Aravin Prince Periyasamy
Introduction
Merchandising
department is the ‘star of the department’ among all the working departments in
the Export concern. Because Merchandising is the only department having Maximum
control over the departments and total responsible for Profit and loss of the
company. After LPG (Liberalization, privatization &
Globalization) the business gets
more important and now merchandising is
on its hot seats.
So,
It is necessary to understand the day to day happenings of the ‘star
department’.
Merchandise – means goods bought and sold; and trading
of goods.
Merchandising
– is an activity of selling and promoting the goods.
a.
What does a Merchandiser do?
Merchandiser is a person who interacts with the buyer and
seller, and also puts
efforts into proper
relation between buying
office/buying agents/agency and seller/ Exporter in terms of executing
an order.
b. Merchandiser in garment industries:
In the
field of marketing
and services, Merchandiser
is at a
position of post
importance, He is
the person who
co-ordinates with various departments for a uniform business.
Objects
of Merchandising
Merchandising
denotes all the planned activities to
execute and dispatch the merchandise on
time, taking into consideration of the 4 R’s to replenish the customer.
Right Quantity : We have to dispatch right qty of product
what buyer ordered.
Right Quality : But
it should be with right quality as accepted both parties.
Right Cost : Everybody
wants more from what they paid.
Right Time : We
don’t want to wait idle as at even in Restaurant. Keeping Delivery schedule is mandatory.
Qualities
for Merchandiser:
1.
Communication Skill:
The communication is
very much important
to promote the business
activity. The merchandiser
should remember that
communication must be lurid and should having face to face
conversation with the buyer.
2.
Planning Capability:
Merchandiser should be capable of planning, based on the planning the order is
to be followed. If the planning is not done properly it will directly affect
the delivery time of the order.
3.
Decision making: For a
Merchandiser, decision making power
is most important. He should think about the decision to be
taken and to act in a right way.
4.
Loyalty:
Loyalty is an essential character of human beings. Especially for the business
people like merchandiser it is a must. 5.
Knowledge about the field: Merchandiser should have adequate knowledge
about the garments, Computer knowledge,
and technical knowledge
to communicate with different people in the business is a
must.
6.
Co-ordinate & Co-operate:
Merchandiser is the person who is actually co-ordinate with the number
of departments. To
Co-ordinate with different people
in the industry
he should be co- operative.
7.
Monitoring ability:
Merchandiser should monitor to expedite the orders.
8.
Other qualities: Education, Experience, Situational
Management, Ability to Evaluate, Dedication, Knowledge of expediting procedures.
Function of merchandisers
Developing new samples, execute sample orders
Costing
Programming
Raw materials / Accessories arrangement
Production scheduling (or) route card drafting
Approval of various Process, Pattern and size set
Pre production follows up
Meet Inspection Agencies
Production controlling
Identifying shortages and make arrangement for the shortages
Following quality assurance procedures, quality control procedures
Monitoring the in-house, sub-contractors and junior activities
Buyer communication
Communication with sub-contractors, processing units & other 3rd parties
Proper reporting
Highlighting to the management
Record maintenance
Developing samples
Placement of orders to suppliers
Taking
measures for consistent production
Taking preventive action to maintain the
targeted performance in all areas of
activities
Attending meeting with superiors and
furnishing the required details about merchandising
Important
Duties
COSTING or
CALCULATING GARMENT PRICE.
In
many companies, costing is done by costing officer & CEO. But in some
places, it is done by the Merchandisers.
Some important terms in costing
·
Yarn
cost
·
Process cost
·
Process
loss
·
CMT
(Cutting, Making & Trimming)
·
Negotiation
(getting the best out of a deal)
·
Commission
percentage (%) for Middle man
·
Shortage
·
Buyer
specification (It is buyers responsibility to specify the quality required)
·
Quantity
·
Currency
[1] Mode of Shipment (sea, air)
·
FOB
(Free On Board)
·
CIF
(Cost, Insurance and Freight)
·
OH
(Over head)
·
Quota(Not
applicable nowadays)
·
Profit
(level of %)
Quality
control:
One of the Major responsible job handled by
Merchandise dept is Q.C
Textile
Testing & Inspection
Testing :
(1) Analysing
(2) Testing
Analyzing is one time
process, which is taking place at the time of confirming the order with the
Buyer as well as the raw material quality.
Total cost of the garment is definitely based on the raw material quality &
composition.
Ex:
Count & Construction of the yarn used in the fabric or garment, Fibre
composition of the raw material, Type of Dye or print used in the garment,
etc.
Testing
is a process to understand, the quality of the produced item meets the
requirement of the buyer. Testing is
done on every lot or selected lots or wherever buyer asked.
Inspection:
Inspection
is the visual examination or review of raw materials partially finished
components of garments and completely finished garments in relation to some
standards
Specifications, or requirements as
well as measuring the garment to check if they meet the required measurement.
Types of inspection:
1. Incoming material inspection:
After
fabric is received, the same should be
inspected for the following purpose
1. GSM
2. Dia
3. Shrinkage
4. Color Streaks
5. Color matching
2. In - process Inspection:
During
the manufacturing itself we have to inspect the quality, it can be done the
different process such as cutting, spreading, sewing, finishing and packing. This
may be on partially finished (or) semi finished garments.
3. 100% Inspection:
Inspection should be done in 100%. In
the inspection center.
4. Final Random Inspection:
It
is random inspection done according to the customer¡¦s individual required
Standard after the shipment have been completed, packed and ready to ship.
Colour appearance, workmanship, style etc will be checked against the customer¡s
specification.
Inspection Parties:
a)
Internal Quality Controller:
Inspection done by the Company
internal quality control to check the
quality parameters
before to Final Inspection.
b)
Quality represented by buying Agencies:
Inspection done by buying Agencies
quality control to check the customer
requirement.
c)
Third Party Inspection:
Inspection done by third party like
SGS or ITS.
Export
procedures.
To
become an exporter the first on the
primary activity is get am IE CODE thro RBI registration. This is like the
license for exporting. After getting the IE code, it is mandatory to enter our
name with AEPC. Through this only we are here to understand various export
policies of Government bodies and restricted goods index. Before applying for
IEC the account number and letter from exporters bank is to be sent to the RBI.
After obtaining this number, the RBI will give a code.
Getting
TIN number and CST are also mandatory for purchasing raw materials inside the
country. Registering with TEXTILE
COMMITTEE is necessary for Woven fabric exporters and easy for getting 100%
EXPORT CERTIFICATE.
Registration
with ECGC (Export Credit Guarantee Corporation) will helpful those having less
experience with international business and less confident on Buyers or dealing
with new buyers.
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