CHAPTER ONE
Background of the study
# INTRODUCTION
# OBJECTIVES OF THE STUDY
# METHODOLOGY OF THE STUDY
# LIMITATIONS OF THE PROGRAM
|
Introduction
In the edge of competitive international business, it is evident that countries are more involving in international trade. Without sound knowledge of management, export& import any 100% export oriented organization like SAZ FASHION LIMITED could not be operate its business smooth. SAZ FASHION produces shorts(cargo shorts, swing shorts, board shorts) wear of leading buyers like JESEPENE, SCOPE(USA based buyer), GATRACAN ( CANADA based buyer) etc. It’s deals with the famous company in the world shorts market having business of functional garments like swimming, outwear, causal etc. The operation of the company is pretty much spread around the world. SAZ FASHION participates garments fair local and abroad.
It is really a great pleasure for me that I have completed my OCP report on “
‘ . This report represents the total merchandising procedure of the company. During preparing of my report, I’ve detected some problems of the company. In the light of those problems I’ve given some recommendations. I hope that if the management of the company follows my recommendations, it will help the company to achieve their desired goals in the long run.
Objectives Of the study
The main purpose of this program is to gather knowledge about internal and external environment of an industry and find out consistency and in consistency between theoretical knowledge that we acquired from an industry that is live. And we also try to adjust with the gap to be compete at the modern job market.
The specific objectives are:
To identify the problems of merchandising procedure.
To make the more effective of the merchandising procedure.
To find out the prospect of merchandising in SAZ FASHION LTD .
To forward some recommendations to solve the problems.
Methodology of the study
Given the nature of the study, it was required to collect data from both from the primary and secondary sources. I was always careful of the study and collected data accordingly to accomplish those objectives.
Data collection Method:
Primary data: Data collection of the research was done from practical deskwork & Face to face conversation with the officers. I also got a chance for open discussion with different department chief & department’s senior officers freely.
Secondary data: The report was also based on secondary sources. Like – annual report, company projects profile, and related data, web site.
Limitations of the study
In the context of our country, still now, this kind of program is not popular. Most of the student do not have any idea about it. The major limitation is that data has to be collected within a very short period of time. The base of the study was collection of data by discussing, consulting & working a particular industry. The program suffers from various limitations, some of those are mentioned below:
ÞFor a glorious report, the time which is not sufficient. If we got more time then it would convey a tremendous result for our practical life.
Þ In the program areas the authority could not express accurate data easily for the reason of their confidentially.
Þ They hesitate to give right answer some of my questions.
Þ University does not contribute any payment for construction report.
Þ Some alternative samples were selected due to unavailability of all information.
Þ Information is a vital force for the competitive market. At present every industry has a great interest on other secrets. As a result I could not gather all the required information.
Þ Most of the officials are too busy to provide me sufficient time.
Þ They are very much reluctant to show all the documents.
Þ Top management was sometimes very hard to reach.
CHAPTER TWO
COMPANY PROFILE
A BRIEF HISTORY OF SAZ FASHION LTD .
Principles
SAZ FASHION LTD .
Aims of SAZ FASHION LTD .
Organization structure.
Selection procedure.
Training and development.
INTRODUCTION AND BRIEF HISTORY OF SAZ FASHION
SAZ FASHION LTD . A truly 100% export oriented manufacturing company has started its business about 12 years ago in our country. It is on of the local based companies and it has been established since 1998, 13th January. It is 100% export oriented company under the banner of the Bangladesh Export processing zone (BEPZA).At present the company’s total number of employees are around 1000. It is a private organization and sole trader ship. The name of the owner of organization is DILIP SHAH. It has show room in U S A and Canada LTD and mailing address has given below:
SAZ FASHION LTD .
1956Hossain complex (3rd & 4th ),
Bondor,Chittagong
The line of products of this company can be characterized in the following ways:
Long sleeve & short sleeve shirt.
Jacket.
Shorts pant ( Cargo shorts, Broad shorts, Swing Tang).
I am serving here as a Merchandiser and look after marketing side (Micro shirts & Shirts). The total number of employees working here are 40. It has two individual.There is a canteen for 1000 workers and employees on the top floor and one individual medical center every unites has medical center.
Principles:
To deals fairly , openly and honestly with all employees , customers & suppliers.
To combat corruption whenever or wherever it occurs.
To value and support each other’s contribution.
To ensure equality of opportunity for all & combat discrimination whenever or wherever it occurs.
To always obtain the best value from the resources available.
SAZ FASHION CODE OF CONDUCT:
Employment policies: SAZ FASHION LTD . Abides by the principle that decisions based on hiring, salary benefits, advancement, termination or retirement are based solely on the ability of an individual on the job. There shall be no discrimination based on race, gender, marital or maternity status, religious or political believes, age or sexual orientation.
Forced labor: SAZ FASHION LTD does not forced the labor in any form: prison, indenture, bonded or otherwise.
Child labor: SAZ FASHION LTD does not employment any person below the age of 18 to produce apparel, accessories or equipment.
Compensation: SAZ FASHION LTD provides each employment at least the minimum wage or higher and provides each employee a clear written accounting for every pay period.
Benefits: SAZ FASHION LTD provides each employee all legally mandated benefits. This includes meals or meal subsides or transportation subsides other cash allowances; health care , pregnancy, or sick leave, vacation, religious holiday and contribution for provident fund.
Hours of work / Over time : SAZ FASHION LTD complies with legally emendated work houses, uses over time only when each employees fully compensated according to local law and or a regularly scheduled basis provides one day off in seven and requires no more than 60 hours of work per week.
Management of environment, Safety and health: SAZ FASHION LTD has written health safety and guideline has a factory safety committee provides personal protective equipment free of charge and mandates its use and all applicable local environmental safety and health regulations.
Every employee shall be treated with respect and dignity: No employee shall be subject to any physical, sexual, psychological or harassment or abuse. Written disciplinary procedures shall be applied fairly among all workers of SAZ FASHION LTD .
Aims of SAZ FASHION LTD
To achieve and maintain a position in the world class manufacturing.
Objective of SAZ FASHION LTD .
Particulars
|
Percentage
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Safety record
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100%
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Delivery on time
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100%
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Quality first time
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100%
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Commitment
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100%
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Utilization of resources
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100%
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Selection procedure:
After recruitment, selection procedure is maintained by the company. SAZ FASHION LTD makes a short of applicants from among all before selection test. This type of shorts list is prepared as qualification and experience. There are various types of selection test for employee selection. These are:
Written ( subjective type ) test.
Written ( objective type ) test.
Oral test
Medical test
Others
In my practical findings, SAZ FASHION LTD usually follows the written ( subjective type ) test, oral test and medical test for employee selection procedure can vary person to person. Such that
For worker: In LSL, no written test is undertaken in selecting workers. Job experience is considere as vital factor.
For staff: Departmental manger gives instruction to HRM to attract fight people.
For junior manager/Brand manager: As this is an entry – level / mid level position in management, Human resource department undertakes a series organization tests. Written test ,interview, physical test, group performance test, physical examination are also undertaken. Then the potential candidates are selected by human resource manager.
For senior manager: This post is filled up through promotion and hiring from other manufacturing concerns.
SAZ FASHION LTD provides promotion and extra benefits to retain quality people to the organization.
There are basically two types of benefits provided by the company. They are :
Financial benefits.
Non- financial benefit.
1.Financial benefits: Financial benefits are as follows:
Salary
Bonus
Allowances
Incentives
Provident fund
2. Non- Financial Benefits: Non –Financial benefits are as follows:
Communications/transport
Free medical services
Entertainment
Others
Promotion/Demotion:
The most important policy question in promotion is the relative significance of seniority and competence. In rencent times potentiality and competency are considered as most important basis for promotion. Through there is an increasing pressure and tendency, to give more weight to seniority in making promotions, because of the great importance that worker attach to length of service.
SAZ FASHION LTD (YSL) considers the merit and seniority as the basis for promotion.
Like public concerns, YSL does not have any system of demotion. HRM urged that the incompetent employee has to be trained.
Training and development:
For increasing the knowledge, skill and improvement of competency of employees both in – house and out door system are followed.
There are some training methods for developing employees. They are:
On the job training
Apprenticeship
Lecture and conference method
Sensitivity training
CHAPTER THREE
MERCHANDISING PROCEDURE OF
SAZ FASHION LTD
Vestibule training
But SAZ FASHION LTD follows on job training programs.
It means informing the trainees about the nature of work, conditions, and environment within a short period of time. The company has a separate training system is maintained. Employees are also sending to train up in foreign country.
Personnel department has its own policy for salary and wage administration.
There is some basis for setting pay. These are as follows:
Seniority
Experience
Performance
Position
Geographical distance.
Academic qualification
Personal relation
Others
In my practical findings, SAZ FASHION LTD motivates their employees through some facilities. These are:
Handsome basic pay
Extra allowances
Job security
Good behavior
There are various department in SAZ FASHION LTD as bellows:
Export and sales, Negotiation, Computer Aided Design (CAD), Import Department, Material Control Department (MCD ), Laboratory, Quality Control, Work study, Production, Printing, Finishing and packing, Personnel Department, Administration Department and Accounts Department.
# Merchandising Procedure:
#Technical Packet/Worksheet Receipt.
#Making consumption: Fabric & Accessories
#Price quotation from supplier: Fabric & Accessories.
#Costing
#Proforma
#Material deliveries follow up:
#MCD ( Material control Department):
#Production
#Production Monitoring
#Target achievement
#Problem solving during production:
#Inviting the buyer or 3rd party for inspection
#Shipment
#The exports documents
#SWOT analysis
Merchandising Procedure:
In the garments sector merchandising is the bridge between the buyer, supplier and the company. Merchandisers arrange the orders from the Buyers and organize the materials from the suppliers. They also monitor the production and fix problems.
In the international market Bangladesh India
Technical Packet/ Worksheet receipt:
SAZ FASHION LTD usually send worksheet that mention total body measurement, type of stitch, Quality of fabric, type of trims/accessories, color, type of label, Packing system, size measurement everything to make a garment to fulfill its design. And if required reference sample too.
Many buyers like THE NORTH FACE/NIKE/POLO, do not send reference sample during development,we may have to depend based on sketch.
Once receive the package we need to start work and have to monitor and run all the things very carefully.
Have to study carefully the spec and arrange meeting with concern person.
First of all, sit with pattern maker to adjust pattern based on sketch and measurement.
During pattern adjustment sales should arrange sub/Act. Material to start proto sample.
Meantime, make sample plan considering space at ‘sample room’.
If pattern found any discrepancy comparing sketch and measurment then should check back
With buyer as well SAZ FASHION LTD to have ‘ clear guideline about sample making.
If everything is settled then start proto and all of discrepancies should be highlighted pm checklist.
STEP OF SAMPLE:
1ST PROTO
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2ND PROTO
|
3RD PROTO/4TH PROTO
|
SALESMAN SAMPLE
|
PREPRODUCTION SAMPLE
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SIZE SET SAMPLE
|
BULK PRODUCTION
|
This is the structure of garment we can say. From the very beginning buyer has provided Space/T. pack/Worksheet etc. Where have model sketch and measurement. After review sketch and measurement, pattern maker start to make 1st proto’s pattern.
Based on pattern, will get gmts as perfect or wrong so pattern should be accurate as per buyer requirement. For production this is the most sensitive issue. Before sewing started sales explain each and every points to pattern maker as per buyer requirement.
Making consumption: Fabric & Accessories:
This is one of the important issues that have to be followed where by sales person should realize about its importance.
During proto ( 1st 2nd 3rd ) SMS & Bulk a well-arranged status for fabric & Material consumption would help us to save short shipment and to arrange material on time,which is future more.
During fabric/Materials purchase everyone should keep its accuracy to scold each if any shortage required.
For consumption we have one establish section called CAD (Computer Added Design) which helps us to get accurate consumption through mini marker. Mini marker may have missing of many small parts which will occurs trouble at production floor. To avoid such poor situation we should check those parts-comparing proto/sms sample as well with pattern personnel. Consumption is one of the important issue that has to be kept in good follow up.
PRICE QUOTATION FROM SUPPLIER: FABRIC & ACCESSORIES
After making consumption of fabric and accessories the merchandisers ask the suppliers to send price quotation of required materials. SAZ FASHION LTD have own textile and accessories industry and it also has good relation with other local and international supplier they are working with. When the buyer mention a any supplier the merchandisers have to send sample of fabric and accessories to the buyer for approval otherwise not. And all these communications happened through e-mail, fax and telephone or courier service.
COSTING:
COSTING means calculation detail of a garment mathematically & then profit and loss. Buyer provides worksheet to vendor to proceed proto making as well submit competitive costing. Base on t/pack pattern maker adjust pattern for consumption and meantime sales check all other necessary trims price and fabric’s price. Once get consumption need to calculate fabrics price, trims price( including Air cost &UP charges if necessary) print cost(if available), CWS cost, washing cost, CM(cost of manufacturing) etc. After taking consumption from CAD and receiving price quotation from the supplier the chief merchandisers prepare accosting sheet. In the costing sheet they measure all the materials and labor cost in some measurement unit they follow. They also add the interest at their profit rate for the company income. And send the costing to the buyers for further negotiation. Here is a costing sheet below:
AFTS
BB CH
SIZE RANG: XXSXXL. PRODUCTIVITY: 60
DATE:
|
WIDTH
|
YDS
|
3%YDS
|
CON/YDS
|
REMARKS
|
COMPONENT
|
FABRIC PX
|
REMARKS
| |||
TRIMS
| |||||
PRINT
| |||||
EMBROIDARY
| |||||
CM
| |||||
ELC
TARGET ELC
| |||||
ITEM
|
CODE
|
CON/DZ
|
REMARKS
| ||
Main label
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Care content label
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3/8” Elastic
| |||||
¾”Elastic
| |||||
Spun polyester thread
| |||||
Red poly thread
| |||||
10mm flat draw cord
| |||||
Outer draw cord
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Drwcord tipping 5/8”
| |||||
Eyelet
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Hang tag
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Tag pin
| |||||
Hanger & Sizer
| |||||
Poly
| |||||
Carton
| |||||
Carton Sticker
| |||||
Interlining
| |||||
Gum tape & Others
| |||||
Total
|
Sample of costing
Price quotation to buyer:
The senior merchandisers send the costing sheet to the buyers through e- mail. If the buyers will not satisfy with the cost then they inform the merchandisers to decrease the cost. Then the merchandisers again communicate with the suppliers for negotiation to satisfy the buyer. If it is possible for the supplier to decrease the price they accept it otherwise the merchandisers negotiate with other suppliers to decrease the cost to satisfy the buyer.
Salesman sample making:
When the buyer accepts the cost rate the merchandisers go for SMS(sales man sample) making. They give order to the P&D to make sample by providing them the tech pack, sample fabric and accessories and they monitor on that to make the sample as fast as possible. After making the sample they check the quality by quality by quality controller and make sure that the quality is fulfilled.
Sample sending to buyer:
When the sample are made and quality checked by QA department & send the sample to buyers for approval. The buyer checks the sample whether it meets the requirement or not. They put the sample on the dummy as checking initials, if they find more faults than tolerance of the sample they mention those to the merchandisers ask them for size set sample this way and they taker approval from the buyer.
Price bargaining with buyer and supplier:
When the correction of sample the merchandisers have to check either the costing is increasing or not, if it increase then they bargain with the buyers to increase the price or with the supplier to decrease the price of the fabric and accessories. Most of the sample correction period increases and merchandisers solve this by negotiating with both buyers and suppliers to go for production.
Price fixing with buyer and suppler:
After bargaining with the buyers and suppliers the merchandisers fix the price at a way that they can go for a profitable production. After a good negotiation they stand at asuitable porice with buyer and supplier and fix the price. Base on garment price we may consider material prices.Means mat. Price has to consistence with garment price. Once price negotiated with supplier we may ask suppler for proceed material production.
Calculating productivity:
Productivity is the main factor to produce goods at a proper time. The merchandisers make a meeting with the planning department to measure the productivity. They calculate the productivity by using the measurement of quantity to make, lead-time, available production line, labor hour , suppliers in house etc. Then they make sure whether they can go for production at the given time or not.
FIXING LEAD –TIME:
After productivity measurement they fix a lead time to produce the Garments on time and before shipment date they will be able to do so. Shortly, we can say after confirm mat. Order to supplier till ETA in factory, we may consider the period as a Lead- time. Of course, material handler person has to discuss about lead-time before confirm material booking. If supplier failed toj ship goods on time then they will bear all material Air cost.
Accept the order:
After taking all those procedure if everything satisfy both buyers and suppliers SAZ FASHION LTD accept the order and takes preparation for the production. The buyer asks SAZ FASHION LTD to open LC at any or mentioned Bank and send the LC. The Merchandising send the LC to the commercial department for review, if there is any correction to make they again send that to the buyer for correction. They also send back-to-back LC to the suppliers as payment. Fabric, Trims & Accessories approval from buyers:
The merchandisers also have to take approval of fabric, trims and accessories from the buyer. The merchandisers send sdample of fabric, trims and accessories to the buyer and if the buyer satisfies with those the merchandiser go for booking.
Fabric & Accessories booking:
After the approval of the buyer the merchandisers ask suppliers for make a booking of Fabric and accessories requesting them to ship those at proper time.
Receive PI ( Proforma invoice from ) form supplier:
Suppliers send a PI to the merchandisers to confirm the booking details with price per quantity. Here in PI suppliers mention all the details they are sending to factory. IF there is any correction in PI , supplier will correct it and send Commercial invoice. Here is a sample of PL below:
FIRST CONCEPT ENTERPRISE
Room#1532,Beverley commercial center,87 Chatham Road South Kowloon
PROFORMA INVOICE
Date:------
PI:---------
ACCOUNT : SAZ FASHION LTD .
HOSSAIN COMPLEX ( 3RD FLOOR)
1966/A AIRPORT ROAD , SOUTH HALISHAR
COMMODITY : Fabrics for Readymade Garment Industry.
SHOPPING MODE: By Sea
Ref :TSL-97YB 264 MITSUI F09MAR . BUY F.term: CNF Chittagong
Last Shipment Date: -----
Marks
|
SL
|
Style/PO
|
Description/Color
|
Quantity Unit
|
U/px
|
Amount
|
I
|
YF10X WBWR
|
100% NYLON TAFFETA, DYED WR CIRE
ASPHLT
BLACK
NAVY
TNF RED
|
700Yds
400 Yds
900 Yds
900 Yds
400 Yds
|
$1.70
$1.70
$1.70
$1.70
$1.70
|
$1190.00
$680.00
$1530.00
$1530.00
$680. 00
| |
3300Yds
|
$ 5610.00
| |||||
2
|
3450WRKA
|
100% POLYESTER TAFFETA, DYED.
|
Say in words U.S Dollar Ten Thousand Five Hundred forty Only.
LC Term & Conditions:
60 days LC form the days of negation.
Country of origin: CHINA
CHERTIFICATE OF ORIGIN: BENEFICIARY’S CERTIFICATE.
PARTIAL SHIPMENT & TRANSSHIPMENT ALLOWED.
For & on behalf of –First Concept Enterprise.
By – SAZ FASHION LTD .
Authorized Signature………………………
Signature………………………………….. Accepted
Authorized
WORLD LUCK LABEL ENTERPRISE
Room#53O,Beverley commercial center,87 Chatham Road South Kowloon
TEL………………., FAX……………, E-MAIL :……………………
PROFORMA INVOICE
Date:------
PI:---------
ACCOUNT : SAZ FASHION LTD .
HOSSAIN COMPLEX ( 3RD FLOOR)
1966/A AIRPORT ROAD , SOUTH HALISHAR
COMMODITY : Fabrics for Readymade Garment Industry.
SHOPPING MODE: By Sea
Commodity: Accessories for Readymade Garment Industry. F.term: CNF Chittagong
Last Shipment Date: -----
Shipping Mode: By Sea
Ref: PO 904011-CY
Marks
|
SL
|
Style/PO
|
Description/Color
|
Quantity Unit
|
U/px
|
Amount
|
I
|
THE NORTH FACE, 100% POLYESTER TAPE
|
MOONLIGHT
IVORY
TUNSTEN
TNF RED
|
650
650
650
650
|
$0.50
$0.50
$0.50
$0.50
|
$325.00
$325.00
$325.00
$325.00
| |
3800Yds
|
$1300.00
| |||||
2
|
NEVER
EXPLORER
I00%
PLOYESTER
|
BLACK
ZINC
NAVEY BULE
|
650
650
650
|
$0.50
$0.50
$0.50
|
$325.00
$325.00
$325.00
|
TAPE
| ||||||
1950YdS
|
$975.00
| |||||
GRAND- TOTAL
|
$5750Yds
|
$2275.00
| ||||
Say in words U.S Dollar Two Thousand Two Hundred Seventy five Only.
LC Term & Conditions:
a.25 days LC form the days of negation.
b. Country of origin: CHINA
c. CHERTIFICATE OF ORIGIN: BENEFICIARY’S CERTIFICATE.
d. PARTIAL SHIPMENT & TRANSSHIPMENT ALLOWED.
For & on behalf of –First Concept Enterprise.
By – SAZ FASHION LTD .
Authorized Signature………………………
Signature………………………………….. Accepted
Authorized
REVIEW THE PI:
Receiving the PI Merchandisers make a review on it, everything they ordered are appeared at right direction or not, if there is anything appeared wrong then they send it to the supplier for correction. Otherwise they authorize it.
SUBMIT THE PI TO COMMERCIAL TO OPEN BACK TO BACK LC:
After the review the merchandisers submit the PI to the commercial department of to open a back –to –back LC, which is the payment method for garment sector now a days. Through back-to-back LC the supplier have opened LC at their bank and SAZ FASHION LTD open back-to-back LC against Buyer LC.
MATERIAL DELIVERIES FOLLOW UP:
Before production the merchandisers have to follow up whether the materials are in house/store
Or not. Without confirming the materials in store production will not be started. The supplier may make delay in sending the materials that’s why the merchandisers always send reminder e-mail to the supplier only to send the materials on time, because if the suppliers make any delay the production will be delayed and shipment will be delayed. So it’s also a great responsibility of the merchandisers to follow up the materials delivery.
After delivery the materials from suppliers our MCD dept. Works like below:
They keep their eye on material list mentioned ETD/ETA to get delivery and to catch production line as per factory plan. They of course, play vital rule in production by arrange and keeping sequence the material and its information’s.
For easy understanding here I attached some format/ chart that has made by MCD personnel for various issue.
As they are liable to relay all sorts of material information, so they must have record of all fabric & materials that stored from different destination by air or sea in their storehouse.
Work flow:
Receive material list / information through mail from sales team/ YO or supplier.
Collect material ETD/ETA ( Estimated time of delivery/Estimated time of arrival)invoiceand check them correctly.
Keep checking with import section.
Checking with C&F or forwarder.
Should check carton & roll according to the invoice & packing list.
Should relay the information to concern person if any shortage /damage.
Make swatches of all fabric & trims for QA/Sales/Production reference.
Provide fabric & accessories for to QA for inspection purpose.
Collect inspection report from QA dept. and relay through status
Keep record of rejection swatches for supplier evidence.
Status for inspection summery.
Review carefully all sorts for material list/Buyer sample.
Make swatches for production.
Make consumption status for bulk / SMS.
Fabric status.
Leftover status.
Short/over status for fabric & trims.
PRODUCTION:
When the materials get in store the materials get in store the merchandisers order the production manager to go for production. At production sector the production manager and the merchandisers make a meeting to understand the total situation they have to handle. Then they get materials from the store and start their production activities.
Before start production our planning dept. works with merchandisers as like below:
Planning:
Planning department stands for making plans of how the production will completed at the due time. The make a lead time for the due time shipment otherwise the garments will lose the condition of LC. So Planning department makes the merchandising to finish their production on time.
PRODUCTION MEETING:
This should come your realization that in textile there has lack of educated manpower. To keep this mind to start any level of your working should consider the easiest way to explain the points to them. That’s why merchandiser arrange the bulk meeting with the production related section such as cutting,quality,mcd,maintenance,etc are attend there.
PRODUCTION MONITORING:
There is system of partial shipment when they get order in large quantity. So the merchandisers don’t give permission to get materials in advance, when the production sector need any materials they have to ask the merchandisers for materials. By this way the merchandisers monitor the production. The also monitor on the wastage of accessories by the labor.
TARGET ACHIEVEMENT:
The merchandisers have to be very conscious about the target of time. Because they have a lead time and they have ship the garment as per the contract they signed with the buyers. For that reason the merchandisers always try their best to achieve the target and work heart and soul to make it a success.
PROBLEM SOLVING DURING PRODUCTION:
During the production period there may appear some problem like; shortage of materials.When this kind of problems occurs the merchandisers solve this problems themselves.
INVITING THE BUYER OR 3RD PARTY FOR INSPECTION:
When the production finished and the products get packed the merchandisers invite the buyers to inspect the products physically. The buyers send their local inspection team to SAZ FASHION LTD TO check the products. There is a tolerance measurement; if the products quality passes that measurement then the inspection team informs the buyer that the products are ok.
PACKING:
After finish production our packing section maintain pack the garments as per instruction and prepare packing list for shipment.
SAMPLES FROM
|
PHYSICAL TEST
|
CHEMICAL TEST
|
WEAVES ANALYSIS
FABRIC DENSITY
FABRIC WEIGHT/M2
WATER PROOFNESS
WATER REPLIENCE
CROOKING (RUBBING TEST)
WASHING TEST (GARMENT)
|
FIBER INDENTIFICATION
BURN TEST
SOLUBILITY
COLOR FASTNESS TO
WATER
COLOR FASTNESS TO
WASHING
DIMENSIONAL CHANGE
( SHRINKAGE)
|
SPECIFICATION OF
COMPLAINS
|
BASIC INFORMATION FOR
|
BASIC INFORMATION
FOR SALES/ FACTORY
|
SHIPMENT:
When the products get approval from the inspection team of buyers the merchandisers go shipment steps through our documentation team. The Doc’s team contact with the transportation ( forwarder, C& F) to take the product to the seaport shipment those through the buyer. On the whole the document procedure of our Doc’s team shows as below:
ORDER PROCUREMENT
|
COLLECT PRODOCTION
|
FINISHING
|
BUYER INSPECTION
|
EXP/
|
EXPORT PERMISSION FROM BEPZA
|
C & F AGENT
|
C&F AGENT
|
BANK ENDORSMENT
|
COSTOMS FORMALITIES
|
FAX TO YO
|
NON NEGOTIABLE NILL OF LADING (B/I) / FORWARDERS CARGO RECEIPT ( CO) FOR VISA
|
OBTAIN CO FROM EPB/CHAMBER
|
EX-FACTORY
|
FRIGHT
FORWARDER / MOTHER
|
SHIPPING
ADVICE
|
B/L,FCR ( ORIGINAL & COPIES)
|
ORGINAL COPIES TO YO
|
EXPORT DOCUMENTS
( HSBC/
|
THE EXPORT DOCUMENTS:
Commercial Invoice no
Packing List
Bill of Lading
Air Way Bill
Certificate of Origin
Export License
Visa ( Textile products) for USA Canada
Multiple country declaration (MCD ) for USA
At a glance the total communication between the departments as below:
Sales > MCD ( Material Control Department)
Production > Factory Manager/APG/Technician/Supervisor.
Pattern > Included solid and sewing pattern.
CAD > For consumption and cutting marker print out.
Cutting > Included print, embo, patch, heat print & dice cutting.
Sewing-All operation.
Inspection- shall, sewing,embo, print, measurement & final inspection.
Packing-including barcode print, order poly bag, packing list preparing and carton order.
Shipment
SWOT ANALYSIS
In this context, I want to make a SWOT analysis as follows:-
STRENGTHS
PHYSICAL RESOURCES:
World wide nominated corporate buyers
Competitive price
Client dedicated service delivery
It networks
INTANGIBLE RESOURCES:
12 Years of experience
Experience and skilled workmen’s
Committer service
World wide image and reputation
CAPABILITIES/ PROCESS:
Corporate value
Committed service
Customer care
One stop solution
WEAKNESS
Frequent market fluctuation
Negative approach & business practice by competitors
World Economic Recession
OPPORTUNITIES:
Increased market demand
Company of the choice
Strong financial condition
Loyal Consumer Group
Faster Market Growth
THREATS:
Competition from rivals
Increased & fluctuate price
Government laws
Frequent currency fluctuation
Political Instability
Lack of facility in the port, harbor & poor infrastructure.
CHAPTER FOUR
CHAPTER FOUR
|
FINDINGS & ANALYSIS OF THE PROBLEM
|
FINDINGS & ANALYSIS OF THE PROBLEM
On the basis of this research I am detecting the following the following problem and also analysis the above statements against the company & I’ve also some findings which are stated later:
Lack of proper training facilities for the junior level employee.
Awkward in adopting update technology in production system.
Lack of proper communication between top level and lower level.
Inter departmental conflict.
Labor shortage.
Lack of motivation.
Inexperienced merchandising officials.
Salary structure is not encouraging enough to stay the merchandiser for long time in SAZ FASHION LTD .
Others departments try to dominate the sales & Export dept.
SOME OTHER PROBLEMS AND STATEMENTS ARE :
Some times problem arises between forwarder & SAZ FASHION LTD , between supplier & SAZ FASHION LTD , Merchandising & delivery issues. Most of the problems are handled by the Buyer about the pricing or delivery time etc and solved through recognized negotiation channels & e- commerce very somoothly.
Proper use of SAP system.
If supplier does not supply the raw material, fabric etc, in due time, they need to ship the raw material by air at their own expenses. And if there is air prepaid shipment due to suppliers delay, supplier need to share to share prepaid cost also for export purpose. Here the company need a huge conversation, communication, documentation and time which makes a problem for smooth work.
Regarding missing or accidental problems, for export & import, in most cases insurance is done by SAZ FASHION LTD and buyer can solve accident issues accordingly.
Some times forwarder mistakes to supply the correct goods to correct destination if they make a mistake when the cargo is loaded or unloaded.
Forwarders are nominated by buyer, whose are some times very costly in comparison to other forwarders. But we need to ship out our cargo with nominated forwarder. But it has some at destination or on the way forwarders are responsible.
SAZ FASHION LTD need to implement some standard training program for junior merchandiser for better performance.
PROBLEM FOR CONSUMPTION INCREASING OR DECREASING:
First the buyer order to make a sample with their reference worksheet or garment. Then the sample is created with a sample size of M. there is many size like S,M,L,XL,XXL etc, also many color assortment when the final order order is received.
FIGURE : PRODUCTION RATE OF SIZE WISE ORDER OF FALL 2010
But only with the size M consumption we out the 1st proto, 2nd proto, 3rd proto with the buyer comments, then the salesman sample made but there we have many different color but the size is M. Then pre production garments also prepared with that size after that the final order high then the consumption varied. For this the fabric also required more than what was purchase on the basis of sales sample. Then for this kind of over consumption the additional Po is being created which makes the cost of garments higher then previous price.
At the same time if we get the S size qty high then the consumption reduced and the fabric are saved after finishing the production. So it makes inventory goods. So every year there is many stock qty created. It needs more place to keep this inventory goods separately. But in every year the running material purchase is increasing and for the problem to keep this goods separately is one of the burning issue for SAZ FASHION LTD .
# As SAZ FASHION LTD RMG is a premium &k high tech product and its price is also higher than others vendors in the world market, the packages should be more attractively designed. Increasing of foreign currency causes a great impact in production & increases the variable costs of the production. Fluctuation of foreign currency affects on import goods.
# Production capacity is not suffictent according to actual demand & Lack of new technology, productivity is not increased for Inefficient channel member, Lack of proper communication between top level, mid level & lower level.
The production planning department make out the plan over the year for various buyer for various season. They make the plan on the basis of-
Production floor line gap
Material control departments material situation chart.
Sales department.
Import department.
They make the plan keeping some days in hand but if the goods didn’t received in due time the line missed the production so it makes a problem in production. There are many issues that makes an effect for production line gapping. These are—
If the supply goods that received from the suppler is rejected by the companies quality department then the material control department can not issue the fabrics or accessories in due time. So the production line missed the running plan and for this kind of line gap it’s a really tough situation for the company to make out another plan.
There is also the import departments clear information is needed to get the goods in due time.
The overall political situation is also hampered the smooth work for clearing the goods in due time like the strike or problems.
The miss communication with the supplier or head office also creates problem.
The mistake of the cutting or concern department also creates problem.
The company should try to avoid this kind of problem and to get rid of this kind of problem, the company must keep a close look to this kind of fact that hampers the production. Like—
To avoid the supplier problem the company must take some initiative such as:
If the company ask the supplier to send the swatches of their goods for test purpose before their final shipment of the bulk order and the company could easily test the swatches/ samples of the goods for lab test report or other reports to make a comment before they ( supplier) shipped out their bulk order.
By this type step the supplier can rectify or modify their goods before the shipment of the bulk order by this type of action the company could remove the supply goods problem of rejection or at least could get the better goods for the smooth production and shipment. Because most of the time we are facing this kind of test, color fastness or rain test failure problem after receiving the bulk order. But then it creates so much problem for material control department , sales department and also for quality control department and finally for the production plan.
For the consumption reduce or increase problem the company could make a mix marker ( By the Cad department with measuring with measuring all the size ) consumption. Which will help to avoid the variance of consumption for the size order breakdown.
SOME OTHER FINDING:
As the remuneration is not attractive so the merchandiser can’t keep full concentration to their work. As a result their mistakes are happening frequently. For example: one junior merchandiser of POLO buyer recently purchase wrong color zipper of 700000 pcs. Finally: he has been taken a warning letter to do such kind of mistake.
After getting the order from the buyer, we have a rule to order for fabric within 03 days and any minimum issues have to inform the buyer within 01 week. As for example: one suppler first concept has a rule to order at least yds $ 1.3. But sometimes we had to order below 500yds. That time supplier make up charge to $ 1.7. We should inform this upcharge issue & some times buyer do not agree to adjust the price.
Some time buyer made acceleration the order at the time of mid production. That is they shift the order from country to country to country. In that case we face problems regarding healthcare label, sticker, hanging etc.
Some times some other department want to dominate or create unexpected pressure on sales. As sales is the only department that are always corresponding with buyer so they should get some extra facilities & morally should be high. But other dept. has the attitude to demoralize the sales person. I have also found some export, import & income data as stated below.
SAZ FASHION LTD
YEAR WISE TOTAL IMPORT DATA
YEAR
|
AMOUNT
|
2005
|
US $ 1000000
|
2006
|
US$ 1300000
|
2007
|
US$ 1543740
|
2008
|
US$ 1245000
|
2009
|
US$ 1654870
|
Total
|
US$ 6743610
|
SAZ FASHION LTD
YEAR WISE TOTAL EXPORT DATA
YEAR
|
AMOUNT
|
2005
|
US $ 1400500
|
2006
|
US$ 1706700
|
2007
|
US$ 1948290
|
2008
|
US$ 1545887
|
2009
|
US$ 2954970
|
Total
|
US$ 9556347
|
SAZ FASHION LTD
YEAR-WISE NET INCOME DATA
YEAR
|
AMOUNT
|
2005
|
US $ 104582
|
2006
|
US$ 148089
|
2007
|
US$ 180654
|
2008
|
US$ 170843
|
2009
|
US$ 194870
|
Total
|
US$ 799038
|
SOURCE: AUDIT REPORT
CHAPTER FIVE
** RECOMMENDATIONS
** CONCLUSION
APPENDIX –1 (BIBLIOGRAPHY)
APPENDEX –11( ABBREVIATION)
RECOMMENDATIONS
On the basis of my research I am presenting my following recommendations to the company.
RECOMMENDATIONS ARE :
For company side:
As SAZ FASHION LTD follows their purchasing system with a 0% over resemblances. But it should be 5%. For the consumption variation it gives a loss to production. So SAZ FASHION LTD should be more careful about consumption making & they should follow the mix – marker consumption. The local company should have the authority to judge the materials quality or to choose the material type the company can purchase indirect and packing materials from local market which will help to reduce cost of production need to develop backward linkage industry like thread, fabric, poly cartons and other accessories.
For the supplier side : If the supplier shipped the swatch of the same lot of fabric earlier then they shipped the bulk order, the local company can test it before and they can advise to the supplier about the quality of fabric or other goods & also they should be more careful about the quality of goods.
About order breakdown: when the buyer meeting arranged local company should strongly protest about the size order breakdown which hampers the production line for over consumption.
The production and quality legal obligations should be fulfilled.
The logistic & the ship back procedure should be more developed.
The management should overcome the area of conversation to select the competent employees for their organization.
The company should take the new and different promotional strategy.
Training program should be arranged for new employee in regular basis.
Working space of the department should be improved.
To make good business relation with logistics supports like BGMEA, Forwarders, Carrier Line & International courier service.
SOME OTHER SUGGESTIONS:
Continuous customer contact monitoring is essential.
Integrated marketing communication (IMC ) should be used.
Customer attraction and relation policy should be modified.
Identify new area where new product is not available and no competitors exist.
The area where the competitors position is in better SAZ FASHION LTD should offer attractive facilities for the outlets and customers in that particular area.
Computerized cutting system must be implemented to avoid wastage of fabric and other raw materials.
SAZ FASHION LTD accessories should have to adopt online selling system.
Job enlargement and job enrichment techniques should be used to make the job more effective.
To increase the customer awareness of the group may consider by giving the advertisements by printing media and electronic media.
Government must work as facilitator of both promotion and regulation of Garments. Any attempt at direct involvement of government in procurement or supply of different Garments materials can jeopardize the trade to non – returnable situation.
Remuneration structure should be hand someone and dynamic. Otherwise skilled merchandisers will leave SAZ FASHION LTD .
The relation between buyer & SAZ FASHION LTD be more enthusiastic.
Departmental conflict should be resolve. Specially other dept. should respect sales department’s work & their decisions.
CONCLUDING REMARKS:
According to the modern marketing concept, consumers are the king and queen. Marketers cannot earn profit or implement any technique without satisfying the customers. On the other hand, the business organizations are facing huge competition in the market. So, right marketing technique should be applied at the right time. In this regard, the market plays a pivotal role on the business field specially to implement a new mechanism.
At present, no organization undertakes any fixed marketing policy and strategy. It is constantly changed with the advancement of information and technology. The automation of sales is being implemented by SAZ FASHION LTD as the pioneer in Bangladesh
SAZ FASHION LTD is a well- established and favorable group in Bangladesh LTD can be benefited from it.
FINALLY I confess that mistakes may take place in my report because of the various limitations. In the report I have presented many tools and techniques and this will be able to increase the overall profitability and performance of the company. So at the end of my report, I can explicitly say, “only motivation to the outlet holders and consumers with the proper practicing of the recommendations and suggestions should be applied by SAZ FASHION LTD in the target field.
APPENDIX –1 ( BIBLIOGRAPHY)
Bibliography:
Kotler Philip and Armstrong Gary, “Principles of Marketing” (Pearson Education Incorporation, 2005), 10th.
Jones G.R & Charles W. L. Hill, “Strategic Management”, 4th edition.
Naresh K . “Marketing Research”,3rd Edition
C.R Kothary-Research Methodology.
Website address:
Company web page # http://10.3.100.24/
Different web pages.
Incoterms –2000 (The IBT guide to Incoterms 2000 book IBT, January)
Audit report of SAZ FASHION LTD
APPENDIX –11 ( ABBREVIATION)
WORD
|
ABBREVIATIONS
|
WORD
|
ABBREVIATIONS
|
APG
|
Apparel production group
|
IP
|
Import Permission
|
BD
|
ISPO
|
International Trade Fair For Sports Equipment and Fashion
| |
B/L
|
Bill of Lading.
|
L/C
|
Letter of Credit
|
BEPZA
|
NYSE
| ||
BOI
|
Board of Investment
|
P&D
|
Production & Development
|
C&F
|
Cost and Freight
|
PL
|
Profit and Loss
|
CAD
|
Computer Aided Design.
|
Purchase Order
| |
CM
|
Cost of Manufacturing
|
Pre- Shipment Inspection
| |
CWS
|
Construction without sewing.
|
RMG
|
Ready Made Garments
|
ROI
|
Return of Investment
| ||
CSE
|
SAFTA
|
South Asian Free Trade Association
| |
Documentation.
|
System Application Programmer
| ||
DEPZ
|
SO
|
Shipping Order
| |
DSE
|
UNDP
|
United Nations Development programme.
| |
DTA
|
Domestic Tariff Area
| ||
Estimated Time of arrival
| |||
ETD
|
Estimated Time of Delivery
| ||
Production order
| |||
GSP
|
Generalized System of Preferances
| ||
ILO
|
International Labour Oraganization
|
