Learning about merchandising Part 2
Previous post ( merchandising Part 1 ) we know about What is merchandising, Flow chart of Merchandising, Different type of buyer,Terms of Garment Merchandising,Qualities of Merchandiser. In this post we try to know more details about merchandising.
Roles and responsibilities of a Merchandiser:
When an export order is placed to a merchandiser, he has to schedule the following main functions to execute the export order perfectly in time (schedule)…
Merchandising chronological processes:
Fabric Consumption
The quality of fabric which is required to produce a garment is called consumption.
Cost calculation
Cost is divided in to
Cost = Manufacturing cost
Costing = Cost + Profit
Costing of Garments in FOB
Price quotation for Buyer
There are following process for fixation price…
1. FOB (Free on Boat)
a. Exporter does not bear the cost of freight of ship
b. It is buyer who bear the freight
2. FOA (Free on Air)
a. Exporter does not bear the cost of freight of air
b. It is buyer who bear the freight
3. C & F (Cost & Freight)
a. Free on board + freight = C & F
b. In this case ship or air freight is carried by the exporter while quoting price
c. This price higher than FOB
4. CIF (Cost, Insurance & Freight)
a. C & F + Insurance = CIF
b. In this case in addition to the bearing of freight, the cost of insurance is also borne by the exporter
5. CM (Cost of Making)
a. Manufacturer will get only making charge of those garments
b. Manufacturer doesn’t get the trimming cost and fabric cost
Types of papers required for making document in export process
1. Commercial invoice
2. Packing list
3. Weight list
4. Bill of loading.
Costing of a garment for example in a shirt:
1. Fabric costing
2. Garment accessories
a. Button
b. Interlining
c. Label
d. Thread
e. Collar bone
f. Hang tag / price tag
3. Finishing accessories
a. Poly bag
b. Plastic clip
c. Gum Tape
d. Neck board
e. Tag pin
f. Sticker
g. Butterfly
i. Collar insert
j. Back board
k. Neck insert
l. Scotch Tape
m. PP belt
n. Carton
4. Worker charge
5. Washing charge (if garment wash needed)
6. Commercial and transportation cost
5. Cost of Making (profit margin is the distortion of the exporter) + 10% profit margin.
www.larningworld.blogspot.com
Other documents like beneficiary statement, Quota statement, and some kinds of certificates.
Type of yarn Count
Cotton 20S, 22S,24s,26s,28s,30s,32s, 34S, 40S
Polyester 75D,
Lycra yarn 20D,40D
Grey Mélange (C-90% V-10%
C-95% V-5%)
24S, 26S
PC (65%Polyester & 35% cotton) 24S, 26S, 28S, 30S
CVC 24S, 26S, 28S, 30S
Roles and responsibilities of a Merchandiser:
When an export order is placed to a merchandiser, he has to schedule the following main functions to execute the export order perfectly in time (schedule)…
- Fabric requirement calculation (consumption).
- Accessories requirement, calculation (Example, Thread, button, interlining, label, poly bag and cartoon etc).
- Sourcing of fabrics.
- Sourcing of accessories.
- Production follow-up with fabric and accessories, be possible date of arrival of fabric and accessories in garment factory.
- Costing of garments.
- Garment analysis and production planning.
- Performa making, swatch making and distribution to the production unit and quality concern people.
- Pre-shipment inspection schedule.
- Shipment documents
- Have to prepare proper time and action plan
- Arranging shipping documents and final inspection.
- Execution process for garment export:
- Order inquiry from buyer to factory.
- Approval of order from Buyer, as per the costing given by the Merchandiser.
- Buyer Bank gives master L/C to the factory. Commercial dept deals with the follow up of L/C matters.
- B/B. L/C is given to the suppliers of accessories and fabric, etc.
- Fit sample sent to the Buyer for fit approval.
- Pre-Production sample submitted to Buyer with original accessories and fabric.
- Fabric and trims to be in housed on due time as per time and action plan.
- Initial production can consist of 100 to 200 Pcs.
- Online inspection by buyers Q.C certifies the quality of the garments.
- Bulk production to be started, as per the time and action plan.
- In the main time commercial section, prepare the shipping documents
- Final inspection as per time and action plan (after final inspection ok).
- Goods are made ex factory.
- Goods handed over to the shipping line (Sea shipment)
- Goods will reach to buyer port.
- Cost of fabric is to USA $.
Merchandising chronological processes:
- 1st pattern (first sample)
- 2nd pattern (second sample)
- Approved sample and counter sample (three place)
- Sales man sample (for sale every chain store can take 20)
- Photo / proto type sample (original fabric & accessories are made)
- Size set sample
- Pre-production sample (production running in that time merchandiser take)
- Production sample
- Shipping sample (before shipping merchandiser takes some sample)
Fabric Consumption
The quality of fabric which is required to produce a garment is called consumption.
Cost calculation
Cost is divided in to
- Pre- cost ------- merchandiser
- Final costing -------- merchandiser + import section
Cost = Manufacturing cost
Costing = Cost + Profit
Costing of Garments in FOB
Price quotation for Buyer
There are following process for fixation price…
1. FOB (Free on Boat)
a. Exporter does not bear the cost of freight of ship
b. It is buyer who bear the freight
2. FOA (Free on Air)
a. Exporter does not bear the cost of freight of air
b. It is buyer who bear the freight
3. C & F (Cost & Freight)
a. Free on board + freight = C & F
b. In this case ship or air freight is carried by the exporter while quoting price
c. This price higher than FOB
4. CIF (Cost, Insurance & Freight)
a. C & F + Insurance = CIF
b. In this case in addition to the bearing of freight, the cost of insurance is also borne by the exporter
5. CM (Cost of Making)
a. Manufacturer will get only making charge of those garments
b. Manufacturer doesn’t get the trimming cost and fabric cost
Types of papers required for making document in export process
1. Commercial invoice
2. Packing list
3. Weight list
4. Bill of loading.
Costing of a garment for example in a shirt:
1. Fabric costing
2. Garment accessories
a. Button
b. Interlining
c. Label
d. Thread
e. Collar bone
f. Hang tag / price tag
3. Finishing accessories
a. Poly bag
b. Plastic clip
c. Gum Tape
d. Neck board
e. Tag pin
f. Sticker
g. Butterfly
i. Collar insert
j. Back board
k. Neck insert
l. Scotch Tape
m. PP belt
n. Carton
4. Worker charge
5. Washing charge (if garment wash needed)
6. Commercial and transportation cost
5. Cost of Making (profit margin is the distortion of the exporter) + 10% profit margin.
www.larningworld.blogspot.com
Other documents like beneficiary statement, Quota statement, and some kinds of certificates.
Type of yarn Count
Cotton 20S, 22S,24s,26s,28s,30s,32s, 34S, 40S
Polyester 75D,
Lycra yarn 20D,40D
Grey Mélange (C-90% V-10%
C-95% V-5%)
24S, 26S
PC (65%Polyester & 35% cotton) 24S, 26S, 28S, 30S
CVC 24S, 26S, 28S, 30S
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