Activities and the operational strategies of Mascot group.

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Activities and the operational strategies of Mascot group.

CHAPTER-1 INTRODUCTION

1.0	INTRODUCTION
1.1	ORIGIN OF THE REPORT
1.2	OBJECTIVE OF THE STUDY
1.3	SCOPE OF THE STUDY
1.4	METHODOLOGY
1.5	LIMITATIONS

1.0INTRODUCTION

As early as 1860 the manufacture of ready-to-wear clothing became one of Cleveland’s leading industries. The garment industry probably reached its peak during the 1920s, when Cleveland ranked close to New York as one of the country’s leading centers for garment production. During the Depression and continuing after World War II, the garment industry in Cleveland declined. Scores of plants moved out of the area, were sold, or closed their doors. Local factors certainly played their part, but the rise of the ready-to-wear industry in Cleveland, as well as its decline, paralleled the growth and decline of the industry nationwide. Thus the story of the garment industry in Cleveland is a local or regional variant of a much broader phenomenon. In the early 19th century clothing was still handmade, produced for the family by women in the household or custom-made for the more well-to-do by tailors and seamstresses. The first production of ready-to-wear garments was stimulated by the needs of sailors, slaves, and miners. Although still hand-produced, this early ready-to-wear industry laid the foundations for the vast expansion and mechanization of the industry. In general, however, the great expansion of the ready-to-wear industry coincided with and was partly the result of the tremendous urbanization and the great wave of immigrants that came to the U.S. in the last decades of the 19th century and early decades of the 20th. Industrial cities such as Cleveland also experienced rapid growth, and it was during this period that Cleveland’s ready-to-wear clothing industry blossomed.

Now-a-days the wearing of clothing is exclusively a human characteristic and is a feature of nearly all human societies. The amount and type of clothing worn depends on functional considerations (such as a need for warmth or protection from the elements) and social considerations. Clothing performs a range of social and cultural functions, such as individual, occupational and sexual differentiation, and social status. A uniform, for example, may identify civil authority figures, such as police and military personnel, or it may identify team, group or political affiliations. In many societies, norms about clothing reflect standards of modesty, religion, gender, and social status. Clothing may also function as a form of adornment and an expression of personal taste or style.

“MASCOT GROUP” is a private limited company established in the year of 1994. This company is one of the leading and reputed manufacturers and exporters of the ready-made garments for men, ladies & children to Europe, Us, Canada & South American (Non- Quota items) Chain stores/ Catalogues/ Hypermarkets/ Importers.

The year Two thousand five marks the eighth anniversary of business operation of “MASCOT GROUP” With efficiency, Quality assurance, Commitment, Reputation and entrepreneurial edge, the group is looking forward to a very rapid growth in its business. The group has now various individual fully fledged production/ trading units under corporate management for achieving high goals and standards and to render best efforts & services to its esteemed customers from all over Europe, South America, Canada and USA.

1.2OBJECTIVES OF THE STUDY

MAIN OBJECTIVES:

The main objectives of this study are known about the merchandising system and how a merchandiser work in Mascot group of industry. Academic knowledge is not perfect, practical knowledge is essential with it. The objectives of the study are to gather knowledge through practical work. It will fulfill the experience through theoretical as well as practically. So it is essential to rapid development of merchandising of a company especially in garments industry. RMG is the most important area of earning foreign currency.

SPECIFIC OBJECTIVES:

The followings are the specific objectives of the present study:

· To define and evaluate the merchandising system of Mascot group.

· To observe the effectiveness of merchandising department.

· To find out some problems and limitations of merchandising of Mascot group.

· To gather knowledge about merchandising work.

· To understand the organization structure or hierarchy of the company.

· To understand the working of the various departments.

· To understand the various responsibilities and duties of a merchandiser.

1.3SCOPE OF THE STUDY

In garment industry, merchandiser is the BRIDGE between the management (or) industry and the buyer. He have to look after every job like buying the raw material (which is required to finish the product), making the garment, finishing the garment, documentation (over all view), finally shipping. He is the responsibility person to make the product. The merchandiser who creates a good relationship in between exporter & buyer.

This report will give a clear idea about ‘Activities of a Merchandiser.” How efficiently they work for the garment? What types to benefits them provide to the garment and their employees to motivate their work? Does the training program that they organized is effective or not? What are the aims to develop training program? To have answers of all these questions, it is tried to go through their training policies; with three months working experience in a garment under a merchandiser and had discussions with officials of different wings.

1.4METHODOLOGY

In order to attain the objectives, collection of primary data is necessary. This data will be used to analyze the problem statement. The largest part of the analysis however would obviously be conducted by carrying out the employee satisfaction survey. Therefore the methodology would include relevant information is collected from interviews, Surveys, observation and annual reports of the Mascot Group. The relevant information is collected from the primary sources and also uses the secondary sources of information.

PRIMARY DATA ARE COLLECTED THROUGH:

· Observation for the total internee period

· Open ended and closes ended questions

· Conducted discussions with Officials and senior merchandisers.

SECOANDARY DATA ARE COLLECTED THROUGH:

· Manuals and Annual Report of Mascot Group Ltd.

· Website browsing.

1.5LIMITATIONS

The sources of the report are collected from different desks, various documents of Mascot Group Ltd. Though the entire staff member remains busy all the time for their desk work they helped a lot to manage and collect the data & information. But it was very difficult to collect information on the employee as it is very sensitive and secret issue for the organization. Every task has some limitations. So, there have also some limitations of the study. These are as follows-

A. SHORTAGE OF TIME PERIOD: This report is written within a shorter period of time since many days have passed during the training session. So the time constraint of the study hindering the course of vast area and time for preparing a report within the mentioned period is really difficult.

B. BUSY WORKING ENVIRONMENT: The officials had some times been unable to provide information because of their huge routine work. That is why we do not gather vast knowledge about the critical issues.

C. SECRACY OF MANAGEMENT: There some information which are confidential for collecting the data. So, some data could not been collected for confidentiality or secrecy of management.

CHAPTER-2 CONCEPTUAL FRAMEWORK

2.0	HISTORY OF BANGLADESH GARMENTS
2.1	CONCEPT OF MERCHANDISING
2.2	RESPONSIBILITIES OF A MERCHANDISER
2.3	FUNCTIONS OF A MERCHANDISER
2.4	QUALITY OF A MERCHANDISER

2.0HISTORY OF BANGLADESHI GARMENTS

The garments industry of Bangladesh represents one of the recent success stories of industrial development in a poor, developing country. Starting from scratch in the late 1970s, the industry is now Bangladesh’s most important source of foreign exchange earnings. It currently exports about $5 billion worth of products each year; this is a little over three-fourths of our annual export earnings.

This note describes what happened in the early years of the industry. The story of the

The catalyst for the birth of the industry was the South Korean company, Daewoo, whose collaboration with the Bangladeshi enterprise, Dash Garments, led to the growth of the industry.

The first ready-made garment factories in Bangladesh aimed at the export market were opened in the late 1970s by investors from other Asian countries whose exports had been restrained by quotas imposed by importing nations. By the mid-1980s, the ready-made garment industry had become a strong export earner. Garment exports brought receipts of only US$3 million in FY 1981, but by 1984 exports had risen to US$32 million, and the following year revenue soared to US$116 million. For FY 1985 and FY 1986, ready-made garments were the second biggest foreign exchange earner for Bangladesh after jute.

The surge in Bangladeshi exports eventually caused a reaction among some industrial nations. Canada, the European Economic Community, and the United States expressed concern that inexpensive Bangladeshi garments were flooding their markets. In 1985, after a series of notices as called for by multilateral agreements, the United States–which was the destination of about 25 percent of Bangladesh’s garment exports–began imposing quotas on Bangladeshi garments, one category at a time.

Bangladeshi manufacturers, working with the government, organized with remarkable speed efficiency to adapt to changing conditions. They policed themselves to stay within quotas, allocating production quotas according to equitable criteria, and began diversifying their production into categories where there were not yet quotas: for example, cotton trousers, knitwear, dresses, and gloves. After a period of adjustment, during which some of the least well-established firms closed and workers were laid off, the industry began stabilizing, and growth continued at a more moderate pace. Exports in FY 1986 rose another 14 percent, to US$131 million, and prospects were good for continued growth at about that rate

2.1CONCEPT OF MERCHANDISING

The term “Merchandising” is well known to the person specially involved in garments trade. The term merchandising has been derived from the term “merchandise”. Merchandise means goods that are bought and sold. The term merchandiser may be defined as the person who merchandises the goods especially for export purposes. Garments merchandising means buying raw materials and accessories, producing required garments, maintaining required quality level and exporting the garments within schedule time frame.

2.2RESPONSIBITIES OF A MERCHANDISER

Major responsibilities of a Merchandiser are given below:

· Order sourcing/supplies

· Negotiation

· Production

· Calculating Yarn/Fabric consumption

· Calculating costing of the product

· Monitoring Quality aspect

· Product development

· Liaison with Buyers Customers & Factory

· Factory Scheduling

2.3FUNCTION OF A MERCHANDISER

When a next port order is placed to a merchandiser, he has to schedule the following main function to execute the export order perfectly in time.

· Fabric requirement calculations

· Accessories requirements calculation

· Sources of fabrics

· Possible date of arrival of fabrics And accessories in the garments factory

· Costing.

· Garments production planning

· Pre shipment inspection schedule

· Shipment document.

2.4QUALITY OF A MERCHANDISER

From the above definitions we can assume that a person involved in garments merchandising needs a wide range of knowledge and skill.

· Good command of English and adequate knowledge of technical terms for accurate and efficient communication.

· Good knowledge of yarn, fabric, dyeing, printing, finishing, dyeing color fastness, garments production etc.

· Clear conception of the usual potential quality problems in the garments manufacturing.

· Good knowledge of the usual raw materials inspection systems and garments inspection systems.

· Knowledge of the quotas system used in each of the producing countries, duty rate ,custom regulation, shipping and banking documentation etc

CHAPTER-3 COMPANY PROFILE

3.0	HISTORY OF THE COMPANY
3.1	VISION, MISSION AND VALUES
3.2	AT A GLANCE OF THE COMPANY
3.3	BOARD OF DIRECTORS
3.4	RULES AND REGULATIONS OF THE COMPANY
3.5	PRODUCTS AND SERVICES
3.6	WORKING PROCESS

3.0 HISTORY OF THE COMPANY

“MASCOT GROUP” is private limited company established in the year of 1994. Company is one of the leading and reputed manufacturers and exporters of the ready-made garments for men, ladies & children to Europe, Us, Canada & South American (Non- Quota items) Chain stores/ Catalogues/ Hypermarkets/ Importers. The year Two thousand five marks the eighth anniversary of business operation of “MASCOT GROUP” With efficiency, Quality assurance, Commitment, Reputation and entrepreneurial edge, the group is looking forward to a very rapid growth in its business. The group has now various individual fully fledged production/ trading units under corporate management for achieving high goals and standards and to render best efforts & services to its esteemed customers from all over Europe, South America, Canada and USA.

“MASCOT GROUP Limited” believes in professional approach and in providing with the best exportable to its customers. The company’s customers are also reputed and the sharp rise of export during the last few years is due to the group’s commitment to quality, experience, dynamism, leadership and successful international marketing. As a matter of fact, from the very inception, the company enjoyed the buyers trust and the Groups fashionable items are supported by the Designers on regular basis. They have their own in house circulating knit department which produces Single Jersey, Lycra, Pique Polo, Lycra Single, 2 Thread fleece, 2 Thread Lycra Fleece, Plain Rib, Lycra Rib, Plain Interlock, Lycra Interlock, Yarn Dyed single Jersey, Interlock Feeder Stripe, 2X2 Rib etc. Electro Jet (automatic vacuum cleaner) is also available and used to ensure free of foreign object in the fabric. Electro Jet (automatic vacuum cleaner) is also available and used to ensure free of foreign object in the fabric. Mascot garments Ltd Pants, Trousers and Jeans. Production lines 5 Each Line has 65 machines Production Capacity 150000 pieces per month. Mascot Apparels Ltd Pants, Trousers and Jeans Production lines 5 Each Line has 65 machines Production Capacity 150000 pieces per month. Mascot Fashions Ltd Men & Women’s Tops Production Lines 5Each Lines has 62 machines Production Capacity 120000 pieces per month. Mascot Knits Ltd All knitwear items Production Lines 5Each line has 43 machines Production Capacity 250000 per month Circular Knitting Production Capacity 3 tons per day. Mascot Plaza Ltd15 storied commercial building for office and shop rentals. Compliance Factory as per I.L.O, In House Medical facility for workers, Day Care, Dining and Prayer halls, Compliance Department, Strict rules against hiring workers under 18.

3.1 VISION, MISSION, AND VALUES

Mascot group stand behind their garments products with quality assurance. They believe quality is never an accident. It is always the result of high intention, sincere, effort, intelligent direction and skilful execution. Mascot groups vision, mission, and values are given below:

VISION:

To provide customers with the most comprehensive sourcing, production, design and product development service, guarantee of quality, competitive price and quick turnaround times with a world class professional personalized service.

MISSION:

To provide our clients with high quality garment products, competitive pricing and on time production.

CORE VALUES:

· Leadership: to be a leader, both in thought and business.

· Respect and humility: to respect every individual and be humble in our conduct.

· Simplicity and positivity: simplicity and positivity in our thought, business and work.

· Adaptability: to be flexible and adoptable, to meet new challenges.

3.2 AT A GLANCE OF THE COMPANY

Mascot group of industries overall information are given below:

Company Name:	Mascot Group
Address:	146, Zirabo, Dewan Idris Rd Ashulia, Dhaka, Dhaka, Bangladesh Telephone: 880-2-7791582
Main markets:	North America, Eastern Europe Western Europe.
Employees:	Above 1000 People
Business Type:	Manufacturer
Product/Service:	Men/Women, T-shirts, Polo shirts, Trousers, Jeans, Cargo, Pants, Shirts, Blouse, Kids’ Items.
Production lines:	5
Machines:	Each Line has 65 machines
Production Capacity:	12500 dozen/ month
Mascot Fashions Ltd Men & Women’s Tops:
Production Line:	5
Machines:	Each Lines has 62 machines
Production Capacity:	10,000 dozen/month
Mascot Knits Ltd all knitwear items:
Production Lines:	5
Machines:	Each line has 43 machines
Production Capacity:	22000 dozen/ month
Circular knit:	Production capacity is 3 tons.

3.3 BOARD OF DIRECTORS

The flow chart of board of directors of Mascot group is given below:

Figure: 1 Board of Directors:

BOARD OF DIRECTORS

CHAIRMAN: F.M. Zubaidul Haque

MANAGING DIRECTOR T.M. Enamul Haque

DIRECTORS S.M. Rezaul Haque N.M Ziaul Haque

GENERAL MANAGER S.M. Rezaul Haque

PRODUCTION MANAGER

CUTTING MANAGER

STORE MANAGER

3.4 RULES & REGULATIONS

The company respects the local laws and ILO’S directives with regard to employment and adheres to the following policy:

· No child labors in the factory

· Good environment in the factory with new location where more fresh air is available.

· Huge organized space for manufacturing the products with quality further expansion plans.

· Sanitation for staff & workers according to ISO level & Fire Safety.

· Medical Center and facility for staff and workers at factory premises.

· All injuries, no matter how slight, must be immediately reported to your Supervisor.

· Any unsafe condition, unsafe practice or hazard should be immediately reported to your Supervisor.

· Employees shall not make unauthorized repairs to

· Equipment.

· Employees must wear all Mascot supplied safety equipment.

· Employees are required to wear closed-toe shoes for their own protection. Sandals, flip flops, slippers, torn tennis shoes, open toe and high heel shoes are prohibited.

· Employees may not engage in solicitation during work time.

· Employees may not distribute literature in the work place at any time.

· Employees must observe any rules or regulations, including smoking, set forth by Mascot and the client/tenant.

3.5 PRODUCTS AND SERVICES

Products and services of Mascot groups are given below:

PRODUCTS:

Figure: 2 Products flow-chart:

Polo Shirts

Trouser

T-Shirts

PRODUCTS

Jeans

Ladies tops

Jackets

Tank tops

Shirts

SERVICES EXCELLENCY:

• Tremendous human resource development has been achieved through training and short courses by employing professional management development companies.
• Multi step quality assurance system introduced in order to ensure ultimate product quality.
• Separate department installed to monitor every step of business in order to ensure successful shipment in time.

Moreover, a team is always involved in research and development of total systems keeping an eye on global demand and accordingly they are giving training to the staff in order to up-date their professional knowledge and proficiency at work place. Hence, the company is confident of delivering quality products to their esteemed customers in the rapidly changing fashion world through creativity and dedicated skilled work force.

3.6 WORKING PROCESS

The total working processes of Mascot group of industries are given below:

The following flow-chart shows the basic steps requirements to product production process:

Figure: 3 Working Process:

Finishing

Sewing

Dyeing/Printing

Cutting

Washing

Knitting

Row Cotton

Checking

Ironing

Price and hang tag

Folding

Poly

Packing

Carton

o ROW COTTON:

Cotton is a soft fibre that grows around the seeds of the cotton plant . The fibre is most often spun into thread and used to make a soft, breathable textile. Cotton is a valuable crop because only about 10% of the raw weight is lost in processing.

o KNITTING:

Knitting is a method by which thread or yarn may be turned into cloth or other fine crafts. Knitted fabric consists of consecutive rows of loops, called stitches. As each row progresses, a new loop is pulled through an existing loop. The active stitches are held on a needle until another loop can be passed through them. This process eventually results in a final product, often a garment. Knitting may be done by hand or by machine.

o WASHING:

Washing is an important method under the work in process. By washing clean-up the product and send in next process.

o CUTTING:

Cutting is another important method under the WIP. Cutting process give a structure of the product. It is a very important part of the production process.

o DYEING AND PRINTING:

Dyeing is the process of adding allover color. Printing is the selective process of placing color onto the surface of a fabric, creating a partial or allover color or pattern. Coloring can be added at any stage in the development of fibers, yarns and fabrics, but printing is generally reserved for constructed fabrics.

Printing is the application of color in the form of a paste or ink to the surface of a fabric, in a predetermined pattern. It may be considered as localized dyeing. Printing designs on to already dyed fabric is also possible.

o SEWING:

Sewing is the Long, temporary stitches that holds two or more layers of fabric together; con be done by hand or machine.

o FINISHING:

Finishing is the grey cloth, woven cotton fabric in its loom-state, not only contains impurities, including warp size, but requires further treatment in order to develop its full textile potential. Furthermore, it may receive considerable added value by applying one or more finishing processes.

· Ironing

· Checking

· Price and hang tad

· Folding

· Poly

· Packing

· Carton

CHAPTER-4 ACTIVITIES OF A MERCHANDISER

4.0	MERCHANDISING ACTIVITIES
4.1	HIGH LIGHTS OF MERCHANDISING WORK
4.2	PRICE NEGICIATION AND OTHER CONFIRMATION
4.3	MERCHANDISIND ACTIVITIES ON PRODUCT DEVELOPMENT
4.4	MERCHANDISING ACTIVITIES ON PRODUCTION FOLLOW UP
4.5	MERCHANDISIND ACTIVITIES ON QUALITY CONTROL
4.6	MERCHANDISING ACTIVITIES ON GOODS DELIVERY

4.0 Merchandising department and its activities

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

The term “Merchandising” may be defined as:

Person who merchandises the goods, specifically for export purpose. Garments merchandises means buying raw materials & accessories, producing garments, maintaining required quality level and exporting the garments within schedule time. From the above definitions, we can say that a person involved in garments merchandising needs a wide range of knowledge & skill to perform his job successfully. The job itself is “technical and general as well”. Merchandisers should have the following basic qualifications:

· Good Command in English and adequate knowledge of technical terms for accurate and efficient communication.

· Good knowledge of fiber, yarn, fabric, dyeing, printing, finishing, dyes, color fastness, garments production. Etc.

· Clear conception of the usual potential quality problems in the garments manufacturing.

· Good knowledge of the usual raw material inspection systems &garments inspection systems.

· Knowledge of the quota system used in each of the producing countries, duty rates, customers regulations, shipping and banking documents etc.

4.1 Highlights of merchandising works

1. To collect buyers addresses.

2. To establish contact with the buyers sending formal letters/profile.

3. Receiving buyer’s response and providing price quotation along with making of sample as counter/approval.

4. Receiving samples comments from the buyer.

5. To furnish the pro-forma invoice and sending the buyer.

6. Taking necessary steps to develop lab-dips of the materials (FAB & ACC)

7. Receiving the master L/C & verify clauses of the L/C both in technical and commercial point of view.

8. To confirm floor booking of the order with factory.

9. To confirm transfer authentication of the L/C in favor of fact.

10. Pushing the factory taking initial procurement to open the back-to-back L/C by bank.

11. Searching reliable fabric and accessories sources and finalize supplying of the required materials relevant to the order.

12. To monitor the shipment of raw materials and arrival in the factory.

13. To monitor of the supplying materials while receiving factory.

14. To order the test cutting with quality.

15. To check/inspect/advise for the bulk production.

16. To monitor production, quality and delivery.

17. To advise factory if buyer change any instruction both in technical/commercial point of view to the order.

18. Collecting order from the buyers.

19. Sending Samples to the buyer for approval.

20. Collecting accessories form different Suppliers.

21. Giving order to the specified garment factory.

22. Communicate with all the respective parties.

23. Coordinating the whole process at a regular manner.

4.2 Price negotiation & Order confirmation

Price negotiation is the most important part of merchandising and marketing. Order confirmation depends on how cleverly and logically one can negotiate price with buyer. Competitive price is the key element of price negotiation. To make competitive price first of we have to know about the product that buyer want to buy from us. Then we will calculate the raw material price, manufacturing cost & shipping terms of the product and know that how to prepare garment price.

There are processes for fixation of export prices which are—

1. FOB (Free On Board).

2. C & F (Cost & Freight).

3. CIF (Cost, Insurance & Freight).

FOB means ‘free on board’ exporter doesn’t bear the cost of freight of ship or air. It is buyer (Importer) who himself bears the freight of ship or air’s & F means Cost of Freight. FOB (Cost) + Freight of Ship = C & Fin the case ship or air freight is carried by the exporter while quoting price, the exporter quotes price a bit higher than FOB. The whole responsibility including the sending of goods to the selected port of the importer is shouldered by the exporter ship or air. Freight may vary from place to place and shipper’s toshippers.CIF means cost insurance & Freight. In this case in addition to the bearing of freight the cost of insurance is also borne by the exporter. The exporter, while quoting CIF price, quotes much higher than C&F value. C & F + Insurance=CIF. Normally we can add 1-2% insurance charge with CIF price.

4.3 Merchandising activities on Product development

Product development is another important responsibility for RMG merchandisers. Before go to bulk production various stage of sampling has topazes in order to develop a product for end user.

SEQUANCE OF SAMPLEING:

Counter sample/Style sample/Salesmen sample

· Fitting sample/ Size set sample

· Pre-Production.

· Production Sample.

· Shipping Sample.

· Photo/ Advertisement/ Catalog Sample

STEPS OF GARMENTS SECTORS APPROVAL:

Step-1: Style sample (Closest available fabrics)

Step-2: Size Set sample (Closest available fabrics)

Step-3: Pre- production sample (In Actual)

Step-4: Production sample (In Actual)

4.4 Merchandising activities on production follow up

After receive a purchase order from buyer merchandiser have to sit with production planner to make a production plan. Production plan contain below things:

· Planned date to start knitting to make the required fabrics.

· Planned date to start dyeing to color the fabrics.

· Planned date to start cutting fabrics.

· Planned date to start sewing the required garments.

· Planned date to start packing the required garments.

· Planned date to hand over finished goods to buyer nominated sea or air forwarder.

After that other work is following up. They are-

· Trail/ Test cutting.

· Sewing.

· Packing

4.5 Merchandising activities on Quality control

The main objective of quality control is to ensure that goods are produced to the first customer (Direct Order) and hopefully to the second customer (Recorder/Alter order/ new order) as well. If both customers can be satisfied then the manufacturer products are more likely to continue to be in demand. Satisfactory quality can only be ensured through (from the manufacturer pinto view)

· Knowing the customers’ needs.

· Designing to meet them.

· Faultless construction- manufacture.

· Certified performance and safety.

· Clear instruction manuals.

· Suitable packing.

· Prompt delivery.

· Feedback of field experience. Satisfaction quality can be ensured from the customer from the customer’s point of view by providing:

o Right Product.

o Right Quality.

o Right Time.

o Undamaged Condition.

HOW CAN QUALITY BE ACHIEVED?

Goods must be designed to meet customer’s needs and make manufacturing process and maintenance easily.

· They must be made exactly and consistently to the specified design.

· Marketing must ensure accurate advertising, trade description with constant feedback for improved design.

· Total commitment to organized design.

4.6 Merchandising activities on goods delivery to buyer’s destination:

BOOKING IN FORWARDING:

After making final inspection merchandiser received packing list from packing section which contain the list of carton, how many pieces garments in the carton, weight of the carton, number of pieces of garment to be shipped etc. Refer to this information merchandiser make booking to sea or air forwarder.

EXPORT DOCUMANTATION:

The documents which to be submitted by a C&F agent for export: An exporter should have to submit the following documents to the customs authority of a station:

· Shipping bill of entry.

· Export L/C.

· Packing List.

· Commercial Invoice.

· UD/UP.

· VBF-9A. From to be supplied by the C&F agent.

· Export Permission form (EXP).

BILL OF LANDING (B/L):

It is document issued by an eerie (railroad, steamship, or trucking Company) which serves as a receipt for the goods to be delivered to a designed person or to his order’s/L describes the conditions under which the goods are accepted by the career and details-

· The quantity of the goods.

· Name of vessel.

· Identified marks and numbers.

· Destination.

INVOICE:

Below point are including in the invoice:

· Name and address of the buyers and the seller.

· The Date and term of the sale.

· A description of the goods.

· The price of the goods and

· The mode of transportation.

PAYMENT RELEASE:

After prepared invoice, bill of landing and other required documentation we send it to buyer’s nominated bank for payment release.

CHAPTER-5 MAJOR DEPARTMENTS

5.0	COMMERCIAL DEPARTMENTS
5.1	FINANCIAL DEPARTMENTS
5.2	STORE ROOM
5.3	SAMPLE & PATTERN SECTION
5.4	CUTTING DEPARTMENT
5.5	SEWING DEPARTMENT
5.6	QUALITY DEPARTMENT
5.7	FINISHING DEPARTMENT
5.8	OTHER DEPARTMENTS

5.0 COMMERCIAL DEPARTMENT

PAYMENTS BY L/C, D/P, AND D/A:

Business transactions usually begin with a purchase order placed by a buyer with a seller. It is very easy to understand, the order, represented by a piece of paper written by the buyer, or a fax received from the buyer, is not something very reliable and secure. Although the order should be treated as an agreement binding both parties, the buyer and the seller, it is not a guarantee or an instrument for the seller to use to obtain payment for the merchandise shipped. For this reason, the “L/C” comes into the picture.

The full name of “L/C” is IRREVOCABLE LETTER OF CREDIT” which means once it is issued by the bank for the buyer and received and accepted by the beneficiary (the seller), it cannot be cancelled or withdrawn by the buyer or the opening bank, unless with the consent of the beneficiary. In short, once the buyer opens the L/C from his bank to cover the goods he has purchased, he will have to pay for the goods when the seller ships the goods exactly as per the terms stipulated in the L/C. Therefore, as far as the seller is concerned, the sooner he has the L/C on hand, the safer he is. L/Cs can be opened in many ways, but in essence, it is a promise the buyer’s bank makes to the supplier, to pay him when he does certain things with evidence to pay him when he does certain things with evidence to prove. the L/C opening bank wants the supply.

This is normally used by the opener, party

To assist the beneficiary, party

Or for party :

To guarantee party

For certain reasons. The following example will illustrate the function more clearly.

D/P TEAM:

D/P (Documents against payment) means that after shipment, the shipper should present his documents to his bank to forward to his bank’s correspondent bank in the city where his customer is, with instructions for them to notify his customer to pay and take possession of the documents to clear the goods. In other words, without paying for the goods, his customer cannot take possession of the goods. D/P Term will provide the following advantages to the buyer and the supplier:

1. The buyer dose not has to have a credit line with the bank to open an L/C to the supplier to cover his purchases in advance. He only has to have the money ready to pay for the goods when the shipment arrives.
2. The supplier would not have to worry that his customer may take the goods without paying him because without paying the bank to pay him, the bank would not release the documents. However, D/P term cannot save the supplier in the following case : After the supplier ships the goods and sends the documents to the bank for his customer to pay and to take possession of the documents, his customer at this time, still may change his mind to renounce the goods by ignoring the bank’s notification, or simply inform the bank that he is no longer interested in the goods. Under the circumstances, the bank will notify the supplier’s bank accordingly and ask for his bank’s decision the documents. There is nothing the supplier’s bank or its correspondent bank can do to force the customer to pay. In this case, he may ask his bank to call bank the documents. Although the supplier has not lost the goods, he owns the goods in an overseas country creating demurrage charges every day. To resolve the situation, the supplier will have to resell the goods to another customer.

D/A TERM:

D/A (Documents against Acceptance) term as a payment method is far more risky than D/P term to the supplier. D/P terms usually come with a time before a certain date, and not after a certain date so as to give a time limit for this matter to end. When such L/C is received by (b) will surrender it to his bank with the invoice or receipt prepared as required by the L/C for a loan of $ 10,000.00.

DOCUMENTATION:

When we refer to documentation in the process of export, we usually refer to the process of documents which the shipper uses to collect money for the goods shipped. Therefore, this is the finale of the transaction and an important step. Depending on how the payment term is set up between you and your buyer, we should prepare the documents accordingly. However, no matter it is L/C payment or DP/DA or open account, you must prepare your documents to satisfy the following parties:

· The buyer’s bank that has open the L/C to you if it is L/C payment, otherwise you will have delay in receiving the proceeds of the goods you have shipped.

· The customs, otherwise you will have delay in clearing the goods through customs.

COMMERCIAL INVOICE:

This is the document that you use to collect money from your buyer. Therefore, it must contain the correct unit price with the indication of FOB the shipping port, or CIF or CNF at the shipping port, then it is simple and easy. The following example will satisfy the bank and customs:

STYLE NO	QUANTITY	DESCRIPTION	UNIT PRICE FOB BANGLADESH	TOTAL FOB AMOUNT
1234	10000 DZ	Men’s 100% Cotton woven shirt	US$ 80.00	US$ 80,000

Based on the above, the customs will impose duty on US$ 80,000.00 when you show the above CIF breakdown on the invoice; the customs will impose duty on the FOB value. However, please note you have to be truthful about the sea freight amount and insurance premium. You must get them from the Bill of Lading, where the freight amount prepaid is shown, and the insurance premium from the insurance company. You cannot inflate these figures to save duty. Otherwise, you may create delays or even bigger trouble for your buyer. The second import things in the preparation of your invoice are that you must provide a full description of the merchandise so that the customs officer can determine what duty rate he should use.

DUTY:

Please refer to chapter 20 for more information like the above. Anyway, your buyer or his agent should provide you with this information is 20.9 %

· PACKING LIST: There is no hard and fast rule as to how exactly it should be prepared. You can use your own format. As long as you can show the following, it will be acceptable:

a) The content of each of the cartons shipped, including the color and size assortment.

b) The measurements and gross weight of each carton. Please note, some garments are subject to duty by percentage of the FOB value only, but some garments are subject to duty by percentage of the FOB value and weight (How much per kilo). Therefore, on your packing list you must indicate the gross weight, net weight and net weight clearly (See full detail on “weight list” later.)

· WEIGHT LIST: Sometimes the buyer may ask for this on the L/C. If he does, then you should prepare it and submit it to the bank as one of the documents required for L/C negotiation. If your buyer doses not ask for it, then you should you can handle the weight information as follows:

a) If the L/C says such weight information is needed on the invoice, you follow the L/C and put such information on the invoice, and repeat it on the packing list.

b) If the L/C does not specify the need of weight information on the invoice, you may omit it on the invoice, but put it on the packing list. If the L/C requires a weight list, then you put the weight information on the weight list and repeat it on the packing list, but you may omit it on the invoice. Weight information should truly be put on the packing list where it belongs. That is says it should be on the invoice, you follow the L/C too. If the L/C requires a weight list, you follow it also. The weight information in question should consist of:

· GROSS WEIGHT: Gross weight means the weight of the goods including all packing materials. You should provide weight per carton and the total weight of the shipment which should be the same as, or similar to that on the Bill of lading.

· NET WEIGHT: Net weight means gross weight less only the export carton and inner boxes if used. Net weight will include the packing materials used for the individual piece of merchandise, for example, the individual poly bag, cardboard and paper hangtag etc.

Net weight means the weight of the merchandise excluding all packing materials. In order words, it is the weight of the garment without hangtag, price ticket or even a piece of pin.

You should provide this information for each dz, each carton and for the whole shipment. Based on this information provided, weight duty, if any, will be paid. If the L/C requires you to provide Gross weight and Net weight, you should know, it is Gross weight and Net weight needed, and you provide Gross weight and Net weight, but call it Net weight on the document.

Net weight is needed for duty purpose; Net weight is of no practical purpose – it is for reference only.

· BILL OF LADING: If the shipment is to be mead by boat, B/L (Bill of lading) is usually used. In preparation of the B/L the most important thing is the use of the correct consignee and notifies party. Should use the exact wording as stated on the L/C opened by your buyer so that you will not have any discrepancy against the L/C. In regard to the other aspect of the B/L, you can just follow the format as provided by the shipping line However, sometimes the buyers’ L/C may require you to do the following for their convenience:

a) They want you to send one original B/L to their customs broker directly by courier service, and submit the balance 2 original B/C.

b) They also want you to consign the shipment to them (use their company name as the consignee) instead of the shipment to their bank.

· AIR WAYBILL: Air waybill is used for air shipment; with similar function of B/L on boat shipment. However, there is some important difference between Air waybill and Bill of Lading. Please note the following to guard you accordingly. On boat shipments, the buyer needs at least one original B/L to take possession of the goods. However, on air – shipments, the buyer does not need the original Air waybill, or even a copy of the Air waybill to take possession of the goods. If the shipment is consigned to the buyer, the buyer can legally claim the goods from the airline. In fact, the airline will notify the buyer to claim the goods. As long as the buyer can identify himself as the consignee, he is allowed to take the goods from the airline.