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Garment costingA

summaryMM

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Program Outline

Is proper costing essential ? Structure of a garment costing and where to focus

The dilemma -Whats on buyer mind Vs. whats on

bosses mind How and where the money is stashed

Points to keep in mind when negotiating with buyer

Improving the costing Re-cap

Q & A

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Why ?

Reaching organizations goals Budget -> Performance indicators -> Individual products profitability

Being competitive in the market Customers retail price -> target Cost -> actual cost

Deciding what to take Profitable orders

Seasonality

Allocating limited capacity

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Cost components till retail sale price

Fabric cost

Trims/Accessories cost

Outsourcing costs / Miscellaneous costs

Cut and make (CM) cost Commissions

Vendors Profit margins

Freight

Insurance Duties

Buyers markup

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The Big Dilemma

Whats on buyer mind Vs. whats on bosses mind

How buyer arrives at FOB targets and how to capitalize

on that

What is the limit we can be flexible

Performance indicators to hit Cents per minute

Sales / Cost of making

Net profit percentage

Order quantity and lead time Product feasibility vs. cost

Relationship

Competitive advantages in market

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Where the money is stashed !

Understanding where buyer can be flexible and not Fabric cost, Trim cost, Misc. costs, CM

Understanding Buyers strong points and vulnerable points

Fabric trim Prices, Consumptions, Special operation costs,

CM Being smart pays !

Keeping an eye on revisions

presenting makes all the difference

- Focus on maintaining the original target

- Generalizinggiving the costing on the highest cost option

- Capitalizing on buyers schedulebusy buyers have no time

to chase after minor cost improvements of closed costs

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Points to keep in mind when

negotiating with buyer

Understanding each individual buyers ways

Maintaining historical price levels

Focus on Maintaining closed costs Being Flexible helps recovering

Interested party should make the call

Follow up Closing the final cost

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Improving the costing

Getting the exact cost is of prime importance to

avoid hidden costs that will later eat in to CM.

Understanding Costing is a dynamic and

evolving process

Negotiating with supplier and service providers

Importance of Garment re-engineering Innovating, counter sourcing

Importance of communication

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MRP team - our best buddies

Why MRP function is in place

Break down of cost components in value

Regulation across the cluster

Sharing good things among different teams

Archivists, Analysts and implementers

How to make a win-win relationship

The pain killer prescriptionMRP Check list

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Thank you !