1.1 Introduction 1.2 Back ground of the study 1.3 Statement of the study 1.4 Objectives of the study 1.5 Scope of the study 1.6 Review of the related literature 1.7 Rationality of the study 1.8 Limitations of the study
ABSTRACT Internship program is an integral part to fulfillment of BBA (Hons.) degree in Islamic University. This program is actually a juncture of academic and professional life dealings. For coordinating my internship I was placed in a garments and my topic is “Merchandising System of Four Knit Wear 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 system Four Knit Wear Ltd, I was finally prepared this report. I devoted my utmost effort and attention to learn the merchandising system of the company.
I have rendered my all knowledge to present this report on the Merchandising System Of Four Knit Wear Limited. In this study, it is shown that how this company conducts their present merchandising system and whether there are any problems in the merchandising system of this company. From the study of the Merchandising System of Four Knit Wear limited, it is found that the company rear potentiality to develop their merchandising system.
B.B.A. (Hons), department of Accounting and information systems in the final examination introduced internship program under the supervision of respectable teachers. And in this research the selected organization is Four knit Wear Ltd. Located at Pathantoli, Godgonail, Narayangonj, for the selected research subject and me is merchandising system of Four Knit Wear Limited Company. So I am paying special attention on merchandising system of the company. In Bangladesh, the future of garments industries is brighter in the era of globalization. Ultra modern technology are being used in the woven and knit garment industries in the out side world other than Bangladesh .To survive in the free market of the world, we have to use world standard latest technology in our ready made garment sector. The report will mainly focus on the merchandising system of Four Knit Wear Limited, Narayangonj. The study will cover the practice, procedures and technique followed by the merchandiser in the preparation of order to shipment in Four Knit Wear Limited. Bangladesh is a developing country. The development and progress of the country largely depend on export performance. In case of Bangladesh, among the export sector, the ready-made garments are the main earning source of foreign currency. In the garment and textile industry, merchandisers have been playing a vital role for the execution of export orders. There are large numbers of merchandising personnel who are working in the garment and textile sector. At last, the main goal of the research was to analyze the following subjects:
The system of merchandising of Four knitwear Ltd.
Inefficiency or weakness of merchandising (if any). The present merchandising system of Bangladesh. Development of merchandising in Bangladesh. Skills and necessary recommendation for achieving organizational goal.
1.2 BACKGROUND OF THE STDUY: In the without the practical knowledge, theoretical knowledge is valueless. From this point of philosophy department of Accounting of Islamic University, kushtia has introduced an internship program with a view to achieve practical knowledge associate with the different fields of business. So after academic education this internship program was great opportunity for me to see the real business world, acquire practical knowledge and to be a smarter world business professional. For this reason to do my internship in Four Knit Wear Limited a garment industry I communicate with a forwarding letter that was issued by the Department of Accounting of Islamic University, kushtia with my curriculum vita. I am very much grateful to the authority of Four Knit Wear Limited for giving me the opportunity of doing my internship in this organization.
1.3 STATEMENT OF THE STUDY:
The study will disclose present scenario of merchandising system and Practices at Four Knit Wear Ltd. The topic “Merchandising of Four Knitwear Ltd.” gave me an opportunity to have an exposure to the working environment and on – the – job experience in merchandising of Four knitwear 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 cans 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. So, I selected this study.
1.4 OBJECTIVES OF THE STUDY: The main objectives of this study are scrutinize the merchandising system of Four knitwear 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 Textile Company. Textile is 4
the most important area of earning foreign currency. The followings are the main objectives of the present study: To define and evaluate the merchandising system of Four knitwear Lt To observe the effectiveness of merchandising department. To find out some problems and limitations of merchandising of Four knitwear Ltd. To compare practical merchandising system and with theoretical approach. To suggest some possible measures to over come the problems.
1.5 SCOPE OF THE STUDY: There are so many textile industries in Bangladesh. Four knit Wear limited is one of them. It is a small textile industry compare than others. There are only three merchandiser works. Above 230 labors and 40 staffs works. There is no dyeing and printing and embroidering machine. The study does not cover dyeing, printing and embroidering area. 1.6 REVIEW OF RELATED LITERATURE: I am the first person who has done internship on merchandising system of Four Knit Wear Ltd. But some other persons who have done internship on merchandising system of other company that are given below: Sheikh Md. Rasel (2005) in the study conducted on ELEGANT TEAM DEVELOPMENT LIMITED tried show that how this buying house conducted their present merchandising system and what steps have to take for the development of merchandising system of this company. Sheikh Rasel study covers only marketing merchandising. My study only covers production-merchandising system of the company. Because marketing merchandising is covered by the M.D. and buying house. 1.7 RATIONALITY OF THE RESEARCH: It appears that merchandising is the most important and essential part of textile. But unfortunately in Bangladesh, merchandising planning and controlling is reported to be unsound in case of private sector industrial undertaking. It indicates that merchandising
planning and controlling is extremely poor in all textile sectors like four knitwear Ltd. In Bangladesh which in has adversely affected quality of the individual units. So far our knowledge goes; there is no other study on the subject. The rationality of merchandising system is stated bellow: 1. 2. 3. 4. 5. 6.
To know properly about merchandising of Four knitwear ltd. To improve product quality. To reduce lead-time. To develop or set-up Background linkage industry. To improve productivity. To develop infrastructure.
1.8 LIMITATIONS OF THE RESEARCH: Actually, I have not faced any kind of mentionable problem in my research at Four knit Wear 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: 1. The officers of several departments failed to give me enough time for their business. 2. The merchandisers of they are always busy, so they could not sufficient records, facts and figures are not available. 3. Usually Company is not willing to provide their actual data of financial statement because of their security. 4. Personal barriers like inability to understand some official terms; office decorum etc. creates a few problems to me. 5. For newly entrance in this sector. 6. The activities of a merchandiser are not documentarily arranged. 7. The activities of merchandiser bear from factory to factory. 8. It is not possible to learn about merchandising within 60 days. 9. Lack of available of reburied data.
2.1 Description oh the research design 2.2 sources of data 2.3 Data collection instruments 2.4 Methodological Assumption
RESEARCH METHODOLOGY The objective of research is to portray accurately the characteristics of a particular individual, situation or a group. Research refers to the systematic method consisting of enunciating the problem, formulating a hypothesis, and collecting the facts or data, analyzing the facts and reaching certain conclusions either in the form of solutions towards the concerned problem or in certain generalizations for some theoretical formulation. Research is the process of gathering, recording and analyzing critical and relevant facts about any problem in any branch of human activity. It refers to a critical and searches into study and investigation of problem, a proposed course of action a hypothesis or a theory.
Research refers to a search for knowledge. In fact research is an art of scientific investigation. The research methodology comprises of all activity that carried on in connection with marketing management. The purpose of research is to discover answer to question through the application of scientific procedures. The main aim of research is to fins out the truth which is hidden and which has not been discovered as yet.
In brief, the research process consists of five steps:
Defining the problem and research objectives. Developing the research plan. Collecting the information. Analyzing the information. Presenting the findings.
The scientific method, methodologies, model building and cost benefit measures of value of information can create a good research.
2.1 DESCRIPTION OF THE RESEARCH DESIGN: Research Design A research design is the determination and statement of the general research approach or strategy adopted for the particular project. Meaning A research design is purely and simply the framework or plan for a study the guides, the collection and analysis of the data. It is a blue print that is followed in completing a study. A central part of research activity is to develop an effective research strategy as design. This will detail the suitable method of investigation.
2.2 SOURCES OF DATA: Collection of facts (raw facts) is known as data. There are two types of data are available based on source. These are: 1. Primary Sources of Data. 2. Secondary Sources of Data. PRIMARY DATA The data collected for a purpose or when the researcher investigates a particular problem at hand is known as primary data.
Sources of primary data: Primary data for this study collected through direct observation and personal interview with questionnaire. SECONDARY DATA When an investigator uses data, which have already been collected by others for another purpose, such data is called secondary data. This type of data is primary data for the agency that collected them for the first time, and become secondary data for someone else who uses these data for his own purpose. Sources of Secondary Data: The major data have been used in this study are basically are of primary data. Secondary data for this study was collected from the organization and several reports. 2.3 DATA COLLECTION INSTRUMENTS: Direct observation and personal interview with questionnaire is the main instrument to collect the data. Both primary and secondary data have been used for the purpose of the study. The primary data have been collected on the basis of prepared questionnaire. Some secondary data and information have also been collected from the organization and several reports. 2.4 METHODOLOGICAL ASSUMPTION: There is no project, which is free from assumptions. For every research some assumptions will have to be made before starting a project. The assumptions are made about the study with respect to the organization prevailing concepts and practices in the present environment. In some cases assumptions will be correct which lead to the achievements of goal. But in certain other cases it may be limited by many some situations, thus not obtaining the objectives.
1. It has been assumed that direct observation and personal interview with questionnaire would be the easy way for data collection on Four Knitwear Ltd. merchandising Management. 2. It has been assumed that the research methodology, which has been adopted for the study, is appropriate. 3. It has also been assumed that the respondents have been given the proper (correct and genuine) information.
3.1 Concept of Merchandising 3.2 Responsibilities of a merchandiser 3.3 Quality of a merchandiser 3.4 Function of a merchandiser 3.5 What buyers like or dislike in a merchandiser? 3.6 Purposes of merchandising 3.7 Merchandising Management 3.8 Objectives Merchandising
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. 3.2 MAJOR RESPONSIBILITIES OF A MERCHANDISER ARE GIVEN BELOW: 1. Order sourcing/supplies 2. Negotiation 3. Production 4. Calculating Yarn/Fabric consumption 5. Calculating costing of the product 6. Monitoring Quality aspect 7. Product development 8. Liaison with Buyers Customers & Factory 9. Factory Scheduling 3.3 QUALITY OF A MERCHANDISER: From the above definitions we can assume that a person involved in garments merchandising needs a wide range of knowledge and skill. a). Good command of english and adequate knowledge of technical terms for accurate and efficiant communication. b) Good knowlwdge of yarn , fabric , dyeing, printing, finishing , fastness, garments production etc.
c) Clear conception of the usual potential quality problems in the garments manufacturing. d) Good knowledge of the usual raw materials inspection systems and garments inspectionn systems. e) Knowledge of the quta system used in each of the producing countries , duty rate , custom regulation, shiping and banking documentation etc. 3.4 FUNCTION OF A MERCHANDISER When an nexport order is placed to a merchandiser , he has to schedule the following main function to execute the export order perfectly in time. 1. Fabric requirement calculatiuons. 2. Accessories requirements calculation 3. Sources of fabrics 4. Possible date of arrivalof fabrics And accessories in the garments factory 5. costing 6. Garments production planning 7. Pre shipment inspection schedule 8. Shipment document All the main functions , mentioned above are important but the procurement of fabric and accessories are most important as because there are many technical parametes involved, specially in thius area ,in most cases collection of fabric for the garments is a major problem. to procure a fabric, we should clearly specify the technical specification of the fabric during placing a fabric supply order. 3.5 WHAT BUYERS LIKE OR DISLIKE IN A MERCHANDISER? ** What buyers like in a merchandiser? 1. Good presentation: Calculator, Paper, and Scale etc. 2. Manner: Manner should be polite, good Behavior, Smart talking 3. Time Awareness: You should be punctual & sincere 4. Knowledge: About product, your company & about buyers 5. Sensibility To the needs: Lessening, understanding 6. Appearance: Smart Dress, Formal dress, and casual dress ** What buyers dislike? 1. Poor sales presentation 13
2. Unacceptable manner 3. Time wasting 4. Un smart appearance 5. Poor knowledge
3.6 PURPOSE OF MERCHANDISING: 1. 2. 3. 4. 5. 6. 7.
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.
3.7 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. 1. 2. 3. 4. 5. 6.
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.
3.8 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. That the industry should minimize cost of product for increasing more sales and more profit.
THE PRESENT SCENARIO OF MERCHANDISING SYSTEM OF FOUR KNIT WEAR LIMITED 4.1 The Merchandising system of four Knit Wear Limited 4.2 Payment Monitoring 4.3 Company Nature 4.4 Name Of The Buying House 4.5 Name of Buyers Country 4.6 How to Determine Cost Of Product 4.7 Production Capacity 4.8 Majors Fault In Sewing.
4.1 THE PRESENT MERCHANDISING SYSTEM OF FOUR KNIT WEAR LIMITED: Merchandising is an important task of a textile company. To complete merchandiser activities successfully a merchandiser has to follow some procedure or sequence that are given below. 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: 1. Internet 2. Business directory (yellow pages) 3. Advertising 4. Buying house 5. All country of Embassy 6. To exhibition Factor for sourcing: Sourcing decision depends on some factors1. Product factor: Style, design, quality standard, price reference, 2. Company/vendor factor: Company goodwill, previous history, minimum order quality, quality standard, and service ability 3. 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:
Information’s: 1. Name and address of the company. 2. Contact number and person 3. Major market of customers (which customer they deal) 4. Major products, (which products they experienced) 5. Capacity (monthly or annually) 6. Physical size of the plan. 7. Number of employees 8. Financial status 9. Location of production 10. Production facilities 11. Quality standard 12. Minimum order quantity. Negotiation: Its not contest. Its opportunity to establish good working relationship. Which obtaining a good deal. Or, 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. The aim of negotiation/approach “Win Win solution” Both parties are benefited. The skill for negotiation: 1. Discovering common interest and removal of personal issues. 2. Questioning skill 3. Listening effectively 4. Understanding body language. 5. Observation and judgment. 6. Influencing skills 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 17
source. Both local and foreign it needs to open a L/C. In textile sector generally back-toback 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:
Date: To Mr. Babul Knit Concern Ltd. Sub: Lab Dip Programmed Buyer Name: Info-united Art:-Zob-3 Fabrics- 65%Cotton, 35%Polyester, S/J 180 GSM SL # 01
Color Name Orange
Pantone/Shade 158 C
Gets approval Lab dipping: Lab Dip confirmation & may be fitting & workmanship changes: 1. Start with dyeing the fabric (if necessary start tests bulk) 2. Sending preproduction samples or size set in original fabric with all already Confirmed details. After checking & necessary changes, the confirmation of labels, print. . Start of label, 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. After draw a cache a sample is prepared for the buyers and sends to the buyers. Sampling may be in two ways. 1. Sampling after confirmation price. 2. Sampling before confirmation price. For sampling a merchandiser need Fabrics, yarn, level, etc. Types of sample/Stages of sample: st 1. 1 pattern: The first physical version of any garment as per the artwork done by designer and/or developer. 2. 2nd pattern: Usually designer/ developer always asks for some changes to the first pattern. Second pattern is made as per comments. 2. 3.
Sales man sample: Sample is made when PRICE is confirmed and orders are on speculation, usually in L size in all color combinations of expected or Production: It is a reference to the buyer that the bulk is being produced as per specification. Buyer wants to be assured that correct material is sourced and line workmanship confirm to the quality.
4. Marketing/Developing sample: 5. Counter sample (Based on buyer requirement,) Where first pattern is made on designers artwork, Counter sample is to make not on designer’s artwork, has to follow another sample given by the merchandiser 6. Fit sample/red tag sample/ Proto type sample: Samples are made with actual color and material to be worn by the models on the event of SHOOTING for catalog. 7. Approval sample: In any discrete period of time, whenever it required any revision in the sample, a new sample is made (some times mock-up is workable too) as per new specification. It is sent to buyer for his APPROVAL of the conformity that- the revision is done correctly. 8. Preproduction sample/size set sample/ production sample: When material for bulk production arrived, factory makes a sample with the actual material and sends to buyer.
9. Shipping sample: A sample is kept from every Pre Shipping inspection to be referred, if required, after the order has been delivered. Usually for any disputes (e.g. Claim) shipping sample is important. 10. Mock up sample: Any part of the garment to make for particular purpose, not complete garment. Sometimes it is necessary to send to the buyer any part of the garments, such as sleeve, collar, neck etc and some accessories. 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. 6.
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.
Yarn price Knitting price Dyeing price Stander Fabric cost 8.84 Cm Accessories Print
3.10/kg .14/kg 1.32/kg 4.56/dozen 3.00/ dozen 2.50/ dozen 2.00/dozen
Embroidery Flat knit collar and cuffs Lycra Bank charge75% Commission 0% FOB
.12/ dozen 16.46/ dozen 1.37/ piece
Pre-production Sample Approval Order collect: If the buyers are satisfied to see the sample of the. Then he goes into productions. Order Follow Up Procedure Just after the placement of the order a merchandiser has to study the requirement laid down in the order sheet: 20
1. Classification of test *Study order Specification Details *Order details/Style details * Quantity * Trims/Accessories * Delivery terms & Conditions. 2. Monitoring of contract: *Opening and maintaining files * Distribute the order specification to the relevant dept. * Sample controlling. * Sourcing of supplies. 3. Monitoring Import procedures * Banking procedures * Customs procedure * Warehouse arrangement 4. Arrival of purchased Materials * Completion of custom procedures * Inspection/Identification * Storing of clothing materials 5. Factory production: * Execution of order * Meeting the Quality standards * Checking work in progress 6. Co-Ordination with Buying Agents * Liaison with buying office personnel for related manufacturing issues 7. Logistical and distribution Arrangements * Freights forwarding (sea/air) 8. Financial Transactions * Follow up Final payment ** Confirmation of the production. 1. Only if all confirmation has been given, the production can start 2. Pay attention & special care to all further production instruction from the buyer. 3. Send pre-shipment production to buyer. 4. Before shipment inspect the production by buyers nominee 21
5. Ship the goods within shipment date. Production Execution Tracking: A. Cutting the Fabrics: After confirmation of production and approve of the cutting the fabrics from the buyer, the cutting muster started to cut the fabrics. B. Sewing: In swing section the finish fabrics are sewing. There are various types of sewing machine that are given below: 1. SNLS (PLAIN) 2. DNLS (TWO NEEDLE) 3. O/L 3-6THREAD 4. FLAT LOCK 3, 5 THREAD 5. FEED OF THE ARM 6. MULTI THREAD CHAIN STITCH 7. CUCLE MACHINE 8. CUFFS ROLLING 9. COLLARTURNIN 10. EYELET HHOLE 11. EYELET ATTACH 12. BUTTON HOLE 13. BUTTON ATTACH 14. THREAD RE-CONNING 15. BLIND STITCH 16. ZIG ZAG 17. BACK TAPE 18. SNAP BUTTON ATTACH 19. CREASE MACHINE *** Major & Minor discrepancies & faults in sewing on Garments:
C. Washing: It is most important factor in textile sector. In different stages of production, various spot we found in products that are needed to wash. Various spot we found in products that are given below: 1. Oil spot 2. Dirty spot 3. Print spot 4. Fabrics spot 5. Etc.
D. Iron: In iron section products are ironing for better finishing. Ironing product looks so nice and shines. For iron generally steam boiler is used. Steam boiler so much useful for iron. Sometimes iron shoes are used in iron for better iron. E. Packaging: Packaging may be defined as the activities of designing and producing the container or the wrapper for the product. Generally the packaging could be considered as the silent sells man of the product. When the garments are exported to the international market deferent type of instruction should have to be followed by manufacturers. Basically the clothing manufacturer is using three kinds of packages. 1. Primary Packages: Insertion a garment into a poly bag is considered as the primary package of garments. Full visibility makes the customer to identify the color, size and style etc. 2. Secondary package: Secondary package of a garment could be another poly bag or inner carton. Inner carton or master poly bag containing a number of garments, provide traditional quotation and make opportunities for sales promotion. This container facility of pack number of garment pertaining to packing instruction. A. Solid color B. Solid color, assorted size c. Assorted color assorted size Shipping Pack= this refers to packaging for necessary for storage identification or Transportation. Side Mark: Carton no. Carton Measurement. Net weight (Single product). Net weight (Six pcs product). Gross weight (Full carton). Main Mark: Buyer Name. Consignees add. Order no. Style no. Color/size/Breakdown. Destination. Etc. Carton Measurement: 3 ply (inner). 5ply (how much pcs), 7ply Ensure Quality: Quality is the most important factor in textile sector. Buyers always emphasis on quality. So it is needed to care always on quality. A quality product always turns more buyers. Arrange Shipping Sample: Shipping sample is very important for shipment. Shipping sample means the representative of the product that we produced for the buyer. Sample must be repetitive according to color, size. Follow- up Export Procedures: A merchandiser must follow the export procedures by himself.
4.2 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 of moneys within a prescribed time limit and design stipulated documents. Types of L/C: 1. Revocable L/C: This type of credit can be amendment or cancel by the applicant without only prior notice to the beneficial. Here all risks are involves for the seller but buyer has more flexible. 2. Irrevocable L/C: This type of credit ca be amendment or cancel only to the agreement of all parties concern. 3. Irrevocable & Confirmed L/C: This type of credit involves the undertaking of the advising bank in addition to that of issuing bank .It means that issuing bank request a 2nd bank to add its own confirmation to the credit .So that the confirmation bank is responsible to make payment if the issuing bank to pay the beneficiary. 4. Transferable L/C: This type of L/C that is transferable as per the need. 5. Back-to-Back L/C: This type of L/C can be against a valid expert L/C. Master L/C. It is so much popular in textile area. ** If we open a L/C then need some things that are given below: 1. Trade license 2. Memorandum Certificate 3. Membership certificate 4. IRC 5. TIN 6. Bond license 7. Insurance 8. Factory Insurance 9. Agreement with the house owner ** L/C Export Document: 1. C.O 2. Inspection Certificate 3. U .D 4. G.S.P **Benefits of L/C Sellers End: 1. Without having cash payment 2. Guaranteed business without investing any cash involvement 3. Risk free Buyers end: 24
1. 2. 3. 4.
Guaranteed business without investing any cash involvement Without having cash payment Risk free Same with quality product. The buyer should be ensured that he would get the quality product.
Get The Feed Back: *** The above flow-charts just an example. Buyer-to-Buyer it can be different. 4.3 COMPANY NATURE: 100% garments export oriented garments. It receives the buyer order and place it factory. From receiving the inquiry of the buyer and contracting the factory to shipment the product to the buyer all activities have done it. 4.4 NAME OF BUYING HOUSE: Four Knit Wear Limited generally takes order from different buying house. These buying generally work as a middleman between buyer and seller. There are some name of buying house who work as a middleman are given below: 1. Adroit Linker 2. Cartel Asia 3. Babollat 4. Class Markers 5. Orange Telecom 6. T & M Fashion 7. Captain Fashion 4.5 NAME OF BUYERS COUNTRY: 1. 2. 3. 4. 5. 6. 7.
Germany Canada Italy France Singapore South Africa Japan
4.6 How to determine COST OF PRODUCT:
In case of merchandising, costing is most important. Because buyer deals with company on the basis of cost. If a buyer chooses the price of the product then he deals the company.
Raw material cost Machine cost: Such types of cost are not done continuously but maintenances cost is done regularly. Everyone in the garments has to know about the machine. In the garments there are various types. There are mainly two machines for sewing.
A. Electric Operated Sewing Machine These types of machine generally operated by electric power. It is also called industrial sewing machine. Various types of such machine are given below: 1. Plain Machine: Most widely used machine in garments sector is plain machine. Design --------------------------- Top 2. Over Lock Three Thread: In these machines there are two needles, two looper and three threads. 3. Over Lock 4 Thread machine: In these machines, there are two needles, two lopper and four threads. 4. Over Lock Five Thread: In these machines, there are two needles, two looper and five threads. 5. Two needle machine: It is as like as plain machine. 6. Flat locks three threads: There are two needles and one in this machine. 7. Flat lock five thread machines: 8. Kanchai machine: It is the most powerful machine. 9. Zigzag machine: It is for arrow sewing. 10. Bartack machine. 11. Back tape machine: 12. Blind stitch machine. 13. Button holing machine.
14. Button attaching machine. 15. Eye let holing machine. 16. Snap button-attaching machine. 17. Spot remover machine. 18. Steam iron. 19. Caller top turning machine. 20. Cylinders bed machine plenty. A. Manually Operated Sewing Machine Labor cost: This cost occurs due to shortage of inventory. Due to stock outs customers may be lost, goodwill of the firm may be hampered, as a result, sales may be decreased and firms can face losses. It is a very arduous task to determine such type of cost. 2.
Management cost: Management cost means cost of office maintenance.
Fabric’s cost: It is the main raw materials of Four knit wear Ltd. So Four knit wear Ltd. collect it from the suppliers.
*** How to recognize the international fabric. 1. Cotton mesh: It is t-shirt cloth. 2. Twill: It has strip in its upper side. 3. Cotton canvas: It is a hard cloth. Its structure is 10*10/84*45.It has no trip weave. Its structure as like as box style. 4. Poplin: Its weave structure as like as cotton canvas, but it is thin. 5. Rib: It is used for polo shirt collar.
6. Polyester polar fleece: It is useful for winter season. 7. CVC Oxford: Its thread is generally equal. 8. Cotton yarn dyed check: It is a cotton check fabric. It is dyeing before use. 9. Tulsan: It is 100% nylon cloth. It is a poplin weave. 10. Debby weave: 11. Satin 12. Sateen: 13. Check & Plaids: Its sewing is as like as check. it small repeats are called checks , big repeats are called plaids . 14. Calices: It is 100% cotton poplin weave. 15. Denim: It is a hard fabric and twill style.
FABRIC BOOKING SHEET: Confirmation date: 1.2.10 Buyer:INFOUNITED INFOUNITED VS Job No. : INFOUNITED Order quantity: 1000 Pcs. Style/order no.: zob no-02 Average cons/doz: 4.016 dz Item: men’s polo short with short Zipper l/c status Cutting Target; 5% Packing instruction
Shrinkage Final GSM on Garments Final GSM on finish Fabric Type of yarn
Parameter of Fabric Quality 3-4% shade Matching 180 Wash fastness at 40 c 175-180 Wet rubbing fastness 24,S, CVC Dry rubbing fastness
2-3% 4-5 4-5 4-5
65% cotton, Sportily 25% polyester fabric S/J (double Dyeing)
Source of hade Match
To be avoided
Accessories cost: A textile company needs various types of Sewing Accessories: A. Sewing thread:
Accessories. Such as
Date: To J.N. Accessories Attention: Mr. Sharma From Four Knit Wear Ltd. Sub: Work order for sewing Thread. Buyer: Info united Order no: 02 Order Qty: 1000 Pcs Price- 30tk for color cone, 28tk for White cone. SL. No. 01
Qty 56 Cone
Quality Swatch 50/2 Sewing thread
Note- should be good Enigma, Mom, and Silicon
Thanks & B/Rgds
B. Label 1. Label name: Care Label Main label Size label Ham label 2. Label fabric Woven Princes Ribbon 3. Composite label: Care Size Shell Lining Attachment: Flat label Loop Label Flag label C. Needle D. Marker Chalk E. Pencil F. Rips tape G. Security tape H. Twill tape I. Zipper J. Button: 1. 2. 3. 4. 5. 6. 7. 8.
Plastic Button Chalk Button Wooden Button Snap Button Decorative Button Nylon Button Mattel Button Horn Button 30
9. Ring Button K. Sewing hatred L. Brass pin M. Butter fly N. Velcro tape O. Finishing Accessories: 1. Hang tag 2. Lock pin 3. Poly: Poly raw material: P.P. = Poly propylene, P.E=Poly ethylene Size of poly A. Pcs poly B. Hanger poly C. Blister poly D. Master poly 4. Gum tape 5. Scoots tape 6. Carton: A. Ply of carton: 2-7 B. Size of Carton: inner carton master Carton 7. Carton sticker 8. Poly sticker 9. Carton 10. AICA AIBON 11. Chemical 12. Thinner 13. Measurement tape 14. Cutter 15. Hanger 16. Elastic 17. Marker pen 18. Tissiue paper 19. P.P belt 20. Mattel seal 21. Tag pin 22. Matel clip 31
23. Interlining 24. Pading 25. Collar bone 26. Lace
Cutting Accessories: 27. Knife 28. GSM Board 29. Sun Blade 30. GSM Blade 31. GSM 32. Size sticker 33. Number Sticker 34. Pen 35. Sapner 36. Eraser 37. Sesser 38. I.nches tape 39. Back board 40. Neck board Washroom accessories: 42. G flux 43. HP 44. Talcum powder 45. MAC 46. DD Plax 47. G Flux +c Others Accessories: 48. Buckles 49. Plastic cord stoppers 50. Plastic clip 51. Piping code 52. Grosgrain tape 53. Sipper 54. Shoulder 55. Drawing sting 56. D-ring 57. Rivet 58. Draw cord 32
59. Buckle 60. Suspender 61. Reflectine tape 62. Leather badge 63. Toggle 64. Pocket flasher 65. Photo 66. Inter lining 67. Docking For buying Accessories Company have to give an order to buying Accessories. An example of Accessories purchase order is given below:
Date: Attention_ Mr. Kamrul TEX Point Dhaka. Subject: Accessories Booking for Citroens. Article No: B0002735 Order no: 109545 Buyer Style Item No S Class Citroen Main Mark Label Care label Size 105 label Poly Sticker Carton 3 Sticker
Size & Quantity Total Remarks M L XL XXL 3XL 4XL 200 2120 0 200 2120 0 31 52 525 315 158 158 2101 5 5
Cotton: The most important element of textile is fabric or cotton. We get various faults in fabric that is given below: 1. Broken ends /Missing End: 2. Broken picks/ missing picks 3. Bad selvedges 4. Reed marks/Crease marks 5. Start up marks Level: there are various types of level, such as fashion, main, side, care, security etc. Zipper: It is an elements of actual product .So finish the product properly we need a good quality Zipper. There is various type of zipper. Various zipper names are given. 1. Nylon 2.Luminum 3. Brass 4. Nicket 5.Plastic 6. Mattel. We collect this zipper from another company or agent or suppliers. We have to booking for this zipper. We are booking it by mail. For an example of booking for zipper are given below: TO [email protected]
Cc: Mazed, Adroit Linkers Bcc: [email protected]
Dear Mr. Khalil Good day, we have a order. Please see the information of Zipper. A. B. C. D.
Size-CM Zipper No- 3 Zipper Quality-nylon Zipper Quantity- 1070 Pieces.
Please arrange 10 Pieces of zipper For P.P. Sample in urgent basis with in 17/01/10. Collect the zipper color Swatch & Zipper quality from adroit linkers ASAP. WBR MAMUN/ SHOHEL Note- Price confirm by Mr. Mazed $.60 per doz. 34
If the booking is accepted, they will give us a confirmation letter. That is given below: To Four knit wear Ltd. Dear Mamun/Sohel Many thanks for new Booking. A. RGS Khalil PART OF Zipper: 1. Tape 2. Teeth 3. Slider. 4. Stopper Spiral type: 1. Coil spiral (plastic zipper) 2.visioN spiral (brass zipper) Lock type: pine, auto End type: open, close end Number of zipper: 3-12 Size of zipper: in cm, inch Folder: Striker: Embroidery: Aplic: Print: Eye late:
4.7 PRODUCTION CAPACITY: Per day 15000 piece basic items.
4.8 MAJOR FAULT IN SEWING: Major Faults 1. Ratio Mistake 2. Print Mistake 3. Spot on the GMTS 4. Oil Spot 5. Duty mark on the GMTS 6. Crises Mark on GMTS 7. Color Shading 8. Flat lock tension loose 9. Collar Point up- down 10. Label joint mistake 11. Cuff joint Mistake 12. Body & Cuff joint marking 13. Sleeve up down 14. Armorial point up down 15. Back part &front part up down 16. Dead your snow on the body 17. Any color your snow on body 18. Open seam in an parts 19. Button stitch 20. Pocket Engle 21. Reject hole in any parts 22. Measurement Short any parts 23. Hale point mistake 24. Poly bag measurement mistake 25. Assortment mistake 26. Button hole mistake 27. Loose tread mistake 28. Spreading mistake 29. Folding Mistake 30. Body and collar joint mistake
FOUR KNIT WEAR LIMITED: AN OVERVIEW 5.1 Introduction OF Four Knit Wear Limited 5.2 The Profile of The Four Knit Wear Limited 5.3 Objectives of Four Knit Wear Limited 5.4 Products of Four Knit Wear Limited 5.5 Macro Environment Situation of The Company 5.6 Various Departments of Four Knit Wear Limited 5.7 Facilities For Staff And Employees From Four Knit Wear Limited 5.8 Major Raw Materials Of Four Knit Wear Limited 5.9 List of Work in Process 5.10 List of Finished Stock
5.1 INTRODUCTION OF FOUR KNITWEAR LTD: The FOUR KNITWEAR Ltd. is one of the qualities Textile Company in Bangladesh located at Pathantoli, Godnail, and Narayangonj. It came into being in 2006 at cost of Tk.30 million and launched production in early 2007. Four partners, in 2006 and production started at 2007 incorporated FOUR KNIT WEAR LTD. in Bangladesh as a private limited company. By dint of the stewardship, sincere intention to win the hearts and minds of the populace, taking the right strategy with quality and price, four knitwear products achieved on upsurge in consumer demand within a short span of time. The company, as a result, expanded by adding Euro based most sophisticated machinery. The total cost of the project now stands at Tk.30 million. FOUR KNIT WEAR Ltd. occupies a huge position in the textile world of Bangladesh and its heart and mind-pacifying fragrance has spread over the foreign territories as well. Now the project is fulfilling the long cherished desire of the people of our country by supplying international quality garments and textile products within the competitive range of price. Their international standard production unit is equipped with modern quality control procedure and microbiological lab with latest technology and a group of top professionals. All of the Garments are marketed under the brand name of “Four knitwear”. Each stage of production undergoes rigorous testing and quality control process. The finished products are again tested to ensure the desired standard of quality before placing products in the market. The raw materials and active ingredients of products of Four knitwear Ltd. are imported from reputed manufactures of Malaysia, Indonesia, Italy, France, Germany, Japan, Singapore, England, Switzerland and USA. Quality comes first keeping this principle in mind; it aims at producing guaranteed international quality garments for quality conscious people of home and abroad.
5.2 THE PROFILE OF FOUR KNIT WEAR LIMITED: Corporate Headquarters:
Pathantoli, Godnail, Narayangonj.
. Pathantoli, Godnail, Narayangonj.
Year of Establishment:
Private Limited Company.
Business Lines: Depots:
Manufacturing and Exporting Ladies and Gents TShirt and polo shirt .
Germany, France, and Turkey. South Africa, Canada
Authorized Capital in Taka
Paid-up Capital in Taka
Number of partners:
Stock Exchange Listing
4.4 OBJECTIVES OF FOUR KNITWAER LTD: To manufactures and sell high quality clothes products to the people of all age group within affordable price. “No compromise with Quality” is the key policy of the Top Management. They believe that, they are reasonable and accountable to all concerned with whom they deal; namely: their employees, their business associates, their consumers and their buyers.
5.4 PRODUCTS OF FOUR KNITWAER LIMITED: Ladies T- Shirt
1. Gents T -Shirt 39
2. 3. 4. 5.
Polo shirt Child shorts pant Ladies hooded jacket Others.
5.5 macro environment situation of the company: To develop a well relevant and rational Merchandising strategy a merchandise manager has to analysis the macro environmental forces may be a major variable for marketing activity. Remaining the rapid changing global picture Four knitwear Ltd. must monitor six major forces such as: DemographicEconomic Technological
In the aspect of four knitwear Ltd. the main macro environment forces are to be discussed as bellow. 5.5.1 Demographic Environment: Demography is the study of human population in terms of soiree, density, location, age sex, race, occupation and other information. The demography environment is major interest to marketers because it involves people and people make up the markets.
5.5.2 Economic Environment: The economic environment consists of factors that effect available buyer relation and world economic situation. Total buying situation depends on current economic position of the world and prices of product and credit policy. The economic environment of Four knitwear Ltd. is better than Other.The Company is accepting the challenge posed by a changing world economy use of the opportunities. 5.5.3 Natural Environment: The natural environment involves natural resources that are needed as input use by marketers of which are effected by marketing Four knitwear Ltd. use of various types of chemical and raw materials which has natural impact.
5.5.4 Technological Environment: Technology is the most significant factor in the Four Knitwear Ltd. The Four knitwear Ltd. is the most modern textile Company in the Asia pacific region. The textile company use of the most advanced and high tech equipment from world’s leading manufactures. Keya Cosmetics Ltd. has used very latest and computerized modern technology. Technological environment support other machine of this company are The company has a completely self sufficient infrastructure with the complete power steam refrigeration, compressed air and water requirements for operation generated in house. Chemical and water waste is cleaned in a modern effluent treatment plant complying with the most stringent international standards. 5.5.5 Political and legal Environment: Merchandising division is strongly affected by the development of political and legal environment. The environment is composed of laws, government’s agencies and pressure groups that influence and limit various organizational and individuals. 5.5.6 Cultural Environment: Cultural environment is made up of institutions and other forces that affected society’s basic value, perceptions, preference and behavior. Cultural factors are important for four Knitwear Ltd. products because the cultural factors effect on textile goods.
Number of employees 1. Staff = 45 2. Production a. Cutting section =14 b. Sewing section =181 c. Finishing section= 52 5.6 Various Departments of Four Knit Wear LTD: 1. Merchandising Department: this department is very much important for every garment industries. Merchandiser is a data bus between buyer and seller. Merchandising department perform the activities from collecting order to reaches the product on buyer. This department is responsible for providing all the raw materials needed for all kinds of garments products. 41
Accounts Department : all the accounts of the organization are controlled by the accounts and administration department. Accountant record all the accounts, calculate profits or losses, prepared financial report
Commercial Department: total transportation activities, i.e. Import-export, L/C open, or any other banking activities performed by commercial department. Commercials manager cover all the activities.
Human Resource Department: this department is very much important managing staff and employee of the company. It looks after the problem and opportunities of the company’s employee.
5. Production Department: Under production department there are various sections that are given below: A. Knitting and dyeing section: It’s a process of fabric manufacture by converting yarn into loop form and than these enter lock/internmesh/inerloop together, which from a structure is called knitting structure/knitting fabric. Classifications of knitted structure are given below: 1. Weeft knitted structure A. Circular knitting a. Small dia m/c 1. End product b. Large dia 1. Fabric for clothing 2. Single jersey 3. Rib category 4. Double jersey 5. La-coste B. Flatbed knitting a. Hand Driven 1. Driven manually 2. Can product limit design? 3. Low volume production 4. Integrated garment not possible b. Power Driven 1. Driven by power 2. Can produce 3. Unlimited 42
4. High volume Production 5. Integrated Garment possible 2. Warp Knitted A. Tricot B. Rachel 1. Mesh fabric 2. Mosquito 3. Laces 4. Power net B. Cutting section: ** QUALITY CONTROL DEPARTMENT: This department always cares on quality. This dept. control by the Q.C. Managers. They verify the quality as the buyer indicates their order. They audit all the process, pre-production to packing & final audit. Q.C. process is indicated previous. Sewing section: Tools & equipment of sewing section are given below: 1. Rack for cut fabric keeping (for every line) 2. Desk for trims keeping (with lock for every line) 3. Issue register (one for every line) 4. Attendance Register (one for every line) 5. Drawing / Marking table (Three for every line) 6. Supporting table for bigger components operation (as per required) 7. Desk (one for every operator) 8. Basket (five to six for each line) 9. Shoe bag (one for each operator & helper) 10. Toilet Card (one for every line) 11. First Aid Box (for every floor) 12. Fire extinguisher (at every corner of the factory) 13. Hammer 14. Z punch plunk 15. Big scissors 16. Small Scissors / clipper (for every operator & helper) 17. Are puncher / gimlet 18. Hand needles 19. Bodkin 20. Manila board /paper board 21. Tailor chalk 22. Pencil D. Wash room E. Iron section C.
F. Finishing section G. Store section
SCHEDULE OF FIXED ASSETS OF FOUR KNITWEAR LTD. (AS ON 30.06.2009. Particulars
01.Land 4,447,000.00 03.Plant and Machinery 6,324,715.00+3,569,777.00(new) 04.Renovation of Factory 35,037.00 05.Fire Extinguisher 132,858.00 06.Installation and Erecting 1,176,353.00 07.Office Building 1,217,772.00 08.Office Equipment 830,907.00 09.Furniture & Fixture 1,447,720.00 10.Vehicles 10,000 Total Source: Annual Report of FOUR KNITWEAR Ltd. (2009)
5.7 FACILITIES FOR STAFFS AND EMPLOYEES FROM FOUR KNITWEAR LTD. FOUR KNITWEAR Ltd. is one of the profitable companies in Bangladesh. In view of acute un-employment situation of the country Four knitwear Ltd. give following benefits to all level of staffs and employees every year: Appoint young, energetic and fresh individual: Four knitwear Ltd. had taken bold decision to appoint young, energetic and fresh individual to solve un- employment problem from this poor country. Overtime facilities: In this organization the employees work 6 days in a week. Work starts from 8 am to 5 pm. The work is performed at one shift. For that there is a scope to work after 5 pm to 8 pm. In this over time period employees get double wage. It is a legal source for the employees to earn extra. There is also a break time for launch for one hour. Festival bonus:
Every employee gets festival bonus in two Eid (salary or wage). Beside this they also get another bonus for extra production and part of profit. Mental refreshment: Every year all level of employee gets the benefit of yearly picnic and sports and cultural program. Training facilities: Four knitwear Ltd. Budgeted an amount for the skill development of their selected staffs and employees. Transportation facilities: Every staff of four knit wear limited get transport facilities in office work purposes. Residential facilities: The organization has residential facilities for employees. They get house rent in time of salary. Though there prevails unhealthy atmospheres, but it is better than other ownership house. Medical facilities: There is a medical facility to all employee of the company. In this company a doctor team come to factory directly for medical support. First aid facilities: Four knitwear Ltd. has a primary medical for facing any kind of unfortunate accident, which cost a part of budget every year. Research and development facilities: There are a budget for research and development of Four knitwear Ltd. each year. So, any one can get an opportunity to research for his/her skill. Prayer facility: At the time of prayer the Muslim employee have the place for prayer but others have no facility.
5.8 MAJOR RAW MATERIALS OF FOUR KNITWEAR LTD: 1. Clothes 2. Cottons 3. Level 4. Cartons 5. Folders 6. Strikers 7. Eye late
5.9 LIST OF WORK-IN-PROCESS: 1. Cutting: Fabrics are cutting in the cutting section according to the size or design. In the time of cutting the fabrics Cutting master have to check the following items. A. Shrinkage B. Shade C. GSM and DIA D. Knitting Flat E. Dyeing Flat
2. Printing: After cutting the fabrics, different types of printing may be needed. In Four Knit wear ltd. Printing is done by another party. So for this it needs to order for printing.
3. Sewing: In sewing section, cutting fabrics are sewing. 4. Garment Wash: After sewing the thread it need to wash the fabrics. It fully depends on only the buyers. Since 1978 garment prewashing has become more and more popular. It began with Denim Joans. The following are different method s of prewashing garments: I. Normal Wash: Wash in hot water added with detergents and softener. If we wish to have a more pronounced washed look on the garment we should add some sodium to wash. Depending on what kind of fabric he garments is made of and how much of a washed look you need. You should adjust the water temperature, the amount of detergent or sodium and the length of time to wash. to use hot water to wash hit temperature about 40.c. II. Pigment Wash: Pigment wash is actually same as normal garment wash. Pigments wash needs 50.c-60.c to wash. So that the color would pad more evenly. III. Bleach Wash: Bleach wash is simple; you just have to add bleach to the water in the tumble for washing. However, timing is very important because any garment over bleached can not be corrected or reversed back to a less bleached condition. IV. Stone Wash: The idea of washing with porous volcanic stones is to give the garment a strong and rough wash. To achieve the pronounced washed effect through 46
abrasion on the exposed areas, such as the seams and pocket corners. Sometimes we add bleach to the wash to make the color fade more seriously, such as denim perm navy to light blue. *Size of the stones used: Big stones will give more abrasion, small stones mild abrasion; big stones may damage the garment. If made or light weight Fabric or fabric of weak construction. *Stone ratio: Wash with more stones will create the more apparent blue/white contrast on the fabric surface. * Washing time * Amount of Bleach: If you use more bleach, you can shorten the washing time therefore instead of using more bleach. You should use the normal amount of stone and lengthen the washing time to achieve the color standard required. E. Acid Wash: Acid wash is a kind of stone wash. But it consists of 2 steps , the First step is to wash without water and 2nd step with water. White Color in the blue garment whiter to emphasize the acid wash Effect. V. Enzyme Wash: Enzyme is a kind of live cell. We use it to the wash because we want it to break some of the fibers on the surface in order to give the fabric a soft, sanded or preached effect. VI. Caustic Wash: When garments are made of this fabric and ready for wash, we will wash them with caustic and hot water. 5. Iron: Products are iron because of more shinning the products. There Is a steam boiler in the Four knit wear ltd. for iron the product?
6. Quality control: A quality controller Check produced products are qualified or not. There are two main aspects to consider when discussing the quantity of a garment. These are A. Design quality: Design quality is concerned with materials, fit and construction methods. B. Manufacturing quality: Manufacturing quality is concerned with degree to which the garment produced agrees with the sample or specifications. Our training will be provided mainly for manufacturing quality. ** Satisfactory quality can only be ensured through: *Knowing the customers needs *Designing to meet them 47
*Faultless construction * Certified performance and safety *Clear instruction manuals *Suitable packaging *Prompt delivery * Feed back of field experience 7. Finishing: It is all most the last step of production. A fair product is available here.
8. Hang tag: Finishing product is hanged here by the hangtag for marketing properly.
9. Poly: It is used for remain product neat and clean and free from dust. 10. Cartons/Packing: After poly the product, then it needs to pack the product. After packing the product. It needs to attach a packing list, for example of a packing list is given below: SHIPPING MARK: N DE CARTON/ BOX NUMBER CODE ARTICLE/ ITEM TALLE /SIZE QUANTITY STYLE NO: B0002735 (CITREON MENS T-SHIRT) ORDER NO: 109254 ORD QTY- 3000 PCS COLOR SIZE /ITEM CTN/PCS KHAKI
40 40 40 40 20
3XL 40 40 40 40 40 40 20 40
CTN NO 1-3 4-16 17-44 45-68 69-73 74 75
TTL OTN 3 13 28 24 5 1 1
TOTAL PCS 120 520 1120 960 200 40 40
10 COLOR KHAKI
3000PCS SUMMARY SIZE M L 550 1120
TOTAL 3000 PCS
TOTAL = 3000 PCS TOTAL CTNS= 75 GROSS WEIGHT= 825 NET WEIGHT= 712 KGS CTN MEAS= 60*40*20 CM
11. Inspections: It is an important part of merchandising that before shipment of the product buyer or buying house must inspect the product. The procedure of inspection is given below: Carton Check: during inspection the inspector generally check following: A. Quantity of Carton (As per packing list). B. Quantity of Carton: 1. Ply of carton 2. Size of carton 3. Strength of Carton ete. C. Shipping Mark: 1. Main Mark (AS per buyers Instruction) 2. Side Mark 3. Merchandiser Description (Assortments) D. Taping, Strapping Cartons Selection: From the Lot we have Sample Carton and we will pick merchandise from those Carton. The methods and points to be considered are as follows. Methods of Carton Selection: There are two method of carton selection: A. Total no carton 49
B. Total no carton *2 Points to be considered: 1. Color of the merchandise 2. Size of the merchandise 3. Carton should be picked randomly. N.B. The inspection must be marked on the carton to avoid any unaccepted situation. Packing and packaging check: After carton selection we check the packing methods used for the lot the packaging used check the points are: Packing: 1. Position of garments inside the carton 2. Inner carton/inner box 3. Protector 4. Poly bag 5. Assortment 6. Quality of Garments 7.
12. Shipments: After produced the products the company have to shipment the products in time. Generally products are shipment in two way: a. Sea port b. Airport. It only depends on buyer decision.
5.10 LIST OF FINISHED STOCK: 1.Gents T- Shirt 2. Ladies T-Shirt 3. Polo T- Shirt 4. Others
FINDINGS & SWOT ANALYSIS OF THE COMPANY
6.1 Findings of the Merchandising Department of FOUR KNIT WEAR LIMITED 6.2 SWOT Analysis of Company
6.1 FINDINGS OF MERCHANDISING DEPARMENT OF FOUR KNIT WEAR LTD: It appears that merchandising management is one of the key areas of garments sector. But unfortunately, in Bangladesh merchandising management planning and controlling is reported to be unsound I indicates that merchandising management planning and controlling is extremely poor in entire garments sector in Bangladesh, which in turns, has adversely affected the getting order from abroad. In practice, I see some problems when I investigate merchandising management system in Four Knit Wear ltd. A. Lack of proper communication of different level of department. B. Failed to follow merchandising management technique like buyer attention technique, sampling techniques, order delivery techniques etc. for what that reason it failed some time to determine target order quantity. C. All the people are very helpful at Four Knit Wear limited. Again some people use find they are agree to help me but did not agree to teach. D. There is no specific training and research department in Four Knit Wear limited for internally develop employees and workers. E. Company should evaluate not only the responsibility of the merchandiser but also the efficiency of the merchandiser. F. In this company they (merchandiser) do not keep any record in the computer for further needed. They keep record only for present need. G. Pricing is the most important for better merchandising, but I do get a clear idea how they determine price. They are interest to know this to their junior merchandiser. H. Merchandiser still use old model computer for their communication. I. There is a no permanent marketing merchandiser of this company. Without marketing merchandiser a garments company do not get order from buyers. J. So it is very much necessary to control the discipline.
6.2. SWOT ANALYSIS: The SWOT analysis having identified the company’s internal strength and weakness as well as external opportunities and threats. We need to consider by previous marketing and other related analysis an overall picture has revealed of Four Knitwear Ltd. It can develop new function business of corporate strategies to accomplish this change. A SWOT analysis is shown in the below: 6.2.1 Strength of the company: Strength is the power of a company by using it a company may achieve the competitive advantage “Four Knitwear Ltd. is a well reputed company in the textile industries of the country”. It is an enormous activity in the textile industry.
Here the existing strength of the company is mentioned as below: • No loan from any bank • A large amount of Assets. • A well known reputed brand name. • Good quality of product • Well environment • Management competence. • Sound marketing skills. • Good material management system. • Availability of efficient and qualified human resources world latest. • Appropriate organizational style. • Appropriate control system. • Good financial management. • It has in-house power generation capacity is 150 kilowatts. • Roads leading to the complex have been built by are maintained by Four Knitwear Ltd. • Tube wells ensure an abundant flow of water. •
6.2.2 Weakness of the company: Weakness is the internal and existing limitation of a company for which it is unable to be many competitive advantages. Some weaknesses of the Four knitwear Ltd. are – Lack of proper promotional program. Top management always pressure on lower management. Too much labor turnover rate.
Depends on fully foreign order. Developing people skill assessing process requirement text time. Integration of section output & input still need further co-ordination among the section. Poor security in store. Small capital Old model computer system that is very slow to work. No security in use of computer. So much Salary discrimination. 6.2.3 Opportunity of the company: An inventorying opportunity is an area of seller head in which a company can perform profitable. The opportunities identified for the Four Knitwear Ltd. are as follows: Company can expand its product line by introducing differentiation or introducing new product. The good will and demand of these kinds of products are increasing data by day especially in the European market. Greater possibility to product diversification with quality. Supervisor and foreign technician live on site to provide 24-hour coverage. 6.2.4 Threats of the company: Threat is an external obstacle or a barrier for which a company can’t achieve its predetermined goals. The major threats of this company are as follows: It is mainly depend on own capital. It does not get any tax advantages. Govt. has given G.S.P (Generalized system of performance) facilities. But these facilities will continue only to 30th June 2005. Political unrest or instability is the threat of this company. Because of Hartal and political violence. Production is hampered and it cannot supply the product at the right time. Increasing foreign company’s domination. And most important threat war to one country to others.
RECOMMENDATION & CONCLUSION 6.1 Recommendation 6.2 Conclusion
7.1 RECOMMENDATION: Textile sector plays a very important role to earn foreign exchange to our country. A large amount of foreign money comes from the exporting of Garments. However a large number of workers maintain there live on this sector. Specially the women. So, government should take special nursing in textile sector. Some points are given to overcome the problems of merchandising of this sector: The authority should gather adequate knowledge about merchandising. They should follow appropriate merchandising technique. Adequate training facilities provided for personnel for development. Should follow a specific inventory costing method, in the context of rising trend in raw materials price. They should determine yearly inventory cost like ordering cost, carrying cost acquisition cost separately. For purchasing raw materials, Four Knit Wear Ltd. should follow acquisition procedure strictly. Four Knit Wear Ltd. should analyze the balance sheet through various ratios for determining efficiency, profit-earning capacity, financial solvency etc. Four Knit Wear Ltd. should develop merchandising system and strictly. They should determine optimum level of inventory. Sound communication should be established between managing directors to merchandiser. Steps to be taken to increase fire service equipment are to face any kind of accident. Cost control system must be implemented at every stage in the organization. Most of the officer has to motive to teach every employees and researcher of their own inspiration. A specific department for training and research, which will provide adequate training and research facilities for personnel for development. Every department will communicate their problem with other department of the company Medical facilities should be improved. Effective personnel management should be set up. Proper steps should be taken to stop power failure. Various motivations will be provided to workers for sound production. Four Knit Wear Ltd. should modernize their equipment for inventory. They should computerize their every level of inventory.
7.2 CONCLUSION: Today’s garments fully depend on merchandising. A good merchandiser can develop the quality of product and increase the sales of the product. Merchandising is a big job and is a complex one. It is so much important in our textile industry. The study “Merchandising system Four Knit Wear Ltd.” revealed that Textile of Bangladesh is fully depending on merchandising. . It may an honorable professional for educated persons. For developing garment sector merchandising management system will have to focuses on modern system. For the development of merchandising there are many factors involved. Merchandising plays an important role. The result of the study showing that there is lot of step for Four Knitwear Ltd. to improve their merchandising management have certain implications for the business community as well as national merchandising planners. The study “Merchandising Management of Four Knitwear Ltd. revealed that Merchandiser is most valuable human resources for the progress of the organization. For the development of these valuable resources there are many factors involved. To increase the productivity of an organization effectively, efficient merchandiser will have to develop. Preparation of future business managers should provide for the development of managerial skills relating to merchandiser function. Colleges and universities offering business administration curriculum would do well to evaluate their courses as they relate to the findings of this study. This direct study indicates the potential utility that could be derived from undertaking more comprehensive investigations covering only merchandising management of Four Knitwear Ltd. There are consequent developments of newer knowledge can definitely contribute to increase the efficiency of business management and this, in turn, will increase the satisfaction of all interested buyer parties, which will be the ultimate goal of business.