Introduction to Merchandising

1. What is 'Merchandising"? Classify Merchandising on the basis of departmental structure

&Product.
According to American Marketing Association, merchandising encompasses "planning involved in marketing the
right merchandise or service at the right place, at the right time, in the right quantities, and at the right price."

Departmental structures in merchandising

Merchandising can be structured in numerous ways but more commonly, it is structured on the basis of –
1. Customers 2. Products 3. Geography
On Basis of Customers: Merchandisers are supposed On Basis of Customers On basis of Products
to retain the customers and they are their 1. Merchandiser 1. Merchandiser
representatives, so the division based on customers Customer A Yarn
is very logical from this point of view. 2. Merchandiser 2. Merchandiser
1. Merchandiser A: taking care of "IKEA" Customer B Fabric
2. Merchandiser B: Taking care of "WALMART" 3. Merchandiser 3. Merchandiser
3. Merchandiser C: Taking care of "LI &FUNGs" Customer C Production
4. Merchandiser D: Taking care of "TESCО" 4. Merchandiser
Customer D

What is the current position of Bangladesh in garments export? Discuss on current status of
Bangladesh garments sector based on updated information.
Bangladesh's ready-made garment (RMG) sector is growing, but faces challenges such as labor unrest and supply
chain issues.
Growth
In 2024, RMG exports grew by 7.23% to $38.48 billion.
Bangladesh is a global hub for apparel sourcing.
Bangladesh is the world leader in green garment manufacturing.
Challenges Labor unrest, Reduced purchase orders, Supply chain disruptions, and International market prices
have declined due to lower demand from consumers.
Other developments
The RMG industry has over four thousand factories.
Bangladesh exports a wide variety of knitwear and woven garments, including shirts, trousers, jackets, sweaters,
and denim.
Bangladesh is the third-largest apparel exporter to the US.
Bangladesh has made efforts to improve working conditions, end forced labor, and provide safe and high-quality
products.

State the major merchandising functions performed by a merchandiser.

• Study of fashion trend and fashion forecast in association with fashion designer;
• Studying potential target customer;
• Sourcing information about the customer and his profile;
• Sourcing information about the product, its categories, styles, specifications, assortments, size details etc.;
 • Sourcing foreign buyer;
• Negotiating orders, cost calculation, pricing, securing orders through master LC;
• Sourcing fabrics, trims and accessories;
• Placing order for the fabrics, trims and accessories materials and making regular follow-up;
• Getting samples made, making costing and pricing of the same; Rectifying samples if necessary;
• Completing the whole sampling procedureas per customer requirement;
• Getting buyer approval of the sample; Estimating lead time;
• Production and shipment planning; Keeping track of raw material arrival, production cycle, and organizing
inspections;
• Monitoring production and product quality;
• Making regular liaison with the customer and keeping him update on order & production status;
• Follow up of customer instruction in respect of packing and packaging;
• Arranging product delivery on time; Follow up with the customer in respect of shipment and informing him
shipment details; Coordinate with shipping/ export department;
• Arranging payment against export order;
• Quick response follow up in respect of any of the buyer's query.

Illustrate the flow chart for merchandising activities from order receiving to shipment
Marketing Sampling Fabric Trims
Development sample Receive color standards Source suppliers
Buyer Request
sample preparation L/D or Y/D booking Develop
Pricing-costing
and send to buyer trims/accessories
Order Receipt & confirmation for approval L/D or Y/D preparation
and send to buyer for Trims/accessories
Order execution through Proto sample Approval preparation and send to
coordinationg following steps buyer for approval
as per TNA sample preparation Fabric quality send
and send to buyer to buyer for approval Trims/accessorie s
Start Production
for approval Fabric/Yarn dyeing booking
Arrange Inspection after booking
Production PP sample In-house
1st Bulk dyed fabric trims/accessories
Vessel Booking (about 15 days sample preparation send to buyer for shade
prior to inspection) and send to buyer approval
for approval
Export documentation &
logistics continue dyeing
Production sample
sample preparation
and send to buyer
for approval.
What is 'T & A'?
Normally merchandisers prepare a plan of the order in a spreadsheet by listing down the key processes in first
column and planned date of action for each process in the next column. This planning sheet is popularly known
as time and action calendar (TNA). Once TNA calendar is made, then it can be easy for merchandiser list down
their daily 'to do list' and taking it one by one.
 Write the factors Considered for preparing IMPORTANCE OF (TNA)
'T&A • It helps to streamline the pre-production
• Production capacity of plant activities.
• Style type of merchandise • Easy understanding of order processing.
• Festivals of manufacturing country • Clear understanding of timelines given by
• Holidays buyer.
• Shipment details • It gives the clear idea about the minor or sub
• Festivals of country from where raw material is activities that need to perform during order
imported processing at different level.
• Logistics facilities • TNA gives the idea about the status of running
• Lead time estimated by buyer order and talks about delay or deviation, if any
• Style complications • TNA gives the dates at which raw material need
• Fabric and trims manufacturing complications to be sourced, in a way it helps to optimize the
• Buffer required from each department inventory.
• Political stability of the country • TNA also reduces the risk of delivery delay.
• Flexibility of freight forwarder
• Response time from buyer at different stages
• Lead times of various activities like L/C
payment, custom clearance, etc
• Cut off dates for shipments M

Technical Package & Info. Investigation

What is the "Technical Package
A tech pack is a document containing all the technical information about your product. It's an essential
document for both designers and production teams when producing new collections, as it helps clearly
communicate every little detail about what you are making, to your manufacturer.

Mention some of the key points of a Tech Pack?

Technical drawings and dimensions: Annotated flat drawings showing a front and back view and close-ups of
any design details such as packets, pleats, etc., seams, bartacks, stitching details and a table with all product
dimensions and the size and placement of each component.
Quantities & sizing: A table indicating the quantities you are looking for and the size split.
Materials: Information on each key raw material that makes up your product, with name, ways, composition,
weight, finish, and a nominated supplier if you have one.
Components: Information on each component that makes up your product - embroideries, prints.labels,
buttons, tags, threads, trims, fastenings and embellishments.
Order details: Desired delivery date, bulk production delivery address and details on how you want your
products packaged and packed.

Note down the Contents of Tech-Pack.

• Measurement sheet • Embroidery design scan or • Graphic placement
• Garment technical design or sample • Colour combo
flat sketch • Embroidery placement • Style no.
• Fabric specification • Seam and stitch specification • Other technical data related to
• Colour specification and placement garment construction
 • Trim specification • Point of measurement • Graphic specification
• Testing methods

The Role of the Fashion Buyer & Garments Technologist

State the responsibilities of a Garment Technologist?
Suggesting modifications to designs if necessary
Advising on suitable raw material like fabrics, sewing threads and other trims/accessories
Making sure that the most appropriate construction methods are used
Making sure garments can be produced within budget
Overseeing fabric testing and fittings of first samples
Responding to product queries
Analyzing product returns and faults.
Discuss about win-lose negotiation and win-win negotiation.
Win-Lose negotiation
• In a Win-Lose scenario, both sides attempt to win, without much regard for the outcome of the other
party.
• In this scenario, both parties may enter the negotiation with a best case scenario and a "walk away" point.
• In a Win-Lose scenario, one party falls within their target range (or better) and the other party falls
outside their target range.
Win-Win negotiation
• In a Win-Win scenario, both parties end up at minimum within their target ranges. Both parties are
benefited.
• In some cases, a win-win can mean that a new solution is found that improves the position of both parties.

What is negotiation skill?

Negotiation skills are vital skills because it is a rare condition when everyone sees everything the same way. If
there is a difference in viewpoint or perspective, there will be a difference in actions. And difference in actions
toward different results creates conflict. Conflict cannot be resolved in a civil society without negotiation.

Briefly describe different types of negotiation skills.

1. Set-up tactics. Well before they sit down at the table, negotiators typically make a number of decisions, small
and large, that can have a dramatic effect on how their talks unfold. One of the most important questions to ask
is whom you should be negotiating with to meet your goals. Look beyond your final target: You might make the
most progress by negotiating first with people who can influence him or her. Another key question is whether to
negotiate online (via email, videoconferencing, or text messages), on the telephone, or in person—or a
combination of all of these formats. Meeting in person is often ideal, but other communication media have their
advantages. When meeting in person, should you meet at your office or theirs? Meeting at your place may be
most comfortable, but traveling shows your commitment and allows for valuable information gathering.
2. Value-creating tactics. People often view negotiation as a win-lose enterprise, but in most situations, a win-win
mindset will lead to better results. Adding issues to the discussion is often the key to value creation and a great
deal. For example, in a corporate negotiation about a merger, in addition to discussing valuation and price, parties
can discuss personnel issues, headquarters location, long-term strategic plans, and so on. Then explore tradeoffs
based on each party’s preferences. Other promising value-creation strategies include asking lots of questions to
learn about what matters to your counterpart and sharing information about your own interests and priorities.
3. Value-claiming tactics. Taking a collaborative approach to negotiation doesn’t negate the importance of claiming
a fair share of the value you’ve jointly created. Effective value claiming should be based on a thorough analysis of
what you want out of the negotiation as well as what the other party wants. Be sure to spend time thinking about
your BATNA, or best alternative to a negotiated agreement—what you’ll do if you fail to reach your goals in the
current negotiation—and try to discover what your counterpart’s BATNA might be as well. Negotiators often find
they can effectively claim value by making an ambitious first offer, but you’ll need to have a solid sense of the
 bargaining zone. Research shows that the person who makes the first offer often anchors the negotiation to their
advantage.
4. Persuasion tactics. In negotiation, how you present your proposals can influence your counterpart at least as
much as what those proposals include. How you frame information affects whether your counterpart views your
offer as a promising or disappointing, and whether they’ll want to deal with you over the long term. One proven
persuasion tactic is to make several offers simultaneously rather than just presenting one offer. Be sure that you
value each offer equally so you won’t be disappointed by the other party’s choice. There are a number of
other persuasion techniques you can use in negotiation, such as drawing on the power of silence, presenting a
draft agreement, and looking for ways to get your foot in the door.
5. Defensive tactics. It would be nice if negotiation were always just a matter of two reasonable people
using negotiating techniques and skills as they work patiently toward agreement, but we often hit roadblocks
anyway. When we encounter deceptive tactics in negotiation, threats, and other unethical or hard bargaining
moves, we need to have some defensive tactics ready to deploy. To some extent, we can avoid the need to play
defense by taking time to get to know the other party and try to build rapport and trust before getting down to
business. If any red flags pop up, take a break to research your suspicions and weigh carefully whether to proceed.
At the negotiating table, effective defensive tactics include explicitly agreeing upfront to behave in an honest,
forthright manner; conveying that you have a strong BATNA; and making your counterpart aware of your
connections to their organization and social network.

Def & key points of Whittling.

There are several things a buyer can do to maximize the inherent advantage of status, and dramatically increase
their success rate by the simple application of basic but learned negotiation skills. This is the process of
"whittling"; getting the seller to make small concessions.
Whittling is done at the very end, when you are almost to an agreemen t or the seller is losing patience. This is
the time to whittle and ask for those small concessions.
There are seven key points:
1. Whittle at the end of the negotiating process
• Know the difference between whittling and negotiating. Negotiating is the interplay of conflicting ideas
and proposals through the majority o f the interaction.
• Whittling is done at the very end, when you are almost to an agreemen t or the seller is losing patience.
This is the time to whittle and ask for those small concessions.
2. Ask for small, not big, concessions
• It is important not to re-open the entire negotiation once again. All of the previous ground gained woul d
essentially be lost.
• Rather, whittling involves asking for little concessio ns from the seller, to add an extra benefit right befor e
the deal is sealed.
3. The concession must be easy for the seller to make
• In other words, the concession should not affect the bottom line of the seller's agreement.
• It is one thing to ask the seller to lower their price...that's negotiation again.
• An effective request at this point does not "cost" the seller, but it bene fits you as the buyer.
4. The concession must be offered as condition for closing the deal
• This final concession is offered only once, right at the end.
• It affectively puts the seller on the horns of a dilemma: grant this requ est and close the deal or risk losing
the whole sale over it.
• For buyers, this is POWER. It is an almost surefire way to add benefit because few sellers can say no to
such a proposition.
5. The concession must not be price related
 • This is an important aspect of whittling. The amount of cash the seller takes bac k to her company is one
of the key measures of success at the negotiating table. When you attempt to reduce the price, the seller
naturally resists.
• But when you request extras, the seller is more inclined because it costs the sell erless to provide than the
value is to the buyer.
• And these extras can be anything, products of services. Typically there is a huge markup on them so the
cost to the seller is minimal. But you as the buyer receiv e a substantial benefit.
6. The concession must be justified to be effective
• It is not advisable to ask for concessions just to ask for concessions. T he requests should be applicable to
the sale and justifiable to your nee ds.
• Be sure to ask for extras that enhance or increase the value of what yo u are purchasing, so they appear
logical and justified.
• For example, to close a deal in buying a car, asking for a reduced price on a warranty would be justified,
while asking for the salesman's leath er jacket would not.
7. The concession must be prepared in advance
• As in all negotiation skills, preparation is vitally important. You shoul d not add requests for extras off the
top of your head, else they might appear contrived.
• Rather, think though in advance of things or services you would like t o have because you know they will
increase the value of your purchas e and plan the introduction of the request at the perfect time.
• Remember, if they are requested too early, they are not whittling; they are negotiating points. Plan them
for use at just the right moment: righ t before the deal is struck.

# Fashion Designing & Fashion Trend

Define 'Lead time'
Lead time is the amount of time that elapses between when a process starts and its completion. Lead time is
examined closely in manufacturing, supply chain management and project management, as companies want to
reduce the amount of time it takes to deliver products to the market.
Give a tentative lead time breakdown of AOP Knit fabrics.
Type of work Leadtime Remarks
(in days)
Yarn Leadtime 10 To be counted from opening yam BTB LC.
Knitting Leadtime 10 To be counted from yam inhouse date
1st submission ofAOP strike-of 10 To be counted from receipt of color standard and artwork
Comments on 1st submission of AOP 7 To be counted from receipt of lab dip
strike-off
Revised submission of AOP strike- 7 To be counted from receipt of AOP strike-off rejection comment
offs
Comments on re-submission of AOP 7 To be counted fromreceipt ofrevised submission of AOP strike-off
strike-off
Bulk hanger submission & PP fabrics 20 To be counted from AOP strike-offapproval date. (provided that
ground fabric is ready)
Bulk hanger approval 7 To be counted from receipt of bulk hanger
Fabric quality check at central store 2 To be counted from once fabric is inhouse at Central store
IMPORTANT NOTES:
1) For any new quality of fabric, pls consider 2-4 weeks (depending on yarn availability) of fabric approval time. 2)In a case of AOP
fabric, pls do NOT submit any lab dip for ground color approval. The AOP strike-off or sample length must be in correct fabric round.
Explain different theories of "Fashion Movement."/ State different theories of fashion

•Trickle-down theory •Trickle-up theory •Trickle-across theory

Trickle-down theory: Fashion trends start at the top of the “social ladder. The assumption that fashion
trends start among the upper class or fashion leaders and move down to the masses or fashion
followers.
Source of fashion ideas
▪ designers catered to wealthy
Fashion leaders
▪ highly visible elite served as models for lower class
Direction
▪ down from elite class to working class.
Change of speed
▪ how quickly the lower class could obtain and copy the elite
Dynamics of change
drive for differentiation and imitation
Chatacteristics
World’s oldest and most accepted fashion theory
Asserts that fashions are accepted by people of lower socioeconomic income levels only after they have been
worn by people of upper socioeconomic income levels
• These styles are seen on high-fashion runways.
• Example: Jackie Kennedy’s pillbox hat, Barbara Bush’s pearls, Nancy Reagan’s red, Hillary Clinton’s pantsuits
in the office.
Trickle-up theory (Upward flow theory): The assumption that fashion trends start among the young or lower income
groups and move upward to older or higher income groups

•Style originates with the lower class and gains approval by upper class or the fashion elite.
•Ripped jeans, leather jackets

Trickle-across theory (Horizontal flow theory): The assumption that fashion moves horizontally through groups at similar
social levels from fashion leaders to followers.
• Its the notion that the adoption of a particular fashion will spread horizontally within several
socioeconomic classes at the same time.
•Each social group has own fashion leaders.
•Members of each social group look at the leaders of their own group for fashion trends.
•Example: Designer fashions are copied quickly for mass production, providing similar styles at most
price ranges.
However, they don’t become popular until the fashion leaders of each group have accepted them.

Write down the steps to arrange a successful fashion show.

SETUP & PLANNING CLOTHING
• Plan about the show details. • Convey the upcoming trends with fashion show through
• Select the date of show for a certain fashion week. clothing,
• Search for the best venue to hold show. • It is critical to layout the upcoming trends with themes,
• Need an easy place for audience to get to. and then show the clothes that center around those
themes .
• This gives credibility to fashion experts .
 • As a place is picked to keep track what items come with
the venue, and what you will need to rent for the show.
Here are afew to think about:
▪ Chairs ▪ Lighting ▪ Sound ▪ Staging ▪ Runway
MODELS MARKETING
• Arrange a model program to find out fashion show • Most of the marketing for the show is done by models.
models. • The event can be promoted by online marketing and
• Finding models is an area to put a lot of effort in because other community partnerships as well.
models will be the ones generating buzz for your studio. • sometimes models may sell a set number of tickets to be
in the show
FITTINGS & DRESS REHEARSAL EVENT DETAILS
• Before the show arrange a fittings for the models and go • Spending a certain time for the event getting ready.
through a dress rehearsal program. • From equipment setup (staging, runway, seating, sound,
• Organize things backstage, teach the models how to etc.) To decor (displays, marketing pieces, decorations,
walk, and talk to them about having fun on the runway. etc.) It’s all hands on deck for the entire day.
This is essential to show itself being a success
FOLLOW UP
• Need to continue creating and keeping buzz going for as
long as possible.
• No matter the turnout at your event .
• Need to make sure that your target market feels it was
the event of the year – including those that missed it!
• This generates excitement for future events and for your
studio in general.

What is meant by fashion cycle?

• The ongoing introduction, rise, peak, decline, and obsolescence in popularity of specific styles or shapes.
• All styles that come into fashion rotate through the fashion cycle.
• Fashion acceptance can be illustrated using a bell-shaped curve.
Flops: Fashions that are introduced and expected to sell but that are not accepted by consumers.
Fads: Temporary, passing fashions that have great appeal to many people for a short period of time; styles that gain and lose
popularity quickly.
Classics: Styles that continue to be popular over an extended period of time even though fashion changes; styles that remain in
fashion year after year.

Write down the stages of fashion cycle with suitable figure?

Introduction: The first stage of the fashion cycle when new styles, colors,
textures, and fabrics are introduced.
• The new style may be accepted by a small number of people called
fashion leaders.
• Promotional activities include fashion shows and advertising in high fashion magazines.
• Fashions are produced in small quantities at high prices.
• Retail buyers purchase limited numbers to see if the style will be accepted.

Rise:
The second stage of the fashion cycle when consumer interest grows and the fashion becomes more readily
accepted by consumers.
• Mass production brings down the price of the fashion, which results in more sales.
• Styles are manufactured in less expensive materials and in lower quality construction than the original style.
• Promotional efforts are increased in high fashion magazines to heighten/raise consumer awareness.
• Retail buyers order items in quantity.

Peak (Culmination stage):

The third stage of the fashion cycle during which a style is at its height of popularity.
• The fashion is demanded by almost everyone because it is now within the price range of most consumers and
is mass produced in many variations.
• Each retailer tries to persuade customers that its version of the style is the best.
The style may have a long or short stay at this stage.
– Short-run fashions: Styles that are popular for a brief period of time.
• Fads, usually lasting only one season
• Accepted and rejected quickly
• Teenagers’fashions change the fastest and have the most trends.
• Styles are easy for the manufacturer to produce and are relatively inexpensive to the consumer.
• Styles typically have more details than seen in classics.
Long-run fashions: Styles that take a long time to complete the fashion cycle.
• Classics, basics, and/or staple fashions
• Slow introduction, long peak, slow decline
• Styles have simple lines, minimal detail.
Decline:
The fourth stage of the fashion cycle when the market is saturated and popularity decreases.
• The fashion is overused and becomes dull and boring.
• As the fashion decreases in popularity, retailers mark down their prices.
• Promotions center around major clearance or closeout sales of the fashion.
Obsolescence:
The fifth stage of the fashion cycle when the style is rejected, is undesirable at any price, is no longer worn, and
is no longer produced.

State the key skills of a fashion designer?

• A good eye for color, texture and shape;
• An understanding of the properties of fabrics and how they can be used ;
• Technical skills such as pattern cutting and sewing ;
• The ability to spot and develop trends ;
• Drawing skills ;
• The ability to use computer aided design (CAD) ;
• Understanding of production processes;
• The ability to solve problems
• commercial awareness;
• The ability to work as part of a team.
What is style and Fashion?
Style is a person’s means of expressing themselves through clothing, hair, and accessories.
Fashion is a popular style or practice, especially in clothing, footwear, accessories, makeup, body piercing, or
furniture accepted by a group of people for a specific period of time.
What is consumption?
The process in which the substance of a thing is completely destroyed, used up, or incorporated or transformed
into something else. Consumption of goods and services is the amount of them used in a particular time period.
What is garment consumption?
Garment consumption means the amount of raw materials (fabric, trims & accessories) used to make that garment.
For example: fabric consumption 0.50kg/garment, button consumption 6pcs/garment, sewing thread 150m/garment etc.

Costing?
Costing is a system of computing cost of production or of running a business, by allocating expenditures to various stages of
production or to different operations of a firm.

Mention the factors affecting costing// Factors affecting Apparel costing

Fabrication Print Lead time
Size Specification Embroidery Profit
Fabric Consumption Wash GSP (or EЕВА)
Fabric color Order Volume Inspection
CM Test Requirement Commercial cost
Trimmings & Accessories L/C Payment terms Miscellaneous

Fabric Costing related factors

Yarn cost (Count wise) Process loss
Knitting/weaving charge Commercial cost
Dyeing / printing charge Profit margin
Special finish

Sampling
What is garment 'sample and sampling
Sample: A few item or goods taken from a large number of similar goods are called sample.
Sampling: Sampling is the most technical feature of the merchandiser's job. This involves developing new
products or taking some existing products to the new customer to meet the customer demands.

Mention different types of Garments Sample.

Prototype samples: These are samples developed # Size-Set Samples: A sample of each size is required
during the preliminary stages of product by the buyer after giving comments on " Prototype
development. They are made by similar but not Samples". SizeSet samples are requested to check the
always exact fabrics & trims. But must be made as per accuracy of each size pattern.
buyer sketch, specification sheet.
Fit sample: Fit sample is made and sent to conform # Pre- production sample (PP sample): Must be in
the fit of the garment on live models or on dummy actual fabrics, trims and accessories. Bulk fabric
and for approval of construction details. cannot be cut until these samples are approved by the
buyer.
# Sales man / Marketing /Showroom sample: These Approved samples: Upon approval of the pre-
are the samples used by the buyer for promotion or production samples by the buyer, they will be sealed
sale of their product. It is a special order from buyer. and tagged with comments if necessary. The
These are required in exact fabrics, shades and approved pre-production samples is called approved
accessories. More quantities are required in this case samples.
and payments are made by the customer.
 Production Samples: Representative samples taken Photo Samples: These samples are photographed for
from a production line on random basis by buyer's making brochures, catalogs, etc for distribution to
representative is called production sample. A stores and for end-use.
production samples approved and accepted by buyer
may represent shipment samples.
# GPT sample (Garment Performance Test): The main Counter Samples: Sometimes required approved
purpose of GPT is to perform the physical and samples in different departments but there is only
chemical testing on garment to ensure the one approved samples. So merchandiser can
performance of the garment. The tests done on reproduce a number of samples against the available
garments are: Shrinkage, Color Fastness, Seam approved samples.
performance etc. Garments for GPT sample can be
done along with Size Set sample. Normally, GPT
Sample is sent to 3rd party inspection and results are
sent to both factory as well as buyer.

What is Gold Seal Sample?

A gold seal sample is a garment sample that has been approved for bulk production. It is also known as a red-seal
sample, buyer-sealed sample, or pre-production (PP) sample.

SAMPLING PROCESS:
1.Getting buyer requirement:
On reception of the request from the
buyer, merchandiser evaluates the request.
-Clarify the sample specifications with the help of R&D people.
-Checking possibility:
•If not possible, buyer should be informed instantly.
•If possible, its completion and dispatch date is to be confirmed to the buyer ASAP
keeping in view all processes time.
2.Sample Preparation:
After doing the necessary calculations, merchandiser first checks whether such sample in
stocks or not?
• In case of sample already present in finished stocks in the right quantity and quality,
then he can inform the buyer about the dispatch date in this regards
• In case, Merchandiser does not have any sample available, he will forward the sample
request (sample booking) to the relevant department.
Evaluating results:
merchandiser gets the results from the Quality Control lab and compares it with the standards specified
by the buyers. If the sample results are consistent with the desired results, then it can be sent to the
buyer
Sample packing and dispatch:
the sample is properly packed for its safe arrival at the destination. For the sample dispatch, the merchandiser
sends the sample via courier and puts complete detail along- with the sample for buyer reference.
Seeking buyer's comments:
Once the sample reaches the buyer, merchandiser gets the comments from the buyer and keeps records of it.
-If sample is approved, then he go for bulk production or next processes.
-If rejected, requires rework according to buyer comments.
 Apparel Production Planning & Control

Define 'Production Planning & Production Control'.

Production planning involves management decisions on the resources that the firm will require for its
manufacturing operations and the selection of these resources to produce the desired goods at the appropriate
time and at the least possible cost.

Production control guides and directs flow of production so that products are manufactured in a best way and
conform to a planned schedule and are of the right quality. Control facilitates the task of manufacturing and see
that every theme goes as per the plan.

Production Planning and Control is the co-ordination of series of functions according to a plan which will
economically utilize the plant facilities and regulate the orderly movement of goods through the entire
manufacturing cycle from the procurement of all materials to the shipping of finished goods at a predetermined
rate.

The PPC Cycle:

The PPC Cycle refers to Production Planning Control cycle. It has 3 Phases-Preplanning, Planning, Controlling.

The Pre-Planning Phase The Planning Phase consists The Controlling Phase
consists of- of consists of- -
- product development, • planning of the 4 M's follow up, inspecting, and -
- sales forecasting, (methods, materials, men evaluating.
-factory or plant layout, and machines),
- equipment selection policy, and • routing,
preplanning of production just • estimating,
prior to large scale production. • scheduling, and -Amin,
• despatching.

Shaw the difference between production control and production planning

production planning Factor production control

Production planning focuses on anticipating Focus: production control focuses on real-time
future needs and creating a detailed monitoring and corrective actions to maintain
production roadmap the planned production flow.
Production planning happens before Timing: production control occurs throughout the
production begins manufacturing process.
Production planning involves activities like Activities: Production control involves activities like
demand forecasting, material requirements dispatching, inspection, quality checks,
planning, routing, scheduling, and capacity performance analysis, and corrective actions.
planning.
production tasks to specific workstations, Example: Monitoring the actual production progress
and setting deadlines for each stage of against the planned schedule, identifying any
production for a new product launch. delays or quality issues, and taking immediate
steps to rectify the situation.
Write down the function of production planning and control.
• Job or Task Scheduling: Preparation of time and action calendar for each order from order receiving to
shipment (T&A). The job schedule contains list of tasks to be processed for the styles. Against each tasks
planner mentions when to start a task and what is dead line for that task. Name of responsible person
(department) for the job is being listed. For example, scheduling planned cut date (PCD), line loading date
etc.
• Material Resource Planning (Inventory): Preparation of Material requirement sheet according to sample
product and buyer specification sheet. Consumption of material (fabric, thread, button, and twill tape) is
calculated and estimated cost of each material.
• Loading production: Planner defines which style to be loaded to the production line and how much
quantity to be loaded.
• Process Selection & Planning: Processes needed to complete an order, vary style to style. According to
the order (customer) requirement PPC department select processes for the orders. Sometime extra
processes are eliminated to reduce cost of production.
• Facility Location: Where a company has multiple factories (facilities) for production and factories are set
for specific product, planner need to identify which facility will be most suitable for new orders.
Sometimes there may be a capacity shortage in a factory, in that case planner need to decide which
facility will selected for that orders.
• Estimating Quantity and Costs of Production: Planner estimate daily production (units) according to the
styles work content. With the estimated production figure, production runs and manpower involvement
planner also estimate production cost per pieces.
• Capacity Planning: PPC department plays a major role during order booking. They decide (suggest) how
much order they should accept according to their production capacity. Allocating of total capacity or
deciding how much capacity to be used for an order out of total factory capacity. Regularly updating
factories current capacity (production capacity).
• Line Planning: Preparing detailed line planning with daily production target for the production line. Most
cases line planning is made after discussing with production team and Industrial engineers.
• Follow up and execution: Whatever plan is made is executed by PPC department. PPC department keeps
close look whether everything is progressing according the plan. Chasing other department heads on daily
basis to keep plan on track. They update order wise completed tasks on the Time & action Calendar.
When they found something is going to be late they expedite and create an alarm about the delay.

Sourcing Strategy
What is Sourcing
Sourcing is the proactive management of a supply market (suppliers) to ensure access to adequate resources
required for the long term needs of the firm: understand market characteristics, identify relevant potential
suppliers, define a strategy for the firm, and set the objectives for any market shaping effort.

Discuss the importance /Benefits of effective sourcing decision.

• Better economies of scale can be achieved if orders are aggregated,
• More efficient procurement transactions can significantly reduce the overall cost of purchasing,
• Design collaboration can result in products that are easier to manufacture and distribute, resulting in
lower overall costs,
• Good procurement processes can facilitate coordination with suppliers,
• Appropriate supplier contracts can allow for the sharing of risk,
• Firms can achieve a lower purchase price by increasing competition through the use of auctions.
What is Critical Path method?
The Critical Path Method, abbreviated CPM, or Critical Path Analysis, is a mathematically based algorithm for
scheduling a set of project activities. It is an important tool for effective project management.

Discuss the critical path method & Garmenting?

Time consumed in product development (PD) is the biggest issue. Approvals and bulk fabric in house consumes
approx. 75% of the total pre production activity time and as far the most time
consuming task. Whole supply chain needs a system which
-Reduces time spent in PD. Tex
-Co-ordinates internally for all pre -production activity.
-Producing a high quality clear cut specifications for manufacturing and quality purposes
• About 60% of the delays are at Pre production stage and remaining at the production stage and reduction
of such time can help the company in meeting the delivery dates on time.
• Controlling the delay would enable the company to reduce the deviation from the schedules lead time
and honor the delivery date.
Define JIT. Mention the benefits of JIT?
JIT (Just in time) is an opposite form of JIC (just in case). JIT is anexample of pull system whereas JIC is an
example of push system.

JIT means producing the right part in right quantity, at the right time,thus reducing manufacturing waste. The
objective is to produce acontinuous flow of value so that the customer can pull. JIT supportsquick response to
customer, better sense of take time and abnormalitycontrol.

JIT is a management idea, a tool that enables the internal process of acompany and adapt to sudden changes in
demand pattern.
Benefits of JIT
• No big storage areas are required, avoiding building costs.
• No additional security personnel to guard these reducing labor costs.
• No excessive buying leading to less capital investment
• No excessive production leading to time & labor cost saving.
• Reduced overheads & scrap
• Reduced WIP as a result of production against demand
• Storage costs & damages during storage are totally avoided.
• Strong supplier/customer relationships
• Enhanced competitive position in the market
• Improved worker & equipment efficiency
• Increased team work & flexibility
• Reduction in paperwork & follow-ups involved there-in

Define 'MRP
Material requirements planning (MRP) is a production planning, scheduling, and inventory control system used
to manage manufacturing processes. Most MRP systems are software-based, but it is possible to conduct MRP
by handas well.
Objective of MRP
• Ensure materials are available for production and products are available for delivery to customers.
• Maintain the lowest possible material and product levels in store
• Plan manufacturing activities, delivery schedules and purchasing activities.
Mention the skills of a good sourcing Manager?
• The remarkable traits or skills you must have to succeed as a
• sourcing manager includeExcellent communication skills
• Negotiations kills
• Ability to prioritize
• Integrity
• A positive attitude
• Networking capabilities
• Able to respondquickly
How to Reach the Buyer?
Depends on your product range, your specialty.
• Choose your trade fair
• Network
• Direct Marketing: Newsletter, samples, phone, mail
• Get publicity on a fashion community, or fashionjournal
• Advertising Amin
• Sales office/agent
• Personal visits: 2nd phase
• Free publicity: Certifications-articles
• Internet forum
• Approach online stores Lecturer, that TFD, offer SRTEC special collections

Elements of strategic sourcing.

1. Market Research – One of the crucial part of Strategic Sourcing is having a clear understanding
of the market and available resources. Market research is critical not only for the procurement of
new goods and services but also for the consolidation of vendors who may have overlapping
offerings.
2. Analytics – Analytics plays an important role in strategic sourcing analysis. Elements of the
sourcing strategy and associated operations require periodic assessment. Continued analysis of
the spending strategy is one of the defining element of Strategic Sourcing.
3. Forecasting – Forecasting is an essential component of Strategic Sourcing. It involves planning
the procurement and delivery of goods and services to the required address. Forecasting is
generally done periodically and reassessed frequently to monitor performance against the plan.
4. Category Management – For strategic sourcing, it is always essential to categorize all goods or
services based on similar characteristics. Strategic sourcing analysis includes the categorization
of goods and services as well as defining the budget centers for different departments.
5. Supplier Management – While procurement generally handles the tactical, day-to-day
encounters with suppliers (purchase order management, for instance), Strategic Sourcing is
generally responsible for the management of suppliers at the macro level. Categorizing,
consolidating, negotiating, etc.
State the differences between local sourcing & global sourcing
Local sourcing global sourcing
Geographic Local sourcing focuses on domestic while global sourcing looks to international
Scope: suppliers within the same country, suppliers across different countries.
Delivery Time: Local sourcing usually results in quicker Slowly
deliveries due to closer proximity to
suppliers.
Cost: Global sourcing can often offer lower costs
due to access to cheaper labor markets in
other countries, but might incur higher
shipping costs.
Communication: Local sourcing generally allows for easier Difficult
communication and collaboration with
suppliers.
Supply Chain Local sourcing often leads to a simpler Difficult
Complexity: supply chain with less logistical
challenges.
Impact on Local Local sourcing directly supports the local indirect
Economy: economy by buying from nearby
businesses.
When to use local • Need for quick delivery times • Access to specialized products or lower
sourcing: • Supporting local businesses and cost materials not available locally
communities • Need to diversify suppliers and mitigate
• High level of quality control risk
required due to close proximity • Ability to scale production by accessing
larger supplier networks

# L/C & Other Commercial Documentation

Define and Classify letter of Credit:

A letter of credit (also known as documentary credit) is a document issued by a bank on behalf of an applicant
(the buyer) undertaking to make payment to a beneficiary (the seller) up to a stated amount of money, within a
prescribed time limit and against stipulated documents.
There are usually two banks involve in a letter of credit operation. The issuing bank is the bank of the buyer and
issues the credit; the advising bank usually located in the sellers country.

Types of L/C
Revocable L/C • Advance Payment (Red Clause) L/C
• Irrevocable L/C • Import/export L/C
• Unconfirmed L/C • Restricted L/C
• Confirmed L/C • Unrestricted L/C
• Transferable L/C • Deferred L/C
• Untransferable L/C • At Sight L/C
• Back-to-Back L/C • Standby L/C
FCA - FREE CARRIER (... named place of delivery): The Seller delivers the goods, cleared for export, to the
carrier selected by the Buyer. The Seller loads the goods if the carrier pickup is at the Seller's premises. From that
point, the Buyer bears the costs and risks of moving the goods to destination.

CIP - CARRIAGE AND INSURANCE PAID TO (... named place of destination): The Seller pays for moving the
goods to destination. From the time the goods are transferred to the first carrier, the Buyer bears the risks of
loss or damage. The Seller, however, purchases the cargo insurance.

DDP - DELIVERED DUTY PAID (... named place): The Seller delivers the goods -cleared for import - to the
Buyer at destination. The Seller bears all costs and risks of moving the goods to destination, including the
payment of Customs duties and taxes

FOB - FREE ON BOARD (... named port of shipment): The Seller delivers the goods on board the ship and
clears the goods for export. From that point, the Buyer bears all costs and risks of loss or damage.
CIF - COST INSURANCE AND FREIGHT (... named port of destination): The Seller clears the goods for export
and pays the costs of moving the goods to the port of destination. The Buyer bears all risks of loss or damage.
The Seller, however, purchases the cargo insurance.

Describe step by step procedure of L/C.

1. An Importer (Buyer) and Exporter (Seller) agree on a purchase and sale of goods where payment is made by
Letter of Credit.
2. The Importer completes an application requesting its bank (Issuing Bank) to issue a Letter of Credit in favor of
the Exporter. Note that the Importer must have a line of credit with the Issuing Bank in order to request that a
Letter of Credit be issued.
3. The Issuing Bank issues the Letter of Credit and sends it to the Advising Bank by telecommunication or
registered mail in accordance with the Importer’s instructions. A request may be included for the Advising Bank
to add its confirmation. The Advising Bank is typically located in the country where the Exporter carries on
business and may be the Exporter’s bank.
4. The Advising Bank will verify the Letter of Credit for authenticity and send a copy to the Exporter.
5. The Exporter examines the Letter of Credit to ensure: a) it corresponds to the terms and conditions in the
purchase and sale agreement; b) documents stipulated in the Letter of Credit can be produced; and c) the terms
and conditions of the Letter of Credit may be fulfilled.
6. If the Exporter is unable to comply with any term or condition of the Letter of Credit or if the Letter of Credit
differs from the purchase and sale agreement, the Exporter should immediately notify the Importer and request
an amendment to the Letter of Credit.
7. When all parties agree to the amendments, they are incorporated into the terms of the Letter of Credit and
advised to the Exporter through the Advising Bank. It is recommended that the Exporter does not make any
shipments against the Letter of Credit until the required amendments have been received.
8. The Exporter arranges for shipment of the goods, prepares and/or obtains the documents specified in the
Letter of Credit and makes demand under the Letter of Credit by presenting the documents within the stated
period and before the expiry date to the “available with” Bank. This may be the Advising/Confirming Bank. That
bank checks the documents against the Letter of Credit and forwards them to the Issuing Bank.
9. The Issuing Bank examines the documents to ensure they comply with the Letter of Credit terms and
conditions. The Issuing Bank obtains payment from the Importer for payment already made to the “available
with” or the Confirming Bank.
10. Documents are delivered to the Importer to allow them to take possession of the goods from the transport
company. The trade cycle is complete as the Importer has received its goods and the Exporter has obtained
payment.
What is bil of lading? What documents need to submit for bill of lading?

• A bill of lading (sometimes abbreviated as B/L or BoL) is one of the most important documents in the shipping
process. To ship any goods, a bill of lading is required and acts as a receipt and a
contract.
• A completed BOL legally shows that the carrier has received the freight as described and is obligated to deliver
that freight in good condition to the consignee.
• Bill of lading is used for any sea shipment and Airway bill is used for air shipment.

A bill of lading may include the following details:

1. A description of the goods in general terms not inconsistent with that in the L/C.
2. Identifying marks and numbers if any.
3. The name of the carrying vessel.
4. Evidence that the goods have been loaded on board.
5. The ports of shipment and discharge.
6. The names of shipper, consignee and name and address of third party if any.
7. Whether freight has been paid in advance or is payable at destination.
8. The number of original bills of lading issued.
9. The date of issue.
10. The departure date of carrying vessel.

Combined BY,
Md:Ratul Hossain
Barishal Textile Engineering College
10TH Batch
Note Bene: without math