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INTERNSHIP REPORT ON MERCHANDISING IN
GARMENTS INDUSTRY
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INTERNSHIP REPORT ON MARCHANDISING
IN GARMENTS INDUSTRY
Prepared For:
Sharmin Shabnam Rahman
Senior Lecturer,
RAC USINESS SCHOOL
Prepared By:
I!hrat "aman
ID# $%&$'&'(
RAC USINESS SCHOOL
Submi!!ion Date# )une&,
*$&+
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Letter of Transmittal
Sharmin Shabnam Rahman
Senior Lecturer
BRAC Business School
BRAC University
Subject: Internship report on merchandising department in garments industry.
ear !adam"
#ith great pleasure" here I submit my internship report on -!erchandising in
$arments Iindustry %B&'I!C( $R(U))* that you have approved + assigned as a
compulsory re,uirement o- BUS/00 course. I have tried my level best to bring out the original
scenario o- B&'I!C( 1ith -ull o- e--ectiveness + e--iciency.
I have really learned a lot and have gained valuable e2perience and 3no1ledge 1hile collecting
in-ormation -or the report. It 1as certainly a great opportunity -or me to 1or3 on this real li-e
project to actuali4e my theoretical 3no1ledge o- this course in the practical arena and some
more 1hich is out o- this course.
I hope that this project paper has been to your e2pectation" i- you come across any ,uestion or
,uarries regarding these cases" it 1ill be my pleasure to clari-y your ,uestions.
Sincerely"
Ishrat 5aman
I0670/7/8
BRAC BUSI9&SS SC((L
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AC KNOLE D GEM E NT
A 1arm -elicitation goes -or me to ac3no1ledge the people" 1ho hold the desirability
-or encouraging" praising" assisting as 1ell as believing me on the tas3s o- !erchandising
activities 1hat I have 1or3ed through my internship period. ;irst o- all I 1ould li3e to ta3e the
opportunity to than3 Sharmin Shabnam Rahman" Senior Lecturer" BRAC Business School"
BRAC University
+ my internship supervisor -or providing me guidelines" help in assisting my report. She 1as
constantly supporting me 1ith his inspiring personality. I 1ill al1ays be al1ays than3-ul -or
his e2traordinary rein-orcement.
I 1ould li3e to ta3e the opportunity to than3 !s. Sha4ia -or helping me
to get accustomed 1ith all the activities.
;inally I 1ill sho1 my gratitude to all the !anagement + 9on!anagement Sta--s 1ho have
helped me during the internship period and the entire persons 1ho someho1 have impact onme in completing my 1hole report.
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ExecutiveSummary
B&'I!C( is one o- the largest groups in Bangldesh and highest $) contributor. ere" this isa great chance -or me to do my internship in one o- its concern organi4ation B&'I!C( =e2tile
ivision. =his is a large -actory 1ith all the -acilities to composite yarn. ere the production
process runs -rom ma3ing yarn to -abric and -rom -abric to -inished garment. In this
age" Bangladesh is -lourished 1ith R!$ sector 1here this division has its immense
contribution.
As a large te2tile industry B&'I!C( has large numbers o- employees but the productivity is
getting slo1 day by day. So" it is a matter o- concern that 1hy this huge industry isdoing stagnant pro-it. In the 1hole procedure o- e2porting garments to the retailer o- abroad
and to communicate 1ith them" merchandisers have a great in-luence and responsibilities.
#hen" the order is ta3en -rom buyer the duty comes to the -loor o- merchandisers and
be-ore going production they do almost everything to ma3e the business smooth. So" the 1or3
starts 1ith the order ta3ing and ma3ing business relationship. =hen sample ma3ing" planning"
boo3ing o- every single material -or samples and getting approval are all the 3ey
responsibilities o- merchandisers. In case o- production" sample goes in bul3 so" the
responsibilities become huge and it comes to the relation 1ith operation also.
I 1as selected -or the buyer Bersh3a and this team is really supporting -rom any side I 1anted
their help. Bersh3a is -ull 1ith ne1 styles and di--erent designs 1hich push merchandisers
to -ace huge stress and deal 1ith lots o- challenges. ere" these all procedures are tried to be
1ritten as the team tried their best to help in preparing this report.
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00000000000 +(
*0=Socia3 Com53iance . Co/e o9 Con/uct00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 +=
*0?Manaement bo/400000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 +?
*0% Cor5orateGo2ernance#0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 '+
*0&$ Statement o9 Director!, Re!5on!ibi3itie! 9or Pre5aration Pre!entation o9 the8inancia3
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CHAPTER THREE.MERCHANDISING DEPARTMENT000000000000000000000000000000000000000000000000000000000000000000000000000000000 ;(
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+0' In!urance o9 P0O to !u553ier! 9or 9abric! acce!!orie!00000000000000000000000000000000000000000000000000000000000000000 ??
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Cha5ter.'.Pro1ect.Di!!ection o9 the E
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CHAPTE !"E#$ntro%uction
R!$ %Ready !ade $arment> is very important and help-ul -or our Bangladesh. Bangladesh
has emerged as a 3ey player in R!$ %Ready !ade $arment> sector since 76@. =e2tiles
and clothing account -or about o- total e2port earnings o- Bangladesh. (ut o- 1hich"
@ comes -rom the apparel sector 1hich covers the major products o- 3nit and 1oven
shirts" blouses" trousers" s3irts" shorts" jac3ets" s1eaters" sports 1ears and many more
casual and -ashion items. =he sector currently employs appro2imately 7.D million 1or3ers"
mostly -emales -rom underprivileged social classes. I have completed this report on the basis
o- all the department o- R!$ sector such as !erchandising epartment" Commercial
epartment" )roduction epartment" Supply Chain epartment" uman Resource epartment"
Compliance epartment" !IS epartment" and relevant organi4ation li3e B$!&A" B
value than any boo3s.
I pre-erred this attachment in B&'I!C( $roup" 1hich is a 700 e2port oriented composite
3nit industry. ;or continuing the study o- internship in the B&'I!C( $roup 1e almost
1or3ed all the sections o- this company and tried to -ind out the activities" planning and many
other things as 1ell. In conte2t" 1e have discussed about these things deliberately to let you
3no1 about.
Objectives:
(bjective means the purpose o- this report. =he objectives o- this report are as-ollo1s:
Its documents -or -uture.
=o 3no1 detail about R!$ sector.
In-ormation gathers about
commercial. $etting idea about
shipping procedure0
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Concept develops about spinning" 3nitting.
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Comparison bet1een class room learning and practical learning.
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Methodology:
!ethodology de-ines ho1 1e go through all the processes o- research and ho1 I have proceeded
on. ere includes the steps o- conducting the report and the e2planation o- the sources o- data.
;actory
i--erent organi4ation.
Boo3s
iscussion
Internet
Class lecture Library
Annual report
=o collect in-ormation 1hat I am seeing in practical in !y Internship )rogram.
=o collect in-ormation 1hat I did in practical 1hat 1as done by me -or my
practical 3no1ledge.
=o ma3e a comment over the project 1e have to understand the 1hole project.
Scopes:
Scope means ho1 many uses -or completing this report space. =he scopes are given bello1
;actory
Buying ouse
iscussion
Internet
Some o- our senior brothers can help us.
I can collect in-ormation various boo3s and relevant paper 1hat related 1ith
apparel industry.
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Limitations:
Limitation re-ers the obstacles I have to -ace -or completing this report and 1hat I could not
cover -or this limitation.
=ime constraint
!erchandiser doesnt have enough time to give the in-ormation elaborately.
Short time visit in di--erent 1or3 stations
Lac3 o- organi4ing chain o- command
Lac3 o- instruction boo3" and any change. =hey are -ollo1ing traditional
business. I may have to su--er -or lac3 o- supply chain management.
9o other garments data has been compared 1ith Be2te2s data. =here might be
some discrepancies 1ith other -actoriessupply chain scenario
ue to high employee turnover rate and lac3 o- good reporting practices in the
-actory" problems 1ith collecting data have been -aced.
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CHAPTE T(!#$ntro%uction to!r)ani*ation
2.1COMPANY P!O"#L$:
B&'I!C( $roup is one o- the largest private sector industrial conglomerates in Bangladesh
engaged in diverse business areas. B&'I!C( comprises o- -ive publicly listed companies and
si2teen private companies. #here" pharmaceuticals and te2tile section are the biggest one.
B&'I!C( covers one o- South Asias largest vertically integrated te2tile and garment
companies. =he =e2tile division is a -ully integrated manu-acturer o- cotton and
polyester blended garments -or men" 1omen and children" both -or domestic and e2port
mar3ets. B&'I!C( is also the largest e2porter o- pharmaceuticals in Bangladesh 1ith a
presence in / countries. =he )harmaceut icals division manu-actures and sells generic
pharmaceutical -ormulation products" active pharmaceutical ingredients %A)I> and intravenous
%IF> -luids. =he $roup is also the largest ceramics e2porter and has an investment in $!$
Airlines" the largest private commercial airline in Bangladesh and in Uni,ue otels +
Resorts" 1hich o1ns the #estin otel in Bangladesh.
Cor!orate lo"o#
Bangladesh &2port Import Company %B&'I!C(> maintains this logo -rom the initial stage o-
its business. =hey have a mission o- ta3ing Bangladesh to the 1orld. So" 1ith this logoB&'I!C(
has ta3en its identity to1ards the people o- the1orld
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2.2%isto&y o'($)#MCO:
Since independence Bangladesh has come a long 1ay" and the B&'I!C( $roup o-
Companies is honored to have had a role in the development o- its parent nation. =he $roup has
1or3ed 1ith a simple philosophyG identi-y an important need and then do everything possible
to success-ully satiate that need" in a manner 1hich best -acilitates the 1ell being o- the nation.
As a result B&'I!C( has -ocused on those industries 1hich give Bangladesh a competitive
advantage in the global mar3et place in many cases creating the industries -or the -irst time in
the region. =hroughout its -our and a hal- decade journey the $roup has been one o- the
leading innovators in the country. )resently B&'I!C( $roup comprises t1enty one
companies o- 1hich -ive are listed 1ith the ha3a Stoc3 &2change employing over H"000
personnel and is the largest private sector industrial conglomerate in the nation. . In the course
o- its gro1th" it has created industrial and management capabilities that 1ill serve the country
-or generations to come. It 1as the -irst local conglomerate to embrace an international
corporate structure 1hich is the -oundation o- its success. B&'I!C(Es industrial businesses
include jute" te2tiles" basic chemicals" pharmaceuticals" and ceramics. B&'I!C(Es non
industrial underta3ings are -ocused on real estate and construction" engineering" media"
in-ormation technology" trading and -inancial services. It is the creation and e2pansion o-
businesses critical to Bangladesh development" businesses" 1hich are developed and run by
Bangladeshis" businesses that develop technologies and practices speci-ic to the needs o- the
country" 1hich is the de-ining characteristic o- the B&'I!C( story.
=oday the B&'I!C( $roup %B&'I!C(* or the $roup*> is the largest private sector group
in Bangladesh. B&'I!C( 1as -ounded in the 76@0s by t1o brothers J Ahmed Sohail
;asiur Rahman and Ahmed Salman ;a4lur Rahman. Since the early days" the $roup has
evolved -rom being primarily a commodities trading company to a leading" diversi-ied group
1ith a presence in industry sectors that account -or nearly @ o- Bangladeshs $).
B&'I!C(s corporate mission is =a3ing Bangladesh to the 1orld*.
Stateo-theart manu-acturing plants located in the vicinity o- ha3a provide the $roup 1ith a
highly cost e--ective manu-acturing base. A majority o- its plants are in the B&'I!C(
Industrial )ar3" a vertically integrated sel-contained -acility. =his -acility provides ready
access to captive
po1er generation" 1ater puri-ication" li,uid nitrogen" 1aste 1ater treatment and other3ey
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in-rastructure. =he $roups global clients include some o- the 1orlds best 3no1n
brands including B=" BAS;" Chevron" Calvin
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ere" $E%IMCO Te&tiles Lt' %B=L> is the most modern composite million the region.
B=L has an installed capacity o- highspeed airjet looms in its 1eaving section and a
hightech dyeing and -inishing section 1ith a capacity o- 700"000 yards o- -inished -abric per
day.
$E%IMCO Knittin" Lt' is a state o- the art composite 3nit -abric production mill" 1hich
serves the gro1ing needs o- high,uality 3nit garments e2porters in Bangladesh.
$E%IMCO Denims Lt' 1as set up to capitali4e on BangladeshEs gro1ing volume o-
high valueadded niche garments.
$E%IMCO A!!arels Lt' is another 700e2port oriented garments -actory o- theBe2imco
=e2tiles ivision. It speciali4es in 1omenEs tops and menEsshirts.
$E%IMCO (asions Lt' is a700 e2port oriented garments -actory is located in theha3a
&2port )rocessing 5one atSavar.
Pa'ma Te&tile Mills Lt' cotton and polyester blended yarnspinning mill" 1ith
7"000 spindles is one o- the largest spinning mills o- the country.
$E%IMCO Gro*! +*te
9e1 acca Industries Ltd.
Sonali Ansh Ltd.
$E%IMCO Gro*! $E%IMCO Gro*!
S,nteti-s
Be2imco Synthetics Ltd.
$E%IMCO S,nteti-s Lt' is a polyester -ilament yarn and dra1n te2tured yarn%=?>
production unit located near the B&'I!C( Industrial
)ar3.
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Lo-ation#
Stateo-theart manu-acturing plants located in the vicinity o- ha3a provide the $roup 1ith
a highly cost e--ective manu-acturing base. A majority o- its plants are in the B&'I!C(
Industrial
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)ar3" a vertically integrated sel-contained -acility. =his -acility provides ready access to
captive po1er generation" 1ater puri-ication" li,uid nitrogen" 1aste 1ater treatment and other
3ey in-rastructure. =his place has an ample space -or every 1or3 stations 1ith all
independent -acilities.
$E%IMCO Gro*! Conta-t Information#
;or Investment In-ormation
Cor!orate Se-retarial De!artment
B&'I!C(
7@ hanmondi RMA" Road 9o.
ha3a 70" BA9$LA&S
;a2: D087H
;a2: D087H/@0
&mail: c s d N b e 2i m c o . n e t(or$*siness O!!ort*nities
Cor!orate $*siness De!artment
B&'I!C(
7@ hanmondi RMA" Road 9o.
ha3a 70" BA9$LA&S
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;a2: D087H
;a2: D087H/@0
&mail: c b d N b e 2i m c o . n e t
(or Em!lo,ment O!!ort*nities
B&'I!C( is constantly in the process o- recruiting and retaining a ,uali-ied pro-essional
1or3-orce that re-lects the 1ealthy diversity o- the community it operates in. B&'I!C(
provides e,ual employment opportunities based on merit to all persons" regardless o- color"
race" religion and se2.
Cor!orate H*man Reso*r-e De!artment
B&'I!C(
7@ hanmondi RMA" Road 9o.
ha3a 70" BA9$LA&S
;a2: D087H
;a2: D087H/@0
&mail: h r d N b e 2i m c o . n e t
#ebsite htt p:M M111. be2imco . co mM
MA+OR CUSTOMER#
USA & CA NA DA :
American &agle
#al!art
=arget Corp.
SearsM
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ic3ies
Charming Shop
!acy
Regatta
E urope:
+ !
C + A
River Island
Bersh3a
5ara
)ull + Bear
B&'I!C( =e2tile ivision consisting o- @ industries having the capability to o--er a complete
product range -or the e2port and domestic te2tile mar3ets. B&'I!C( =e2tile and Apparels
Ltd. %the OCompanyO> 1as incorporated in Bangladesh as a )ublic Limited Company 1ith
limited liability on !arch 766/ and commenced commercial operation in 766 and also 1ent
into the public issue o- shares and debentures in the same year. =he shares o- the Company are
listed in the ha3a and Chittagong Stoc3 &2changes o- Bangladesh. =his is the largest te2tile
mill in South Asian region.
ere" in industrial par3" Be2te2 Ltd. is the most modern composite mill in the region.
Be2te2 Ltd. has an installed capacity o- highspeed airjet looms in its 1eaving section and
a high tech dyeing and -inishing section 1ith a capacity o- 700"000 yards o- -inished -abric per
day.
B&'I!C(
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Mission#
BEXTEX Ltd. is a full service vendor wit stron! verticall" inte!rated production facilities
as well as creative & anal"tical capa#ilities wic clearl" set us apart fro$ $ost oter Sout
Asian vendors.
.ision#
% ain $ar'et leadersip in i! value added apparel in USA &
Europe.
% Use ()nnovation* & (Speed* as pri$e drivers+ rater tan cotton & ceapla#or
% Do$inate tese $ar'ets in i! ,ualit":
a. -ens+ /o$en0s+ Cildren
b. Sirts 1Dress & Casual2
c. Tops 1for$al & casual2+ S'irts+ 3ac'ets
d. 3eans & Casual non 4 deni$ #otto$s
e. 5nitted tops & #otto$s
2.-P&odcts:
J ?arn products 1hich are di--erent in counts" types" -ibers. =hese products are
ranged -rom the 3nit counts o- 8070. )roducts are included 1ith Lyocell" =encel"
!odal" Rayon" Fiscose etc.
J ;abric products 1hich are consisted 1ith di--erent types o- dyed -abric and -inishing.
According to buyers re,uirements various designs are produced here. =1ills are mostly
used -abric here.
J
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J Special yarn products are produced according to the buyers re,uirements. =hese
products are produced in case o- -ancy styles 1ith multi counts and other special
attributes.
J Uni,ue 1rin3le -ree products are generally special products. =hese products can be
produced but it depends on the order ,uantity and -easibility.
2.3.1Sections for production:
Administration department
!erchandising Section
evelopment Section %Labarotories>
Commercial + Compliance Section
)lanning Section
Sample Section
Cutting" Se1ing and P.C Section
;inishing section
!echanical + &lectrical section
2.3.2Production:
B&'I!C( =e2tile and Apparels Ltd. is a -ully vertical unit -rom ?arn Spinning to Apparel
!anu-acturing" )rinting" #ashing and )ac3aging and they have di--erent sections -or all o-
these.
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E/* i! men t Details of S e0in" S e-t ion s#
Name Of Te Ma-ine Ma-ine 1t,
)lain !achine : 8
)lain !achine %Auto> :
(ver Loc3 % 8 =hread > : H
(ver Loc3 % =hread > : H
(ver Loc3 % H =hread > : 8
=1o 9eedle !achine : /@
Bar tac3ing !achine % Computeri4ed > : 7
;eed (- =he Arm :
Chain !achine :
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!etal etector : 7
$as Boiler :
$enerator : 7
Cutting !achine :
=hread Reconing !achine 7
=hread Suc3ing !achine :
Cutting =able H
9umbering !achine : 7
Facuums =able : H0
Compressor /
Total #
G 2 TTL 345
Tot al Em! lo,ee S*m ma r,#
B&'I!C( =e2tile in total a huge part o- organi4ation 1ith a large number o- employees. =his
is a combination o- Blue collar and #hite collar employees 1ith di--erent responsibilities. =his
total division contains several sections li3e esign studio" =e2tile ead o--ice" Lab units"
;actories" )lants etc. so" overall there is /"00employees -or 1hole te2tile section 1here
more than 700 1or3 as !anagement stu--s.
(ver the years" B&'I!C( has developed inhouse design capabilities 1ith teams based in
Bangladesh and Spain. ;urthermore it has partnered 1ith some o- the 1orlds reno1ned
design institutes" including ;ashion Institute o- =echnology" )arsons" London School o-
;ashions" 9I;= and 9I" -or access to talented designers. =he $roup has built strong 1or3ing
relationships 1ith its core clients through a continuous dialogue. =he $roupEs technology
partners include Invista"
untsman" C=" Rudo- and Clariant.
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Calvin
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design process.
J (nspot placement o- order a-ter revie1ing o- designs.
J ;ocused product development. igher adoption rate -rom collection.
J Fertical -acility enabling ,uic3 responses" 1hich allo1 us to produce -rom ?arn to
$arment in -i-ty days and repeated orders in thirty days" leading to reduced mar3do1ns.
2..1!esi"n Studio # Mission
=o provide design and product development support -rom -iber to garments to leading
retailers and brands using integrated manu-acturing resources" po1er-ul CA tools" technology
collaboration 1ith major suppliers %li3e CIBA" u)ont etc.> and inter-ace 1ith -ashion -or1ard
customers" rapidly develop and bring trendy" innovative di--erentiated products to our strategic
partners every season. =he esign Studio 1or3s to produce entire collections 1ith
Indite2 including 1omens and mens clothing" 1oven and 3nit tops" casual and denim
bottoms and jac3ets. =hey have no1 introduced a catalogue 1hich 1ill highlight our concept o-
complete ne1 loo3s" products and -abric s1atches and 1e 1ill be sending one o- these to all
our 3ey customers
almost every eight1ee3s.
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Reso*r-es em!lo,e' to f*lfill te mission
highly ,uali-ied designers 1ho travel the 1orld visiting -airs" inter-acing 1ith
the designers o- -ashion -or1ard customers and competitive buying -rom 1ell 3no1n
-ashion outlets
70 people 1or3ing in se1ing room dedicated to design team
edicated yarn dyeing" 1arping and 1ashing -acilities -or design team
Cooperman advanced $erman net1or3ed CA system
2..2 BEXIMCO !eni$
B&'I!C( enim is the part o- Be2te2 Ltd. Be2te2 Ltd. is the most modern composite mill
in the region. Be2te2 Ltd. has an installed capacity o- highspeed airjet looms in its
1eaving
section and a hightech dyeing and -inishing section 1ith a capacity o- 700"000 yards o--inished
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-abric per day. Be2te2 Ltd. produces speciali4ed -inishes o- denim cloth -or e2port in -inished
as 1ell as cloth only -orm.
2..3 I%&'
International
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B&'I!C(" a large company in Bangladesh that o1ns everything and in that large
company is B&'=&' limited" a =e2tiles manu-acturing company. . grueling hours
a1ay -rom ha3a is this big compound 1here all these -actoriesMs1eatshops are" 1hich
basically ma3es around 7M8 o- the 1orldEs clothing. #e are tal3ing / million garments"
1oven 3nit per month. So" B&'I!C( is the sector 1ith huge capacities o- production.
It is a vertically integrated company" 1hich means that a garment is made -rom scratch
here" 1hich has -actories -or all the steps spinning" dyeing" 1eaving" 3nitting"
-inishing" 1ashing" printing" embroidery etc. 1hich is such a great opportunity -or us"
because most vert ically integrated te2tiles mills do not e2ist in the 1estern 1orld" due
to labor costs" 1hich is the biggest reason te2tiles is booming here in Bangladesh.
Laborers earn around 8000000 =a3a a month" 1hich is around Q 0700 per month -or
1or3ing 70 hours a day -or around 0cents. #e might ,uestion the morality o- s1eatshops
but 1hen you see beggars on the street and s3inny stic3 people that sell -ruits
and
vegetables" you understand that 1or3ing in a -actory is a very viable option in themost
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densely populated city in the 1orld. =hat enables the company to hire /"000 1or3ers that
1or3 in 70 hour shi-ts %and the -actories operate / hours>. In addition to the lo1 labor
costs" the Bangladeshi government has huge support -or the te2tiles industry and ma3es it
easy -or them" 1hich attracts a lot o- -oreign money. Another contribution is BangladeshEs
pro2imity to cotton -arms" in India" USA %o3 maybe a bit -ar>" =ur3ey" and &gypt.
%B&'=&' only mainly deals 1ith cotton and cotton blends>. B&'=&' has stable contracts
1ith brands such as 5ara" Bersh3a %produces hal- million garments per month -or them>
and KC )enny. (ther brand names such as )olo Ralph Lauren" Calvin
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And here 1e have some )eople Se1ing.
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=he impressive part o- the visit 1as that" apart -rom the -inal garment assembly" the
process 1as highly automated and hightech. =he -actories generally had very -e1 people
1or3ing in them" since only one or t1o people had to 1or3 1ith each machine to
ma3e sure the -abric -ed through smoothly.
$arment assembly is another story because it is huge line production process. And" people
just 1ant that heMshe can see it in the -inishing line. &ach lady %and the -e1 men> sat at
their machine and did one tas3" again and again. =here 1as a poc3et lady" 1ho only did
poc3ets and also Collar Lady 1ho -inishes the collar. Lots o- people 1ith minute jobs
could not begin to be identi-ied. But none ever did see an entire shirt J just bits and pieces"
1ith each person -ocused on their one particular step in the assembly process. (n the
plus side" the
room 1as 1ell lit and 1ell ventilated" and the 1or3ers get -ree room andboard.
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In the photos" the process is 1ell described. =hose distressed jeans that sell -or a small
-ortune are also made at there. =his is a matter o- astonish that these are handdistressed*
J using grinders and other household tools. )eople 1ould have thought the process
And here it is discovered that that 1ornin loo3 comes -rom" 1ell" spraypaint.
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;inal product
2.. BEXIMCO P(rtners )it* M(+or ,et(ilers - Intern(tion(l Br(nds
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2.0 Commitment to the $nvi&onment:
B&'I!C( is very committed to preserve a healthy and pollution-ree environment. It has a
very e--icient 1aste collection and disposal system. In order to reduce air pollution by e2haust
o- gas -rom enginegenerators" it maintains a costly plant that uses the e2haust gas to generate
steam -or chilling unit. Above measures not only help 3eep the 1ater + air -ree -rom
pollution but also help save cost o- 1ater treatment + air condit ioning. ?our company uses
only A5(-ree dyes and is dedicated to ensure a healthy and eco-riendly environment.
2. Othe& "acilities:
B&'I!C( =e2tile is situated in the industrial par3 so" it is -acilitated 1ith employees
transport" lunch -acilities and also -or 1or3ers o- -actories it has day care centre and also prayer
rooms -or both men and 1omen.
!anagerial sta--s have their di--erent canteen o- lunch and other -acilities. 9umbers o-
-oreign managers 1or3 here so" they have residence -acilities also.
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A7o* t Healt 8 safet ,
Name of te se-tion Healt 8 Safet,
octor 7 )ersonal
9urse )ersonals
;ire ;ighter 700 )ersons
;ire rill (nce every month
;irst Aid Bo2 7H )cs
;ire e2tinguisher 8 )cs
Smo3e etector 0 )cs
#ater hose pipe 0/ )cs
!edicine Support 700
Note # on any emergency employees are communicated 1ith loudspea3ers.
2.Social Compliance 3 Code o'Condct
B&'I!C( =e2tile + Apparel Limited is a responsible apparel producer and embodies" both in
spirit and practice" internationally established codes o- social accountability and ethical
business practices. It recogni4es and respects cultural di--erences and employs individuals
solely on the basis o- their ,uali-ication -or the job. #e identi-y and 1or3 1ith suppliers and
buyers 1ho as individuals and in the conduct o- their business abide by local la1s and have
ethical standards compatible to it.
=he bases o- the various parameters that comprise the code o- conduct are dra1n -rom
the -ollo1ing:
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&thical =rading Initiative
$lobal Sourcing )rinciples o-
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A S ; Rahman is Chairman o- the B&'I!C( $roup" the largest private sector industrial
group in Bangladesh. uring the past / years A S ; Rahman has played the leading role 1ith
his brother" Salman ; Rahman" in building up the $roupEs industrial and service activities. e
has presided over an e2pansion and deepening o- the $roupEs interests" leading the -lagship
investments in te2tiles. =he $roup has been on the cutting edge o- ne1 technology and
innovation in Bangladesh 1ith an emphasis on =otal Puality !anagement and international
standards o- corporate governance. #ith the $roupEs e2emplary per-ormance in e2ports A S
; Rahman has been a1arded )residentsE &2port =rophy on several occasions. In addition
to accomplishments as Chairman o- the $roup" he has been active in continuously developing
strategies targeting social 1el-are and poverty alleviation across the country.
Salman ( Raman
eputy Chairman" B&'I!C( $roup !r. Salman ; Rahman" the eputy Chairman o-
the B&'I!C( $roup" has been one o- the driving -orces in the emergence o- the $roup as
the largest industrial entity operating in the private sector in Bangladesh today. e is one
o- the advisors o- onorable )rime !inister o- Bangladesh also. ;or the past -our and a hal-
decades he has been 1or3ing closely 1ith his brother" pioneering and e2panding operations
in a varied
number o- sectors particularly pharmaceuticals" ceramics" media and property development.But
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aside -rom his role as the eputy Chairman o- the group Salman ; Rahman has had an ever
increasing role in e2panding the corporate climate and enhancing the role o- corporate
governance in the nation. is service to the business community is e2hibited by his terms o-
)residency o- =he !etropolitan Chamber o- Commerce and Industry" Bangladesh Aushad
Shilpa Samity" Bangladesh =e2tile !ills Association" =he ;ederation o- Bangladesh
Chambers o- Commerce and Industry and the SAARC Chambers o- Commerce and industry.
e is also the -ounder and chairman o- the Bangladesh &nterprise Institute" a leading thin3 tan3
on economic and social policy. e has also applied this tireless dynamism -or social 1el-are
and is an active philanthropist e2traordinarily active in supporting and 1or3ing 1ith
poverty alleviat ion and human rights groups. (ne o- the main corporate -acets 1hich the
B&'I!C( $roup brought into the business environment o- Bangladesh is its emphasis on
Corporate Social Responsibility and an active involvement in regional and national activities.
!r. Rahman is also the Chairman o-
the Abahani
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$oar' of Dire-tors#
!r. A S ; Rahman" Chairman + !anaging irector
!r. Salman ; Rahman" Fice Chairman
!r. I,bal Ahmed" irector
!r. ! A Pasem" irector
!r. ( < Cho1dhury " irector
!r. A B S Rahman" irector
r. Abdul Alim
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Le"al A'9isers#
!Ms. u, + Co.
$an6ers#
I;IC Ban3 L=d. hanmondi Branch" ha3a70
Sonali Ban3" Local (--ice" !otijheel CMA" ha3a7000
Re"istere' Offi-e#
Bell =o1er
ouse 9o.7@" Road 9o." hanmondi RMA" ha3a70.
2.5 Co&po&ate6ove&nance:
=he maintenance o- e--ective corporate governance remains a 3ey priority o- the Board
o- Bangladesh &2port Import Company Limited. Recogni4ing the importance o- it" the board
and other senior management remained committed to high standards o- corporate governance.
=o e2ercise clarity about directors responsibilities to1ards the shareholders" corporate
governance must be dynamic and remain -ocused to the business objectives o- the Company
and create a culture o- openness and accountability.
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loss" the Companys system is designed to provide the directors 1ith reasonable assurance that
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problems are timely identi-ied and dealt 1ith appropriately.
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2.17 Statement o' ,i&ecto&s8 !esponsibilities 'o& P&epa&ation 9P&esentation o'the"inancialStatements:
=he -ollo1ing statement is made 1ith a vie1 to distinguishing -or shareholders the respective
responsibilities o- the directors and the auditors in relation to the -inancial statements. =he
Companies Act" 766/ re,uires the directors to prepare -inancial statements -or each
-inancial year 1hich give a true and -air vie1 o- the state o- a--airs o- the company as at the
end o- the -inancial year and o- the pro-it -or the year to that date. In preparing those -inancial
statements" the directors:
2 Select suitable accounting policies and then apply them in a consistent manner.
2 !a3e reasonable and prudent judgments and estimates 1here necessary.
2 State 1hether all applicable accounting standards have been -ollo1ed" subject to
any material departures.
2 isclosed and e2plained in the notes to the -inancial statements
2 =a3e such steps as are reasonably open to them to sa-eguard the assets o- the Company
and to prevent and detect -raud and other irregularities.
2 &nsure that the Company 3eeps accounting records 1hich disclose 1ith reasonable
accuracy the -inancial position o- the Company.
2 &nsure that the -inancial statements comply 1ith disclosure re,uirements o- the
Companies Act" 766/ and the Securities and &2change Rules"76@.
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2 )repare the -inancial statements on a going concern basis unless it is inappropriate
to presume that the Company 1ill continue in business.
:; 44 Com! an, 0ise or"an o" ram
Or"ani
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+oar% o,-irection
C.airman
/ana)in)-irection
-0
/
H 1A%ministration
)olicy -arming +
implementation
Recruitment
=raining + Sta--
evelopment
R Control
C.ie, Executive!,,icer
CE!
/ana)er
/aretin) 1
Procurement
!ar3et
Research
Input
)rocurement
)roduct Selling
0/ !eration
C 1
/aintenanc
e
(peration
Puality Control
!aintenance
Inventory
/ana)er
Accounts 1
inance
$eneral
accounts + !IS)ayroll
Share Issues
/ana)er1 -
)rocess Research
)roduct )lanning
+ evelopment
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output
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company a completely di--erent type o- employer ac3no1ledging 1hich the
employees are also devoting their 1hole hearted and sincere e--orts -or each and every
step o- the
production starting -rom sorting o- cotton up to the shipping o- the R!$s.
=he transparency o- management and the broad and open accessibility o-
employees enable both the parties to maintain a harmonious relationship and to
reciprocally remain besides and ma3e them -eel a part o- the team -or the improvements
o- production in ,uality and ,uantity -or the ultimate development o- the company as
1ell as the d ivision 1hich also increases the aptness o- the employee in their 1or3.
=he uman Resources epartment o- B&'I!C( disseminates the achievements"
recognitions" events
+happenings 1ithin the company through publishing o- =e2tal3" a monthly ne1sletter
o- the company. =he =e2tal3 ensures the communications bet1een all concerned
including the buyers community that has tremendously been ac3no1ledged as the
Spo3esperson o-
the company. B&'I!C( Ltd. gives some -acilities -or theiremployees"
ormitories -or the 1or3 -orce and Residential Buildings -or the management
sta-- provide housing -or the employees and B&'I!C( is the -irst o- our 3ind in
Bangladesh to provide accommodation -acilities -or their employees. =here a
production and accommodation -acility includes -ull time supply o- sa-e drin3ing
1ater" ade,uate
lighting and ventilation -acilities.
;ree meals" -ree transportation" /hour medical center" onsite sports andrecreational
-acilities encourage the motivated team to serve our customers -ull heartedly.
&=I codes according to the Local La1 %Bangladesh> are very 1ell practiced in their
manu-acturing -acilities.
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2 (ree'om of Asso-iation
2 Safe or6in" Con'itions
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2 No Cil' La7or
2 No 7on'e' La7or
2 Reasona7le or6in" Ho * r s
2 No Dis-rimination
2.1/6ene&al Management *&aining Manal o& ;o&
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=here is a need to encourage local individuals to become involved in this aspect o- the industry
and to provide structured training programs. =he consultants identi-ied the -ollo1ing areas o-
te2tile and apparel speci-ic training that needs to be addressed in order to assist the industry
maintains its international competitive advantage.
Supervisory managementtraining
(perator instructor training
(perator -le2ibility
training
Recruitment M selectiontraining
=echnical M mechanictraining
=raining o- Industrial&ngineers
2.10 System developmentp&oced&e
B&'I!C( believes in sustainable development and gives highest priority to preservation o-
nature and ecological balance. =he entire industry site is harmoniously integrated 1ith
the surrounding landscape and the native eco system o- the area has been delicately preserved.
B&'I!C( have Biological =reatment and &nergy Conservation )rogram. Stateo-theart
technology has been used in the e--luent treatment plant in their dye house -or
biologica l treatment o- 1aste. B&'I!C( also uses comprehensive energy conservation
program. =his -eeds bac3 all recyclable energy into our various systems" especially -or our air
conditioning purpose. =heir investment in this program has made us energy e--icient and
environmentally
consciousentity.
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2.1CS! =Co&po&ate Social !esponsibility>p&oced&e
Corporate social responsibility %CSR>" also 3no1n as corporate responsibility" corporate
citi4enship" responsible business" sustainable responsible business %SRB>" or corporate social
per-ormance" is a -orm o- corporate sel-regulation integrated into a business model.
Ideally" CSR policy 1ould -unction as a builtin" sel-regulating mechanism 1hereby business
1ould monitor and ensure its adherence to la1" ethical standards" and international norms.
Business 1ould embrace responsibility -or the impact o- their activities on the environment"
consumers" employees" communities" sta3eholders and all other members o- the public sphere.
;urthermore" business 1ould proactively promote the public interest by encouraging
community gro1th and development" and voluntarily eliminating practices that harm the publicsphere" regardless o- legality. &ssentially" CSR is the deliberate inclusion o- public interest into
corporate decision ma3ing" and the honoring o- a triple bottom line: )eople" )lanet" and )ro-it.
=he practice o- CSR is subject to much debate and criticism. But" here in case o- B&'I!C( as
a long established company it has some responsibilities o- its o1n and in case o- te2tile as it
deals 1ith the poor and the large -ol3 groups o- our country their earnest responsibility is to
maintain these activities -or helping the society not -or the mar3eting promotion.
So-ial a0areness an' e'*-ation
=he role among corporate sta3eholders to 1or3 collectively to pressure corporations is
changing. Shareholders and investors themselves" through socially responsible investing are
e2erting pressure on corporations to behave responsibly. 9ongovernmental organi4ations are
also ta3ing an increasing role" leveraging the po1er o- the media and the Internet to increase
their scrutin y and collective activism around corporate behavior.
Crises an' teir -onse/*en-es
(-ten it ta3es a crisis to sudden attention to CSR. (ne o- the most active stands
against environmental management is the Savar incident. =housands o- people died
because o- this
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calamity. ere" B&'I!C( too3 very great step by supporting the 1or3ers and help them 1ith
medicines.
Sta6eol'er !riorities
Increasingly" corporations are motivated to become more socially responsible because their
most important sta3eholders e2pect them to understand and address the social and community
issues that are relevant to them. Understanding 1hat causes are important to employees is
usually the -irst priority because o- the many interrelated business bene-its that can be
derived -rom increased employee engagement %i.e. more loyalty" improved recruitment"
increased retention" higher productivity" and so on>.
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Charity contributions through the $ono Sahajjo Songstha %$SS> -or the educational
sector -or the unprivileged
=hey have Sponsored organi4ations include )royash*" a speciali4ed institute that 1or3s
-or the holistic development o- children 1ith special educational needs.
;ree drugs during natural calamities and distribution o- clothing during 1inter
As part o- B&'I!C( $roups -ocus on society development" ;a4lur Rahman
;oundation has established a project called O;R; iagnostic CentreO. =he project
provides health screening services -or B&'I!C( )harmaceuticals and B&'I!C(
Antibiotics Industries
employees.
Sponsoring events and national sport stars and teams
(--icial sponsor o- the Bangladesh 9ational Cric3et team -or the ICC Cric3et #orld Cup
077
(--icial sponsor o- the ;I;A -riendly match bet1een Argentina and 9igeria held in
September" 077
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CHAPTE THEE#/ECHA"-$S$"0-EPAT/E"T
R!$ sector o- Bangladesh is gaining ground in the 1orld mar3et at brea3nec3 speed"
but still not -lourished at the -ullest e2tent. Although the resources are available abundant 1ith
a po1er-ul -oundation o- -abric and spanning sector to support. =he 3ey -actors behind this are
lo1 technological development" lo1er output" cut throat competition" high ra1 material cost"
inade,uate in-rastructure" traditional productivity" un-avorable regularity policies" and
globali4ation in -act. o1ever" there a -air list o - the producers" suppliers" and e2porters that
are -ully ac3no1ledge 1ith regularity policies and -ormalities" international mar3eting policies
and procedures. =he only concern is in e2ecuting their productivity initiatives" and meeting
1ith order deadlines.
$arments merchandising means the 1or3 to buy ra1 material and accessories to produce
garments %!erchandise> against a particular 1or3 order o- garment and have to e2port
these under the same 1or3 order 1ithin time schedule" maintaining re,uired ,ualit y level o-
buyer.
=he !erchandising is the important activities" term and section o- a garment that is notpossible to run and deliver success-ully. =he term merchandising* is 1ell 3no1n to the persons
specially involved in garments trade. =he term merchandising has been derived -rom the
term merchandise. !erchandise means good that are bought + sold.
Mer-an'isin"
Mer-an'isin" is a business on mar3eting activities responsible -or ensuring a
products description both ,uality and ,uantity. !erchandising means total
responsibility o- a !erchandiser.
Mer-an'iser
uty o- merchandiser describes himsel- li3ethis
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J A man 1ho collects order -rom customer sourcing ra1 materials production
on time 1ith ,uality and maintains lead time.
J $arments merchandising means buying ra1 materials + accessories"
producing garments" maintaining re,uired ,uality level and e2porting the
garments 1ithin scheduled time.
I- anybody has to be designated as !erchandiser then the 1ord itsel- demands some
,ualities -rom that individual" no1 let us see 1hat all are the hidden meanings there in
the 1ord
S!&RCA9IS&RT.
J M= Should have good Mana"erial capacity.
J E= Effi-ient in both &nglish 1ritten and spo3en.
J R= aving high sense o- Res!onsi7ilit,.
J C= Al1ays 3eep -ommitment.
J H= Leads Honest li-e.
J A= Attit*'e should al1ays be positive in resolving any problem.
J N= Ne9er does any argue 1ith buyers and seniors.
J D= ;ully De9ote' to his service.
J I= Al1ays 1ell Informe' about his all orders.
J S= Sin-ere in o--ice and daily 1or3s.
J E= Ent*siasti- in nature.
J R= Re"*lar in email correspondence.
Most im!ortan-e tin"s for a Mer-an'iser is
Communication.
)lanning
)roduction ;ollo1 Up
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=he responsibilities o- a smart !erchandiser are handling order at -our stages.
7. Sourcing -or -uture ordersMBuyers
. 9e1 (rder
H. Con-irmed (rder
/. Running (rder
-.1(siness ,evelopment P&oced&e:
Apparel industry must be developed 1ith the trend o- mar3et other1ise they cannot
e2tend their business. =o collect ne1 buyer and business 1ith them a company must
-ollo1 the procedure o- business development. Buyers have been chosen by t1o 1ays.
;irstly" Buyer chooses the supplier and the second one sometimes" B&'I!C( 1ant to 1or3
1ith a particular buyer and then contact 1ith them according to that. =he B&'I!C(
$R(U) -ollo1 the
procedure o- business development" this are given belo1
$*,er Sele-tion
Kno0 a7o*t te nat*re of 7*,er
(irst E=mail to te 7*,er
Colle-t a*'it !ass re!ort from 7*,er
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Offer to 7*,er for 9isit te -om!an,
Com!an, arran"e a meetin" 0it 7*,er for 7*siness
Sam!lin" sta"e
Pri-e ne"otiation
Pri-e -onforms an' or'er !la-e from 7*,er
3.1.1 irst e$(il to /u0er for /usinessdeelop$ent
;or ne1 business development sellers have to communicate 1ith buyer. &mail is the easiest and
s1i-t 1ay o- communication so 1hen seller 1ill contract -irst time 1ith buyer by email at that
time have to mention some important in-ormation about company. #hich 3ind o- things
should be include here this are
2 In-ormation about you and your company.
2 )roducts in-ormation about your company.
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2 Capacity and productivity.
2 #hich buyer 1or3 1ith you.
2 Attachment a beauti-ul sample photograph.
2 #earing -or -eedbac3.
=his 3ind o- in-ormation should be included in this email. (n the other hand this email 1ill
be minimum 1ord and ma2imum communication.
S am! le of fi rst emai l
ear Sir"
I am '" SR !erchandiser o- =he B&'I!C( $R(U). #e are the manu-acturer + e2porter o-
readymade garments in Bangladesh.
=he B&'I!C( $R(U)* began its journey into the garments sector in 766 as garments in
Bangladesh. Since then the organi4ation being run by highly ,uali-ied" e2perienced and
pro-essional management and stu-- along 1ith Sophisticated !achineries" Latest =echnology"
S3illed #or3manship" Substantial !ar3eting and )roper iscipline. #e are ready and able
to give you 700 ,uality" best price and service. #e believe it is possible to us to enter into the
marathon o- global mar3et.
At present our 3nitting" garments + printing -actory is and dyeing -actory is Ibrahim
3nite2 1hich are the sister concern o- the B&'I!C( I9=&R9A=I(9AL
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All the -actories are 700 e2port oriented. (ur previous practice is the best ,uality o-
products and on time delivery. #e are al1ays committed to the buyers.
O*r P ro'* -t s:
=shirt" )olo shirt" =an3 top" Shorts" =rouser" Kac3et %Cotton" )olyester" CFC" ;rance
terry" #a--le" etc.> and many more. #e also produce all 3inds o- #oven + S1eater item.
Please sen' *s ,o*r -*rrent in/*ir, for sam!lin" 8 -ostin";
Yo*r 6in' -o=o!eration 0o*l' 7e i"l, a!!re-iate';
=han3s + Best Regards
'
B&'I!C( =&'=IL& + A))AR&LS L=
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(ee' > 7 a-6 f ro m 7* ,er in res! on se t o fi rst emai l
ear '"
I am pleased about your company" so I 1ant to ma3e a business 1ith you. So you should
send some original sample include 1ith ;(B price.
Best regards"
?
=his is happened in case o- choosing buyer by B&'I!C( itsel- but mostly the buyer
choose the supplier and in that case they send a product pac3 -irst and then supplier send the
product according to their re,uirement.
3.1.2 Sendin" u(lit0 s($ples to ne) /u0er for /etter underst(ndin"of )or$(ns*ip of f(ctor0
Samples play a vital role to get ne1 order. #ithout ,uality sample suppliers can not develop
a ne1 business" so sample should be better ,uality be-ore bul3 production. ;or that reason
1hen
1e send ,uality sample to the buyer 1e have to -ollo1 something" those are:
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Use -om7e' ,arn
Pro!erl, ',ein"
Goo' !attern ma6in"
Se0in" !erfe-tl,
Use /*alit, f*ll A--essories
(inisin" !ro!erl,
Use /*alit, f*ll !a-6in" elements
Re=-e-6 meas*rement 8 /*alit,
Sen' sam!le 0it for0ar'in" letter
8 meas*rement seet
I- merchandisers -ollo1 this process to ma3e ,uality sample and send as li3e this 1ay" then
buyer 1ill be satis-ied and get clear idea about 1or3manship o- -actory.
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3.1.3 &ppro(l procedure of s(less($ples
Sample is made 1hen price is con-irmed and orders are placed" usually is ! si4e in all color
combinations o- e2pected order. Buyer held a meeting 1ith its customer and records
their response on order ,uantity per color" si4e etc. and -inally place order to their vendor.
Sales
sample basically use cataloguebuyer.
Sen' sales sam!le to 7*,er 0it "oo'!a-6in"
$*,er -e-6 fa7ri- /*alit,
Garments 'esi"n ?Print@ Em7roi'er,)
as /*alit,
Meas*rement maintenan-e
O9erall finisin" /*alit,
A!!ro9e sam!le
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3.1.Cost s*eet - consu$ption s*eet prep(r(tion
Garment Costin"# In order to achieve per-ect garment costing" one must 3no1 about all
the activities including purchase o- -abrics" se1ing" pac3ing" transport" overheads" etc.
Ta:e; T.e ,rei).t c.ar)es ,or t.e /eni).t co:ors /e%ium co:ors -ar co:ors
+'K! combe/ 4arn T0&+;0$$ T0&+;0$$
8abric co!t 5er arment T0+?0$( T0'$0&+ T0''0*=
Co!t o9 Trim! T0$0?; T0$0?;
CMT Chare! T0&&0$$ T0&&0$$ T0&&0$$
Co!t o9 acce!!orie! T0&0+; T0&0+;
Re1ection o9 arment!
common34 +
Co!t o9 Garment
T0&0;$ T0&0;$ T0&0;$
T0;*0=( T0;'0?+
Loca3 Tran!5ort T0&0$$ T0&0$$ T0&0$$
P ro9i t&;a55ro0 T0=0%$ T0?0*$
Commi!!ionF 5c T0*0$$ T0*0$$ T0*0$$
Price o9 Garment T0(+0(( T0((0$+
Si!!in" Car"es#
;or menEs basic =shirt" the delivery terms in the buyer en,uiry as E;(BE. So sea -reight
charges are not added. But the local transport 1ith the cost o- garment has to be added. ;inally"
1e have
to convert the Indian rupee value to US or &uro.
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Cost s eet 8 -on s* m!tion seet ! re! aration
uring the -i2ation o- ;(B price o- a garment -ollo1ing notes are to be -ollo1ed care-ully:
7. Cost o- -abricsM4n. garments.
. Co st o - Ac c e s so r ie s M 4 n. g ar me nt s.
H . C. ! % Co st o - ! a nu -a ct ur ing > M 4 n. $ ar me nt s.
/ . Co st o - e mbe llis h me nt % i- a ny> li3 e s pr in t " e mbr o id e r y" et c
. Commercial cost.8 . C o m m i s s i o n % i - a n y >
(a7ri-s Pri-e
. ;abric price per yard %appro2 Q0.7>
H. yeing price per 3g %appro2 Q7.>
/. ;inishing price per 3g %appro2 Q0.0>
=hus the -abric price per 3g comes %Q8./0DQ0.7DQ7.DQ0.0> Q.
;abrics consumption -or a &uropean =Shirt is H.00 3gs per do4on. So -abrics price per do4onis
%H.00 V .> Q.8
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Trimmin" Pri-e
=rims cover all the trims used in the garments e2cept the basic -abric. =here are hundreds
o- items used to manu-acture the garments" proper selection o- trims and its ,uality
are very important -or styling" other1ise the garment maybe rejected or returned by the
customers. As our assignment is based on basic =Shirt" normally care label" main label" si4e
label" se1ing thread" poly bag" price tic3et" carton" tag pin" gum tape" etc trim are used in a
basic =Shirt. Li3e" normally the trim cost per do4en comes appro2. Q.00 -or basic =Shirt.
CM -al-*lation
C! means cost o- cutting to ma3ing. It includes the cost o- cutting" cost o- se1ing and the
cost o- pac3ing. It also includes the overhead cost o- the plant and the pro-it margin. Li3e"
$enerally C! per do4en o- a basic =Shirt is Q.00
Oter em7ellisment
-al-*lation
(ther embellishment means print" embroidery" patch etc that ma3es any garment more
attractive -or customer as here I described about the cost o- arriet shirt 1here other prints"
appli,uWs and embroideries are not available so" any embellishment cost is not calculated her.
Commer-ial -ost
Commercial cost includes LC commission" U commission" &') commission"
ocumentation cost" $oods send to -or1arder cost" etc.
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(inal "arments -ost 8 or'er
-onfirmation;
9o1 the -inal garments cost per do4en is the sum o- -abrics cost" trimming cost" C!
cost" other embellishment cost + commercial cost. So as e2ample i- a basic style is
ta3en the garments price per do4en comes %Q.8DQ.00DQ.00DQ7.00>QHH.8 =Shirt
per piece is %QHH.8M7> Q.7 =hus 1e ma3e manu-acturing price + negotiate this price
1ith Buyer. A-ter negotiate price 1ith buyer 1e receive order con-irmation + LMC -rom buyer
to e2ecute the order.
?Te -ostin" seet of Harriet is atta-e' at A!!en'i&)
Si!!in" Car"es#
;or menEs basic =shirt" the delivery terms in the buyer en,uiry as E;(BE. So sea -reight charges
are not added. But the local transport 1ith the cost o- garment has to be added. ;inally" 1e
have to convert the Indian rupee value to US or &uro.
Cons* m!t ion Pre!a rat ion #
(a7ri- -ons*m!tion
=he garments manu-actured in many si4es to -it -or everybody. $enerally they are in si4es
Small %S>" !edium %!>" Large %L>" &2tra large %'L> and ouble &2tra Large %''L>. =he
,uantity ratio or assortment can be any one o- the -ollo1ing appro2imate ratio.
S: !: L: 'L: ''L 7::::7
S: !: L: 'L: ''L 7::7::7
S: !: L: 'L: ''L 7::H::
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As the price is the same -or all these si4es o- garments" the author have ta3en the centre si4e
large %L> -or average calculation. $enerally" the ,uantity o- L si4e 1ill be higher or e,ual to the
,uantity o- each o- other si4es.
Mens $asi- T=sirt
escription: !enEs Basic =shirtshort sleeves 700 Cotton 7/0 $S! Single jersey 7 2 7
ribs at nec3 solid dyed light" medium and dar3 colours in e,ual ratio.
Si4es: S" !" L" 'L" ''L Ratio: 7: : : : 7
E&!ort -arton# @ ply 70 $S! virgin corrugated sea 1orthy. Cartons are to be strapped 1ith
nylon straps.
Meas*rements in -m# %;inished
garment> Si4e: L
Chest 80 cm
Length @ cm
Sleeve length / cm
9ec3 rib 1idth H cm em H cm
)atterns are generally made 1ith the seam allo1ance and cutting allo1ance. $enerally" 7 cm
is added 1ith the total o- body length and sleeve length.
=hat is"
;abric consumption % B o dy le n g t h D S le e v e le n g t h D a llo 1 a n c e > V % C h e s t D a llo 1 a n ce > V
V $S!
70000
% @0 D / D 7> V % 80 D H > V V 7/0
70000
7@ grams
$o', 8 Slee9es# 7@ grams
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Ne-6 ri7# 70 grams%appro2imately>
Gross 0ei"t# 76@ grams =here-ore" the -abric consumption per garment is 76@grams.
Gross 0ei"t 8 net ei"t#
=he above 1eight is the gross 1eight o- -abric. It means the 1eight o- the -abric bits cut
in tubular -orm 1ithout ta3ing shapes is called gross 1eight. =his is the consumed -abric -or
the particular garment. ence costing is to be made as per this gross 1eight. =he 1eight o- the
cut pieces a-ter ta3ing the shape according to the pattern is called net 1eight o- -abric.
(a7 ri- -ost !er 6" ? in Rs) ? all - a r"es
a!! ro &i mat el,) #
Cost of fa7ri- !er 6" is -al-*late' an' "i9en in
Parti-*lars Li"t -olo*rs Me'i*m -olo*rs Dar6 -olo*rs
H/Es combed yarn =3.7H.00 =3.7H.00 =3.7H.00
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Cost of Tri ms#
=he accessories 1hich are attached to the garments are called =rims. 9o1 the author have ta3en
!enEs Basic =shirts" as e2ample. Let us see 1hat are the trims re,uired -or this style.
La7els# #oven main label %. cm 1idth 2 @ cm length>: =3 0.H
)olyester printed 1ash care label: Single colour print: =3 0.70
Han" ta": =3 0./0
So the total cost o- trims is =3 0. per garment.
Cost of a--essories#
Pol,7a"s#9ormal =3 0.H0 per garment
Master Pol,7a"# =3 per master polybags to contain garments =3 0. per garment.
E&!ort -arton# Normal# =3. /0 per carton to contain / garments =3 0.0 per
garment. So the total cost o- accessories is =3 7.H per garment.
Cons* m!t ion -al-* lat ion of fa7 ri- s@ A--esso rie s 8 -art oon s
(a7ri- -ons*m!tion -al-*lation#
Body length @Hcm.
Chest 80cm.
Sleeve length cm
$S! 0
%B.LDS.L> V Chest V $S!
% @HD> V 80 V 0
700 700 7000
760 V 80 V 0
700 700 7000
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7.6 V .80 V .
0.0 3gMpes V7
H.0068 3gM5 D 70 %70 #astage>
H.0068 3gM5 D0.H0
H.H068 3gM5
Cart on -ons*m!t ion
Length 80cm
#idth /0cm
eight /0c
% LD #D Allou nce c m> V % #DD Allou nce . c m>
70000
% 80D/0D> V% /0D/0. >
70000
7@H
7000
7.@H s,m
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Pol,
L7*
# 70*
=hic3ness .0mm
@000 )cs on 7 Lbs
LV#V=IC
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Trim
7oo6in"
A-ter getting trim in-ormation -rom Buyer they have to develop the same to get approval. =hen
they boo3 trims -rom respective supplier to get cheaper price to minimi4e the cost. And" -or
shipment process they need to store every trim inhouse so that production can not get
hampered.
=he all processes go parallel 1hen an order is con-irmed. #hen the si4e set sample is
con-irmed" the processing o- production starts.
3.2.1 PI s*eet - its ite$s
In -oreign trade transaction" a pro-orma invoice is a document that states a commitment -rom
the seller to reserve some goods to be sold to a certain person" the buyer. the buyer places an
order and i- the seller agrees" it e2tend a pro-orma invoice and agrees to all the terms speci-ied
in it" the goods are send and the pro-orma is replaced by a commercial invoice. =he )(I sheet
depends on the demand o- buyer.
#hat are the items 1ill include in this sheetare
To! !art#
9ame and address o- seller
Invoice number and date.
Buyer name and address.
$o',2mi''le !art#
)roduct
description. Unit
price.
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=otal price.
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$ottom !art#
Shipment date.
Shipment terms ;(B or
C+;. Country o- origin.
=erms o- payment" at sight or 70
days. (thers special terms.
3.2.2 M(ster '8C c*ecin" procedure - i$port(nt ite$s s*ould /e includedinM(ster '8C
A documentary !aster LMC is an orderly payment security instrument o--ering high ,uality
payment security to a business transaction -or both parties the seller and buyer. =he seller 1ill
receive payment -or his goods i- he meets all conditions prescribed by the letter o-
credit. #ithout ! LMC opening the order 1ont be con-irmed. So its carry more value
than other documents in e2port and import business.
M L2C Ce-6 list items an' tose items m*st 7e in-l*'e' in tis
L2C;
J =ypes o- LMC.
J Issue date.
J &2piry date.
J Issuing ban3 details.
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J Advising ban3 details.
J Seller name and address.
J =otal amount.
J Currency o- payment.
J =olerance % plus or minus>
J )ort o- loading.
J escription o- goods.
J Shipping terms %;(BM C+;>
J List o- documents re,uired.
M aster L2C -on firmat ion ! ro-e' * re
M;L2C m*st 7e 'e-lare' 7, UCP 9ersion
Ce-6 im!ortant items
Comfirm M2L2C $, E=mail
3.2.3 E#$(il to suppliers for s($ples of 0(rn9 f(/rics - different t0pes of(ccessories for /u0er (ppro(l
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ear !r. '"
I got an order -rom Spanish buyer. Its order no. X =#0H and order ,uantity is 0000 )cs. So I
need yarn" Se1ing thread and accessories 1ithin 7 days. )lease see the attach -ile.
Combed yarn.
Se1ing thread.
Accessories.
Best regards"
!r. ?
Sr. !erchandiser
B&'I!C( ;ASI(9 L=.
$ * ,er a!! ro9a l ! ro- e'* re of fa7 ri-s@ -olo r 8 a--esso ries
;abric and accessories approval -rom the buyer is very important. According to the buyer color
1ise you have to outsourcing o- the -abric. A-ter collection o- the -abric lap dip is done and
sho1 the -abric on the s1atch submission card -or better understanding o- the buyer.
A-ter getting buyers con-irmation about order it is important because to maintain the,uality
they e2pected it should be -ul-illed and as ne1 buyer it should be 1ellconcerned.
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(a7ri- Constr*-ton
(a7ri- GSM
Color Sa'e
as an' li"t test
A--essories 1*alit, Ce-6
La7el $ar-o'e Ce-6
Ce-6 (inisin" A--essories
Gi9e te a!!ro9al
(i"# $ * ,er a!! ro9al ! ro-e' * re
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P ro-e' * re of re-ei9in" of ! ri-e /* ot at ion s for f a7 ri- s 8 a--esso ries
)ricing is very important -actors -or any 3ind o- business. A-ter discussion 1ith the
supplierprice is -i2ed. ;or -i2ing the price some points are -ollo1ed such as
Lo1 price.
Puality o- the goods.
Sampling.
3.2. Price ne"oti(tion procedure )it* different suppliers
Arran"e meetin" 0it 'ifferent s*!!liers
Colle-t !ri-e 'ifferent s*!!liers
Sele-t some !ri-e
Ar"*ment 0it sele-te' s*!!liers
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in sit*ation
(i&e' Pri-e
Or'er to s*!!lier
3.2.4 Or"(niin" $eetin" for price ne"oti(tion )it* differentsuppliers
As 1e 1ill discuss" 1hen ma3ing contract a1ard decisions the buyer considers eachsuppliers
,ualiYcations as 1ell as the contract terms they oer %e.g." price>. A suppliers ,ualiYcations
are
generally considered e2ogenous" -or e2ample" a suppliers reputation is based onhistorical
per-ormance and is not alterable in the short term. Contract terms" on the other hand" can be
negotiable* bet1een the buyer and supplier. In a negotiation the buyer attempts induce
-avorable terms -rom suppliers" and li3e1ise the suppliers attempt to induce -avorable
terms
-rom the buyer. =here are many dierent possible negotiation processes. =his section
overvie1s
a -e1 canonical negotiation processes" but a detailed discussion is reserved -or Articles inH.H
and H. o- this encyclopedia. ;or convenience 1e adopt the vie1point o- a buyer 1hen
discussing negotiations.
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Central buyer 1or3ing 1ith vendors and manu-acturers 1ill agree on the retail price" color"
si4e" style and assortment o- staple types o- merchandise as 1ell as the terms o- shipping.
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=he merchandise is illustrated and described ade,uately in catalog to be given to
store manager.
=he central buyer is responsible -or prearranging the minimum amount o- goods to
be purchased by the entire chain" 3eeping the store catalog up to date" adding ne1
items" canceling old items.
=he store manager has complete authority -or the composition o- the stoc3and
orders can be placed directly 1ith the vendors concerned.
3.2.4 ;ritin" to suppliers for price ne"oti(tion $eetin"
S,uare
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;actory capacity.
!an )o1er.
3.2.< ;ritin" $inutes (fter price ne"oti(tion $eetin" )it* suppliers reuired priceconfir$(tion fro$ suppliers
)rice negotiation is the most important part o- merchandising and mar3eting. (r
de r co n-i r mat io n depe nd s on ho 1 c le ver ly a nd lo g ic a lly o ne ca n nego t iat
e price 1ith buyer. Competitive price is the 3ey element o- price negotiation. =o ma3e
competitive price -irst o- 1e have to 3no1 about the product that buyer 1ant to buy -rom us.
=hen 1e 1ill calculate the ra1 material price" manu-acturing cost and shipping terms o- the
product.
e.g
.
H. yeing price per 3g %appro2 Q7.>
/. ;inishing price per 3g %appro2 Q0.0>
=hus the -abric price per 3g comes %Q8./0DQ0.7DQ7.DQ0.0> Q.;abrics consumption -or a
&uropean =Shirt is H.00 3gs per do4en. So -abrics price per do4en is %H.00 V .> Q.8.
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D,nami- U!'ate#
=o handle multiple $antt charts" the so-t1are should be able to change plans" i.e. change dates
during progress o- the order. It should sho1 the planned and actual dates o- activitiesG calculate
deviation" i- any" and raise an alarm by a change in color or by sending an automatic email.
Another -eature that helps in scheduling and optimi4ing the bu--ers is startMend lag times.
Start lag times allo1 the succeeding tas3 to be scheduled earlier than 1hat the preceding tas3
1ould normally allo1" 1hile end lag times -orce the succeeding tas3 to be scheduled later than
the predecessor 1ould normally allo1. In other 1ords" i- a tas3 o- t1o days is to be completed
in a given time o- three days" then there is a choice o- 1or3ing on the -irst t1o days and re
la2ing on the third day %leadtime> or" ta3ing a brea3 on day one %lag time> and then completing
the tas3 on the second and third day. =o ma3e certain that the job is done at the right time" start
lag times are generally given to a tas3. o1ever" it might not be al1ays appropriate as it gives
rise to a higher inventory" leading to high inventory carrying cost.
3.3 Present(tion of co$p(r(tie st(te$ent 6CS7 rel(ted )it* different suppliersfor f(/rics - (ccessories
J Con-irming order placing -or -abric and accessories and chec3 -or Bac3toBac3 L. MC.
(pening and delivery date.
J Arranging -or printing embroidery or any Art1or3 or moti- and 1ashing.
J ;ollo1ing up order -or advising" understanding" and con-irming.
J Con-irming Counter sample M Shipment sample receiving -rom supplier.
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3.3.1 Prep(r(tion of d(t( /(n9 of suppliers for different ite$s
Pre!aration of 'ata 7an6 for 'ifferent items#
Revocable LMC
Irrevocable LMC
Con-irmed LMC
Con-irmed + irrevocable
LMC =rans-erable LMC
Bac3 to Bac3 LMC
Red Clause LMC
Sight LMC
Usance LMC
Revolving LMC
(rder -or materials is placed to supplier through a negotiated instrument or through a
bac3 to bac3 LMC. =his instrument must comprise comprehensive speci-ications o- -abrics +
other materials. In a similar 1ay" detailed speci-ications should be provided to the supplier o-
any materials in the contract or LMC. =his ensures right ,uality o- good in appropriate ,uantity
to be sourced on time.
Pre! a rat ion of s*!! lie r fo r ' iffe ren t it ems#
7. Sample approved by buyer"
. ;abric construction
H. ;iber content + yarn count
/. =ype o- looms %shuttle loom" open end" combed" carded" etc.>
. ;abric #idth
8. =ypes o- looms %shuttle loom" shuttleless looms> in 1hich -abric should be produced
@. =ype o- dye to be used
. Standard o- color -astness
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6. )iece length si4e: )iece length 1ith no seam %such as" 0 o- rolls should be more than
0 meters long 1ith no seam>
70. ;abric -inish: =ype + level o- -abric -inish as speci-ied by buyer
77. )ac3ing: =yping o- -abric pac3ing should be speci-ied such as" rolled on tube and
each roll in an untearable poly and poly bags to be pac3ed in H ply cartons.
7. Labeling + !ar3ing
3.3.2 Booin" or reuisition to suppl0 c*(in dep(rt$ent for different ite$s(lon" )it* (ppro(l fro$ /u0ers
All businesses including -ashion industries and retail buyers do have a supply chain. =his
supply chain -eeds necessary inputs to the buyers or -ashion industry. Supply chain -rom the
perspective o- garments industry I di--erent. =hey re,uire speci-ic items" such as piece goods"
trims and accessories -or each e2port order.
List of items tat are so*r-e'#
So*r-in" Or"ani
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Create" edit" and revie1 re,uisition in-ormation online. e should also be able to enter
suggested supplier in-ormation" delivery instructions" multiple accounting distributions"
and notes to buyers" approvers" and receivers.
Revie1 the current status and action history o- re,uisitions. e should al1ays 3no1
1ho approves re,uisitions and 1hether they are in the approval" purchasing" receiving"
or delivery stage.
Route re,uisitions according to your approval structure. !erchandiser should also be
able to set authori4ation limits by amount" charge account" item category" and location.
Revie1 and approve re,uisitions that need approval. ?ou should also be able to see
the -ull re,uisition detail and revie1 the action history be-ore approving a re,uisition.
)rint re,uisitions %1ith status Approved" Cancelled" Rejected" In )rocess" )re
Approved" and Returned> -or o--line revie1 and approval.
Import re,uisitions -rom other systems such as material or distributions
re,uirement planning applications
)er-orm online -unds chec3ing be-ore creating re,uisitions. ?ou should al1ays
3no1 ho1 your planned e2penses compare to your budget.
Automatically source re,uisitions -rom outstanding blan3et purchase
agreements" contract purchase agreements" or ,uotations you have made 1ith suppliers
Support -le2ible pricing rules
Create re,uisitions ,uic3ly and easily -or commonly purchased items
Create internal re,uisitions that are sourced -rom your inventory by means o-
internal sales orders
)rovide attachments as notes on re,uisition headers and lines
Assign re,uisition lines to buyers and revie1 buyer assignments -or re,uisition lines
;or1ard all re,uisitions a1aiting approval -rom one approver to an alternateapprover.
#ithin your security and approval constraints" you should be able to reroute
re,uisitions -rom one approver to another 1henever you 1ant.
Record suggested -oreign currency in-ormation -or each re,uisition line
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