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Merchandising activities of Readymade garments (RMG) executing an order of 10000 pcs T-Shirt
Submitted to: Submitted by: GKM Towfique Hassan Razeeb Lecturer 027-067 School of Business Studies MBA (Executive) Primeasia University Banani, Dhaka-1213 & Apparel marketing Wahidul islam ID # 102Program # Batch # 19th Major Textile
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Table of Contents
Sl. No Topics Chapter -1 Page Number s
3-5
1.0 1.1 1.2 2.0 2.1 2.1 2.2 2.3 2.4 2.5 3.0 3.1 3.2 4.0 4.1 4.2 4.3 4.4 5.0 5.1 5.2 5.3 5.4 5.5 6.0 6.1 6.2
Price negotiation and order confirmation How to prepare garment price Fabrics price Trimming price CM calculation Other embellishment calculation Commercial cost Fabrics and accessories booking Fabrics booking Accessories booking.
Chapter -2
5-7
Chapter -3
7-8
Merchandising activities on Product development Style sample development Size set sample development Pre production sample development Production sample Merchandising activities on production follow up Production plan Trial/Test cutting Cutting Sewing Packing Merchandising activities on Quality control Quality control during inline Quality control during production
Chapter -4
8-10
Chapter -5
10-11
Chapter -6
11-13
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Final inspection
Chapter -7
13-14
Merchandising activities on goods delivery to buyers destination Booking to forwarder Documentation Payment release
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Executive Summary
The textile and apparel industry in Bangladesh occupies a prominent position within the countrys industrial structure. It is the largest manufacturing sector, providing jobs for some 50% of the total industrial workforce and contributing 9.5% of the countrys GDP. Also, it accounts for almost 77% of total exports, making it Bangladeshs leading foreign exchange earner. In the early 1980s exports were dominated by jute while garment sales were insignificant. But today garment exports are by far the leading export category. In 2004/05 the clothing sector generated as much as US$5.58 billion in foreign exchange. The industry benefits from special access to markets in the EU, Canada, Norway and Japan. Because Bangladesh is a least developed country, its textile and clothing exports enter these countries quota free and duty-free. This concession, together with low labor costs, provides the garment sector with a strong competitive advantage. But in order to produce garments for export, the sector has to purchase a large share of its yarn and fabric needs from abroad, especially woven fabrics. Few local textile firms are able to produce materials of the required quality or in adequate quantities. The Bangladeshi government is attempting to remedy this situation. To reduce the countrys import bill, it is offering tax concessions and incentives aimed at encouraging investors to develop the necessary backward linkages. Bangladesh's most important exports are comprised of readymade garments (RMG), with jute, leather, and frozen fish products also being major export sectors. The government is rallying the RMG sector as the area with the largest potential for growth, and a key step the government must take is the development of backward linkages for the sector to be truly competitive In RMG sector there are many department like knitting, dyeing, finishing, cutting, sewing, packing, production planning, quality control, Merchandising and marketing, Store, HR & compliance, information technology, etc. Among all the department merchandising & marketing is one of the most important department in RMG sectors, In my assignment I tried to discus about the merchandising activities to execute an order of 10000pcs T-Shirt. The report will represent the following points as under: * Price negotiates and order confirmation * Fabrics and accessories booking * Merchandising activities on Sample development * Merchandising activities on production follow up * Merchandising activities on Quality control * Merchandising activities on goods delivery to buyers destination
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Chapter -1
(1.0) Introduction
1.1 Objectives of the assignment
The primary objective of this assignment is to fill partial requirement of MBA degree. Besides fulfilling the degree requirement, this report intends to cover a comprehensive analysis on merchandising activities in RMG sector. Report also studies how important merchandising activities on RMG sector.
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2. To establish contact with the buyers sending formal letters/profile. 3. Receiving buyers response and providing price quotation along with making of sample as counter/approval. 4. Receiving samples comments from the buyer. 5. To furnish the pro-forma invoice and sending the buyer. 6. Taking necessary steps to develop lab-dips of the materials (FAB & ACC) 7. Receiving the master L/C & verify clauses of the L/C both in technical and commercial point of view. 8. To confirm floor booking of the order with factory. 9. To confirm transfer authentication of the L/C in favor of fact. 10. 11. 12. 13. 14. 15. 16. 17. To 18. 19. 20. 21. 22. 23. Pushing the factory taking initial procurement to open the back-toSearching reliable fabric and accessories sources and finalize To monitor the shipment of raw materials and arrival in the 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. advise factory if buyer change any instruction both in back L/C by bank. supplying of the required materials relevant tot the order. factory.
technical/commercial point of view to the order. Collecting order from the buyers. Sending Samples to the buyer for approval. Collecting accessories form different Suppliers. Giving order to the specified garment factory. Communicate with all the respective parties. Coordinating the whole process at a regular manner
This report is based on the merchandising activities of one of the fast growing ready made knit composite garment factory named FAKIR KNITWEARS LTD established in 1989. It has more than 80000pcs T-Shirt production capacity per day.
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Chapter -2
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During the fixation of FOB price of a T-Shirt following notes are to be followed carefully: 1. 2. 3. 4. 5. 6. Cost of fabrics/Dzn. garments. Cost of Accessories/Dzn. garments. C.M (Cost of Manufacturing) /Dzn. Garments. Cost of embellishment (if any) like print, embroidery, etc Commercial cost. Commission (if any)
2.4 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. Generally CM per dozon of a basic T-Shirt is $5.00
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As our assignment is based on basic T-Shirt we are not calculating any embellishment cost.
Chapter -3
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Various kinds of trims are used in Basic T-Shirt. To buy or make booking for trim firstly we have to know from buyer what kind of trims they required for their T-Shirt. After collection trimming information from buyer we have to develop the same and need to get approval. Then we will book trim from respective trim manufacturing house. It is very important to buy all the necessary trims before start garment production.
Chapter -4
Sequence of Sampling
Counter sample/Style sample/Salesmen sample Fitting sample/ Size set sample Pre-Production. Production Sample. Shipping Sample. Photo/ Advertisement/ Catalog Sample
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Fabrics Selection
Approval Fabrics (for hand feel & Approval) Test done from official Testing House 1st Bulk Fabrics in each Color Test report in each color
Lap dip
Each Color Options for Dry Recipe Confirmation with "Spectro Readings" Re- Sub Needed Until Approval.
Swatch
Swatch is a presentation of all the materials is (Fabrics & Accessories) used foe any specific style/order. Usually small piece of fabrics and each piece of accessories are attached in board paper in a systematical manner. Swatch is very important for production line to make the correct construction of a garment and QC departments ensure it. Concerned merchandiser should confirm/approve the swatch.
Trims
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 may be rejected or returned by the customers.
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Chapter -5
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5.3 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.
5.4 Packing
After sewing garments is packed into packing section. Here we put iron on garments, add various kinds of hangtags, polybags and make garments ready to ship to the buyer.
Chapter -6
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Goods must be designed to meet customers needs and make manufacturing process and maintenance easily. They must be made exactly and consistently to the specified design. Marketing must ensure accurate advertising, trade description with constant feed back for improved design. Total commitment to organized design.
Batch Size (Units) 26-50 51-90 91-150 151-280 281-500 501-1200 1201-3200 3201-10000 10001-35000 35001150000 150001500000 500000+
AQL Sam ple Size 13 13 13 50 50 80 125 200 315 500 800 1250
AQL- 1.5 Sampl Accep e Size t. Defec ts 8 0 8 0 32 1 32 1 50 2 80 3 125 5 200 7 315 10 500 14 800 800 21 21
AQL- 2.5 Sampl Accep e Size t. Defec ts 5 0 20 1 20 1 32 2 50 3 80 5 125 7 200 10 315 14 500 21 500 500 21 21
AQL-4.0 Samp Accept le . Size Defect s 13 1 13 1 20 2 32 3 50 5 80 7 125 10 200 14 315 21 315 21 315 315 21 21
Maximum buyer of the world follows this above chart for inspecting their garments. When garments will be ready for shipment, an inspector should follow the above acceptance level of quality products. It is applicable for all types of garments. So this chart is very important for Quality Control and Quality Inspection of a Garment. Factory will have to follow and work on the basis of this chart. Factory should have to submit their AQL report to the respective buyers before shipment.
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It is understood that all performance and legal requirements be following to the letter (that is L/C or any other contact between the buyer & seller) with no division allowed, including requirements of the following: 1. Flammability. 2. Refurbishing (Cleaning). 3. Labeling.
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Chapter -7
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Invoice: Below point are including in the invoice: Name and address of the buyers and the seller. The Date and term of the sale. A description of the goods, The price of the goods and The mode of transportation.
7.3 Payment release After prepared invoice, bill of landing and other required documentation we send it to buyers nominated bank for payment release.
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