Merchandising

Definition of Merchandising

The "Merchandising" is known to the persons specially involved in garments trade. The term merchandising has been derived from the merchandise. Merchandise means goods that are bought & sold.

Garments merchandising means buying raw materials & accessories, producing garments, maintaining required quality level and exporting the garments within schedule time.

Flow Chart of Merchandising

Contact Buyer

Receive Enquiry Sheet

Develop Sample

Consumption of material

Costing of Material including CM

Negotiate with Buyer

    Order Receive

Receive Master L/C

Booking Fabric and Accessories

Open BB L/C

Sample Approving

Receive fabric and Accessories

Swatch Card Making and Approval

Approval for bulk Production

Pre-production Meeting

Start Bulk Production

Line Inspection

Ex-work

 PSI

Shipment (Ex-Factory)

Basic Qualification of Merchandiser

• Good command in English.
• Adequate knowledge on technical terms, accurate and efficient communication skill
• Good knowledge of raw materials (Fiber, Yarn, Fabric, Garments and required accessories)
• Sufficient knowledge of Dyeing, Printing, Finishing, Washing, Embroidery, Garments manufacturing etc.
• Adequate idea about color fastness of fabrics, garments and accessories.
• Knowledge on  garments inspection systems
• Good knowledge of Exporting and Importing procedures and countries
• Knowledge on duty rates and customs regulations
• Knowledge of shipping and Banking documentation and regulations
• Order procedures of international buyers
• Adequate knowledge of factory and production procedures.
• Computer literacy and e-mails & internet.
• Excellent power of motivation to improve public relations
• Excellent behaviors and personality and intelligent

Function of a Merchandiser

A. Pre-order Merchandising       

• To receive inquiry sheet
• Consumption  calculation
• Costing and quoting
• Negotiation
• Price confirmation
• Order confirmation
• Receive master L/C
• B. Post Order Merchandising
•   a. Collecting Raw materials
•                 a. a. Prepare TNA
•                   i. Select the appropriate supplier
•     ii. Booking fabric and accessories required to complete the order after careful calculation with specification mentioned in the order sheet
•    iii. Open BB L/C
•   iv. Receive sample of ordered raw materials for approval
•    v. Follow up production
•    vi. Sending procuring information to the   stores
•    vii. Receive PI from suppliers
•    viii. Receive raw materials in store
•    iX. Inspect raw material (both quality and quantity)

b. Sampling

• Proto type sample
• Development sample
• Salesman sample
• Photo sample
• Size set sample
• Pre-production sample
• Shipment Sample

C. Banking

                                ¡ Receive master L/C

                                ¡ Check mater L/C

                                ¡ Amend master L/C if required

B. Post Order Merchandising

d. Production of Garments

                 ¡ Making Swatch Card, get approval from buyer and distribute in different sections (Production, QC, store, wash, etc)

                 ¡ Booking production line

                 ¡ Receive inventory report on raw materials

                 ¡ Attend Pre-production meeting

                 ¡ Arrange testing of raw materials and send test report to buyer

                 ¡ Arrange test cutting

                 ¡ Start bulk production

Request to buyer for Final Inspection

                 ¡ Arrange Final Inspection, collect IC and send to buyer

                 ¡ Hand over the goods to C&F and collect B/L 

e. Commercial Activities

                 ¡ Submit required documents to the bank for receiving payment (PL, BL, IRC, EXP, UD, GSP)

                                   Pro forma Invoice

                                   Packing List

                                   Bill of Lading

                                   Inspection Certificate,

                                   UD, GSP, etc.

Duty of Merchandiser to satisfy buyer

Merchandising denotes all the planned activities to execute and dispatch the merchandise on time, taking into consideration of the 4 Rs to replenish the customer.

• Right Quantity: To dispatch right quantity of product what buyer ordered.
• Right Quality: It should be with right quality as accepted both parties.
• Right Cost: Everybody wants more from what they are paid.
• Right Time: No one wants to wait idle even in a Restaurant. Keeping delivery schedule is mandatory.

Golden Rules for Merchandising

• Be flexible dealing with any buyer for orders and styles
• Do not overload the factory with excessive order
• When the order is running in the floor; Keep constant attention to see what is happening
• Never push any order to its extreme. If so, disaster is imminent
• Approval must be secured in all situations prior to production
• Do not accept any order which will be difficult to handle
• Do not accept any order which requires arrangement of which is difficult & needs special tool / machine and manpower to handle

• Before starting production ensure that you are well equipped
• Accept order in staggering and balancing through the year
• Try to avoid accepting any order of rare and unusual in nature
• Do not accept any order with high risk
• Taking fatal risk do not play with any order
• Always try to avoid buyers who seek concession
• Be Realistic and practical, pragmatic.
• The order should always be protected from any disaster by constant

   supervision and follow up

Analyze product package

• Name of Buyer
• Season, Year
• Designed By and Creation Date
• Any Revision with Date
• Size Range of the product
• Order Quantity
• Delivery Date
• Size and Color Break Down
• Packing Ratio
• Fabric GSM (Specifying percentages)
• Knitting pattern / Construction
• Measurement sheet with pictorial description
• Accessories detail (Bill of Materials sheet, BOM sheet)
• Stitching detail
• Packing detail with Assortment Ratio                                                                                                                                                                                                                                                                                and Quantity per carton
• Details of Folding and Finishing Accessories
• Details of printing
• Details of washing
• Details of Ornamentation and their placement / Attachment details
• Details of Shipping Marks and Carton Marks
• Warehouse Address/Details of Destinations
• Details of Freight forwarder and freight payment terms
• Details of Lab test requirement and testing Organization
• Details of samples and their destination
• Details of Inspection and Quality level (AQL)
• Detail of Carton size, Ply, color and restriction on use shipping pin, PP Band, Poly (PP or PE)
• Unit Price (FOB) of the product
• Currency
• Payment terms, etc