Activities of Merchandiser

Prepared by: Md. Mozibur Rahman

ID: 112-323-007

Atish Dipankar University of Science and Technology

Departments of Textile Engineering House-83, Road-4, Block-B, Banani, Dhaka-1213

What Is Apparel Merchandising?

Apparel Merchandising is all about costing of apparels, selecting and ordering latest trendy materials, styles, sizes and overall apparel specifications to the manufacturers according to the main buyer’s requirement. The people who manage this whole apparel merchandising process is called apparel merchandiser

Responsibilities of a Merchandiser• Product Development • Market and product Analysis • Selling the concept • Booking orders • Confirming Deliveries • Designing and Sampling • Costing • Mediating production and quality departments • Giving shipping instructions and following shipping, • Helping documentation department• Taking responsibility for inspections and • Following up the shipment.

Objectives of Garments Merchandising1. To try to get garments order inquiry from buyer

through various sources. 2. To find out the consumptions of fabrics &

accessories.3. To make costing on the garments inquiry. 4. Procurement of raw materials.5. Follow up.6. Regular correspondence with buyer, suppliers

and related personnel.7. Help and follow up in commercial activities.8. Arrange tests & inspections.9. To do shipment.

Apparel Merchandising Activity Cycle:

Work flow of Garments Merchandising

• To collect buyers addresses.• To establish contact with the buyers sending formal letters/profile.• Receiving buyer’s response and providing price quotation along with making of sample as

counter/approval.• Receiving samples comments from the buyer.• Receiving Purchase Order from buyer.• To furnish the pro-forma invoice and sending the buyer.• Receiving the master L/C & verify clauses of the L/C both in technical and commercial point of view.• To estimate time schedule for the exports of those garments as per L/C.• To confirm floor booking of the order with factory.• Taking necessary steps to develop lab-dips of the materials (FAB & ACC)• To confirm transfer authentication of the L/C in favor of fact.• Pushing the factory taking initial procurement to open the back-to-back L/C by bank.• Searching reliable fabric and accessories sources and finalize supplying of the required materials relevant

to the order.• To monitor the shipment of raw materials and arrival in the factory.• To monitor of the supplying materials while receiving factory.• To order the test cutting with quality.• To check/inspect/advise for the bulk production.• To monitor production, quality and delivery.• To advise factory if buyer change any instruction both in technical/commercial point of view to the order.• To maintain continuous liaison with his or her controlling authorities.• Arrange inspections.• Sea vessel / air ship booking & insurance• Shipment

Different Types of order placed by buyers•FOB(free on board) Order•FOA(Free on Air) Order•C& F(Cost & Freight) Order•CIF(Cost Insurance & Freight) Order•CIFC(Cost Insurance & Freight &

Commission) Order

TIME AND ACTION CALENDAR

SAMPLEThe samples decide the ability of an exporter. The

buyer will access the exporter and his organization only by the samples. If the samples are of good quality and with reasonable price naturally the buyers will be forced to place the order. So it is essential that the samples should be innovative and with optimum quality. The purpose of sampling is not only to get bulk orders and also give some additional benefits to the exporters. By doing sampling the exporter can estimate the yarn consumption for developing the fabric, a clear idea on costing more ever the manufacturing difficulties.

Types of Sample•Salesmen samples or promotional

samples •Photo samples•fit samples•Pre-production samples •Size-set sample•Production samples •Shipment samples

Consumption & CostingKnit garments consumption:

Fabric Consumption:

Before calculate the fabric consumption, we must need the followings information as mentioned below:

1) Measurement chart with technical spec.2) Style Description.3) Fabric Description.4) Fabrics width/weight.5) Washing shrinkage if any.

Calculation:

{(Body length + Sleeve length + Sewing Allowance) X (1/2 Chest + Sewing Allowance)}X 2 X GSM X 12 / 10000000 + Wastage (For 12 pcs of garments)

Woven Garments Consumption:Fabric Consumption:Formula = Length  X Width  / Fabric width

X Fabric Unit

Cost of Manufacturing (CM) Calculation:

COST OF MAKING (CM) ={(Monthly total expenditure of the following factory / 26) / (Qty of running Machine of your factory of the following month) X (Number of machine to complete the layout)} / [{(Production capacity per hr from the existing layout, excluding alter & reject) X 8}] X 12 / (Dollar conversion rate)

CBM calculation:

The cubic volume occupied by a shipment in Cubic Meters is referred to as the shipments CBM. To calculate CBM we first need to know the length, width and height of the carton in cm. If carton measurement is in inch, we have to convert measurement in inch. Simply multiply length, width and height to find cubic centimeter and divide by 1000000 to find cubic meter (CBM). formula as follows:

CBM= (LENGTH in cm X WIDTH in cm X HEIGHT IN cm/1000000)

BOOKING

Booking is the order sheet given from the manufacturer to the suppliers. After getting the master LC from the buyer the manufacturer, Merchandisers are supposed to make the booking and send the suppliers. By booking merchandisers procure the raw materials e.g. fabric, accessories and trims.

Fabric booking:

Knit fabric booking is done mentioning the following criteria:

Composition: 100% cotton, 95% cotton 5% spandex etcConstruction: S/J, 1x1 rib etcGSM: 140 gsm, 180 gsm etcQuantity in Weight: e.g. 5000 kgColor: Red, White, Blue etc

Woven fabric booking is done mentioning the following criteria:

Composition: 100% cotton, 95% cotton 5% spandex etcConstruction: e.g. 40 X40 /120 X 60Width: e.g. 44”, 46”Quantity in length: e.g. 10000 yardsColor: Red, White, Blue etc

Follow up and updates

Merchandiser’s follow up tasks:

1. Product Package Analysis for Merchandising Follow up and Procurement Planning.

2. Preparation of Time and Action Calendar for Merchandising Follow up.

3. Follow up of all BB L/C on receipt of Master L/C in respect of Yarn, Knitting, Dyeing, Printing, Embroidery, Value-addition works and Accessories.

6. Follow up of Procurement of Yarn. Fabric and accessories.

8. Follow up of Lab-dip Preparation, Submission and Approval.

10. Follow up of Dyeing, Finishing.

11. Follow up Cutting in respect of Production and Finishing requirement.

12. Follow up of Accessories Development, Submission, Approval, Procurement and Inventory.

13. Follow up of all Samples, Pattern Correction, Graded Nest, Size Set and arrangement of Pre-production Meeting.

14. Follow up and Arrangement of all Inspection as per Buyer’s requirement.

15. Follow up of all Lab-Test of Garments and Accessories.

16. Monitor Final Inspection and Transportation of Cargo to Port with proper Load Calculation on time.

17. Monitor submission of Documents and Realization of Payment as per shipped qty and approved price.

INSPECTIONAfter making of the garments,

merchandisers are supposed to arrange pre-final and final inspection.

Inspection can be carried out in several ways:

▫ Inspection by buyer▫ Inspection by buying house▫ Inspection by third party

AQL:

AQL is Acceptable quality limit. A statistical measurement of the maximum number of defective goods considered acceptable in a particular sample size. If the acceptable quality level (AQL) is not reached for a particular sampling of goods, manufacturers will review the various parameters in the production process to determine the areas causing the defects. AQL chart is used to inspect garments.

Commercial documents•Proforma invoice (PI)•Purchase order (PO)•Bill of lading •Insurance document•Certificate of origin•Packing list•Air way bill •Commercial invoice etc

Cash-in-Advance

With this payment method, the exporter can avoid credit risk, since payment is received prior to the transfer of ownership of the goods. There are three types of cash- in advance- payment method: wire transfer, credit card, and payment by check.

Letters of Credit

Letters of credit (LCs) are among the most secure instruments available to international traders. An LC is a commitment by a bank on behalf of the buyer that payment will be made to the exporter provided that the terms and conditions have been met, as verified through the presentation of all required documents. The buyer pays its bank to render this service. An LC is useful when reliable credit information about a foreign buyer is difficult to obtain, but you are satisfied with the creditworthiness of your buyer’s foreign bank. An LC also protects the buyer since no payment obligation arises until the goods have been shipped or delivered as promised. The letters of credit can take many forms: irrevocable or revocable, confirmed, or special (transferable, revolving or standby).

Documentary Collections

A documentary collection is a transaction whereby the exporter entrusts the collection of a payment to the remitting bank (exporter’s bank), which sends documents to a collecting bank (importer’s bank), along with instructions for payment. Funds are received from the importer and remitted to the exporter through the banks involved in the collection in exchange for those documents. Documentary collections involve the use of a draft that requires the importer to pay the face amount either on sight (document against payment—D/P) or on a specified date in the future (document against acceptance—D/A).

Open Account

An open account transaction means that the goods are shipped and delivered before payment is due, usually in 30 to 90 days. Obviously, this is the most advantageous option to the importer in cash flow and cost terms, but it is consequently the highest risk option for an exporter. Due to the intense competition for export markets, foreign buyers often press exporters for open account terms since the extension of credit by the seller to the buyer is more common abroad. Therefore, exporters who are reluctant to extend credit may face the possibility of the loss of the sale to their competitors.

Conclusion

Merchandising is undoubtly the most impostant section of a garments industry. Merchandisers coordinates between all the sections. So a good garments merchandiser should have concepts about every section of the textile.