consumers. Merchandising is planning, developing and presenting product
lines for identified target market with regard to pricing, assortment, styling, and timing.
Merchandising is about to follow up every process from raw materials to finished goods, giving
all logistics support.
1.1 Background of the Study
Without the practical knowledge, theoretical knowledge is valueless. From this point of
philosophy department of Fashion Design and Technology of Uttara University, Dhaka, has
introduced an internship program with a view to achieve practical knowledge associate with the
different fields of garments business. So after academic education this internship program will be
a great opportunity for me to see the real business world, acquire practical knowledge and to be a
smarter world business professional of garments sector. For this reason to do my internship in
Purbasa composite text Ltd. I communicate with a forwarding letter that was issued by the
Department of Fashion Design and Technology, Uttara University . I am very much grateful to
the authority of Purbasa composite text Ltd. for giving me the opportunity of doing my internship
in this reputed organization.
2
1.2 Statement of the Study
The study will disclose present scenario of merchandising system and Practices at Purbasa
composite Tex Ltd. The topic “INDUSTRIAL TRAINING AND GARMENTS
MERCHANDISING AT PURBASHA COMPOSITE TEX LTD.” gave me an opportunity to
have an exposure to the working environment and on the job experience in merchandising of
Purbasa composite text Ltd. In Bangladesh we specially means by “Merchandising” the
merchandising of garments. A merchandiser is the most important person in a garment. All works in
garments factory under the direction of a merchandiser. So merchandising is a challenging
profession in a garments factory or area. If a merchandiser can shipment the product properly,
the buyer will be pleased on him and will get more order from them. So development of the
merchandising profession will develop the textile area of Bangladesh.
1.3 Objectives of the Study
The main objectives of this study are scrutinizing the merchandising system of Cotton Club BD.
Ltd. Academic knowledge is not perfect, practical knowledge is essential with it. The objectives
of the study are to gather knowledge through practical work. It will fulfill the experience through
theoretical as well as practically. So it is essential to rapid development of merchandising of a
company especially in apparel industry. The followings are the main objectives of the present
study:
 To define and evaluate the merchandising systems of Purbasa composite text Ltd.
 To observe the effectiveness of merchandising department.
 To compare practical merchandising system with theoretical approach.
 To know the functions and activities of merchandiser
 To know the business development procedure with foreign buyer
 To find out the duties and responsibilities of merchandisers
 To know the skills required for merchandiser
1.4 Limitations of the Study
Actually, I have not faced any kind of mentionable problem in my internship period at Purbasa
composite text Ltd. Several levels of officers, employees helped me in several conditions. Though,
I have faced a few problems, which I should mention to depend on the research. The followings
are some problems:
 Time constraint
 Merchandiser doesn’t have enough time to give the information elaborately.
 Short time visit in different work stations
 Lack of organizing chain of command
3
 Lack of instruction book, and any change. They are following traditional business.
 I may have to suffer for lack of supply chain management.
 Due to high employee turnover rate and lack of good reporting practices in the factory,
problems with collecting data have been faced.
1.5 Methodology
To prepare the report used both primary data and secondary data . Primary data were collected
from the officials of Purbasa composite text Ltd regarding the procedures of operations of
merchandising activities .For working in merchandising for about two months gave a clear
notion about the activities done in that department .Working with other department as well as
discussion with the staff of those departments a lot of primary information .Secondary data were
gathered from the annual reports, relevant published books:
 Primary Source
Primary sources include interacting with employees and face-to-face interviews with the
personnel through an open-ended questionnaire
 Secondary Source
Secondary sources are company website, other research reports, literatures/magazines, books and
the internet.
4
2. INTRODUCTION TO ORGANIZATION
Purbasa composite text Ltd is one of the most modern composite garments manufacturers in
Bangladesh, Holding the floor capacity of 100,400 SQFT. It was incorporated in 2016 with a mission to
grow up as a globally recognized garment manufacturing unit, by delivering quality product and
achieving customers' satisfaction.
Purbasa composite text Ltd has commenced its commercial production from 2016. The manufacturing
process of Purbasa composite text Ltd is vertically integrated with knitting, dyeing, cutting, printing,
embroidery, sewing & finishing. The factory is located at Valuka, Two hour drive from Dhaka
International Airport.
The company has invested a lot to set up the state of the art machineries to meet the challenges of
Textile World. With the help of true leadership of the Management, it has a group of skilled, dedicated
and hard working employees.
Purbasa composite text has got three more production units. Purbasa composite text Ltd. are producing
knitted items for Ladies, men's and children's and another one is Purbasa composite text Ltd. producing
Lingerie items.
Purbasa composite text Ltd is an Oeko-Tex (Class#1), WRAP, GOTS certified, and 100% export
oriented garments manufacturer. We are committed in providing the highest standard of quality, service
and on time delivery.
5
2.1 History of Purbasa composite text Ltd.
Purbasa composite text Ltd established in the year 2016, the quality standards and is engaged in
manufacturing of all kinds of knitted garments. Under the profound guidance of their mentor Arch. Ali
Hossain (Managing Director Purbasa composite text Ltd, established in 2016), their company has gained
an immense success and has earned goodwill with twenty years of experience in the garments industries.
The Chairman is guiding their team with his wide experience and skill. Their product is made using top
quality yarn that is procured from reliable sources across world. They make use of world class in-house
infrastructure and modern machines as well as simple hand tools that helps in producing high quality
fabric in large volumes and varieties. They are dedicated to offer timely delivery of goods and services
at affordable prices.
Mission
Our mission is maximization of productivity and quality of products to ensure competitive price with
maintaining all social and environmental responsibilities to preserve healthy and pollution free world.
Vision
Become a globally recognized garments manufacturer by ensuring personalized service for each
customer and creating continuous employment opportunities for the betterment of the country
Major Competitor
Cotton Club ltd company is a fully export oriented company so they have face both local and
international competition locally. There are many company compete with the Cotton Club ltd company
those are India, Pakistan, Koria, Thailand, China and in locally beximco, DBL Group, Anlima Group,
Jalima Group, Square Textile, Robin Tex ,ACS Textile.etc
Products
Ladies, Children's, Men's T-Shirt, Polo Shirt, Tank Top, Vest, Hooded Jacket, Trouser, Fleece Jacket,
Woven Boxer shorts, Woven Long Pant, Flannel Long Pant, Night wear for Ladies & Men's, Knit
woven combined garments, Sportswear, Underwear
Fabrics
Single Jersey, Double jersey, Lycra Rib, Interlock, Drop needles, Feeder strippers, Auto Stripes, Pique,
Heavy jersey, Terry Fleece, Glitter effected, Metallic (Lurex) mixed fabric, Burnout printed, Nappy,
Slub
Fabric Composition
100% Cotton, 100% Polyester, Cotton-Polyester blended, Cotton-Viscose blended, Melange, 100%
Modal, Cotton-Modal blended, Cotton-Polyester- -Viscose blended .
6
2.2 General Information of Purbasa composite text Ltd.
Factory Name Cotton Club (BD) Ltd
Production Unit Purbasa composite text Ltd.
Nature of Business 100% export oriented Knitted Garments manufacturer
Location Jamirdia, Hobirbari
Mymensingh
Mymensingh
Knitting Capacity Purbasa composite text Ltd. 11,000 kg per day.
Dyeing Capacity Purbasa composite text Ltd. 12,000 kg per day
Sewing Capacity Purbasa composite text Ltd. 60,000 pcs per day,
Purbasa composite text Ltd. 20,000 pcs per day Cotton
Clothing (BD) Ltd. 30,000 pcs per day Tropical Knit
Tex Ltd. 50,000 pcs per day.
Floor Capacity Purbasa composite text Ltd. 100,400 SFT
Printing Capacity 60,000 pcs per day
Embroidery Capacity 35 million stitches per day
Achievements OEKO-TEX, WRAP, GOTS, BSCI,
ISO 9001-2008 certification
Establishment 2016-04-18
Contact Person Name: Arch. Ali Hossain
Designation: Managing Director
Phone: 01318338101
Email:arch-alih@yahoo.com
7
2.3 Organogram of Head Office
8
2.4 Organogram of Admin and Production
9
2.5 Organogram Of Garments Division
10
2.6 Achievements
 GOTS - Global Organic Textile Standard
 Oeko-Tex, Class I (Garments)
 Oeko-Tex (Fabric)
 WRAP - Worldwide Responsible Accredited Production
 BSCI - Business Social Compliance Initiative
2.7 Buyers
 C & A
 ZARA
 KIABI
 OKAIDI
 WRANGLER, LEE
 MONOPRIX
 BERSHKA
 JULES
 BONPRIX
 MANGO
 TAKKO
 ESPRIT
11
2.8 Turnover in Million $
2.9 Social Compliances
Compliance, Safety Procedure & Employees Benefits:
Without Social and environmental responsibilities, business is unethical and not legal. That’s why we
invested a lot to keep the working environment safe and secured. We give emphasis on reasonable
access to safe drinking water, sanitary facilities, fire safety, adequate lighting and proper ventilation
12
3. INTRODUCTION TO MERCHANDISING
Garments Industry occupies a unique position in the Bangladesh economy. It is the largest
exporting industry in Bangladesh. Merchandising is one of the most important parts for garments
trade. Without merchandising this trade never be fulfil. Merchandiser deals or handles all the
things from buyer to production. He/She is the centre for all the tasks. After getting an order,
merchandiser calculate all the things, what he need to complete this order & make a nice plan by
which he can do the shipment in time with buyer’s requirement.
In factory level, merchandiser makes all the orders for accessories needs for an order like; fabric
need, sewing thread, button, washing if necessary, carton, polybag, shipment arrangement etc.
Actually merchandiser make looks on the whole progress. Normally, the production people are
always try to do work in delay, thus many trouble can come for the shipment. But, merchandiser
always makes a good follow-up to work in time with right quantity & right quality. In the other
hand, merchandiser deals with the buyer’s about order approval & comments.
The activities involved in garments merchandising is normally done by a dynamic & expert person
called merchandiser. The function of a Merchandiser is known Merchandising. The term
Merchandising has been derived from the word Merchandise which means goods that is bought
and sold. At last, we can say that, merchandising is the heart of garments trade. Without this
garments trade is valueless. So this part is more important in our future life.
3.1 Concept of Merchandising
The term “merchandising” is well known to the person specially involved in garments trade. The term
merchandising has been derived from the term “merchandise”. Merchandise means goods that are bought
and sold. The term merchandiser may be defined as the person who merchandises the goods
especially for export purposes. Garments merchandising means buying raw materials and
accessories, producing required garments, maintaining required quality level and exporting the
garments within schedule time frame.
13
3.2 Major Responsibilities of a Merchandiser
 Order sourcing/supplies.
 Negotiation.
 Production.
 Calculating Yarn/Fabric consumption.
 Calculating costing of the product.
 Monitoring Quality aspect.
 Product development.
 Liaison with Buyers Customers & Factory.
 Factory Scheduling.
3.3 Qualities of a Merchandiser
 Should be a smart person with fluent speaking, reading and writing ability in English
 language.
 Good knowledge in Mathematics, Computer literacy and e-mails internet.
 Should a technically sound person having clear conception about fibre, yarn, fabric,
dyeing, printing, finishing, dyes, colour fastness, garments production, etc.
 Clear conception of the usual potential quality problems in the garments manufacturing.
 Good knowledge of the usual raw materials inspection systems & garments inspection
system
 Knowledge of the quota system used in each of the production countries, duty rates,
custom regulation, shipping and banking documentation etc.
 Right consumption knowledge of various goods
 Costing knowledge of raw materials
 Order getting ability
 Excellent power of motivation to improve public relations.
 Sincere& responsible
3.4 Function of a Merchandiser
 Fabric requirement calculations.
 Accessories requirements calculation
 Sources of fabrics
 Possible date of arrival of fabrics And accessories in the garments factory
 Costing
 Garments production planning
 Pre shipment inspection schedule
 Shipment document
14
3.5 Purpose of Merchandising
 To collect order from the buyer.
 To shipment the order in time.
 To follow up the working of worker.
 To determine the actual price of the product.
 To improve the quality of the product.
 To increase the goodwill of the textile.
 To seek new buyers.
3.6 Merchandising Management
Merchandising management constitutes the most significant part of textile companies. A
company starts their activities by starting the activities of a merchandiser. When a company
receives an email from buyer, then the activities of a merchandiser start and a merchandiser
always look after all activities from production to shipment.
 Receive email of the buyer or buying house
 Determine the actual price of the product
 Send sample of the product
 Ensure a good quality of product
 Follow up the production process.
 Monitoring the payment.
3.7 Objectives of Merchandising
Efficient Management of merchandising should ultimately result in the maximization of sales of
products. In order to minimize cost Stated differently that the objectives of merchandising
management consist of two counter-balancing parts: -
 To maintain merchandising system for efficient and smooth production and sales
operations.
 To maintain a minimum cost to maximize profitability.
These two conflicting objectives of merchandising management can also be expressed in terms
of cost and benefits associated with inventory. So That, the industry should minimize cost of
product for increasing more sales and more profit.
15
3.8 The Present Scenario of Merchandising System of Cotton Club BD. Ltd.
Merchandising is an important task of a textile company. Merchandising department is the star of
the department among all the working departments in the Export concern, because
Merchandising is the only department having maximum control over the departments and total
responsible for Profit and loss of the company . Cotton Club is a renowned knitted garments
exporters. Most of the renowned buyers place their order in Cotton Club .Cotton Club has highly
professionals merchandisers who are handling the buyers from order placement to shipment .
3.9 Flow Chart of Merchandising Department
16
3.10 Function and activities of Merchandising Department
Fore casting
It is an important term for merchandising. At first a merchandiser have to decide in what type
product he will produce. There are various products in textile sector. After deciding the product
then he will start for order sourcing.
Order Sourcing
Sourcing is a term use to describe the process of determining how and where item will be
procedure. It includes the decision on the selecting supplier for material procurement and
vendors for apparel production. The stages of sourcing:
 Internet
 Business directory (yellow pages)
 Advertising
 Buying house
 All country of Embassy
 To exhibition
Factor for sourcing
 Sourcing decision depends on some factors
 Product factor: Style, design, quality standard, price reference,
 Company/vendor factor: Company goodwill, previous history, minimum order quality,
quality standard, and service ability
 Country factors: Political: The present political stability ,Economical: financial, banking,
insurance etc. facilities or tax free or others opportunities
 Cultural & language: In time delivery, previous history, morality, religious factor, ability
of speaking English education
 Geographical: Distance, transport cost.
Checklist for selecting a vendor/factory
 Name and address of the company.
 Contact number and person
 Major market of customers (which customer they deal)
 Major products, (which products they experienced)
 Capacity (monthly or annually)
 Physical size of the plan.
17
 Number of employees
 Financial status
 Location of production
 Production facilities
 Quality standard
 Minimum order quantity
Negotiation
Its not contest. Its opportunity to establish good working relationship which obtaining a good
deal. Negotiation is a stimulating way to arrive at acceptable solution to the need for something
whither it is a need to resolve the difficulties or to settle terms.
Introducing
Actually merchandiser activities started by introducing with the buyers. Introducing may occur
by two ways 1. Buyer to seller 2. Buyer to buying house and buying house to seller. Generally
they communicate with them by email and telephone or mobile.
Enquiry
At the time of introducing the buyer send their requirements, which include which type’s
products, he needs. They also provide sample size, sample photo; style etc.
Source Fabric
After receiving the enquiry a merchandiser have to find from where fabric can be found as per
buyers requirement. There are two sources of fabric. 1. Local source 2. Foreign source. Both local
and foreign it needs to open a L/C. In textile sector generally back-to back L/C is used to collect
Fabrics.
Prepare Lab Dipping
It is an important part of sampling. If buyer wants color size product then he need to send them
for proper coloring. After that lab test is send to the buyer for approve. For an example Letter
that is send to lab is given below:
18
Date:
To
Mr. Babul
Cotton Club (BD) Ltd.
Sub: Lab Dip
Programmed Buyer
Name: Next
Fabrics- 65%Cotton, 35%Polyester, S/J 180 GSM
SL # Color Name Pantone/Shade Fabrics Remarks
01 Orange 158 C
Gets Approval Lab Dipping
Lab Dip confirmation & may be fitting & workmanship changes:
 Start with dyeing the fabric (if necessary start tests bulk)
 Sending preproduction samples or size set in original fabric with all already Confirmed details.
After checking & necessary changes, the confirmation of labels, print and patch production
Order Bulk Fabric Production
Dyeing : After the buyer approves lab test, and then sample is sent for dyeing.
Fabric Printing : Fabric printing is the process that applies a single or multi colored/design on a
white of dyed background fabric, using textile dyes. If there is any need of print, then it is sent
for print.
Source Prepare Trims & Accessories
for preparing a product a company need various types of trims and accessories. These are very
much important for textile product. Such as tag, pin, scope tape etc. so it is the duty of a
merchandiser to sourcing accessories before start production.
Develop a Sample
Sample is the physical form of buyer’s specification or style/design .It is the merchandiser’s
responsibility to develop the sample after getting technical sheet from the buyer . For sampling a
merchandiser need Fabrics, yarn, level, etc. Different types of sample are developed according to
buyer requirements .
19
Swatch
Swatch is a presentation of all the materials is (Fabric & Accessories) used for any specific
style/order. Usually small piece of fabric and each piece of accessories are attached in board
paper in a systematic manner. Swatch is very important for production line to make the correct
construction of a garment and QC department ensures it.
Pricing
It is the most important factor for a merchandiser. A merchandiser is the person who fix or
determining the price of the product. Deals will be done or not is totally depend on the price of
the product
3.11 Order Follow Up Procedure
Just after the placement of the order a merchandiser has to study the requirement laid down in the
order sheet:
 Classification of test
 Study order Specification Details
 Order details/Style details
 Quantity
 Trims/Accessories
 Delivery terms & Condition
 Monitoring of contract
 Opening and maintaining files
 Distribute the order specification to the relevant dept.
 Sample controlling.
 Sourcing of supplies.
 Monitoring Import procedures
 Banking procedures
 Customs procedure
 Warehouse arrangement
 Arrival of purchased Materials
 Completion of custom procedures
 Inspection/Identification
 Storing of clothing materials
 Factory production:
 Execution of order
 Meeting the Quality standards
 Checking work in progress
20
 Co-Ordination with Buying Agents
 Liaison with buying office personnel for related manufacturing issues
 Logistical and distribution Arrangements
 Freights forwarding (sea/air)
 Financial Transactions
 Follow up Final payment
3.12 Confirmation of the production
 Only if all confirmation has been given, the production can start
 Pay attention & special care to all further production instruction from the buyer.
 Send pre-shipment production to buyer.
 Before shipment inspect the production by buyers nominee
 Ship the goods within shipment date
3.13 Merchandising Activities on Production
After receive a purchase order from buyer merchandiser have to sit with production planner to
make a production plan. Production plan contain below things:
 Planned date to start knitting/ weaving to make the required fabrics.
 Planned date to start dyeing to color the fabrics.
 Planned date to start cutting fabrics.
 Planned date to start sewing the required garments.
 Planned date to start packing the required garments.
 Planned date to hand over finished goods to buyer nominated sea or air forwarder.
Trail/ Test cutting
Before start bulk cutting to adjust pattern we cut each size and each color10/15 pcs. This is called
trail or test cutting. After approved trail or test cutting we can go for bulk cutting.
Sewing
Sewing section is the section where cutting part are joined to make a garments. In sewing section sewing
machines are set up according to the kind of final product.
21
Packing
After sewing, garments are packed into packing section. Here we put iron on garments, add
various kinds of hangtags, poly bags and make garments ready to ship to the buyer.
3.14 Merchandising Activities on Quality Control
The main objective of quality control is to ensure that goods are produced to the first customer
(Direct Order) and hopefully to the second customer (Recorder/Alter order/ new order) as well.
If both customers can be satisfied then the manufacturer products are more likely to continue to be
in demand. Satisfactory quality can only be ensured through from the manufacturer pint of view
 Knowing the customer’s needs.
 Designing to meet them
 Faultless construction- manufacture.
 Certified performance and safety.
 Clear instruction manuals.
 Suitable packing.
 Prompt delivery.
 Feed back of field experience.
3.15 Merchandising Activities on Goods Delivery to Buyers Destination
Booking to Forwarder
After making final inspection merchandiser received packing list from packing section which
contain the list of carton, how many pieces garments in the carton, weight of the carton, number of
pieces of garment to be shipped etc. Refer to this information merchandiser make booking to sea
or air forwarder
Export Documentation
The documents which to be submitted by a C&F agent for export: An exporter should have to
submit the following documents to the customs authority of a station
Payment Monitoring
After getting order from buyer A L/C have to open by the buyer .L/C means Letter of Credit. It is
a conditional undertaking of payment. It is a document issued by a bank on behalf of an applicant
undertaking to make payment to a beneficial up to a stated amount moneys within a prescribed
time limit and design stipulated documents.
22
4. UNDERSTANDING SAMPLE FOR MERCHANDISER
Sample is the prototype or model of the garments upon what buyer can decide on how and whether to
confirm the order or not. In garments industry, this sample come from buyer and it is followed from
bulk production called sample. Garment samples are inevitably important and are developed tested
before starting the bulk production. It means making a sample of the garment /fabric which requires to
be sold. Sampling is one of the main process in Garment Industry and it has a vital role in attracting
buyers. Because the buyers generally places the order after they are satisfied with the quality of the
samples.
4.1 Sampling Process
Sampling process in the apparel industry is an important activity for the order acceptance. The process
of developing sample varies from industry to industry based on the buyer’s requirement and the style /
type of the garment they are dealing with.
The process of sample department varies continuously, and the development process will cover a wide
range of unique products. There are three distinctive phases of sampling process; the first phase covers
the development of the initial concept or design idea and getting the approval by the customer or to
undertake the buyers’ requirement and their target segments to develop the theme and product. The
second phase covers the process of prototyping of sample and carry out the functions of sourcing and
ordering component, testing the product and carry out trials based on the finalized sample specifications.
The third and final phase includes a range of activities that are carried out before large scale or bulk pro-
diction capacity outside the producer/developers if needed.
4.2 Purpose of the Sampling Process
 To allow the buyer to judge the production capabilities of the manufacturer.
 To provide a means for making revisions in the bulk production process.
 To let the manufacturer estimate the thread and fabric consumption, and develop cost
quotations.
 To optimize the processing parameters for mass production
 To get clear idea on costing more ever the manufacturing difficulties
23
4.3 Sequence of Sampling
4.4 Responsibilities of Sampling Department
 Getting clarifications about style details from merchandiser.
 Checking pattern’s workability.
 Preparation of different samples and getting the buyer’s approval.
 Informing quality related problems, encountered during preparing samples to QC
 Minimizing operations and consumption.
24
4.5 The Details Attached to the Garment Sample
After the confirmation of order, each sample sent t 0 the buyer has the following details attached to it,
with the help of a tag. It contains the details pertaining to both, what the buyer has demanded and what
supplement fabric/trim etc they have used (if applicable).
 Ref no.
 Color
 Fabric
 Composition
 Description
 Quantity
 Style no/ Size
 Store
4.6 Steps of Garment Sample Approval
25
4.7 Types of Sample Prepared
Before Confirmation of the order sample
 Development/ salesman/ promotions sample
 Proto sample /reference sample
 Fit Sample
 Counter Sample
After Confirmation of the order sample
 Red Tag sample
 size set
 Preproduction sample
 Trial production Sample
 Bulk production Sample/Top Sample
 Photo shoot sample
 Salesman Sample
 GPT Sample
 Shipment sample
Development Sample
The first sample developed by the company based on the buyers requirement. The sample generally
used to assess the look and take a decision on the sample whether to proceed or decline the particular
style out of the line. The developed sample needs to be submitted within 45 days from the first
communication
Proto Sample
Proto sample will be made after the development is done. It is a prototype of original sample. This
sample will be developed based on the tech pack if the actual fabric and trim will not be available
substitute fabric can be used for making the sample. If the buyer does not approve the proto sample
,factory needs to submit the 2nd proto sample to get the approval .
Fit Sample
Once the proto samples are approved, fit samples are developed. The fit sample is made with actual
measurement based on the original product and specification sheets given by the buyer.
26
FIT samples are considered as a very important factor in sample development. The fit sample is being
inspected on a live model or a dress form to verify the fit and feel of the garment.
Counter sample
After the fit sample approval the counter sample is submitted for the buyer. The confirmation of this
particular sample decides whether the company gets the order or not. So, this sample is developed in all
original fabric, trims accessories, sewing threads, care labels, etc. Based on the counter sample approval,
the buyer will raise purchase order (PO) to the company.
Red Tag Sample
Different Buyer has different types of security seal which they attach with the garments after checking.
This seal is given as an approval of styling, measurement, placement of printing and embroidery and
confirmation of all stitching details. This sample is made with actual measurement ,fabric and
accessories . When the buying QC will come for inspecting the garments then they will ask for Sealed
Sample.
Size Set Sample
Based on the pattern of the approved sample the grading for the other sizes are done and then patterns
for the other sizes will be made. Size-set samples are sent to the buyer once the fitting is approved in S-
small, M-medium, L- large, XL-extra-large and other sizes as per the requirement. The main purpose of
size set sample is to check the factory’s capability to make the samples in all sizes .Actual fabric and
trims are to be used for size set samples .The buyer specifies the number of quantity to be sent for each
sizes .
Preproduction Sample
Pre-production samples are the pilot run sample, before starting the production; the sample is prepared
with the original fabric and all actual requirements. Acceptance of this sample encourages the factory to
start the bulk manufacturing of the goods.
27
Trial Production Sample
Is the sample to represent the floor production as such these samples are taken from the production of
the floor to assess the overall quality standard of the garments being produced. The sample is prepared
with the original fabric and all actual requirements .
TOP/Production Sample
The top of production is sent to the buyer as soon as initial pieces come out of sewing line with
suggestions of quality audit department. In TOP sample, buyer tries to evaluate the actual manufacturing
of the style. Buyer checks whether bulk production is as per submitted sample or not. TOP sample is
also checked by the buyer for the packaging.
Photo shoot sample
Sometimes buyer wants to do the advertisement with the garments well ahead of getting the same in the
store/market and accordingly they ask for nicely stitched garments. The photo of the garments are taken
putting on the same by some models and the same is displayed in the retail shop or advertisement is
done on papers, magazines, brochures etc to allure and attract the customers.
Salesman Sample
These are the samples need to supply to buyer to help in doing campaign for marketing the item. These
are displayed in the chain store/retail shop well ahead of the bulk quantity receive by the store.
GPT (Garments Performance Test ) Sample
This sample is requested only if the technical parameters of the garments need to be checked where the
garment performance is measured in terms of shrinkage, color fastness, seam performance, etc.
Shipment Sample
This sample is required by the buyer after the final inspection is passed. Shipment samples are sent to
the buyer when the finished and packed garments are ready to be shipped. This sample is referred for
packing details, all detailing attached to the finished garment, that will be going to the stores.
28
Buyer
Selection
Know about the nature of
buyer
First E-mail to the buyer
Collect audit pass report from buyer
Offer to buyer for visit the
company
Company arrange a meeting with
buyer
Sampling
stage
Price
negotiation
Price conforms and order place from
buyer
5. BUSINESS DEVELOPMENT AND PROCEDURE
Apparel industry must be developed with the trend of market otherwise they cannot extend their
business. To collect new buyer and business with them a company must follow the procedure of
business development. Buyers have been chosen by two ways. Firstly, Buyer chooses the supplier
and the second one sometimes, Cotton Club BD. Ltd. want to work with a particular buyer and
then contact with them according to that. The Cotton Club follow the procedure of business
development this are given below.
5.1 Flow Chart of Business Development
29
5.2 First Email to Buyer for Business Development
For new business development sellers have to communicate with buyer. Email is the easiest and
swift way of communication so when seller will contract first time with buyer by email at that
time have to mention some important information about company. Which kind of things should
be include here this are-
 Information about you and your company.
 Products information about your company.
 Capacity and productivity.
 Which buyer work with you.
 Attachment a beautiful sample photograph.
 Wearing for feedback.
Sample of First Email
Dear Sir,
I am X, SR Merchandiser of Purbasha Composite Tex Ltd. We are the manufacturer & exporter of
readymade garments in Bangladesh.
“The Cotton Club ” began its journey into the garments sector in 2006 as garments in Bangladesh. Since then
the organization being run by highly qualified, experienced and professional management and stuff along
with Sophisticated Machineries, Latest Technology, Skilled Workmanship, Substantial Marketing and
Proper Discipline. We are ready and able to give you 100% quality, best price and service.
Our Products
T-shirt, Polo shirt, Tank top, Shorts, Trouser, Jacket (Cotton, Polyester, CVC, France terry, Waffle, etc.)
and many more. We also produce all kinds of Woven & Sweater item.
Please send us your current inquiry for sampling & costing. Your kind co-operation would be highly
appreciated.
Thanks & Best Regards X
Purbasha Composite Tex Ltd
30
Use combed
yarn
Properly
dyeing
Good pattern
making
Sewing
perfectly
Use quality Efull
Accessories
Finishing
properly
Use quality full packing
elements
Re-check measurement &
quality
Send sample with forwarding
letter &
measurement sheet
5.3 Feed –back from Buyer in Response to First Email
Dear X,
I am pleased about your company, so I want to make a business with you. So you should send some
original sample include with FOB price.
Best regards,
Y
5.4 Sending Quality Samples to New Buyer for Better Understanding of
Workmanship of Factory
31
Buyer check fabric quality
Send sales sample to buyer with good
packing
5.5 Approval Procedure of Sales Samples
Sample is made when price is confirmed and orders are placed, usually is M size in all color
combinations of expected order. Buyer held a meeting with its customer and records their
response on order quantity per color, size etc. and finally place order to their vendor. Sales sample
basically use catalogue buyer.
5.6 Cost Sheet & Consumption Sheet Preparation
During the fixation of FOB price of a garment following notes are to be followed carefully:
 Cost of fabrics/Dzn. garments.
 Cost of Accessories/Dzn.garments.
 C.M (Cost of Manufacturing) /Dzn. Garments.
 Cost of embellishment (if any) likes print, embroidery, etc
 Commercial cost.6 . Co mmis s io n ( if a n y)
Garments design (Print, Embroidery)
Wash quality
Measurement maintenance
Overall finishing quality
Approve sample
32
Garment Costing
In order to achieve perfect garment costing, one must know about all the activities including purchase
of fabrics, sewing, packing, transport, overheads, etc.
Shipping Charges
For men's basic T-shirt, the delivery terms in the buyer enquiry as 'FOB'. So sea freight charges
are not added. But the local transport with the cost of garment has to be added. Finally, we have to
convert the Indian rupee value to USD or Euro.
Fabrics Price
Knit fabric price is the sum of the below factors
 Yarn price per kg (approx $6.40)
 Fabric price per yard (approx $0.15)
 Dyeing price per kg (approx $1.5)
 Finishing price per kg (approx $0.50)
Thus the fabric price per kg comes ($6.40+$0.15+$1.5+$0.50)= $8.55.Fabrics consumption for a
European T-Shirt is 3.00 kgs per dozon. So fabrics price per dozon is (3.00 * 8.55) = $25.65
33
Trimming Price
Trims cover all the trims used in the garments except the basic fabric. There are hundreds of
items used to manufacture the garments, proper selection of trims and its quality are very
important for styling, otherwise the garment maybe rejected or returned by the customers. As our
assignment is based on basic T-Shirt, normally care label, main label, size label, sewing thread,
poly bag, price ticket, carton, tag pin, gum tape, etc trim are used in a basic T-Shirt. Like,
normally the trim cost per dozen comes approx. $2.00 for basic T-Shirt.
CM calculation
CM means cost of cutting to making. It includes the cost of cutting, cost of sewing and the cost
of packing. It also includes the overhead cost of the plant and the profit margin. Like, Generally
CM per dozen of a basic T-Shirt is $5.0
Other Embellishment Calculation
Other embellishment means print, embroidery, patch etc that makes any garment more attractive
for customer as here I described about the cost of Harriet shirt where other prints, appliqués and
embroideries are not available so, any embellishment cost is not calculated her.
Commercial Cost
Commercial cost includes LC commission, UD commission, EXP commission, Documentation
cost, Goods send to forwarder cost, etc.
Final Garments Cost & Order Confirmation
Now the final garments cost per dozen is the sum of fabrics cost, trimming cost, CM cost, other
embellishment cost & commercial cost. So as example if a basic style is taken- the garments price
per dozen comes ($25.65+$2.00+$5.00+$1.00)=$33.65 T-Shirt per piece is ($33.65/12)= $2.81
Thus we make manufacturing price & negotiate this price with Buyer. After negotiate price with
buyer we receive order confirmation & L/C from buyer to execute the order
Consumption
Preparation Fabric
The garments manufactured in many sizes to fit for everybody. Generally they are in sizes Small
(S), Medium (M), Large (L), Extra large (XL) and Double Extra Large (XXL). The quantity ratio
or assortment can be any one of the following approximate ratio.
34
S: M: L: XL: XXL - 1:2:2:2:1
S: M: L: XL: XXL - 1:2:1:2:1
S: M: L: XL: XXL - 1:2:3:2:2
As the price is the same for all these sizes of garments, the author have taken the centre size large
.(L) for average calculation. Generally, the quantity of L size will be higher or equal to the
quantity of each of other sizes.
Men's Basic T-shirt
Men's Basic T-shirt-short sleeves- 100% Cotton 140 GSM Single jersey - 1 x 1
ribs at neck - solid dyed - light, medium and dark colours in equal ratio.
Sizes: S, M, L, XL, XXL Ratio: 1: 2: 2: 2: 1
Export Carton: 7 ply -120 GSM virgin corrugated - sea worthy. Cartons are to be strapped
with 2 nylon straps.
Measurements in cm: (Finished garment)
Size: L
Chest - 60 cm
Length - 78 cm
Sleeve length - 24 cm
Neck rib width - 3 cm Hem - 3 cm
Patterns are generally made with the seam allowance and cutting allowance. Generally, 12 cm is added
with the total of body length and sleeve length.
That is,
Fabric consumption =(Body length + Sleeve length + allowance) * (Chest + allowance) * 2 *
GSM/10000
= (70 + 24 + 12) * (60 + 3) * 2 * 140/10000
= 187 grams
Body & Sleeves: 187 grams
Neck rib: 10 grams (approximately)
35
Gross weight: 197 grams Therefore, the fabric consumption per garment is 197 grams.
Cost of Trims
The accessories which are attached to the garments are called Trims. I have taken Men's
Basic T-shirts, as example. Let us see what are the trims required for this style.
Labels: Woven main label (2.5 cm width x 7 cm length): Tk 0.35 .Polyester printed wash
care label: Single colour print: Tk 0.10
Hang tag: Tk 0.40 .So the total cost of trims is Tk 0.85 per garment
Cost of Accessories
Polybags: Normal - Tk 0.30 per garment
Master Polybag: Tk 2 per master polybags to contain 8 garments - Tk 0.25 per garment.
Export carton: Normal: Tk. 40 per carton to contain 48 garments - Tk 0.80 per
garment. So the total cost of accessories is Tk 1.35 per garment.
5.7 Consumption Calculation of Fabrics, Accessories & Cartoons
Fabric consumption calculation
Body length = 73cm.
Chest = 60cm.
Sleeve length = 22cm
GSM = 220
36
37
Carton Consumption
Length = 60cm
Width = 40cm
Height = 40c
2(𝐿𝑒𝑛𝑔𝑡ℎ +𝑊𝑖𝑑𝑡ℎ +𝐴 )×(𝑊𝑖𝑑𝑡ℎ +𝐻𝑒𝑖𝑔ℎ 𝑡+𝐴𝑙𝑙𝑜𝑤𝑎𝑛𝑐𝑒 )
=
10000
2(60+40+5)×(40+40+2.5)
=
10000
17325
=
10000
=1. 7325 square
38
Poly
L=12”
W =10”
Thickness = .08mm
75000
=
𝐿𝑒𝑛𝑔𝑡ℎ ×𝑊𝑖𝑑𝑡ℎ ×𝑇ℎ 𝑖𝑐𝑘𝑛𝑒𝑠𝑠
= 𝑝𝑐𝑠 1𝐿𝑏
75000
=
12×10×0.8
= 78.125 Pcs on 1 lb
5.8 Negotiate the Price with the Buyer
Merchandiser must properly prepare for meeting & trading the negotiation. There should be an
agenda & time frame for the meeting. Merchandiser must be fully aware of garment item to be
negotiated, product price, order quantity, leading Merchandising Procedure of Knit T-Shirt & Polo
Shirt Daffodil International University 20 time, freight, garments construction, fabric
consumption, cutting, making, charges for printing, embroidery, standard time for the garment
etc. so that he is fluent about all aspects of negotiation. Full preparations from the side of the
merchandisers about all aspects help come to a successful outcome very quickly. Merchandiser
as a negotiator must have maximum & minimum position in respect of the order, its price,
delivery schedule, order volume etc.
Merchandiser must carefully observe the tone and wording of the buyer, his facial expression and
body language interest or disinterest and where the final boundary of the buyer lies.
Making an Agreement
Merchandise must make their best efforts so that negotiations culminate into real agreements
financially beneficial to his company. As soon as negotiation succeeds the buyer communicates
details to the manufacturing company represented by the merchandiser. This detail takes the
form of a master L/C, P.O shit or work sheet.
Receiving Orders from Buyer
Companies normally receive order from buyer through worksheet. A worksheet is a document
where every details of the specific garment product are included. As soon as the worksheet at
hand the manufacturing company may go for booking order for fabrics, trims, accessories as well
as making production and shipment plants
39
Fabric Booking
After receiving order confirmation from buyer merchandisers chase buyer to provide PO sheet
(purchase order) which includes color & size wise break down of the total quantity. Then they
will go for denim/knit or the necessary fabrics booking. In case of knit, yarn is the first element
of knit fabric. So to make fabric they have to book suitable yarn from home or abroad. To import
yarn from abroad it need approx 44/45 days and to buyer yarn from Bangladesh it need approx
20/30 days. After receive yarn we go for fabrics knitting and then coloring of the fabrics. After
dyed fabrics is ready to make garments. In case of denim the process is same but some cases it
fluctuates in terms of price and place
Trim booking
After getting trim information from Buyer they have to develop the same to get approval. Then
they book trims from respective supplier to get cheaper price to minimize the cost. And, for
shipment process they need to store every trim in-house so that production can not get hampered.
The all processes go parallel when an order is confirmed. When the size set sample is confirmed,
the processing of production starts.
40
5.9 Master L/C checking procedure & important items should be included
in Master L/C
A documentary Master L/C is an orderly payment security instrument offering high quality
payment security to a business transaction for both parties the seller and buyer. The seller will
receive payment for his goods if he meets all conditions prescribed by the letter of credit. Without
M L/C opening the order won’t be confirmed. So its carry more value than other documents in
export and import business.
5.10 M L/C Check List Items and Those Items Must be Included in This L/C
 Types of L/C.
 Issue date.
 Expiry date.
 Issuing bank details.
 Advising bank details.
 Seller name and address.
 Total amount.
 Currency of payment.
 Tolerance (2-5% plus or minus)
 Port of loading.
 Description of goods.
 Shipping terms (FOB/ C&F)
 List of documents required.
5.11 Master L/C confirmation Procedure
41
5.12 E-mail to Suppliers for Samples of Yarn, Fabrics & Different
types of Accessories for Buyer Approval
Dear Mr. X,
I got an order from Spanish buyer. Its order no. # TW0832 and order quantity is 50000 Pcs. So I need
yarn, Sewing thread and accessories within 15 days. Please see the attach file.
 Combed yarn.
 Sewing thread.
 Accessories.
Best regards,
Mr. Y
Sr. Merchandiser Purbasha Composite Tex Ltd
5.13 Buyer Approval Procedure of Fabrics, Color & Accessories
Fabric and accessories approval from the buyer is very important. According to the buyer color
wise merchandiser have to outsourcing of the fabric. After collection of the fabric lap dip is done
and show the fabric on the swatch submission card for better understanding of the buyer. After
getting buyer’s confirmation about order it is important because to maintain the quality they
expected it should be fulfilled and as new buyer it should be well concerned.
42
5.14 Procedure of Receiving of Price Quotations for Fabrics & Accessories
Pricing is very important factors for any kind of business. After discussion with the supplier
price is fixed. For fixing the price some points are followed such as
 low price.
 Quality of the goods.
 Sampling.
43
Arrange meeting with different
suppliers
Collect Price from different
suppliers
Select some
price
Use quality full
Accessories
Argument with selected
suppliers
Win
situation
Fixed
price
Order to supplier
5.15 Price Negotiation Procedure with Different Suppliers
5.16 Writing to Suppliers for Price Negotiation Meeting
 Cotton Concern Bd
 Cotton Embroidery
 Apollo Print and Design Ltd
 Alana Packaging Ltd.
5.17 Writing Agenda for Price Negotiation Meeting
 Quality for Product
 Quantity of Product
 In Time Delivery
 Machine capacity
 Factory capacity
 Man Power
44
5.18 Writing Minutes after Price Negotiation Meeting with Suppliers
Required Price Confirmation from Suppliers
Price negotiation is the most important part of merchandising and marketing. Order confirmation
depends on how cleverly and logically one can negotiate price with buyer. Competitive price is
the key element of price negotiation. To make competitive price first of we have to know about
the product. Then need to calculate the raw material price, manufacturing cost and shipping
terms of the product. Knit fabric price is the sum of the below factors:
 Yarn price per kg (approx. $6.40)
 Knitting price per kg (approx. $0.15)
 Dyeing price per kg (approx. $1.5)
 Finishing price per kg (approx. $0.50)
Thus, the fabric price per kg comes ($6.40+$0.15+$1.5+$0.50) = $8.55. Fabrics consumption for
a European T-Shirt is 3.00 kgs per dozen. So fabrics price per dozen is (3.00 * 8.55) = $25.65.
5.19 Presentation of Comparative Statement (CS) Related with
Different Suppliers for Fabrics & Accessories
 Confirming order placing for fabric and accessories and check for Back-toBack L.
/C. Opening and delivery date.
 Arranging for printing embroidery or any Art-work or motif and washing
 Following up order for advising, understanding, and confirming.
 Confirming Counter sample / Shipment sample receiving from supplier
5.20 Preparation of Data Bank, of Suppliers for Different Items
Preparation of data bank for different items:
 Revocable L/C
 Irrevocable L/C
 Confirmed L/C
 Confirmed & irrevocable L/C
 Transferable L/C
 Back to Back L/C
 Red Clause L/C
 Sight L/C
 Usance L/C
 Revolving L/C
45
Order for materials is placed to supplier through a negotiated instrument or through a back to
back L/C. This instrument must comprise comprehensive specifications of fabrics & other
materials. In a similar way, detailed specifications should be provided to the supplier of any
materials in the contract or L/C. This ensures right quality of good in appropriate quantity to be
sourced on time.
5.21 Preparation of Supplier for Different Items
 Sample approved by buyer,
 Fabric construction
 Fiber content & yarn count
 Type of looms (shuttle loom, open end, combed, carded, etc.)
 Fabric Width
 Types of looms (shuttle loom, shuttleless looms) in which fabric should be produced
 Type of dye to be used
 Standard of color fastness
 Piece length size: Piece length with no seam (such as, 80% of rolls should be more than
50 meters long with no seam)
 Fabric finish: Type & level of fabric finish as specified by buyer
 Packing: Typing of fabric packing should be specified such as, rolled on tube and each roll
in an untearable poly and poly bags to be packed in 3 ply cartons.
 Labeling & Marking
5.22 Booking or Requisition to Supply Chain Department for Different Items
Along with Approval from Buyers
All businesses including fashion industries and retail buyers do have a supply chain. This supply
chain feeds necessary inputs to the buyers or fashion industry. Supply chain from the perspective
of garments industry I different. They require specific items, such as piece goods, trims and
accessories for each export order.
List of items that are sourced:
46
5.23 Insurance of P.O to Suppliers for Fabrics & Accessories
In this case in addition to the bearing of freight the cost of insurance is also borne by the exporter.
The exporter, while quoting CIF price, quotes much higher than C&F value . C & F+
Insurance=CIF. Normally we can add 1-2% insurance charge with CIF price.
After receiving order confirmation from buyer merchandisers chase buyer to provide us PO sheet
(purchase order) which includes color & size wise break down of the total quantity. Then we will
go for knit fabric booking. Yarn is the first element of knit fabric. So to make fabric we have to
book suitable yarn from home or abroad. To import yarn from abroad it need approx 44/45 days
and buyer yarn from Bangladesh it need approx 20/30 days. After receive yarn we go for fabrics
knitting and then coloring of the fabrics. After dyed fabrics is ready to make garments.
5.24 Items Should be Included in P.O.
Those items are included in P.O. This are:
 Order quantity
 Product description
 Size breakdown
 Supplier bank address
 Buyer details
 Country of origin
 Payment terms
 Carton marks
 Fabric construction
 Care label instruction
 Port of loading
5.25 P.I Collection Procedure from Suppliers & Checking of P.I
After getting P.O from garment industry than supplier issue a P.I to merchandiser. This P.I is sent
by e-mail or DSL to the merchandiser
5.26 Daily Production Report from Suppliers to Match with Factory
Production Planning
As soon as order plan is ready, it is communicated to the Factory manager/ Production Manager/
Manager Production Planning. Factory management in consultation with right people and
appropriate departments allocates the orders to the relevant floor and production lines.
47
5.27 QC Management System for Monitoring of Suppliers Production
Quality management is the aspect of the overall management function that determines and
implements the quality policy. Quality assurance covers all the process within a company that
contributes to the production of quality products. The inspection is carried out by representatives
of the current production and the result record on control chart. The aim of garment inspection is
to visually inspect articles at random from a delivery in order to verify their general conformity
and appearance with instruction/description and/or sample received.
Quality Control System is followed by all concerned in the company from piece goods inspection
to the final statistical audit.41 Piece goods quality control: On receipt of fabrics in the ware house,
at least 10% are inspection as per “4 Points” system/10 Points system/2.5 Point system/6.0 Point system.
The most commonly used systems are 4 Points system as per below –
 Size of defect penalty 3 Inches or less 1 Point
 Over 3, under 6 Inches 2 Point
 Over 6, under 9 Inches 3 Point
 Over 9 Inches 4 Point A maximum of 4 points are changed in one linea
Work Instructions/Workmanship is the supplier must establish satisfactory written standards and
representative samples or workmanship which must equate to standards and specifications laid
down in Data Sheets, Make-up Specifications and Sealed Samples. These standards must provide
an objective base on which decisions are made by skilled personnel
5.28 Preparation of Production Files for Production Starting
 Approval Sample
 Order sheet
 Measurement sheet
 Assortment
 Fabric quantity
 Packing list
 Carton measurement
48
5.29 Sending Procedure of Pre-production Samples Approved by
Buyers, Production file & Pattern to Incharge of Factory
 Collect approved sample, production file and approved pattern from buyer.
 Merchandiser arrange meeting with production manager.
 Give clear idea about approved sample, production file and approved pattern.
 Than handover these items to PM.
5.30 Preparation & Conducting of Pre- production Meeting in Factory
Pre-production meeting – once pre-production (PP) sample is approved and most of the trims are
sourced, merchants or production planning department conduct pre-production meeting with
production team, quality team and sourcing team. All important comments, procedures to be
followed and discussed. Scheduling of PCD (planned cut date) and shipment date is announced to
all teams. Production plans, Material planning and line planning to start production on time and
ship the order on time planning is must.
This meeting should be conducted directly after the merchandise manager approves the concept
for development. The purpose of the meeting is to review the preliminary product and package
specifications and to ensure that the supplier is aware of the companies‟ quality and product
development procedures
5.31 Trims Card Preparation and Submission
Trims are those items that are fixed with a garment and form part and parcel of that garment.
Thus buttons, zipper, laces are this category of items. Before apparel production begins, it is
critical that the buyer approves all components that will comprise the finished product. Some
buyers will require review of all trims and others will require the approval of major trim
components only. Here are a few examples of items that may need to be submitted for review.
 Lab dips, strike offs (screen printed swatches), reeling of yarn in all colors.
 Production fabric, knitwear etc. Most often required in a large enough size to containing
full pattern repeat.
 Care labels & main labels
 Clothing Components: Buttons, lace, zippers, interlinings, shoulder pads, elastics,
hangers, hangtags, price tickets, etc.
 Packaging: ASN labels, chip board, jet clips, tissue paper, polybags, etc.
49
In addition to trimming, merchandiser will most likely be required to submit Fit Samples, pre-
production garment samples, testing samples, TOP Samples (Top of Production Samples), etc.
5.32 Preparation of Shipping Samples & Sending to Buyer through Proper
Packing & Documentation
Shipping sample is prepared before shipment but it is send to buyer when final inspection is
completed. This is an important sample to buyer that’s why sample department take extra care to
make it. It is send to buyer by air for going early.
Sending Procedure of Shipping Sample
 Making according to the measurement sheet.
 Quality check.
 Ironing.
 Labeling.
 Poly bagging.
 Forwarding letter.
 Measurement sheet.
 Finally re-check.
 Send to buyer by courier
5.33 Preparation of Packing List after Final Inspection
There are many kind of packing system is used in Apparel Industry. Here are many kind of packing
system is used in Apparel Industry. Some packing name given below:
 Flat packing
 Standard packing
 Hanger packing
The back side of the packing some specifications are included for attracting the buyer. In the
store room is used `VIM‟ card in these vim card some information is included such as buyer no, order
no, style no, fabric qty. In the packaging section while packing the apparel industry follow these
assortments
 Assort color assort size
 Assort color solid size
 Solid color solid size
 Solid color Assort size
50
5.34 Invitation to Third Party like SGS for Final Inspection
Dear Sir,
Thanks, recently we have completed one order from UK Buyer. Now we are ready for final inspection.
According to our buyer requirement need your organization final inspection certificate. So please come to
our factory and final inspection this order and give the conformation date for final inspection.
Best regards,
Mr. X
Sr. Merchandiser Purbasha Composite Tex Ltd
5.35 Selection of Shipping, Forwarding & Consolidation Company for
Smooth Shipment
Forwarding
The procedure for carrying out forwarding activities: procedure for rendering services related to
shipment of cargos by any types of transport and execution of shipping documents, documents
for customs purposes and other documents required for shipment of cargos.
Consolidation:
Aggregation of LCL cargoes and consolidation activities being the core business of the company
it is very focused about its execution. This is done through with a highly-motivated team of
professionals with a proven track record, a network of owned offices and franchisees in India that
covers the length and breadth of the country, an established network of agents who are all majors
in their respective regions giving our customers best of both worlds irrespective of which sector
the business is headed!! Our valuable customers comprise of some of the biggest names in
Freight Forwarding in the domestic market, Multi-National Companies having global presence
and conglomerates.
51
5.36 Time & Action plan preparations
Product or lines for each season must reach the store and sell through in a designated time frame.
Delays can totally disrupt the business, because, products meant for one season cannot be sold in
other seasons. So lend time must be strictly followed. Lead-time is generally divided into
sequence of actions over a time frame. An example is shown below
SI Date Action to be taken
1 1.05.2021 Received Master L/C for an export order
2 2.05.2021 To receive Proforma Invoice for piece goods &
accessories
3 3.05.2021 To open Back to Back L/C for fabric
4 4.05.2021 To open Back to Back L/C for trims & accessories
5 5.05.2021 To submit Fit Sample to buyer
6 6.05.2021 To receive fabric sample from fabric supplier
7 7.05.2021 To receive sample of trims & accessories
8 8.05.2021 To receive comments on Fit sample from buyer
9 9.05.2021 To submit size set sample to buyer
10 10.05.2021 To receive comments/approval of size set sample
11 11.05.2021 Ex-factory of fabric
13 12.05.2021 To submit PP sample to buyer
14 13.05.2021 Fabric shipped from supplier port
15 14.05.2021 To get approval of PP sample from buyer
16 15.05.2021 To receive trims & accessories t store
17 16.05.2021 To receive fabric at store
18 17.05.2021 Inventory control to ensure all goods in place
19 18.05.2021 Fabric cutting starts
20 19.05.2021 First production run commences
21 20.05.2021 To submit production samples to buyer
22 21.05.2021 To start finishing of garments
23 22.05.2021 Receipt of cartons a store
24 23.05.2021 Cartooning commences
25 24.05.2021 Sewing complete
26 25.05.2021 Finishing complete
27 26.05.2021 Pre-shipment inspection complete
28 27.05.2021 Ex-factory of the merchandise
29 28.05.2021 Handing over to shipping line
30 29.05.2021 Shipment of goods
31 30.05.2021 To send shipment confirmation documents to buyer
52
5.37 Helping Commercial Department for Making Proper Documentation
for Submission in Bank
 Buyer’s Name
 PO/Order/ Style No.
 Item Description (As appropriate/complete to determine the Cat/HS Code No.)
 BEXIMCO‟s Datatex Order No.
 Lot #, if Any and qty per Lot #
 Order Quantity
 Carton Quantity
 Export L/C No.
 Fabric Source
 Fabric Construction
 Fabric Description
 Unite Price
 Freight Terms
 Mode of Shipment
 Port of Shipment
 Port of Discharge
 Latest Shipment Date in the L/C
 LC Lien Bank & Factory A/C (BBL/C Dept.)
 DCD / Any Specific Del-date to maintain
 ETA Destination as per PO/Contract
 G. Wt
 Nt. Weight
 Net. Weight Wt.
 Total CBM
 Tentative date of inspection
 Factory from the Where the Good Will be delivered: BFSL.
 Final Destination of the Goods
5.38 Trims card Preparation
Submission of Trims
Before apparel production begins, it is critical that the buyer approves all components that will
comprise the finished product. Some buyers will require review of all trims and others will require
the approval of major trim components only.
53
Trims are those items that are fixed with a garment and form part and parcel of that garment.
Thus buttons, zipper, laces are this category of items. Some authors define trims as materials that
can decorate and ornament a garment. Examples include lace, embroidery, appliqué, screen
printing, heat transfers, sequins, etc. On the other hand, accessories are items that are not part and
parcel of the garment but are required for finishing or marketing of garments. Back board, neck
board, hang tag, price ticket, poly bags, cartons are examples o f accessories. Accessories are
thrown away by the end user after a garment is bought and taken home. Here are a few examples
of items that may need to be submitted for review.
 Lab dips, strike offs (screen printed swatches), reeling of yarn in all colors.
 Production fabric,knitwear etc. Most often required in a large enough size to containing
full pattern repeat.
 Care labels & main labels Clothing Components: Buttons, lace, zippers, interlinings,
shoulder pads, elastics, hangers, hangtags, price tickets, etc.
 Packaging: ASN labels, chip board, jet clips, tissue paper, polybags, etc.
In addition to trimming most likely be required to submit Fit Samples, pre-production garment
samples, testing samples, TOP Samples (Top of Production Samples), etc.
5.39 Monthly Merchandising report
 Update the ERP system
 Time &Action update
 Order progress meeting date
 Subcontracting (In or out) plans
 Shipment plan ( Monthly/ Weekly)
5.40 Writing Future Business Plan
A business plan is a document that is prepared in order to organize the business's operations, forecast
financial performance, set financial and operational goals, attracts investors and applies for business loans.
A business plan is a written description of a business’s future. It reports on the environment in which the
company operates, explains what the company plans to do in the near future and predicts how it will
perform financially. The following loose outline can be used as the basis for preparing a simple business
plan.
 Executive Summary
 Business Concept
 Financial Features
 Financial Requirements
54
6. CONSUMPTION AND COSTING FOR MERCHANDISER
In apparel industry, the process of costing a product is very dynamic. The knowledge on the costing
process is very essential for a merchandiser. Since, he or she is involved from the product development
stage, the knowledge on costing is very essential. He or she needs to develop the cost sheet from the
product development stage, with all necessary components that go into the cost sheet. The merchandiser
should have a strong understanding about the different elements of cost and their influence on the
products pricing. The major role of the merchandiser in the costing process is, after the costing process, he
or she should monitor the variables that influence the cost of any product.
6.1 Types of Apparel Costing
Pre costing: Designer worksheet - Fabric, trim cost, labor cost and all the material cost, roughly estimate
the wholesale cost. Final costing Cost sheet: The import department estimates the exact calculation of
fabric consumption and costing, yarn, knitting, dyeing, fabrication cost, sewing thread consumption and
costing, trimming and accessories costing, cm cost, print, embroidery, wash, carton costing, poly
consumption, test cost, inspection cost, commercial cost, profit and also shipment cost.
6.2 Elements of Cost
55
6.3 Information Required for Costing
 Factory expenditure/month ,
 Working days in a month ,
 No. of machines ,
 Total no. of garments to be made,
 Yarn composition
 Construction: Body: Single jersey, Neck: (1*1) rib, color of the fabric , extra finishing work,
printing ,embroidery
6.4 Factors Influencing the Costing Process
 Type of fabric
 Trims type and numbers
 Cutting, making checking and packing charges
 Value added services–printing, embroidery, washing, appliqué
 Testing of the garment
 Quality parameters expected
 Transportation and logistics cost
 Profit of the manufacturing organization.
 Fabric cost
 Unit of Measurement (UM)
 Fabric Minimum Order Quantity (MOQ)
 Inspection,
 GSP,
 L/C payment term,
 Commercial cost,
 Shipment date.
 INCO terms (International commercial terms
6.5 Fabric Costing Parameters
 The fabric consumption / per garment
 The fabric quantity need to be purchased
 Yarn consumption (in kgs) per square metre
 Estimating the process cost like pre-treatment and dyeing
 Calculating the total fabric cost of the fabric.
56
6.6 Costing Process of T-shirt
The mostly discussed topic related to Garments Industry is Costing. To be able to survive in the business
world of Textile &Garments as a Buyer or a Supplier one must have the proper knowledge of Costing.
But to do so one must be able to conduct the Costing by only viewing the Papers with some instructions
related to Garments making, because it is only possible for a merchandiser to turn paper into million
pieces of Garments. So before proceeding to further details lets view a Tech Pack for which we will
proceed to costing in the later part.
So before going forward to Costing the Tech Pack should be carefully analyzed for below issues.
57
Fabric Consumption
For proceeding to Calculating the Consumption of the Tee Shirt need to consider the Middle values. So
for this style the values that are needed for estimating the Fabric Consumption is as below:
Parts of Body Actual length Allowance
Body length (Length - from nk/sh point) 42cm 8cm
Sleeve length 10.5cm 0cm
½ Chest width 32cm 6cm
Neck length (By Calculating) 40cm 4cm
Neck width 1cm (round up 0.8) 4cm
So from the above measurements let’s find out the fabric consumption:
Firstly, the Fabric Consumed by Body Parts (Body +Sleeve) for 12pcs/Doz is as below:
1
𝐵𝑜𝑑𝑦 𝐿𝑒𝑛𝑔𝑡ℎ + 𝑆𝑙𝑒𝑒𝑣𝑒 𝐿𝑒𝑛𝑔𝑡ℎ + 𝐴 ) × 1 𝐶ℎ 𝑒𝑠𝑡 𝑊𝑖𝑑𝑡ℎ + 𝐴𝑙𝑙𝑜𝑤𝑎𝑛𝑐𝑒 × 2 × 𝐺𝑆𝑀 × 12
2
10000000
(42+10.5+8)×(31+6)×2×160×12
=
10000000
=0.86 kg per dozen
10000000
= 0.86 kg per dozen.
So, fabric consumption for Body parts (Body +Sleeve) is 0.86 kg per dozen
After adding the Garments Process loss of 8% (Solid Dyed Gmts) the Fabric consumption for Body parts
(Body +Sleeve) is 0.93 kg per dozen.
58
Next, the Fabric Consumed by Neck Binding for 12pcs/Doz is as below:
(𝑇𝑜𝑡𝑎𝑙 𝑁𝑒𝑐𝑘 𝐿𝑒𝑛𝑔𝑡ℎ +𝐴𝑙𝑙𝑜𝑤𝑎𝑛𝑐𝑒 )×(𝑁𝑒𝑐𝑘 𝑤𝑖𝑑𝑡ℎ +𝐴𝑙𝑙𝑜𝑤𝑎𝑛𝑒 )×2×𝐺𝑆𝑀×12
=
10000000
(40+4)×(1+4)×2×160×12
=
10000000
=0.085 kg per dozen
So, fabric consumption for Neck is 0.085 kg per dozen. After adding the Garments Process loss of 8%
(Solid Dyed Gmts) the Fabric consumption for Neck is 0.092 kg per dozen.
Finally, the total amount of Single Jersey Fabric required including wastage for this particular item is =
0.93+0.092= 1.022Kgs/Dz
Yarn Price
As this is a 160GSM Single Jersey Fabric. So for getting the Yarn Count required for this Fabric will be as
below:
Single Jersey Yarn Count =
4300
𝐹𝑎𝑏𝑟𝑖𝑐 𝐺𝑆𝑀
=
4300
160
=28s.
So considering the Yarn count is 28s, the approx. price for this type of Card Yarn is- $ 3.00 & the price
for Comb Yarn is- $ 3.30 (due to comb yarn being o superior quality the price is high).
For Purchasing Yarn, the fact which needs to be considered is that from Yarn to Fabric Making there will
be a process loss of 12% in between for Solid Garments.
Thus the Total Yarn Price =(Total Fabric Reqd × Process Loss × Yarn Price)
=(1.022 × (1 + 12%) × 3.3)
= $ 3.778
However, the Yarn Price may vary from time to time and Factory to Factory. So the mentioned price may
change with different & the capability of sourcing of individuals or organizations. But for purchasing
Yarn this is certain that when the No. of Yarn Count increases the Yarn becomes finer& thus the price of
the Yarn increases. Normally the increase or decrease in price ranges from $0.05 to $ 0.10. but in case of
Cotton Mélange, Slub, Blended, Fiber Dyed & Fiber Composition changes the price will be totally
different from 100% Cotton Yarns.
59
Knitting Cost
This Style contain Single Jersey Fabric for both Body & Neck Binding. So for Geiger Single Jersey the
Knitting price is Approx- $ 0.3/Kg.
For Knitting, we will try to ensure the entire Yarn is properly utilized & accurate Fabric is prepared. Thus
the Total Knitting Price will be
=(Total Fabric Reqd × Process Loss × Knitting Price)
=(1.022 × (1 + 12%) × 0.3)
= $ 0.343
However, the Knitting price will differ for Feeder Stripe, Engineering Stripe or Other type of Knitted
Fabrics such as Lycra Single Jersey, Rib, Interlock, Fleece, Lacoste, Pique etc. Also the given is an
estimated value closer to actual but will vary for factory to factory.
Dyeing Cost
For Dyeing cost we will calculate the same considering it is an Average color as the Tech File mentions 6
option plain dye.
So if the Dyeing price is $ 2.0/Kg (this is the cost considered for Solid Dyeing) then the total Dyeing price
including process loss will be
= (Total Fabric Reqd × Process Loss × Dyeing Price)
=(1.022 × (1 + 12%) × 2)
= $ 2.289.
However, the Dyeing price will vary for Yarn Dyeing, Fiber Dyeing (Space Dyed). Accordingly, the
Processes involved for fabric making & the process loss will also differ for Solid Dyeing method & other
forms of Dyeing method.
Printing cost
Though it is not mentioned on the Tech Pack, but on regular occasion the given Garments contain a
5cm×3cm rubber print at the back neck of the garments. For such small print the price will be approx. $
0.40/Doz. But if the print size & type changes the price will also change accordingly.
So the print cost will be = $ 0.40/Doz.
The mentioned price is only given for 1 colour Rubber Print for mentioned measurement. But the price will
differ with increased size, No. of color’s & type of print. Also the mentioned value is a approx. one which
will differ with factory to factory
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Cost of Making (CM)
Considering it is a Plain Tee Shirt, the machines required for this type of product is 13~15 to produce
1000pcs to 1100pcs per day. So for any compliance industry if the per day machine cost is Tk-2000 or $
27, then the Cost of Making per Dozen for such item will be
𝐿𝑖𝑛𝑒 𝑐𝑜𝑠𝑡 𝑝𝑒𝑟 𝑑𝑎𝑦 ×12
=
𝑂𝑢𝑡𝑝𝑢𝑡 𝑝𝑒𝑟 𝑑𝑎𝑦 𝑝𝑒𝑟 𝑙𝑖𝑛𝑒
𝑃𝑒𝑟 𝑑𝑎𝑦 𝑚𝑎𝑐ℎ 𝑖𝑛𝑒 𝑐𝑜𝑠𝑡 ×𝑁𝑜.𝑜𝑓 𝑚𝑎𝑐ℎ 𝑖𝑛𝑒 𝑝𝑒𝑟 𝑙𝑖𝑛𝑒 ×12
=
𝑜𝑢𝑡𝑝𝑢𝑡 𝑝𝑒𝑟 𝑑𝑎𝑦 𝑝𝑒𝑟 𝑙𝑖𝑛𝑒
27×15×12
=
1000
= = $ 4.86/Doz or $ 5/Doz (Round Up)
CM can also be calculated by SMV (Standard Minute Value) & SAM (Standard Allowed Minute). Thus
if the SMV for such item is $ 0.6 & if it takes 7 minutes with 90% Efficiency to prepare 1pc Garment,
then the CM will be
𝑆𝐴𝑀 𝑜𝑓 𝑡𝑒ℎ 𝐺𝑎𝑟𝑚𝑛𝑒𝑡𝑠 ×𝑀𝑖𝑛𝑢𝑡𝑒 𝐶𝑜𝑠𝑡 𝑜𝑓 𝐿𝑎𝑏𝑜𝑟
=
𝐿𝑖𝑛𝑒 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦
7×0.6
=
0.9
== $ 4.667/Doz or $ 5/Doz (Round Up)
Accessories Cost
Though the Accessories Cost is just a term, but in actual accessories mean all the sewing & finishing
items required to prepare the Garments .As per given Tech File an item such as this one consists of below
Accessories:
 Sewing Thread
The Sewing Thread is used for joining different garment Fabric Cut panels for preparing the Garments.
There are 2types of Sewing Thread, one is Polyester Thread (Ply yarn) & the other is Filament Thread
(Core spun yarn) which are available in 2000meter & 4000meter Yarn Cones. In this case the Yarn used
that is used is 4000meter Cones.In this Case, consider the Tee Shirt requires 200meters of Thread for
preparing the Garments.
 Care Label
The Care Label is used for indicating the instructions of taking care of the Garments that is mentioned by
printing on Satin Tape or on Nylon Tape by attached the same on back side of the Garments. On some
occasions the care instructions might also be printed.
61
 Size Label
The Size Label is used for indicating the size of the Garments for which age people of certain type of body
structure the Garment is suitable. This is normally a printed Sticker which is normally attached on the
body by adhesive.
 Mobilon Tape
The Tape used inside the Shoulder Seam of Tee Shirts for ensuring the fabric does not tear up due to
stress on shoulders. Normally the Tapes are purchased in Kgs which is equivalent to 1350yds of Tape.
 Price Tag
The Price Tag is used for indicating the price of the Garments that is mentioned by printing on Paper
Card & is attached on the Garments by Tag Pin.
 Hang Tag
The Hang Tag is a Brand Tag Paper Card which also is attached on the Garments by Tag Pin/ Lock Pin.
 Tag Pin
The Tag pin is the plastic pin for attaching the Hang Tag, Price Tag with the Garments by Tag Gun.
Normally it is found in Boxes of 5000pcs.
 Single Poly
As per given measurements even if the Garments are half fold the Single Poly measurement will be at most
36cm×26cm or 14.2”× 10.2” per body & if per thickness of the Poly is 200gauge. Then the weight for 1pcs of poly
will be
𝐿𝑒𝑛𝑔𝑡ℎ ×𝑊𝑖𝑑𝑡ℎ ×𝐺𝑎𝑢𝑔𝑒
=
3300×1000
14.2×10.2×200
=
3300×1000
=0.0088Kgs.
62
 Blister Poly
If 10 pcs are packed one Blister Poly, then the Blister measurement will be at most 40cm×30cm or
16”×12” per body & if per thickness of the Poly is 200gauge. Then the weight for 1pcs of poly will be
𝐿𝑒𝑛𝑔𝑡ℎ ×𝑊𝑖𝑑𝑡ℎ ×𝐺𝑎𝑢𝑔𝑒
=
3300×1000
16×12×200
=
3300×1000
=0.0117Kgs.
 Carton
Considering per body height is 2cm, then for 10pcs body the Carton Height will be 22cm including the
Carton Folding allowance. Also accordingly if the Carton have similar measurement as Blister Poly, then
with Folding allowance the entire Carton measurement will be L×W×H = 42cm×32cm×22cm. Thus
accordingly the total Consumption will be
(𝐿𝑒𝑛𝑔𝑡ℎ +𝑊𝑖𝑑𝑡ℎ +6)×(𝑊𝑖𝑑𝑡ℎ +𝐻𝑒𝑖𝑔ℎ 𝑡+4)×2
=
10000
𝑆𝑞𝑢𝑎𝑟𝑒 𝑀𝑒𝑡𝑒𝑟
(42+32+6)×(32+22+4)×2
=
10000
𝑆𝑞𝑢𝑎𝑟𝑒 𝑀𝑒𝑡𝑒𝑟
= 0.93Square Meter.
 Gum Tape
The Gum Tape is used for closing the Carton after completing the packing of the Garments & Gum Tape
contains Adhesive Gum at the Back side of it. So if the Carton measurement is L×W×H
= 42cm×32cm×22cm, then the Gum Tape required will be
(𝑙𝑒𝑛𝑔𝑡ℎ ×2)+(𝑊𝑖𝑑𝑡ℎ ×8)×1.3
=
100
𝑀𝑒𝑡𝑒𝑟
(942×2)+(32×8)×1.3
=
100
𝑀𝑒𝑡𝑒𝑟
= 4.368Meter.
Courier Cost
The Cost required for Transporting the entire garments from Garments Industry to the Sea Port is the
Courier Cost. In this case if the total Garments Qty which is used for quoting is 100000pcs, then if per
Carton contains 10pcs.Then the total amount of cartons will be 10000pcs. And if per Carton CBM is
𝐿𝑒𝑛𝑔𝑡ℎ ×𝑊𝑖𝑑𝑡ℎ ×𝐻𝑒𝑖𝑔ℎ 𝑡
=
1000000
=
42×32×22
𝐶𝐵𝑀
100000
INTERNSHIP ON PURBASHA COMPOSITE TEX LTD
INTERNSHIP ON PURBASHA COMPOSITE TEX LTD
INTERNSHIP ON PURBASHA COMPOSITE TEX LTD
INTERNSHIP ON PURBASHA COMPOSITE TEX LTD
INTERNSHIP ON PURBASHA COMPOSITE TEX LTD
INTERNSHIP ON PURBASHA COMPOSITE TEX LTD
INTERNSHIP ON PURBASHA COMPOSITE TEX LTD
INTERNSHIP ON PURBASHA COMPOSITE TEX LTD
INTERNSHIP ON PURBASHA COMPOSITE TEX LTD
INTERNSHIP ON PURBASHA COMPOSITE TEX LTD
INTERNSHIP ON PURBASHA COMPOSITE TEX LTD
INTERNSHIP ON PURBASHA COMPOSITE TEX LTD
INTERNSHIP ON PURBASHA COMPOSITE TEX LTD
INTERNSHIP ON PURBASHA COMPOSITE TEX LTD
INTERNSHIP ON PURBASHA COMPOSITE TEX LTD
INTERNSHIP ON PURBASHA COMPOSITE TEX LTD
INTERNSHIP ON PURBASHA COMPOSITE TEX LTD
INTERNSHIP ON PURBASHA COMPOSITE TEX LTD

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INTERNSHIP ON PURBASHA COMPOSITE TEX LTD

  • 1. INTERNSHIP ON INDUSTRIAL TRAINING & PARACTICE ON GARMENTS MERCHANDISING AT PURBASHA COMPOSITE TEX LTD.
  • 2. INTERNSHIP ON INDUSTRIAL TRAINING & PARACTICE ON GARMENTS MERCHANDISING AT PURBASHA COMPOSITE TEX LTD. Prepared For: Professor Faruque M. Masud (Chairman) Department of Fashion Design and Technology Uttara University Prepared By: MD. RAFEUZZAMAN ID: 2201401055 Batch: 23th March 29, 2024. Department of Fashion Design and Technology Uttara University Uttara, Dhaka.
  • 3. LETTER OF TRANSMITTAL March 29, 2024. Professor Faruque M.Masud Chairman Department of Fashion Design and Technology Uttara University. Subject: INTERNSHIP REPORT Dear sir, I am very pleased to submit this internship report on the topic “INDUSTRIAL TRAINING & PARACTICE ON GARMENTS MERCHANDISING AT PURBASHA COMPOSITE TEX LTD”. That you have approved and assigned as compulsory requirements of IE. I think that this internship report has helped me a lot in enhancing the knowledge about the respective subject matter, as well as empowering my skills. I have really enjoyed working on this paper and hope that this effort will meet the level of institutional expectation. I am very glad that you have given me this opportunity to prepare this internship report and I hope you will accept my internship report considering the limitations. Thanking You, Sincerely, MD. RAFEUZZAMAN ID : 2201401055 Batch: 23th Department of Fashion Design and Technology Uttara, Dhaka.
  • 4. DECLARATION I hereby declare that the work presented in the internship project has carried out by me and has not been previously submitted to any other University / College / Organization for an academic qualification / certificate / diploma or degree. I further undertake to indemnify the University against any loss or damage arising from breach of the foregoing obligation. MD. RAFEUZZAMAN ID: 2201401055 Batch: 23th Department of Fashion Design and Technology Uttara, Dhaka.
  • 5. ABSTRACT Internship program is an integral part to fulfillment of B.S.C (Hons) degree in Uttara University. This program is actually a connection of academic and professional life dealings. For coordinating my internship I was placed in a garments and my topic is “INDUSTRIAL TRAINING & PARACTICE ON GARMENTS MERCHANDISING AT PURBASHA COMPOSITE TEX LTD.”. Merchandising is most important for textile sector. A textile company fully depends on its merchandising department. A good merchandising system or process can easily improve the quality of a product that very much choice able to the buyer. After analyze and investigate the merchandising functions and activities at Purbasha Composite Tex Ltd. Ltd. I finally prepared this report. I devoted my utmost effort and attention to learn the merchandising functions and activities of the company. Merchandising department is the heart among all the working departments in a Export concern company, because Merchandising is the only department having maximum control over the departments and total responsibility for Profit and loss of the company. Mainly I followed close observation method to complete my study. I have been able to learn a lot about merchandising during this study. Particularly I tried to gather knowledge on activities and responsibilities of a Merchandiser, their ordering procedure, different types of L/C, consumption and calculation of different products, shipping terms, trims & accessories. Finally I tried to have an overall clear concept of garment trade & importance of a merchandiser on it. I have rendered my all knowledge to present this report on the Merchandising functions and activities Of Purbasa composite text Ltd. In this study, it is shown that how this company conducts their present merchandising system. From the study of the Garments Merchandising of Purbasa composite text Ltd. it is found that the company rear potentiality to develop their merchandising system.
  • 6. Acknowledgements At first, I would like to express my deepest gratitude to Almighty Allah for giving me the strength to complete the task within the schedule time. I would like to offer my deep gratitude, compliments and heartfelt thanks to our respectable teacher and my internship supervisor Prof. Farruque M. Masud, Chairman, Department of Fashion Design and Technology , Uttara University, whose constant supervision and guidance enabled me to prepare this dissertation paper . I am indebted to him for his proper management, excellent support, inspiration and guidance throughout the study. My gratitude also goes to Mr. Alamin, Assistant General Manager, Design and Merchandising department , Purbasa composite text limited, for providing necessary help and guidance. I am ever grateful to all of my teachers of Fashion Design Department of Uttara University, who helped and guided me to complete this dissertation paper. Finally, a silent stream of gratitude is for my most adorned parents whose blessing is always with me in this world.
  • 7. Table of Contents LETTER OF TRANSMITTAL---------------------------------------------------------------------------- DECLARATION----------------------------------------------------------------------------------------------- ABSTRACT ACKNOWLEDGEMENT ------------------------------------------------------------------- EXECUTIVE SUMMARY----------------------------------------------------------------------------------- 1. INTRODUCTION------------------------------------------------------------------------------------01 1.1 Background of the Study---------------------------------------------------------------------01 1.2 Statement of the Study-----------------------------------------------------------------------02 1.3 Objectives of the Study ----------------------------------------------------------------------02 1.4 Limitations of the Study ---------------------------------------------------------------------02 1.5 Methodology ----------------------------------------------------------------------------------03 2. INTRODUCTION TO ORGANIZATION ------------------------------------------------------04 2.1 History of Purbasa composite text Ltd -----------------------------------------------------05 2.2 General Information of Purbasa composite text Ltd -------------------------------------06 2.3 Organogram of Office -----------------------------------------------------------------------07 2.4 Organogram of Admin and Production -------------------------------- -------------------08 2.5 Organogram of Garments Division---------------------------------------------------------09 2.6 Achievements ---------------------------------------------------------------------------------10 2.7 Buyers------------------------------------------------------------------------------------------10 2.8 Turnover in Million $ ------------------------------------------------------------------------11 2.9 Social Compliances---------------------------------------------------------------------------11 3. INTRODUCTION TO MERCHANDISING ---------------------------------------------------12 3.1 Concept of Merchandising-------------------------------------------------------------------12 3.2 Major Responsibilities of a Merchandiser-------------------------------------------------13 3.3 Qualities of a Merchandiser -----------------------------------------------------------------13 3.4 Function of a Merchandiser------------------------------------------------------------------13 3.5 Purpose Of Merchandising-------------------------------------------------------------------14 3.6 Merchandising Management--------------------------------------------------- -------------14 3.7 Objectives of Merchandising----------------------------------------------------- -----------14 3.8 The Present Scenario of Merchandising System of Cotton Club BD. Ltd-------------15 3.9 Flow Chart of Merchandising----------------------------------------------------------------15 3.10 Function and activities of Merchandising Department-----------------------------------16 3.11 Merchandising Activities on Quality Control------------------------- --------------------19 3.12 Order Follow Up Procedure------------------------------------------------------------------20 3.13 Order Confirmation----- ----------------------------------------------------------------------20 3.14 Confirmation of the Production--------------------------------------------------------------21 3.15 Merchandising Activities on Goods Delivery to Buyers Destination-------------------21
  • 8. 4. UNDERSTANDING SAMPLE FOR MERCHANDISER----------------------------------------22 4.1 Sampling Process--------------------------------------------------------------------------------------22 4.2 Purpose of the Sampling Process-------------------------------------------------------------------22 4.3 Sequence of Sampling--------------------------------------------------------------------------------23 4.4 Responsibilities of Sampling Department -------------------------------------- ----------------23 4.5 The Details Attached to the Garment Sample-------------------------------------- --------------24 4.6 Steps of Garment Sample Approval----------------------------------------------------------------24 4.7 Types of Sample Prepared---------------------------------------------------------------------------25 5. BUSINESS DEVELOPMENT AND PROCEDURE------------------------------------------------28 5.1. Flow Chart of Business Development------------------------------------------------- ------------28 5.2. First Email to Buyer for Business Development-------------------------------------------------29 5.3. Feed –back from Buyer in Response to First Email---------------------------------------------30 5.4. Sending Quality Samples to New Buyer for Better Understanding of Workmanship of Factory---------------------------------------------------------------------------30 5.5. Approval Procedure of Sales Samples-------------------------------------------------------------31 5.6. Cost Sheet & Consumption Sheet Preparation----------------------------------------------------31 5.7. Consumption Calculation of Fabrics, Accessories & Cartoons--------------------------------35 5.8. Negotiate the Price with the Buyer-----------------------------------------------------------------38 5.9. Master L/C checking procedure & important items should be included in40 Master L/C-------------------------------------------------------------------------------------------40 5.10. M L/C Check List Items and Those Items Must be Included in This L/C-----------------40 5.11. Master L/C confirmation Procedure-------------------------------------------------------------40 5.12. E-mail to Suppliers for Samples of Yarn, Fabrics & Different types of Accessories for Buyer Approval--------------------------------------------------------------------41 5.13. Buyer Approval Procedure of Fabrics, Color & Accessories--------------------------------41 5.14. Procedure of Receiving of Price Quotations for Fabrics & Accessories-------------------42 5.15. Price Negotiation Procedure with Different Suppliers----------------------------------------43 5.16. Writing to Suppliers for Price Negotiation Meeting------------------------------------------43 5.17. Writing Agenda for Price Negotiation Meeting-----------------------------------------------43 5.18. Writing Minutes after Price Negotiation Meeting with Suppliers Required Price Confirmation from Suppliers--------------------------------------------------------------------------44 5.19. Presentation of Comparative Statement (CS) Related with Different Suppliers for Fabrics & Accessories-----------------------------------------------------------------------------44 5.20. Preparation of Data Bank, of Suppliers for Different Items---------------------------------44 5.21. Preparation of Supplier for Different Items----------------------------------------------------45 5.22. Booking or Requisition to Supply Chain Department for Different Items Along with Approval from Buyers-------------------------------------------------------------------45 5.23. Insurance of P.O to Suppliers for Fabrics & Accessories------------------------------------45 5.24. Items Should be Included in P.O.-----------------------------------------------------------------46 5.25. P.I Collection Procedure from Suppliers & Checking of P.I---------------------------------46 5.26. Daily Production Report from Suppliers to Match with Factory Production . Planning----------------------------------------------------------------------------------------------------46 5.27. QC Management System for Monitoring of Suppliers Production-------------------------47 5.28. Preparation of Production Files for Production Starting-------------------------------------47 5.29. Sending Procedure of Pre-production Samples Approved by Buyers, Production file & Pattern to Incharge of Factory--------------------------------- ---------------48
  • 9. 5.30. Preparation & Conducting of Pre- production Meeting in Factory-----------------------48 5.31. Trims Card Preparation and Submission------------------------------------------------------48 5.32. Preparation of Shipping Samples & Sending to Buyer through Proper Packing & Documentation-----------------------------------------------------------------------------------------49 5.33. Preparation of Packing List after Final Inspection--------------------------------- ---------49 5.34. Invitation to Third Party like SGS for Final Inspection------------------------------------50 5.35. Selection of Shipping, Forwarding & Consolidation Company for Smooth50 Shipment-------------------------------------------------------------------------------------------------50 5.36. Time & Action plan preparations---------------------------------------------------------------51 5.37. Helping Commercial Department for Making Proper Documentation for Submission in Bank-----------------------------------------------------------------------------------52 5.38. Trims card Preparation---------------------------------------------------------------------------52 5.39. Monthly Merchandising report-----------------------------------------------------------------53 5.40. Writing Future Business Plan---------------------------------------------------------------------53 6. CONSUMPTION AND COSTING FOR MERCHANDISER----------------------------------54 6.1. Types of Apparel Costing--------------------------------------------------------------------------54 6.2. Elements of Cost---------------------------------------------------------------------------------------54 6.3. Information Required for Costing-----------------------------------------------------------------55 6.4. Factors Influencing the Costing Process---------------------------------------------------------55 6.5. Fabric Costing Parameters---------------------------- ---------------------------------------------55 6.6. Costing Process of T-shirt--------------------------------------------------------------------------56 6.7. Approximate Sewing Thread Consumption of Different Items------------------------------64 6.8. Machine Wise Sewing Thread Consumption/Inch---------------------------------------------64 7. UNDERSTANDING TRIMS AND ACCESSORIES FOR MERCHANDISER--------------65 7.1. Trims---------------------------------------------------------------------------------------------------65 7.2. Accessories--------------------------------------------------------------------------------------------66 7.3. List of Trims and Accessories----------------------------------------------------------------------66 7.4. Buttons-------------------------------------------------------------------------------------------------67 7.5. Button Linge Number and Calculation------------------------------------------------- ----------67 7.6. Buttons Size and Their Use in Garments---------------------------------------------------------67 7.7. Different Types of Button---------------------------------------------------------------------------67 7.8. Zipper------------------------------------------------------------------------------------------ --------69 7.9. Different Types of Zipper---------------------------------------------------------------------------69 7.10. Quality of Zipper---------------------------------------------------------------------------------70 7.11. Label------------------------------------------------------------------------------------------------70 7.12. Types of Label Based on Construction--------------------------------------------------------70 7.13. Different Types of Label------------------------------------------------------------------------70 7.14. Sewing Thread----------------------------------------------------------------- -------------------71 7.15. Types of Sewing Thread-------------------------------------------------------------------------71 7.16. Lining-----------------------------------------------------------------------------------------------71 7.17. Interlining------------------------------------------------------------------------------------------71 7.18. Types of Interlining---------------------------------------- --------------------------------------72 7.19. Packing Accessories------------------------------------------------------------------------------72 7.20. Types of Carton-----------------------------------------------------------------------------------72
  • 10. 7.21. Poly Bag---------------------------------------------------------------------------------------------------73 7.22. Material Used in Poly Bag-----------------------------------------------------------------------------73 7.23. Types of Poly Bag---------------------------------------------------------------------------------------73 8. COMMUNICATION AND NEGOTIATION FOR MERCHANDISER-------------------------74 8.1. Communication Skills for a Merchandiser ----------------------------------------------------------74 8.2. Listening Skills ------------------------------------------------------------------------------------------74 8.3. Writing Skills---------------------------------------------------------------------------------------------75 8.4. Speaking Skills-------------------------------------------------------------------------------------------75 8.5. Presentation Skills---------------------------------------------------------------------------------------75 8.6. E-mail Etiquette for a Merchandiser------------------------------------------------------------------76 8.7. Negotiation Skills----------------------------------------------------------------------------------------76 8.8. Improving Negotiation Skills--------------------------------------------------------------------------76 8.9. Negotiation Process & Ending of Negotiation------------------------------------------------------77 8.10. Negotiation Requirements of Both Parties-------------------------------------------------------78 8.11. Prepare Meeting for the Negotiation--------------------------------------------------------------78 8.12. Discuss the Offer-------------------------------------------------------------------------------------78 8.13. Making an Agreement-------------------------------------------------------------------------------78 CONCLUSIONS-----------------------------------------------------------------------------------------------------79 BIBLIOGRAPH-- ------------------------------------------------------------------------------------------------------80
  • 11. 1 1. INTRODUCTION B.S.C. (Hons), department of Fashion Design and Technology, Uttara University introduced internship program in the final semester under the supervision of honorable chairman of the department .For this research the selected organization is Purbasa composite text Ltd. Located at Jamirdia, Valuka, Mymensingh, Bangladesh, for the selected research subject Industrial Training and Practice on Garments Merchandising at Purbasa composite text Ltd. During the Internship period I have focused on merchandising functions and activities of the company. The study will cover the practice, procedures and technique followed by the merchandiser in the preparation of order to shipment in Purbasa composite text Ltd. The Merchandising is the important activities, term and section of a garment that is not possible to run and deliver successfully. The term “merchandising” is well known to the persons specially involved in garments trade. The term merchandising has been derived from the term merchandise. Merchandise means good that are bought & sold. Merchandising is a specialized management function within the fashion and apparel industry. It is the business that moves the world fashion from designing showroom to the retail sales floor and into the hand of consumers. Merchandising is planning, developing and presenting product lines for identified target market with regard to pricing, assortment, styling, and timing. Merchandising is about to follow up every process from raw materials to finished goods, giving all logistics support. 1.1 Background of the Study Without the practical knowledge, theoretical knowledge is valueless. From this point of philosophy department of Fashion Design and Technology of Uttara University, Dhaka, has introduced an internship program with a view to achieve practical knowledge associate with the different fields of garments business. So after academic education this internship program will be a great opportunity for me to see the real business world, acquire practical knowledge and to be a smarter world business professional of garments sector. For this reason to do my internship in Purbasa composite text Ltd. I communicate with a forwarding letter that was issued by the Department of Fashion Design and Technology, Uttara University . I am very much grateful to the authority of Purbasa composite text Ltd. for giving me the opportunity of doing my internship in this reputed organization.
  • 12. 2 1.2 Statement of the Study The study will disclose present scenario of merchandising system and Practices at Purbasa composite Tex Ltd. The topic “INDUSTRIAL TRAINING AND GARMENTS MERCHANDISING AT PURBASHA COMPOSITE TEX LTD.” gave me an opportunity to have an exposure to the working environment and on the job experience in merchandising of Purbasa composite text Ltd. In Bangladesh we specially means by “Merchandising” the merchandising of garments. A merchandiser is the most important person in a garment. All works in garments factory under the direction of a merchandiser. So merchandising is a challenging profession in a garments factory or area. If a merchandiser can shipment the product properly, the buyer will be pleased on him and will get more order from them. So development of the merchandising profession will develop the textile area of Bangladesh. 1.3 Objectives of the Study The main objectives of this study are scrutinizing the merchandising system of Cotton Club BD. Ltd. Academic knowledge is not perfect, practical knowledge is essential with it. The objectives of the study are to gather knowledge through practical work. It will fulfill the experience through theoretical as well as practically. So it is essential to rapid development of merchandising of a company especially in apparel industry. The followings are the main objectives of the present study:  To define and evaluate the merchandising systems of Purbasa composite text Ltd.  To observe the effectiveness of merchandising department.  To compare practical merchandising system with theoretical approach.  To know the functions and activities of merchandiser  To know the business development procedure with foreign buyer  To find out the duties and responsibilities of merchandisers  To know the skills required for merchandiser 1.4 Limitations of the Study Actually, I have not faced any kind of mentionable problem in my internship period at Purbasa composite text Ltd. Several levels of officers, employees helped me in several conditions. Though, I have faced a few problems, which I should mention to depend on the research. The followings are some problems:  Time constraint  Merchandiser doesn’t have enough time to give the information elaborately.  Short time visit in different work stations  Lack of organizing chain of command
  • 13. 3  Lack of instruction book, and any change. They are following traditional business.  I may have to suffer for lack of supply chain management.  Due to high employee turnover rate and lack of good reporting practices in the factory, problems with collecting data have been faced. 1.5 Methodology To prepare the report used both primary data and secondary data . Primary data were collected from the officials of Purbasa composite text Ltd regarding the procedures of operations of merchandising activities .For working in merchandising for about two months gave a clear notion about the activities done in that department .Working with other department as well as discussion with the staff of those departments a lot of primary information .Secondary data were gathered from the annual reports, relevant published books:  Primary Source Primary sources include interacting with employees and face-to-face interviews with the personnel through an open-ended questionnaire  Secondary Source Secondary sources are company website, other research reports, literatures/magazines, books and the internet.
  • 14. 4 2. INTRODUCTION TO ORGANIZATION Purbasa composite text Ltd is one of the most modern composite garments manufacturers in Bangladesh, Holding the floor capacity of 100,400 SQFT. It was incorporated in 2016 with a mission to grow up as a globally recognized garment manufacturing unit, by delivering quality product and achieving customers' satisfaction. Purbasa composite text Ltd has commenced its commercial production from 2016. The manufacturing process of Purbasa composite text Ltd is vertically integrated with knitting, dyeing, cutting, printing, embroidery, sewing & finishing. The factory is located at Valuka, Two hour drive from Dhaka International Airport. The company has invested a lot to set up the state of the art machineries to meet the challenges of Textile World. With the help of true leadership of the Management, it has a group of skilled, dedicated and hard working employees. Purbasa composite text has got three more production units. Purbasa composite text Ltd. are producing knitted items for Ladies, men's and children's and another one is Purbasa composite text Ltd. producing Lingerie items. Purbasa composite text Ltd is an Oeko-Tex (Class#1), WRAP, GOTS certified, and 100% export oriented garments manufacturer. We are committed in providing the highest standard of quality, service and on time delivery.
  • 15. 5 2.1 History of Purbasa composite text Ltd. Purbasa composite text Ltd established in the year 2016, the quality standards and is engaged in manufacturing of all kinds of knitted garments. Under the profound guidance of their mentor Arch. Ali Hossain (Managing Director Purbasa composite text Ltd, established in 2016), their company has gained an immense success and has earned goodwill with twenty years of experience in the garments industries. The Chairman is guiding their team with his wide experience and skill. Their product is made using top quality yarn that is procured from reliable sources across world. They make use of world class in-house infrastructure and modern machines as well as simple hand tools that helps in producing high quality fabric in large volumes and varieties. They are dedicated to offer timely delivery of goods and services at affordable prices. Mission Our mission is maximization of productivity and quality of products to ensure competitive price with maintaining all social and environmental responsibilities to preserve healthy and pollution free world. Vision Become a globally recognized garments manufacturer by ensuring personalized service for each customer and creating continuous employment opportunities for the betterment of the country Major Competitor Cotton Club ltd company is a fully export oriented company so they have face both local and international competition locally. There are many company compete with the Cotton Club ltd company those are India, Pakistan, Koria, Thailand, China and in locally beximco, DBL Group, Anlima Group, Jalima Group, Square Textile, Robin Tex ,ACS Textile.etc Products Ladies, Children's, Men's T-Shirt, Polo Shirt, Tank Top, Vest, Hooded Jacket, Trouser, Fleece Jacket, Woven Boxer shorts, Woven Long Pant, Flannel Long Pant, Night wear for Ladies & Men's, Knit woven combined garments, Sportswear, Underwear Fabrics Single Jersey, Double jersey, Lycra Rib, Interlock, Drop needles, Feeder strippers, Auto Stripes, Pique, Heavy jersey, Terry Fleece, Glitter effected, Metallic (Lurex) mixed fabric, Burnout printed, Nappy, Slub Fabric Composition 100% Cotton, 100% Polyester, Cotton-Polyester blended, Cotton-Viscose blended, Melange, 100% Modal, Cotton-Modal blended, Cotton-Polyester- -Viscose blended .
  • 16. 6 2.2 General Information of Purbasa composite text Ltd. Factory Name Cotton Club (BD) Ltd Production Unit Purbasa composite text Ltd. Nature of Business 100% export oriented Knitted Garments manufacturer Location Jamirdia, Hobirbari Mymensingh Mymensingh Knitting Capacity Purbasa composite text Ltd. 11,000 kg per day. Dyeing Capacity Purbasa composite text Ltd. 12,000 kg per day Sewing Capacity Purbasa composite text Ltd. 60,000 pcs per day, Purbasa composite text Ltd. 20,000 pcs per day Cotton Clothing (BD) Ltd. 30,000 pcs per day Tropical Knit Tex Ltd. 50,000 pcs per day. Floor Capacity Purbasa composite text Ltd. 100,400 SFT Printing Capacity 60,000 pcs per day Embroidery Capacity 35 million stitches per day Achievements OEKO-TEX, WRAP, GOTS, BSCI, ISO 9001-2008 certification Establishment 2016-04-18 Contact Person Name: Arch. Ali Hossain Designation: Managing Director Phone: 01318338101 Email:arch-alih@yahoo.com
  • 17. 7 2.3 Organogram of Head Office
  • 18. 8 2.4 Organogram of Admin and Production
  • 19. 9 2.5 Organogram Of Garments Division
  • 20. 10 2.6 Achievements  GOTS - Global Organic Textile Standard  Oeko-Tex, Class I (Garments)  Oeko-Tex (Fabric)  WRAP - Worldwide Responsible Accredited Production  BSCI - Business Social Compliance Initiative 2.7 Buyers  C & A  ZARA  KIABI  OKAIDI  WRANGLER, LEE  MONOPRIX  BERSHKA  JULES  BONPRIX  MANGO  TAKKO  ESPRIT
  • 21. 11 2.8 Turnover in Million $ 2.9 Social Compliances Compliance, Safety Procedure & Employees Benefits: Without Social and environmental responsibilities, business is unethical and not legal. That’s why we invested a lot to keep the working environment safe and secured. We give emphasis on reasonable access to safe drinking water, sanitary facilities, fire safety, adequate lighting and proper ventilation
  • 22. 12 3. INTRODUCTION TO MERCHANDISING Garments Industry occupies a unique position in the Bangladesh economy. It is the largest exporting industry in Bangladesh. Merchandising is one of the most important parts for garments trade. Without merchandising this trade never be fulfil. Merchandiser deals or handles all the things from buyer to production. He/She is the centre for all the tasks. After getting an order, merchandiser calculate all the things, what he need to complete this order & make a nice plan by which he can do the shipment in time with buyer’s requirement. In factory level, merchandiser makes all the orders for accessories needs for an order like; fabric need, sewing thread, button, washing if necessary, carton, polybag, shipment arrangement etc. Actually merchandiser make looks on the whole progress. Normally, the production people are always try to do work in delay, thus many trouble can come for the shipment. But, merchandiser always makes a good follow-up to work in time with right quantity & right quality. In the other hand, merchandiser deals with the buyer’s about order approval & comments. The activities involved in garments merchandising is normally done by a dynamic & expert person called merchandiser. The function of a Merchandiser is known Merchandising. The term Merchandising has been derived from the word Merchandise which means goods that is bought and sold. At last, we can say that, merchandising is the heart of garments trade. Without this garments trade is valueless. So this part is more important in our future life. 3.1 Concept of Merchandising The term “merchandising” is well known to the person specially involved in garments trade. The term merchandising has been derived from the term “merchandise”. Merchandise means goods that are bought and sold. The term merchandiser may be defined as the person who merchandises the goods especially for export purposes. Garments merchandising means buying raw materials and accessories, producing required garments, maintaining required quality level and exporting the garments within schedule time frame.
  • 23. 13 3.2 Major Responsibilities of a Merchandiser  Order sourcing/supplies.  Negotiation.  Production.  Calculating Yarn/Fabric consumption.  Calculating costing of the product.  Monitoring Quality aspect.  Product development.  Liaison with Buyers Customers & Factory.  Factory Scheduling. 3.3 Qualities of a Merchandiser  Should be a smart person with fluent speaking, reading and writing ability in English  language.  Good knowledge in Mathematics, Computer literacy and e-mails internet.  Should a technically sound person having clear conception about fibre, yarn, fabric, dyeing, printing, finishing, dyes, colour fastness, garments production, etc.  Clear conception of the usual potential quality problems in the garments manufacturing.  Good knowledge of the usual raw materials inspection systems & garments inspection system  Knowledge of the quota system used in each of the production countries, duty rates, custom regulation, shipping and banking documentation etc.  Right consumption knowledge of various goods  Costing knowledge of raw materials  Order getting ability  Excellent power of motivation to improve public relations.  Sincere& responsible 3.4 Function of a Merchandiser  Fabric requirement calculations.  Accessories requirements calculation  Sources of fabrics  Possible date of arrival of fabrics And accessories in the garments factory  Costing  Garments production planning  Pre shipment inspection schedule  Shipment document
  • 24. 14 3.5 Purpose of Merchandising  To collect order from the buyer.  To shipment the order in time.  To follow up the working of worker.  To determine the actual price of the product.  To improve the quality of the product.  To increase the goodwill of the textile.  To seek new buyers. 3.6 Merchandising Management Merchandising management constitutes the most significant part of textile companies. A company starts their activities by starting the activities of a merchandiser. When a company receives an email from buyer, then the activities of a merchandiser start and a merchandiser always look after all activities from production to shipment.  Receive email of the buyer or buying house  Determine the actual price of the product  Send sample of the product  Ensure a good quality of product  Follow up the production process.  Monitoring the payment. 3.7 Objectives of Merchandising Efficient Management of merchandising should ultimately result in the maximization of sales of products. In order to minimize cost Stated differently that the objectives of merchandising management consist of two counter-balancing parts: -  To maintain merchandising system for efficient and smooth production and sales operations.  To maintain a minimum cost to maximize profitability. These two conflicting objectives of merchandising management can also be expressed in terms of cost and benefits associated with inventory. So That, the industry should minimize cost of product for increasing more sales and more profit.
  • 25. 15 3.8 The Present Scenario of Merchandising System of Cotton Club BD. Ltd. Merchandising is an important task of a textile company. Merchandising department is the star of the department among all the working departments in the Export concern, because Merchandising is the only department having maximum control over the departments and total responsible for Profit and loss of the company . Cotton Club is a renowned knitted garments exporters. Most of the renowned buyers place their order in Cotton Club .Cotton Club has highly professionals merchandisers who are handling the buyers from order placement to shipment . 3.9 Flow Chart of Merchandising Department
  • 26. 16 3.10 Function and activities of Merchandising Department Fore casting It is an important term for merchandising. At first a merchandiser have to decide in what type product he will produce. There are various products in textile sector. After deciding the product then he will start for order sourcing. Order Sourcing Sourcing is a term use to describe the process of determining how and where item will be procedure. It includes the decision on the selecting supplier for material procurement and vendors for apparel production. The stages of sourcing:  Internet  Business directory (yellow pages)  Advertising  Buying house  All country of Embassy  To exhibition Factor for sourcing  Sourcing decision depends on some factors  Product factor: Style, design, quality standard, price reference,  Company/vendor factor: Company goodwill, previous history, minimum order quality, quality standard, and service ability  Country factors: Political: The present political stability ,Economical: financial, banking, insurance etc. facilities or tax free or others opportunities  Cultural & language: In time delivery, previous history, morality, religious factor, ability of speaking English education  Geographical: Distance, transport cost. Checklist for selecting a vendor/factory  Name and address of the company.  Contact number and person  Major market of customers (which customer they deal)  Major products, (which products they experienced)  Capacity (monthly or annually)  Physical size of the plan.
  • 27. 17  Number of employees  Financial status  Location of production  Production facilities  Quality standard  Minimum order quantity Negotiation Its not contest. Its opportunity to establish good working relationship which obtaining a good deal. Negotiation is a stimulating way to arrive at acceptable solution to the need for something whither it is a need to resolve the difficulties or to settle terms. Introducing Actually merchandiser activities started by introducing with the buyers. Introducing may occur by two ways 1. Buyer to seller 2. Buyer to buying house and buying house to seller. Generally they communicate with them by email and telephone or mobile. Enquiry At the time of introducing the buyer send their requirements, which include which type’s products, he needs. They also provide sample size, sample photo; style etc. Source Fabric After receiving the enquiry a merchandiser have to find from where fabric can be found as per buyers requirement. There are two sources of fabric. 1. Local source 2. Foreign source. Both local and foreign it needs to open a L/C. In textile sector generally back-to back L/C is used to collect Fabrics. Prepare Lab Dipping It is an important part of sampling. If buyer wants color size product then he need to send them for proper coloring. After that lab test is send to the buyer for approve. For an example Letter that is send to lab is given below:
  • 28. 18 Date: To Mr. Babul Cotton Club (BD) Ltd. Sub: Lab Dip Programmed Buyer Name: Next Fabrics- 65%Cotton, 35%Polyester, S/J 180 GSM SL # Color Name Pantone/Shade Fabrics Remarks 01 Orange 158 C Gets Approval Lab Dipping Lab Dip confirmation & may be fitting & workmanship changes:  Start with dyeing the fabric (if necessary start tests bulk)  Sending preproduction samples or size set in original fabric with all already Confirmed details. After checking & necessary changes, the confirmation of labels, print and patch production Order Bulk Fabric Production Dyeing : After the buyer approves lab test, and then sample is sent for dyeing. Fabric Printing : Fabric printing is the process that applies a single or multi colored/design on a white of dyed background fabric, using textile dyes. If there is any need of print, then it is sent for print. Source Prepare Trims & Accessories for preparing a product a company need various types of trims and accessories. These are very much important for textile product. Such as tag, pin, scope tape etc. so it is the duty of a merchandiser to sourcing accessories before start production. Develop a Sample Sample is the physical form of buyer’s specification or style/design .It is the merchandiser’s responsibility to develop the sample after getting technical sheet from the buyer . For sampling a merchandiser need Fabrics, yarn, level, etc. Different types of sample are developed according to buyer requirements .
  • 29. 19 Swatch Swatch is a presentation of all the materials is (Fabric & Accessories) used for any specific style/order. Usually small piece of fabric and each piece of accessories are attached in board paper in a systematic manner. Swatch is very important for production line to make the correct construction of a garment and QC department ensures it. Pricing It is the most important factor for a merchandiser. A merchandiser is the person who fix or determining the price of the product. Deals will be done or not is totally depend on the price of the product 3.11 Order Follow Up Procedure Just after the placement of the order a merchandiser has to study the requirement laid down in the order sheet:  Classification of test  Study order Specification Details  Order details/Style details  Quantity  Trims/Accessories  Delivery terms & Condition  Monitoring of contract  Opening and maintaining files  Distribute the order specification to the relevant dept.  Sample controlling.  Sourcing of supplies.  Monitoring Import procedures  Banking procedures  Customs procedure  Warehouse arrangement  Arrival of purchased Materials  Completion of custom procedures  Inspection/Identification  Storing of clothing materials  Factory production:  Execution of order  Meeting the Quality standards  Checking work in progress
  • 30. 20  Co-Ordination with Buying Agents  Liaison with buying office personnel for related manufacturing issues  Logistical and distribution Arrangements  Freights forwarding (sea/air)  Financial Transactions  Follow up Final payment 3.12 Confirmation of the production  Only if all confirmation has been given, the production can start  Pay attention & special care to all further production instruction from the buyer.  Send pre-shipment production to buyer.  Before shipment inspect the production by buyers nominee  Ship the goods within shipment date 3.13 Merchandising Activities on Production After receive a purchase order from buyer merchandiser have to sit with production planner to make a production plan. Production plan contain below things:  Planned date to start knitting/ weaving to make the required fabrics.  Planned date to start dyeing to color the fabrics.  Planned date to start cutting fabrics.  Planned date to start sewing the required garments.  Planned date to start packing the required garments.  Planned date to hand over finished goods to buyer nominated sea or air forwarder. Trail/ Test cutting Before start bulk cutting to adjust pattern we cut each size and each color10/15 pcs. This is called trail or test cutting. After approved trail or test cutting we can go for bulk cutting. Sewing Sewing section is the section where cutting part are joined to make a garments. In sewing section sewing machines are set up according to the kind of final product.
  • 31. 21 Packing After sewing, garments are packed into packing section. Here we put iron on garments, add various kinds of hangtags, poly bags and make garments ready to ship to the buyer. 3.14 Merchandising Activities on Quality Control The main objective of quality control is to ensure that goods are produced to the first customer (Direct Order) and hopefully to the second customer (Recorder/Alter order/ new order) as well. If both customers can be satisfied then the manufacturer products are more likely to continue to be in demand. Satisfactory quality can only be ensured through from the manufacturer pint of view  Knowing the customer’s needs.  Designing to meet them  Faultless construction- manufacture.  Certified performance and safety.  Clear instruction manuals.  Suitable packing.  Prompt delivery.  Feed back of field experience. 3.15 Merchandising Activities on Goods Delivery to Buyers Destination Booking to Forwarder After making final inspection merchandiser received packing list from packing section which contain the list of carton, how many pieces garments in the carton, weight of the carton, number of pieces of garment to be shipped etc. Refer to this information merchandiser make booking to sea or air forwarder Export Documentation The documents which to be submitted by a C&F agent for export: An exporter should have to submit the following documents to the customs authority of a station Payment Monitoring After getting order from buyer A L/C have to open by the buyer .L/C means Letter of Credit. It is a conditional undertaking of payment. It is a document issued by a bank on behalf of an applicant undertaking to make payment to a beneficial up to a stated amount moneys within a prescribed time limit and design stipulated documents.
  • 32. 22 4. UNDERSTANDING SAMPLE FOR MERCHANDISER Sample is the prototype or model of the garments upon what buyer can decide on how and whether to confirm the order or not. In garments industry, this sample come from buyer and it is followed from bulk production called sample. Garment samples are inevitably important and are developed tested before starting the bulk production. It means making a sample of the garment /fabric which requires to be sold. Sampling is one of the main process in Garment Industry and it has a vital role in attracting buyers. Because the buyers generally places the order after they are satisfied with the quality of the samples. 4.1 Sampling Process Sampling process in the apparel industry is an important activity for the order acceptance. The process of developing sample varies from industry to industry based on the buyer’s requirement and the style / type of the garment they are dealing with. The process of sample department varies continuously, and the development process will cover a wide range of unique products. There are three distinctive phases of sampling process; the first phase covers the development of the initial concept or design idea and getting the approval by the customer or to undertake the buyers’ requirement and their target segments to develop the theme and product. The second phase covers the process of prototyping of sample and carry out the functions of sourcing and ordering component, testing the product and carry out trials based on the finalized sample specifications. The third and final phase includes a range of activities that are carried out before large scale or bulk pro- diction capacity outside the producer/developers if needed. 4.2 Purpose of the Sampling Process  To allow the buyer to judge the production capabilities of the manufacturer.  To provide a means for making revisions in the bulk production process.  To let the manufacturer estimate the thread and fabric consumption, and develop cost quotations.  To optimize the processing parameters for mass production  To get clear idea on costing more ever the manufacturing difficulties
  • 33. 23 4.3 Sequence of Sampling 4.4 Responsibilities of Sampling Department  Getting clarifications about style details from merchandiser.  Checking pattern’s workability.  Preparation of different samples and getting the buyer’s approval.  Informing quality related problems, encountered during preparing samples to QC  Minimizing operations and consumption.
  • 34. 24 4.5 The Details Attached to the Garment Sample After the confirmation of order, each sample sent t 0 the buyer has the following details attached to it, with the help of a tag. It contains the details pertaining to both, what the buyer has demanded and what supplement fabric/trim etc they have used (if applicable).  Ref no.  Color  Fabric  Composition  Description  Quantity  Style no/ Size  Store 4.6 Steps of Garment Sample Approval
  • 35. 25 4.7 Types of Sample Prepared Before Confirmation of the order sample  Development/ salesman/ promotions sample  Proto sample /reference sample  Fit Sample  Counter Sample After Confirmation of the order sample  Red Tag sample  size set  Preproduction sample  Trial production Sample  Bulk production Sample/Top Sample  Photo shoot sample  Salesman Sample  GPT Sample  Shipment sample Development Sample The first sample developed by the company based on the buyers requirement. The sample generally used to assess the look and take a decision on the sample whether to proceed or decline the particular style out of the line. The developed sample needs to be submitted within 45 days from the first communication Proto Sample Proto sample will be made after the development is done. It is a prototype of original sample. This sample will be developed based on the tech pack if the actual fabric and trim will not be available substitute fabric can be used for making the sample. If the buyer does not approve the proto sample ,factory needs to submit the 2nd proto sample to get the approval . Fit Sample Once the proto samples are approved, fit samples are developed. The fit sample is made with actual measurement based on the original product and specification sheets given by the buyer.
  • 36. 26 FIT samples are considered as a very important factor in sample development. The fit sample is being inspected on a live model or a dress form to verify the fit and feel of the garment. Counter sample After the fit sample approval the counter sample is submitted for the buyer. The confirmation of this particular sample decides whether the company gets the order or not. So, this sample is developed in all original fabric, trims accessories, sewing threads, care labels, etc. Based on the counter sample approval, the buyer will raise purchase order (PO) to the company. Red Tag Sample Different Buyer has different types of security seal which they attach with the garments after checking. This seal is given as an approval of styling, measurement, placement of printing and embroidery and confirmation of all stitching details. This sample is made with actual measurement ,fabric and accessories . When the buying QC will come for inspecting the garments then they will ask for Sealed Sample. Size Set Sample Based on the pattern of the approved sample the grading for the other sizes are done and then patterns for the other sizes will be made. Size-set samples are sent to the buyer once the fitting is approved in S- small, M-medium, L- large, XL-extra-large and other sizes as per the requirement. The main purpose of size set sample is to check the factory’s capability to make the samples in all sizes .Actual fabric and trims are to be used for size set samples .The buyer specifies the number of quantity to be sent for each sizes . Preproduction Sample Pre-production samples are the pilot run sample, before starting the production; the sample is prepared with the original fabric and all actual requirements. Acceptance of this sample encourages the factory to start the bulk manufacturing of the goods.
  • 37. 27 Trial Production Sample Is the sample to represent the floor production as such these samples are taken from the production of the floor to assess the overall quality standard of the garments being produced. The sample is prepared with the original fabric and all actual requirements . TOP/Production Sample The top of production is sent to the buyer as soon as initial pieces come out of sewing line with suggestions of quality audit department. In TOP sample, buyer tries to evaluate the actual manufacturing of the style. Buyer checks whether bulk production is as per submitted sample or not. TOP sample is also checked by the buyer for the packaging. Photo shoot sample Sometimes buyer wants to do the advertisement with the garments well ahead of getting the same in the store/market and accordingly they ask for nicely stitched garments. The photo of the garments are taken putting on the same by some models and the same is displayed in the retail shop or advertisement is done on papers, magazines, brochures etc to allure and attract the customers. Salesman Sample These are the samples need to supply to buyer to help in doing campaign for marketing the item. These are displayed in the chain store/retail shop well ahead of the bulk quantity receive by the store. GPT (Garments Performance Test ) Sample This sample is requested only if the technical parameters of the garments need to be checked where the garment performance is measured in terms of shrinkage, color fastness, seam performance, etc. Shipment Sample This sample is required by the buyer after the final inspection is passed. Shipment samples are sent to the buyer when the finished and packed garments are ready to be shipped. This sample is referred for packing details, all detailing attached to the finished garment, that will be going to the stores.
  • 38. 28 Buyer Selection Know about the nature of buyer First E-mail to the buyer Collect audit pass report from buyer Offer to buyer for visit the company Company arrange a meeting with buyer Sampling stage Price negotiation Price conforms and order place from buyer 5. BUSINESS DEVELOPMENT AND PROCEDURE Apparel industry must be developed with the trend of market otherwise they cannot extend their business. To collect new buyer and business with them a company must follow the procedure of business development. Buyers have been chosen by two ways. Firstly, Buyer chooses the supplier and the second one sometimes, Cotton Club BD. Ltd. want to work with a particular buyer and then contact with them according to that. The Cotton Club follow the procedure of business development this are given below. 5.1 Flow Chart of Business Development
  • 39. 29 5.2 First Email to Buyer for Business Development For new business development sellers have to communicate with buyer. Email is the easiest and swift way of communication so when seller will contract first time with buyer by email at that time have to mention some important information about company. Which kind of things should be include here this are-  Information about you and your company.  Products information about your company.  Capacity and productivity.  Which buyer work with you.  Attachment a beautiful sample photograph.  Wearing for feedback. Sample of First Email Dear Sir, I am X, SR Merchandiser of Purbasha Composite Tex Ltd. We are the manufacturer & exporter of readymade garments in Bangladesh. “The Cotton Club ” began its journey into the garments sector in 2006 as garments in Bangladesh. Since then the organization being run by highly qualified, experienced and professional management and stuff along with Sophisticated Machineries, Latest Technology, Skilled Workmanship, Substantial Marketing and Proper Discipline. We are ready and able to give you 100% quality, best price and service. Our Products T-shirt, Polo shirt, Tank top, Shorts, Trouser, Jacket (Cotton, Polyester, CVC, France terry, Waffle, etc.) and many more. We also produce all kinds of Woven & Sweater item. Please send us your current inquiry for sampling & costing. Your kind co-operation would be highly appreciated. Thanks & Best Regards X Purbasha Composite Tex Ltd
  • 40. 30 Use combed yarn Properly dyeing Good pattern making Sewing perfectly Use quality Efull Accessories Finishing properly Use quality full packing elements Re-check measurement & quality Send sample with forwarding letter & measurement sheet 5.3 Feed –back from Buyer in Response to First Email Dear X, I am pleased about your company, so I want to make a business with you. So you should send some original sample include with FOB price. Best regards, Y 5.4 Sending Quality Samples to New Buyer for Better Understanding of Workmanship of Factory
  • 41. 31 Buyer check fabric quality Send sales sample to buyer with good packing 5.5 Approval Procedure of Sales Samples Sample is made when price is confirmed and orders are placed, usually is M size in all color combinations of expected order. Buyer held a meeting with its customer and records their response on order quantity per color, size etc. and finally place order to their vendor. Sales sample basically use catalogue buyer. 5.6 Cost Sheet & Consumption Sheet Preparation During the fixation of FOB price of a garment following notes are to be followed carefully:  Cost of fabrics/Dzn. garments.  Cost of Accessories/Dzn.garments.  C.M (Cost of Manufacturing) /Dzn. Garments.  Cost of embellishment (if any) likes print, embroidery, etc  Commercial cost.6 . Co mmis s io n ( if a n y) Garments design (Print, Embroidery) Wash quality Measurement maintenance Overall finishing quality Approve sample
  • 42. 32 Garment Costing In order to achieve perfect garment costing, one must know about all the activities including purchase of fabrics, sewing, packing, transport, overheads, etc. Shipping Charges For men's basic T-shirt, the delivery terms in the buyer enquiry as 'FOB'. So sea freight charges are not added. But the local transport with the cost of garment has to be added. Finally, we have to convert the Indian rupee value to USD or Euro. Fabrics Price Knit fabric price is the sum of the below factors  Yarn price per kg (approx $6.40)  Fabric price per yard (approx $0.15)  Dyeing price per kg (approx $1.5)  Finishing price per kg (approx $0.50) Thus the fabric price per kg comes ($6.40+$0.15+$1.5+$0.50)= $8.55.Fabrics consumption for a European T-Shirt is 3.00 kgs per dozon. So fabrics price per dozon is (3.00 * 8.55) = $25.65
  • 43. 33 Trimming Price Trims cover all the trims used in the garments except the basic fabric. There are hundreds of items used to manufacture the garments, proper selection of trims and its quality are very important for styling, otherwise the garment maybe rejected or returned by the customers. As our assignment is based on basic T-Shirt, normally care label, main label, size label, sewing thread, poly bag, price ticket, carton, tag pin, gum tape, etc trim are used in a basic T-Shirt. Like, normally the trim cost per dozen comes approx. $2.00 for basic T-Shirt. CM calculation CM means cost of cutting to making. It includes the cost of cutting, cost of sewing and the cost of packing. It also includes the overhead cost of the plant and the profit margin. Like, Generally CM per dozen of a basic T-Shirt is $5.0 Other Embellishment Calculation Other embellishment means print, embroidery, patch etc that makes any garment more attractive for customer as here I described about the cost of Harriet shirt where other prints, appliqués and embroideries are not available so, any embellishment cost is not calculated her. Commercial Cost Commercial cost includes LC commission, UD commission, EXP commission, Documentation cost, Goods send to forwarder cost, etc. Final Garments Cost & Order Confirmation Now the final garments cost per dozen is the sum of fabrics cost, trimming cost, CM cost, other embellishment cost & commercial cost. So as example if a basic style is taken- the garments price per dozen comes ($25.65+$2.00+$5.00+$1.00)=$33.65 T-Shirt per piece is ($33.65/12)= $2.81 Thus we make manufacturing price & negotiate this price with Buyer. After negotiate price with buyer we receive order confirmation & L/C from buyer to execute the order Consumption Preparation Fabric The garments manufactured in many sizes to fit for everybody. Generally they are in sizes Small (S), Medium (M), Large (L), Extra large (XL) and Double Extra Large (XXL). The quantity ratio or assortment can be any one of the following approximate ratio.
  • 44. 34 S: M: L: XL: XXL - 1:2:2:2:1 S: M: L: XL: XXL - 1:2:1:2:1 S: M: L: XL: XXL - 1:2:3:2:2 As the price is the same for all these sizes of garments, the author have taken the centre size large .(L) for average calculation. Generally, the quantity of L size will be higher or equal to the quantity of each of other sizes. Men's Basic T-shirt Men's Basic T-shirt-short sleeves- 100% Cotton 140 GSM Single jersey - 1 x 1 ribs at neck - solid dyed - light, medium and dark colours in equal ratio. Sizes: S, M, L, XL, XXL Ratio: 1: 2: 2: 2: 1 Export Carton: 7 ply -120 GSM virgin corrugated - sea worthy. Cartons are to be strapped with 2 nylon straps. Measurements in cm: (Finished garment) Size: L Chest - 60 cm Length - 78 cm Sleeve length - 24 cm Neck rib width - 3 cm Hem - 3 cm Patterns are generally made with the seam allowance and cutting allowance. Generally, 12 cm is added with the total of body length and sleeve length. That is, Fabric consumption =(Body length + Sleeve length + allowance) * (Chest + allowance) * 2 * GSM/10000 = (70 + 24 + 12) * (60 + 3) * 2 * 140/10000 = 187 grams Body & Sleeves: 187 grams Neck rib: 10 grams (approximately)
  • 45. 35 Gross weight: 197 grams Therefore, the fabric consumption per garment is 197 grams. Cost of Trims The accessories which are attached to the garments are called Trims. I have taken Men's Basic T-shirts, as example. Let us see what are the trims required for this style. Labels: Woven main label (2.5 cm width x 7 cm length): Tk 0.35 .Polyester printed wash care label: Single colour print: Tk 0.10 Hang tag: Tk 0.40 .So the total cost of trims is Tk 0.85 per garment Cost of Accessories Polybags: Normal - Tk 0.30 per garment Master Polybag: Tk 2 per master polybags to contain 8 garments - Tk 0.25 per garment. Export carton: Normal: Tk. 40 per carton to contain 48 garments - Tk 0.80 per garment. So the total cost of accessories is Tk 1.35 per garment. 5.7 Consumption Calculation of Fabrics, Accessories & Cartoons Fabric consumption calculation Body length = 73cm. Chest = 60cm. Sleeve length = 22cm GSM = 220
  • 46. 36
  • 47. 37 Carton Consumption Length = 60cm Width = 40cm Height = 40c 2(𝐿𝑒𝑛𝑔𝑡ℎ +𝑊𝑖𝑑𝑡ℎ +𝐴 )×(𝑊𝑖𝑑𝑡ℎ +𝐻𝑒𝑖𝑔ℎ 𝑡+𝐴𝑙𝑙𝑜𝑤𝑎𝑛𝑐𝑒 ) = 10000 2(60+40+5)×(40+40+2.5) = 10000 17325 = 10000 =1. 7325 square
  • 48. 38 Poly L=12” W =10” Thickness = .08mm 75000 = 𝐿𝑒𝑛𝑔𝑡ℎ ×𝑊𝑖𝑑𝑡ℎ ×𝑇ℎ 𝑖𝑐𝑘𝑛𝑒𝑠𝑠 = 𝑝𝑐𝑠 1𝐿𝑏 75000 = 12×10×0.8 = 78.125 Pcs on 1 lb 5.8 Negotiate the Price with the Buyer Merchandiser must properly prepare for meeting & trading the negotiation. There should be an agenda & time frame for the meeting. Merchandiser must be fully aware of garment item to be negotiated, product price, order quantity, leading Merchandising Procedure of Knit T-Shirt & Polo Shirt Daffodil International University 20 time, freight, garments construction, fabric consumption, cutting, making, charges for printing, embroidery, standard time for the garment etc. so that he is fluent about all aspects of negotiation. Full preparations from the side of the merchandisers about all aspects help come to a successful outcome very quickly. Merchandiser as a negotiator must have maximum & minimum position in respect of the order, its price, delivery schedule, order volume etc. Merchandiser must carefully observe the tone and wording of the buyer, his facial expression and body language interest or disinterest and where the final boundary of the buyer lies. Making an Agreement Merchandise must make their best efforts so that negotiations culminate into real agreements financially beneficial to his company. As soon as negotiation succeeds the buyer communicates details to the manufacturing company represented by the merchandiser. This detail takes the form of a master L/C, P.O shit or work sheet. Receiving Orders from Buyer Companies normally receive order from buyer through worksheet. A worksheet is a document where every details of the specific garment product are included. As soon as the worksheet at hand the manufacturing company may go for booking order for fabrics, trims, accessories as well as making production and shipment plants
  • 49. 39 Fabric Booking After receiving order confirmation from buyer merchandisers chase buyer to provide PO sheet (purchase order) which includes color & size wise break down of the total quantity. Then they will go for denim/knit or the necessary fabrics booking. In case of knit, yarn is the first element of knit fabric. So to make fabric they have to book suitable yarn from home or abroad. To import yarn from abroad it need approx 44/45 days and to buyer yarn from Bangladesh it need approx 20/30 days. After receive yarn we go for fabrics knitting and then coloring of the fabrics. After dyed fabrics is ready to make garments. In case of denim the process is same but some cases it fluctuates in terms of price and place Trim booking After getting trim information from Buyer they have to develop the same to get approval. Then they book trims from respective supplier to get cheaper price to minimize the cost. And, for shipment process they need to store every trim in-house so that production can not get hampered. The all processes go parallel when an order is confirmed. When the size set sample is confirmed, the processing of production starts.
  • 50. 40 5.9 Master L/C checking procedure & important items should be included in Master L/C A documentary Master L/C is an orderly payment security instrument offering high quality payment security to a business transaction for both parties the seller and buyer. The seller will receive payment for his goods if he meets all conditions prescribed by the letter of credit. Without M L/C opening the order won’t be confirmed. So its carry more value than other documents in export and import business. 5.10 M L/C Check List Items and Those Items Must be Included in This L/C  Types of L/C.  Issue date.  Expiry date.  Issuing bank details.  Advising bank details.  Seller name and address.  Total amount.  Currency of payment.  Tolerance (2-5% plus or minus)  Port of loading.  Description of goods.  Shipping terms (FOB/ C&F)  List of documents required. 5.11 Master L/C confirmation Procedure
  • 51. 41 5.12 E-mail to Suppliers for Samples of Yarn, Fabrics & Different types of Accessories for Buyer Approval Dear Mr. X, I got an order from Spanish buyer. Its order no. # TW0832 and order quantity is 50000 Pcs. So I need yarn, Sewing thread and accessories within 15 days. Please see the attach file.  Combed yarn.  Sewing thread.  Accessories. Best regards, Mr. Y Sr. Merchandiser Purbasha Composite Tex Ltd 5.13 Buyer Approval Procedure of Fabrics, Color & Accessories Fabric and accessories approval from the buyer is very important. According to the buyer color wise merchandiser have to outsourcing of the fabric. After collection of the fabric lap dip is done and show the fabric on the swatch submission card for better understanding of the buyer. After getting buyer’s confirmation about order it is important because to maintain the quality they expected it should be fulfilled and as new buyer it should be well concerned.
  • 52. 42 5.14 Procedure of Receiving of Price Quotations for Fabrics & Accessories Pricing is very important factors for any kind of business. After discussion with the supplier price is fixed. For fixing the price some points are followed such as  low price.  Quality of the goods.  Sampling.
  • 53. 43 Arrange meeting with different suppliers Collect Price from different suppliers Select some price Use quality full Accessories Argument with selected suppliers Win situation Fixed price Order to supplier 5.15 Price Negotiation Procedure with Different Suppliers 5.16 Writing to Suppliers for Price Negotiation Meeting  Cotton Concern Bd  Cotton Embroidery  Apollo Print and Design Ltd  Alana Packaging Ltd. 5.17 Writing Agenda for Price Negotiation Meeting  Quality for Product  Quantity of Product  In Time Delivery  Machine capacity  Factory capacity  Man Power
  • 54. 44 5.18 Writing Minutes after Price Negotiation Meeting with Suppliers Required Price Confirmation from Suppliers Price negotiation is the most important part of merchandising and marketing. Order confirmation depends on how cleverly and logically one can negotiate price with buyer. Competitive price is the key element of price negotiation. To make competitive price first of we have to know about the product. Then need to calculate the raw material price, manufacturing cost and shipping terms of the product. Knit fabric price is the sum of the below factors:  Yarn price per kg (approx. $6.40)  Knitting price per kg (approx. $0.15)  Dyeing price per kg (approx. $1.5)  Finishing price per kg (approx. $0.50) Thus, the fabric price per kg comes ($6.40+$0.15+$1.5+$0.50) = $8.55. Fabrics consumption for a European T-Shirt is 3.00 kgs per dozen. So fabrics price per dozen is (3.00 * 8.55) = $25.65. 5.19 Presentation of Comparative Statement (CS) Related with Different Suppliers for Fabrics & Accessories  Confirming order placing for fabric and accessories and check for Back-toBack L. /C. Opening and delivery date.  Arranging for printing embroidery or any Art-work or motif and washing  Following up order for advising, understanding, and confirming.  Confirming Counter sample / Shipment sample receiving from supplier 5.20 Preparation of Data Bank, of Suppliers for Different Items Preparation of data bank for different items:  Revocable L/C  Irrevocable L/C  Confirmed L/C  Confirmed & irrevocable L/C  Transferable L/C  Back to Back L/C  Red Clause L/C  Sight L/C  Usance L/C  Revolving L/C
  • 55. 45 Order for materials is placed to supplier through a negotiated instrument or through a back to back L/C. This instrument must comprise comprehensive specifications of fabrics & other materials. In a similar way, detailed specifications should be provided to the supplier of any materials in the contract or L/C. This ensures right quality of good in appropriate quantity to be sourced on time. 5.21 Preparation of Supplier for Different Items  Sample approved by buyer,  Fabric construction  Fiber content & yarn count  Type of looms (shuttle loom, open end, combed, carded, etc.)  Fabric Width  Types of looms (shuttle loom, shuttleless looms) in which fabric should be produced  Type of dye to be used  Standard of color fastness  Piece length size: Piece length with no seam (such as, 80% of rolls should be more than 50 meters long with no seam)  Fabric finish: Type & level of fabric finish as specified by buyer  Packing: Typing of fabric packing should be specified such as, rolled on tube and each roll in an untearable poly and poly bags to be packed in 3 ply cartons.  Labeling & Marking 5.22 Booking or Requisition to Supply Chain Department for Different Items Along with Approval from Buyers All businesses including fashion industries and retail buyers do have a supply chain. This supply chain feeds necessary inputs to the buyers or fashion industry. Supply chain from the perspective of garments industry I different. They require specific items, such as piece goods, trims and accessories for each export order. List of items that are sourced:
  • 56. 46 5.23 Insurance of P.O to Suppliers for Fabrics & Accessories In this case in addition to the bearing of freight the cost of insurance is also borne by the exporter. The exporter, while quoting CIF price, quotes much higher than C&F value . C & F+ Insurance=CIF. Normally we can add 1-2% insurance charge with CIF price. After receiving order confirmation from buyer merchandisers chase buyer to provide us PO sheet (purchase order) which includes color & size wise break down of the total quantity. Then we will go for knit fabric booking. Yarn is the first element of knit fabric. So to make fabric we have to book suitable yarn from home or abroad. To import yarn from abroad it need approx 44/45 days and buyer yarn from Bangladesh it need approx 20/30 days. After receive yarn we go for fabrics knitting and then coloring of the fabrics. After dyed fabrics is ready to make garments. 5.24 Items Should be Included in P.O. Those items are included in P.O. This are:  Order quantity  Product description  Size breakdown  Supplier bank address  Buyer details  Country of origin  Payment terms  Carton marks  Fabric construction  Care label instruction  Port of loading 5.25 P.I Collection Procedure from Suppliers & Checking of P.I After getting P.O from garment industry than supplier issue a P.I to merchandiser. This P.I is sent by e-mail or DSL to the merchandiser 5.26 Daily Production Report from Suppliers to Match with Factory Production Planning As soon as order plan is ready, it is communicated to the Factory manager/ Production Manager/ Manager Production Planning. Factory management in consultation with right people and appropriate departments allocates the orders to the relevant floor and production lines.
  • 57. 47 5.27 QC Management System for Monitoring of Suppliers Production Quality management is the aspect of the overall management function that determines and implements the quality policy. Quality assurance covers all the process within a company that contributes to the production of quality products. The inspection is carried out by representatives of the current production and the result record on control chart. The aim of garment inspection is to visually inspect articles at random from a delivery in order to verify their general conformity and appearance with instruction/description and/or sample received. Quality Control System is followed by all concerned in the company from piece goods inspection to the final statistical audit.41 Piece goods quality control: On receipt of fabrics in the ware house, at least 10% are inspection as per “4 Points” system/10 Points system/2.5 Point system/6.0 Point system. The most commonly used systems are 4 Points system as per below –  Size of defect penalty 3 Inches or less 1 Point  Over 3, under 6 Inches 2 Point  Over 6, under 9 Inches 3 Point  Over 9 Inches 4 Point A maximum of 4 points are changed in one linea Work Instructions/Workmanship is the supplier must establish satisfactory written standards and representative samples or workmanship which must equate to standards and specifications laid down in Data Sheets, Make-up Specifications and Sealed Samples. These standards must provide an objective base on which decisions are made by skilled personnel 5.28 Preparation of Production Files for Production Starting  Approval Sample  Order sheet  Measurement sheet  Assortment  Fabric quantity  Packing list  Carton measurement
  • 58. 48 5.29 Sending Procedure of Pre-production Samples Approved by Buyers, Production file & Pattern to Incharge of Factory  Collect approved sample, production file and approved pattern from buyer.  Merchandiser arrange meeting with production manager.  Give clear idea about approved sample, production file and approved pattern.  Than handover these items to PM. 5.30 Preparation & Conducting of Pre- production Meeting in Factory Pre-production meeting – once pre-production (PP) sample is approved and most of the trims are sourced, merchants or production planning department conduct pre-production meeting with production team, quality team and sourcing team. All important comments, procedures to be followed and discussed. Scheduling of PCD (planned cut date) and shipment date is announced to all teams. Production plans, Material planning and line planning to start production on time and ship the order on time planning is must. This meeting should be conducted directly after the merchandise manager approves the concept for development. The purpose of the meeting is to review the preliminary product and package specifications and to ensure that the supplier is aware of the companies‟ quality and product development procedures 5.31 Trims Card Preparation and Submission Trims are those items that are fixed with a garment and form part and parcel of that garment. Thus buttons, zipper, laces are this category of items. Before apparel production begins, it is critical that the buyer approves all components that will comprise the finished product. Some buyers will require review of all trims and others will require the approval of major trim components only. Here are a few examples of items that may need to be submitted for review.  Lab dips, strike offs (screen printed swatches), reeling of yarn in all colors.  Production fabric, knitwear etc. Most often required in a large enough size to containing full pattern repeat.  Care labels & main labels  Clothing Components: Buttons, lace, zippers, interlinings, shoulder pads, elastics, hangers, hangtags, price tickets, etc.  Packaging: ASN labels, chip board, jet clips, tissue paper, polybags, etc.
  • 59. 49 In addition to trimming, merchandiser will most likely be required to submit Fit Samples, pre- production garment samples, testing samples, TOP Samples (Top of Production Samples), etc. 5.32 Preparation of Shipping Samples & Sending to Buyer through Proper Packing & Documentation Shipping sample is prepared before shipment but it is send to buyer when final inspection is completed. This is an important sample to buyer that’s why sample department take extra care to make it. It is send to buyer by air for going early. Sending Procedure of Shipping Sample  Making according to the measurement sheet.  Quality check.  Ironing.  Labeling.  Poly bagging.  Forwarding letter.  Measurement sheet.  Finally re-check.  Send to buyer by courier 5.33 Preparation of Packing List after Final Inspection There are many kind of packing system is used in Apparel Industry. Here are many kind of packing system is used in Apparel Industry. Some packing name given below:  Flat packing  Standard packing  Hanger packing The back side of the packing some specifications are included for attracting the buyer. In the store room is used `VIM‟ card in these vim card some information is included such as buyer no, order no, style no, fabric qty. In the packaging section while packing the apparel industry follow these assortments  Assort color assort size  Assort color solid size  Solid color solid size  Solid color Assort size
  • 60. 50 5.34 Invitation to Third Party like SGS for Final Inspection Dear Sir, Thanks, recently we have completed one order from UK Buyer. Now we are ready for final inspection. According to our buyer requirement need your organization final inspection certificate. So please come to our factory and final inspection this order and give the conformation date for final inspection. Best regards, Mr. X Sr. Merchandiser Purbasha Composite Tex Ltd 5.35 Selection of Shipping, Forwarding & Consolidation Company for Smooth Shipment Forwarding The procedure for carrying out forwarding activities: procedure for rendering services related to shipment of cargos by any types of transport and execution of shipping documents, documents for customs purposes and other documents required for shipment of cargos. Consolidation: Aggregation of LCL cargoes and consolidation activities being the core business of the company it is very focused about its execution. This is done through with a highly-motivated team of professionals with a proven track record, a network of owned offices and franchisees in India that covers the length and breadth of the country, an established network of agents who are all majors in their respective regions giving our customers best of both worlds irrespective of which sector the business is headed!! Our valuable customers comprise of some of the biggest names in Freight Forwarding in the domestic market, Multi-National Companies having global presence and conglomerates.
  • 61. 51 5.36 Time & Action plan preparations Product or lines for each season must reach the store and sell through in a designated time frame. Delays can totally disrupt the business, because, products meant for one season cannot be sold in other seasons. So lend time must be strictly followed. Lead-time is generally divided into sequence of actions over a time frame. An example is shown below SI Date Action to be taken 1 1.05.2021 Received Master L/C for an export order 2 2.05.2021 To receive Proforma Invoice for piece goods & accessories 3 3.05.2021 To open Back to Back L/C for fabric 4 4.05.2021 To open Back to Back L/C for trims & accessories 5 5.05.2021 To submit Fit Sample to buyer 6 6.05.2021 To receive fabric sample from fabric supplier 7 7.05.2021 To receive sample of trims & accessories 8 8.05.2021 To receive comments on Fit sample from buyer 9 9.05.2021 To submit size set sample to buyer 10 10.05.2021 To receive comments/approval of size set sample 11 11.05.2021 Ex-factory of fabric 13 12.05.2021 To submit PP sample to buyer 14 13.05.2021 Fabric shipped from supplier port 15 14.05.2021 To get approval of PP sample from buyer 16 15.05.2021 To receive trims & accessories t store 17 16.05.2021 To receive fabric at store 18 17.05.2021 Inventory control to ensure all goods in place 19 18.05.2021 Fabric cutting starts 20 19.05.2021 First production run commences 21 20.05.2021 To submit production samples to buyer 22 21.05.2021 To start finishing of garments 23 22.05.2021 Receipt of cartons a store 24 23.05.2021 Cartooning commences 25 24.05.2021 Sewing complete 26 25.05.2021 Finishing complete 27 26.05.2021 Pre-shipment inspection complete 28 27.05.2021 Ex-factory of the merchandise 29 28.05.2021 Handing over to shipping line 30 29.05.2021 Shipment of goods 31 30.05.2021 To send shipment confirmation documents to buyer
  • 62. 52 5.37 Helping Commercial Department for Making Proper Documentation for Submission in Bank  Buyer’s Name  PO/Order/ Style No.  Item Description (As appropriate/complete to determine the Cat/HS Code No.)  BEXIMCO‟s Datatex Order No.  Lot #, if Any and qty per Lot #  Order Quantity  Carton Quantity  Export L/C No.  Fabric Source  Fabric Construction  Fabric Description  Unite Price  Freight Terms  Mode of Shipment  Port of Shipment  Port of Discharge  Latest Shipment Date in the L/C  LC Lien Bank & Factory A/C (BBL/C Dept.)  DCD / Any Specific Del-date to maintain  ETA Destination as per PO/Contract  G. Wt  Nt. Weight  Net. Weight Wt.  Total CBM  Tentative date of inspection  Factory from the Where the Good Will be delivered: BFSL.  Final Destination of the Goods 5.38 Trims card Preparation Submission of Trims Before apparel production begins, it is critical that the buyer approves all components that will comprise the finished product. Some buyers will require review of all trims and others will require the approval of major trim components only.
  • 63. 53 Trims are those items that are fixed with a garment and form part and parcel of that garment. Thus buttons, zipper, laces are this category of items. Some authors define trims as materials that can decorate and ornament a garment. Examples include lace, embroidery, appliqué, screen printing, heat transfers, sequins, etc. On the other hand, accessories are items that are not part and parcel of the garment but are required for finishing or marketing of garments. Back board, neck board, hang tag, price ticket, poly bags, cartons are examples o f accessories. Accessories are thrown away by the end user after a garment is bought and taken home. Here are a few examples of items that may need to be submitted for review.  Lab dips, strike offs (screen printed swatches), reeling of yarn in all colors.  Production fabric,knitwear etc. Most often required in a large enough size to containing full pattern repeat.  Care labels & main labels Clothing Components: Buttons, lace, zippers, interlinings, shoulder pads, elastics, hangers, hangtags, price tickets, etc.  Packaging: ASN labels, chip board, jet clips, tissue paper, polybags, etc. In addition to trimming most likely be required to submit Fit Samples, pre-production garment samples, testing samples, TOP Samples (Top of Production Samples), etc. 5.39 Monthly Merchandising report  Update the ERP system  Time &Action update  Order progress meeting date  Subcontracting (In or out) plans  Shipment plan ( Monthly/ Weekly) 5.40 Writing Future Business Plan A business plan is a document that is prepared in order to organize the business's operations, forecast financial performance, set financial and operational goals, attracts investors and applies for business loans. A business plan is a written description of a business’s future. It reports on the environment in which the company operates, explains what the company plans to do in the near future and predicts how it will perform financially. The following loose outline can be used as the basis for preparing a simple business plan.  Executive Summary  Business Concept  Financial Features  Financial Requirements
  • 64. 54 6. CONSUMPTION AND COSTING FOR MERCHANDISER In apparel industry, the process of costing a product is very dynamic. The knowledge on the costing process is very essential for a merchandiser. Since, he or she is involved from the product development stage, the knowledge on costing is very essential. He or she needs to develop the cost sheet from the product development stage, with all necessary components that go into the cost sheet. The merchandiser should have a strong understanding about the different elements of cost and their influence on the products pricing. The major role of the merchandiser in the costing process is, after the costing process, he or she should monitor the variables that influence the cost of any product. 6.1 Types of Apparel Costing Pre costing: Designer worksheet - Fabric, trim cost, labor cost and all the material cost, roughly estimate the wholesale cost. Final costing Cost sheet: The import department estimates the exact calculation of fabric consumption and costing, yarn, knitting, dyeing, fabrication cost, sewing thread consumption and costing, trimming and accessories costing, cm cost, print, embroidery, wash, carton costing, poly consumption, test cost, inspection cost, commercial cost, profit and also shipment cost. 6.2 Elements of Cost
  • 65. 55 6.3 Information Required for Costing  Factory expenditure/month ,  Working days in a month ,  No. of machines ,  Total no. of garments to be made,  Yarn composition  Construction: Body: Single jersey, Neck: (1*1) rib, color of the fabric , extra finishing work, printing ,embroidery 6.4 Factors Influencing the Costing Process  Type of fabric  Trims type and numbers  Cutting, making checking and packing charges  Value added services–printing, embroidery, washing, appliqué  Testing of the garment  Quality parameters expected  Transportation and logistics cost  Profit of the manufacturing organization.  Fabric cost  Unit of Measurement (UM)  Fabric Minimum Order Quantity (MOQ)  Inspection,  GSP,  L/C payment term,  Commercial cost,  Shipment date.  INCO terms (International commercial terms 6.5 Fabric Costing Parameters  The fabric consumption / per garment  The fabric quantity need to be purchased  Yarn consumption (in kgs) per square metre  Estimating the process cost like pre-treatment and dyeing  Calculating the total fabric cost of the fabric.
  • 66. 56 6.6 Costing Process of T-shirt The mostly discussed topic related to Garments Industry is Costing. To be able to survive in the business world of Textile &Garments as a Buyer or a Supplier one must have the proper knowledge of Costing. But to do so one must be able to conduct the Costing by only viewing the Papers with some instructions related to Garments making, because it is only possible for a merchandiser to turn paper into million pieces of Garments. So before proceeding to further details lets view a Tech Pack for which we will proceed to costing in the later part. So before going forward to Costing the Tech Pack should be carefully analyzed for below issues.
  • 67. 57 Fabric Consumption For proceeding to Calculating the Consumption of the Tee Shirt need to consider the Middle values. So for this style the values that are needed for estimating the Fabric Consumption is as below: Parts of Body Actual length Allowance Body length (Length - from nk/sh point) 42cm 8cm Sleeve length 10.5cm 0cm ½ Chest width 32cm 6cm Neck length (By Calculating) 40cm 4cm Neck width 1cm (round up 0.8) 4cm So from the above measurements let’s find out the fabric consumption: Firstly, the Fabric Consumed by Body Parts (Body +Sleeve) for 12pcs/Doz is as below: 1 𝐵𝑜𝑑𝑦 𝐿𝑒𝑛𝑔𝑡ℎ + 𝑆𝑙𝑒𝑒𝑣𝑒 𝐿𝑒𝑛𝑔𝑡ℎ + 𝐴 ) × 1 𝐶ℎ 𝑒𝑠𝑡 𝑊𝑖𝑑𝑡ℎ + 𝐴𝑙𝑙𝑜𝑤𝑎𝑛𝑐𝑒 × 2 × 𝐺𝑆𝑀 × 12 2 10000000 (42+10.5+8)×(31+6)×2×160×12 = 10000000 =0.86 kg per dozen 10000000 = 0.86 kg per dozen. So, fabric consumption for Body parts (Body +Sleeve) is 0.86 kg per dozen After adding the Garments Process loss of 8% (Solid Dyed Gmts) the Fabric consumption for Body parts (Body +Sleeve) is 0.93 kg per dozen.
  • 68. 58 Next, the Fabric Consumed by Neck Binding for 12pcs/Doz is as below: (𝑇𝑜𝑡𝑎𝑙 𝑁𝑒𝑐𝑘 𝐿𝑒𝑛𝑔𝑡ℎ +𝐴𝑙𝑙𝑜𝑤𝑎𝑛𝑐𝑒 )×(𝑁𝑒𝑐𝑘 𝑤𝑖𝑑𝑡ℎ +𝐴𝑙𝑙𝑜𝑤𝑎𝑛𝑒 )×2×𝐺𝑆𝑀×12 = 10000000 (40+4)×(1+4)×2×160×12 = 10000000 =0.085 kg per dozen So, fabric consumption for Neck is 0.085 kg per dozen. After adding the Garments Process loss of 8% (Solid Dyed Gmts) the Fabric consumption for Neck is 0.092 kg per dozen. Finally, the total amount of Single Jersey Fabric required including wastage for this particular item is = 0.93+0.092= 1.022Kgs/Dz Yarn Price As this is a 160GSM Single Jersey Fabric. So for getting the Yarn Count required for this Fabric will be as below: Single Jersey Yarn Count = 4300 𝐹𝑎𝑏𝑟𝑖𝑐 𝐺𝑆𝑀 = 4300 160 =28s. So considering the Yarn count is 28s, the approx. price for this type of Card Yarn is- $ 3.00 & the price for Comb Yarn is- $ 3.30 (due to comb yarn being o superior quality the price is high). For Purchasing Yarn, the fact which needs to be considered is that from Yarn to Fabric Making there will be a process loss of 12% in between for Solid Garments. Thus the Total Yarn Price =(Total Fabric Reqd × Process Loss × Yarn Price) =(1.022 × (1 + 12%) × 3.3) = $ 3.778 However, the Yarn Price may vary from time to time and Factory to Factory. So the mentioned price may change with different & the capability of sourcing of individuals or organizations. But for purchasing Yarn this is certain that when the No. of Yarn Count increases the Yarn becomes finer& thus the price of the Yarn increases. Normally the increase or decrease in price ranges from $0.05 to $ 0.10. but in case of Cotton Mélange, Slub, Blended, Fiber Dyed & Fiber Composition changes the price will be totally different from 100% Cotton Yarns.
  • 69. 59 Knitting Cost This Style contain Single Jersey Fabric for both Body & Neck Binding. So for Geiger Single Jersey the Knitting price is Approx- $ 0.3/Kg. For Knitting, we will try to ensure the entire Yarn is properly utilized & accurate Fabric is prepared. Thus the Total Knitting Price will be =(Total Fabric Reqd × Process Loss × Knitting Price) =(1.022 × (1 + 12%) × 0.3) = $ 0.343 However, the Knitting price will differ for Feeder Stripe, Engineering Stripe or Other type of Knitted Fabrics such as Lycra Single Jersey, Rib, Interlock, Fleece, Lacoste, Pique etc. Also the given is an estimated value closer to actual but will vary for factory to factory. Dyeing Cost For Dyeing cost we will calculate the same considering it is an Average color as the Tech File mentions 6 option plain dye. So if the Dyeing price is $ 2.0/Kg (this is the cost considered for Solid Dyeing) then the total Dyeing price including process loss will be = (Total Fabric Reqd × Process Loss × Dyeing Price) =(1.022 × (1 + 12%) × 2) = $ 2.289. However, the Dyeing price will vary for Yarn Dyeing, Fiber Dyeing (Space Dyed). Accordingly, the Processes involved for fabric making & the process loss will also differ for Solid Dyeing method & other forms of Dyeing method. Printing cost Though it is not mentioned on the Tech Pack, but on regular occasion the given Garments contain a 5cm×3cm rubber print at the back neck of the garments. For such small print the price will be approx. $ 0.40/Doz. But if the print size & type changes the price will also change accordingly. So the print cost will be = $ 0.40/Doz. The mentioned price is only given for 1 colour Rubber Print for mentioned measurement. But the price will differ with increased size, No. of color’s & type of print. Also the mentioned value is a approx. one which will differ with factory to factory
  • 70. 60 Cost of Making (CM) Considering it is a Plain Tee Shirt, the machines required for this type of product is 13~15 to produce 1000pcs to 1100pcs per day. So for any compliance industry if the per day machine cost is Tk-2000 or $ 27, then the Cost of Making per Dozen for such item will be 𝐿𝑖𝑛𝑒 𝑐𝑜𝑠𝑡 𝑝𝑒𝑟 𝑑𝑎𝑦 ×12 = 𝑂𝑢𝑡𝑝𝑢𝑡 𝑝𝑒𝑟 𝑑𝑎𝑦 𝑝𝑒𝑟 𝑙𝑖𝑛𝑒 𝑃𝑒𝑟 𝑑𝑎𝑦 𝑚𝑎𝑐ℎ 𝑖𝑛𝑒 𝑐𝑜𝑠𝑡 ×𝑁𝑜.𝑜𝑓 𝑚𝑎𝑐ℎ 𝑖𝑛𝑒 𝑝𝑒𝑟 𝑙𝑖𝑛𝑒 ×12 = 𝑜𝑢𝑡𝑝𝑢𝑡 𝑝𝑒𝑟 𝑑𝑎𝑦 𝑝𝑒𝑟 𝑙𝑖𝑛𝑒 27×15×12 = 1000 = = $ 4.86/Doz or $ 5/Doz (Round Up) CM can also be calculated by SMV (Standard Minute Value) & SAM (Standard Allowed Minute). Thus if the SMV for such item is $ 0.6 & if it takes 7 minutes with 90% Efficiency to prepare 1pc Garment, then the CM will be 𝑆𝐴𝑀 𝑜𝑓 𝑡𝑒ℎ 𝐺𝑎𝑟𝑚𝑛𝑒𝑡𝑠 ×𝑀𝑖𝑛𝑢𝑡𝑒 𝐶𝑜𝑠𝑡 𝑜𝑓 𝐿𝑎𝑏𝑜𝑟 = 𝐿𝑖𝑛𝑒 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 7×0.6 = 0.9 == $ 4.667/Doz or $ 5/Doz (Round Up) Accessories Cost Though the Accessories Cost is just a term, but in actual accessories mean all the sewing & finishing items required to prepare the Garments .As per given Tech File an item such as this one consists of below Accessories:  Sewing Thread The Sewing Thread is used for joining different garment Fabric Cut panels for preparing the Garments. There are 2types of Sewing Thread, one is Polyester Thread (Ply yarn) & the other is Filament Thread (Core spun yarn) which are available in 2000meter & 4000meter Yarn Cones. In this case the Yarn used that is used is 4000meter Cones.In this Case, consider the Tee Shirt requires 200meters of Thread for preparing the Garments.  Care Label The Care Label is used for indicating the instructions of taking care of the Garments that is mentioned by printing on Satin Tape or on Nylon Tape by attached the same on back side of the Garments. On some occasions the care instructions might also be printed.
  • 71. 61  Size Label The Size Label is used for indicating the size of the Garments for which age people of certain type of body structure the Garment is suitable. This is normally a printed Sticker which is normally attached on the body by adhesive.  Mobilon Tape The Tape used inside the Shoulder Seam of Tee Shirts for ensuring the fabric does not tear up due to stress on shoulders. Normally the Tapes are purchased in Kgs which is equivalent to 1350yds of Tape.  Price Tag The Price Tag is used for indicating the price of the Garments that is mentioned by printing on Paper Card & is attached on the Garments by Tag Pin.  Hang Tag The Hang Tag is a Brand Tag Paper Card which also is attached on the Garments by Tag Pin/ Lock Pin.  Tag Pin The Tag pin is the plastic pin for attaching the Hang Tag, Price Tag with the Garments by Tag Gun. Normally it is found in Boxes of 5000pcs.  Single Poly As per given measurements even if the Garments are half fold the Single Poly measurement will be at most 36cm×26cm or 14.2”× 10.2” per body & if per thickness of the Poly is 200gauge. Then the weight for 1pcs of poly will be 𝐿𝑒𝑛𝑔𝑡ℎ ×𝑊𝑖𝑑𝑡ℎ ×𝐺𝑎𝑢𝑔𝑒 = 3300×1000 14.2×10.2×200 = 3300×1000 =0.0088Kgs.
  • 72. 62  Blister Poly If 10 pcs are packed one Blister Poly, then the Blister measurement will be at most 40cm×30cm or 16”×12” per body & if per thickness of the Poly is 200gauge. Then the weight for 1pcs of poly will be 𝐿𝑒𝑛𝑔𝑡ℎ ×𝑊𝑖𝑑𝑡ℎ ×𝐺𝑎𝑢𝑔𝑒 = 3300×1000 16×12×200 = 3300×1000 =0.0117Kgs.  Carton Considering per body height is 2cm, then for 10pcs body the Carton Height will be 22cm including the Carton Folding allowance. Also accordingly if the Carton have similar measurement as Blister Poly, then with Folding allowance the entire Carton measurement will be L×W×H = 42cm×32cm×22cm. Thus accordingly the total Consumption will be (𝐿𝑒𝑛𝑔𝑡ℎ +𝑊𝑖𝑑𝑡ℎ +6)×(𝑊𝑖𝑑𝑡ℎ +𝐻𝑒𝑖𝑔ℎ 𝑡+4)×2 = 10000 𝑆𝑞𝑢𝑎𝑟𝑒 𝑀𝑒𝑡𝑒𝑟 (42+32+6)×(32+22+4)×2 = 10000 𝑆𝑞𝑢𝑎𝑟𝑒 𝑀𝑒𝑡𝑒𝑟 = 0.93Square Meter.  Gum Tape The Gum Tape is used for closing the Carton after completing the packing of the Garments & Gum Tape contains Adhesive Gum at the Back side of it. So if the Carton measurement is L×W×H = 42cm×32cm×22cm, then the Gum Tape required will be (𝑙𝑒𝑛𝑔𝑡ℎ ×2)+(𝑊𝑖𝑑𝑡ℎ ×8)×1.3 = 100 𝑀𝑒𝑡𝑒𝑟 (942×2)+(32×8)×1.3 = 100 𝑀𝑒𝑡𝑒𝑟 = 4.368Meter. Courier Cost The Cost required for Transporting the entire garments from Garments Industry to the Sea Port is the Courier Cost. In this case if the total Garments Qty which is used for quoting is 100000pcs, then if per Carton contains 10pcs.Then the total amount of cartons will be 10000pcs. And if per Carton CBM is 𝐿𝑒𝑛𝑔𝑡ℎ ×𝑊𝑖𝑑𝑡ℎ ×𝐻𝑒𝑖𝑔ℎ 𝑡 = 1000000 = 42×32×22 𝐶𝐵𝑀 100000