Management Reporting System and Merchandising FM Fashion

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Management Reporting System and Merchandising Process Of


FM FASHION: The Organization

2.0 FM FASHION: The Organization

2.1 Background

FM FASHION is one of the leading conglomerates in Bangladesh. It was established in 2002.Today FM FASHION is one of the leading corporate body in Bangladesh. It is a private company.

The company has diversified into major businesses.

2.2 Strategic Business Units

  • SWEATER (Heavy Knit) Division.
  • ACCESSORIES Division.
  • Light Knit (Light knit) Division.
  • Woven.

2.3 Organization Overview

Address of the Company:



Head Office: House # 03 (GF), Road # 02, Sector # 10, Dhaka- 1230, Bangladesh.

Sweden Office: Batan Biswas, distansgatan 17, 50740 Boras, Sweden.

Phone: 02-8932171, Fax: 02-8932171.

Factory: Dessin Wears Ltd. 84 kalameshwar, Board bazaar, Gazipur, Bangladesh.

Web site:

Organogram- Business Management

Source: FM Fashion

Figure-1: Organogram of FM FASHION

2.4 Major Competitors

Major players of Bangladesh factories are-

  • Matrix sweater.
  • Kartel Asia
  • Diganta sweater
  • JLfashion
  • Shaya apparels
  • Northern corporation

2.5 Theoretical part and facilities.


Under the leadership of the experienced and dynamic business head, Chief Merchandiser Manager Mr. ARSHAD MAHMUD, this highly skilled and motivated team of professionals is dedicated in formulating effective strategies to meet the challenges in the ever-changing market, developing new items of garments tailored to satisfy the customers current needs, exploring new opportunities in both home and abroad, and working for consistent growth and increased market of Fm Fashion.


The plant is well designed and well equipped with all latest facilities and state-of-the-art technologies. The responsible team of plant workers, supervisors, officers and managers strictly follow the work process recommended by BGMEA and In-process Quality control methodology for production and meets all national regulatory and buyer requirements.

Product Development

This creative team of professionals is engaged in developing new formulations with competitive advantages and strong product differentiation.


This highly skilled team is dedicated in producing products with consistent quality under dearly defined Standard Operating Procedures (SOP) in compliance with the procedures.

Quality Assurance

This dedicated team plays the vigilant role of controlling, ensuring and maintaining the consistent quality of products for which Fm fashion is so well recognized.

Continuing Training Program.

Fm Fashion regularly arranges training programs of both male and female workers. These programs cover technical lacking of workers frequently which is faced by the workers, update their knowledge, and make them aware of the new technologies and techniques

International Market

To fuel the continuous growth of Fm fashion, the company has started exploring international markets. The quality of Fm fashion products has brought immediate success in SWEDEN, ITILY, FRANCE, and POLAND.

2.5.1 Promotional Activities

Fm fashion is a new brand in Bangladesh. It has started business in own factory recently. Fm fashion also started business with various factories which was distributed to 6-7 factories all over Bangladesh. It also singed a contract with SWDEN OFFICE for JOINT VENTER.

2.5.2 Company Values

  • Quality
  • Customer Focus
  • Fairness
  • Transparency
  • Continuous Improvement
  • Innovation

2.5.3 Distribution Network

The company maintains strategically located sales centers in different locations across the country. It has developed an advanced distribution system through its skilled and trained manpower. The distribution system is fully equipped for handling continuing volume of diverse range of products from the various factories.

The company’s distributions centers are highly streamlined, computerized .we are capable of maintaining a cold chain for some specialized range of products. The combination of this advanced function and multidimensional capabilities made it possible to handle hundreds of products efficiently.

2.5.4 Environmental Policy

FM Fashion is committed to maintain the harmonious balance of our eco-system and therefore constantly seeks ways to manufacture and produce products in an eco-friendly manner so that the balance of nature remains undisturbed and the environment remains sustainable.

In pursuit of this goal, FM Fashion will

  • To comply fully with all local and national environmental regulations.
  • To conserve natural resources like water and energy for sustainable development, and adopt environmentally safe processes.
  • To ensure appropriate communication and cooperate with internal and external interested parties on environmental issues.
  • To be Create awareness on environmental issues among our employees and suppliers.
  • To adopt modern waste management technology.


Organizational Profile (Heavy knit Divisions

3.0 HV. Knit Wear Division

3.1 Background

On January, 2003, Fm fashion launched new products called HEAVY knit products. FM Fashion is the produce these heavy knit products. These are mainly the products of which are export Worldwide.

· This is export mainly in SWEDEN. Halens is a Swedish company. The company import mainly female grooming items. It’s combined turnover in 1000000 plus core of product.

FM heavy knit is totally self – reliant factory using advanced manufacturing equipments. Continuous development has enabled the Brand to earn sterling reputation in the World markets, while reigning supreme at resulting in World Class Products and It has got several prestigious buyers.

Heavy knit’s vision is to-

  • Ensure Leadership in Blade by giving quality products to consumer which has value for money.

At the same time ensure leadership in growing categories of focusing just on quality because we do not wish to be the looser on the day, when market turns to Twin System.

3.2 Heavy knit business

FM FASHION is one of the largest integrator in Heavy knit business. These businesses have subunits different types of sweater. These businesses have glorified presence in Bangladesh.

Supplies Ginny sweater, Ginny long cardigan, Hidda, Ladies cardigan with stripe, Nora cardigan, willma cardigan. Flippa cardigan, Tess cardigan etc.

Fm heavy knit business is having strong partnership with national and international companies. Before introducing any product, it is elaborately tested in the laboratory.

Fm heavy knit has a large, knowledgeable and highly skilled Field Force provides training and technical advices to the workers.

Fm is significantly contributing to national foreign currency security through its Fm heavy knit division, which is the leading Heavy knit integrator of the country; Fm heavy knit is providing complete solution to the workers need.

3.3 Product Category

Heavy knit product mainly includes 1.5 GG, 3GG, 5 GG, 7 GG, 12 GG knit wear products.

Major brands of Fm Fashion are enumerated below-






To keep with the latest trends in wearing products it also includes- the different fashion design items in this verity of GUAGE.

3.4 Supply Chain

Fm fashion opens LC in the name of itself. After getting orders as per demands for heavy knit products in Bangladesh, products are shipped from CHINA. When products are reached at Chittagong port, products are distributed to its factory. Fm fashion ships the product to buyer. Buyer reaches the products to the hands of distributor to wholesale to consumer.



Figure-2: Supply Chain; Fm fashion

3.5 Company Strategy

3.5.1 Company Mission

FM Fashion’s mission is to improve the quality of life of people through responsible application of knowledge, technology and wearing cloths. FM Fashion is committed to the pursuit of excellence through world-class wearing products, Innovative processes and empowered employees to provide the highest level of customer satisfaction.

3.5.2 Company Vision

  • Endeavor to attain a position of leadership in each category of its businesses.
  • Attain a high level of productivity in all its operations through effective and efficient use of resources, adoption of appropriate technology and alignment with our core competencies.
  • Develop its employees by encouraging empowerment and rewarding innovation.
  • Promote an environment for learning and personal growth of its employees.
  • Provide products and services of high and consistent quality, ensuring value for money to its customers.
  • Encourage and assist in the qualitative improvement of the services of its suppliers and distributors.
  • Establish harmonious relationship with the community and promote greater environmental responsibility within its sphere of influence.

3.6 Functional Department of FM FASHION:

Source: FM Fashion

Figure-3: Functional Department of FM FASHION

3.7 Marketing Strategy and development


Demographic profile:

Age : 10-55 years.

Sex : Male and female.

Family Life Cycle : Unmarried & Married.

Income : Tk. 500-Tk. 15,000 per month (For earners)

Occupation : Students, Employed persons.

Education : school, college, University level and above.

Psychographic Profile:

Social : Middle, Upper-Middle, Lower-Upper, Upper.

Life Style : Health and hygiene conscious, goes to retail outlets.

Psychographic Profile:

Occasions : Regular.

Benefits : Improved hygiene, protection, feeling of safety

User Status : Potential, Regular.

Usage Rates : Medium, Heavy.

Readiness Stage : Aware, Informed, and Interested.

Attitude towards product : Positive, sometimes indifferent.

3.7.1 Pricing Strategy

SKU Price for Retailer Price for Distributor Price for Consumer
Name of Product Dollar Dollar Dollar
SWEATER(HEAVY KNIT) 12-20 10-18 29-22
Knit wear (light knit) 7-10 6-9 12-13
Woven 9-11 8-10 13-14

3.7.2 Business Areas

At present Fm fashion is one of the fastest growing Garments exporters in Bangladesh.

The company consists of three major divisions as follows:

  • SWEATER (HAVY KNIT) Division.
  • ACCESSORIES Division.(FM International)


(A sister concern of FM Fashion)

FM INTERNATIONAL is garments labels and all kinds of accessories supplier. Our goal is to provide the customized solution for apparels brand and retails.

We are able to provide served all over the world. It is the vision of FM International to grow along with the customers through minimizing cost, lead time and mutually beneficial commitments.

Our Products:

? woven labels.

? Printed labels.

? All kinds of care labels.

? Barcode labels and stickers.

? Hang tag.

? Fake leather patch.

? Narrow fabric with print.

? Design oven tape.

? Needle loom label.

? Ribbon and tape .

? Laser die tapes.

? Laser die cut.

? Badge label.

? Printed fabric hang tags.

? Rotary printed labels.

2.7.3 Consumer Brands

FM Fashion Consumer Brands was initiated in 2002 with four major brands of the company – “Heavy knit, light knit, Woven and accessories “.GEEN. HALENS, GOCCO, ISOLDE are the of most prestigious garments product brand which are enjoying the leadership position in the market. There is also another brand called Ginny, Nicky, and Tang top which has created huge brand awareness among people in SWEDEN. The division started to take new businesses through offshore trading as well as local manufacturing. In this process Fm fashion launched many new products such as “GINATRICOT, HALENS” and also attained international alliances with world renowned brands.

FM Fashion Strategic Business Unit is headed by the Executive Director, Mr. Firoz Mahmud. He is regarded as an authoritarian personality in the area of Marketing inside and outside of the country’s market. His track record has many successful brands which reached leadership position in different categories in market. He is supported by competent group of professionals working in employees, lead by Business Manager.

3.8 About team members and Organ gram of FM FASHION.

Total 80 representatives employees report daily about through SMS, daily production report from to their immediate supervisor, In-charge then report weekly and monthly though Production manager. Production manager report directly to Head of Quality control manager. By the report he gets from manager and manager report to the chairman.


Analysis & Interpretation

4.0 Analysis and Interpretation of FM heavy knit division’s current reporting system

Head of any organization is always under constant pressure to provide more and better services with shrinking budgets and higher scrutiny. Employees want more individualized assistance and completion of their works.

As heavy knit division of FM Fashion is mainly working for the sales and distribution of heavy knit items. Head of Sales and Trade Marketing and other concerned employees must constantly monitor the current position of the competitors and performance of heavy knit products.

They also set a target and find whether there is a gap between actual sales and target. If they find any gap, they search for the reason of that problem and solve it. This whole process is dependent on efficient management reporting system of employees. An efficient system would require fewer inputs, produces more outputs compared to similar processes, to achieve the objective of the process.

4.1 Existing reporting system of FM Heavy knit division.

Fm Fashion is a well organized corporate house. The company maintains strategically located sales centers in different locations across the country. It has developed an advanced distribution system through its skilled and trained manpower .The distribution system is fully equipped for handling continuing volume of diverse range of products from the various businesses.

The company’s distribution centers are highly streamlined, computerized and automated. It is capable of maintaining a cold chain for some specialized range of products the combination of this advanced function and multidimensional capabilities made it possible to handle hundreds of products efficiently.

Although the company’s distribution system is highly advanced with multidimensional capabilities, its reporting system is not that advanced.

Current Reporting System at a glance-

Paper based work still remains in this process.

• Quality controllers fill up the daily production report form of products and send those to quality control manager.

• QC manager report daily, weekly and monthly about production, closing stocks, required order quantity etc.

• Daily report is mainly done through SMS and paper based weekly and monthly reports are through

submitting weekly Town Market report and monthly production report form. Information flow from field to head office works in these manner and as each employee is dependent on

other to get and compile all the information, it takes few weeks to reach the information

from quality manager to the head office.

4.2 Problems identified with the current system

The current reporting system of FM Fashion heavy knit division is obviously good, but it must follow better than the existing reporting system in order to win in the race. In the existing system, total 3 QC representatives report directly to their quality manager. Then all the merchandiser report to their immediate boss. Then they report to the Head office. This may cause major loop back in the production process. Head of production cannot directly monitor and communicate with QC and Merchandiser. He has to wait for production manager to get information from field.

Paper based reporting system is not efficient because it has some limitations, and they are enumerated below-

  • This system involves more time.
  • This system requires more human resource.
  • Involves more human error.
  • Data maybe unsecured.
  • Extensive use of papers which is not compatible with the climate issues.

The current reporting system is not sufficient to reach the peak of the market. This system should be modified in such a way so that heavy knit division can get actionable production information faster to gauge performance and take course correction, which may lead to compete with the market leader.

4.3 Suggestions for solution

Here a solution called ”production and Distribution Management System” – an automated tool for efficient reporting is given for FM HEAVY KNIT division. This reporting tool may be the effective production weapon for heavy knit division.

This is a user-friendly system that can be modified rapidly to accommodate the constant changes which is needed. It would provide faster services and reduce support costs. This tool will automate almost all the information to provide real time information. It would accurately measure and evaluate the performance of heavy knit division. By using this tool, Head of production not only can monitor and communicate directly with subordinate but also other operators. Daily production report can be easily uploaded and updated so that the chief of the department can easily check out the information he requires whenever needed.

4.4 SWOT Analysis of the suggested system


  • Easy availability of information whenever required.
  • Saves time.
  • Easy to operate.
  • Makes it easy to identify required order quantity.
  • Most importantly, Chief can directly communicate and control.
  • Less man power.


  • Initial capital investment is high.
  • Operating this automated tool would be tough for less skilled staffs.


  • Whenever required, this tool can be changed/ altered. Varieties of options are there to make it advanced and futuristic.


  • Networks may be collapsed for various reasons.


Merchandising Process

5.1. Merchandising process:

Buyer Development: First of all we collect the buyer mailing address then we knock the buyer for development that buyer. After knocking the buyer we wait for buyer response. At that time if the buyer is agree to work with us then they want to see some sample in different gauge.

Sample Development: According to buyer requirement we produce the sample in factory. This is called development sample. We sent those development samples to buyer. Than the buyer check those samples according to his/her requirement which they want.

Inquiry: If the buyer is happy to see the development sample than they sent some sheet. We called this sheet inquiry. Then we study those sheets and find what the buyer wants.

1st fitting sample: After finishing the Inquiry processes we make the sample according to inquiry. In this process we follow the measurement sheet, style, gauge, yarn and also yarn count, yarn color and accessories. Then we sent the sample to buyer. We called this sample 1st fitting sample. Than we wait for buyer comments.

Buyer comments: Than the buyer sent the comments on 1st fitting sample. When we got the comments then we study the comments. If there is any kind of change in measurement style etc. and we are going to make the 2nd fitting sample and sent to buyer. If there is no comment on 2nd fitting sample and buyer accept the sample.

Price Negotiation: Then the buyer wants to know the price of that product. We calculate the price of the sample and sent to buyer. The buyer negotiates with us and we make a price sheet and sent to the buyer.

Order: The buyer then gives order to us. That orders the buyer mention everything –about quantity, measurement, accessories, price, style to us. Than we negotiate with the factory for placing the order.

Performa Invoice: After complete the above things it needs to take proforma invoice (PI) from buyer. When the buyer provides the proforma invoice then we want the Later of credit (LC) and that LC is being transfer to factory where we are placing the order.

Documentation: At the time of transferring the L/C to a factory we advise our bank to add buying commission & service charges at the back side of L/C so that they can transfer the buying commission & service charges at our bank account when proceeds (Payment of the goods) come.

After completion of shipment we advise our factory to collect the shipping documents like Invoice, Packing List, Bill of Lading & GSP (Generalized Systems of Preference) Certificate of Origin and send a copy to us.

Seller: Supplier:
FM Fashion Everbright sweaters Ltd.
House-03, Road-02, Sector-10, Kathgora bazar,Zirabo, Savar,Dhaka
Uttara, Dhaka, Bangladesh Bangladesh.
Buyer: Send To (Consignee) :
ACD Fashion ACD Fashion
Drottningatan 55 Drottningatan 55
111 21 Stockholm 111 21 Stockholm
Sweden Sweden
Country of Origin : BANGLADESH Place of Receipt : CHITTAGONG, BANGLADESH.
Country of Destination : SWEDEN Port of Loading : CHITTAGONG, BANGLADESH.
Incoterms : FOB CHITTAGONG Port of Discharge : GOTHENBURG, SWEDEN.
Mode of Shipment : BY SEA Final Destination : SWEDEN
ORDER NO: 010568
ART No : 7E+06
Carton No. No of ctns Colour Company S M L XL XXL QUANTITY TOTAL QTY(Pcs)
1 2 2 01 White AX & Dea 20 20 Pcs 40
3 6 4 23 23 Pcs 92
7 7 1 22 22 Pcs 22
8 12 5 # 25 Pcs 125
13 16 4 24 24 Pcs 96
17 18 2 19 19 Pcs 38
19 19 1 17 17 Pcs 17
Sub- Total 430
20 20 1 01 White Cassels 26 26 Pcs 26
21 22 2 25 25 Pcs 50
23 23 1 23 23 Pcs 23
24 26 3 # 27 Pcs 81
27 28 2 25 25 Pcs 50
29 29 1 23 23 Pcs 23
30 31 2 24 24 Pcs 48
Sub- Total 301

We check it and issue the IC (Inspection Certificate) in favor same factory according to the instruction of L/C and advice them to send the original documents (Invoice, Packing List, Copy of Bill of Lading & Original GSP Certificate) directly to buyer by courier. And then we advise the factory to send a draft (Invoice, Packing List, Original Bill of Lading, Bill of Exchange) to buyer’s bank or L/C issuing bank according to the instruction of the terms & condition of the L/C. The Bill of Lading must be endorsed at the back side of it consigned to the order of negotiating bank, endorsed to L/C issuing bank or buyer’s bank which is instructed at L/C.

When the buyer’s bank receive the draft (Invoice, Packing List, Copy of Bill of Lading & Original GSP Certificate) they advise their bank to release the payment and collect the original Bill of Lading to release the goods after arriving at the port.

After receiving the payment (Proceeds) of the goods the negotiating bank (the Lien Bank of Factory) send our buying commission & service charges at our bank account as instructed at the back side of L/C.

Then the next step is to prepare the order document and sign by the both chairman of their respective organization. At that time the merchandiser arrange the yarn by providing lab dip and that lab dip sent to the buyer and buyer provide the approval that lab dip. Then it places the dying order for bulk yarn and arranges all the accessories and sent those things to factory for making the garments.

We than provide to the buyer photo sample, production sample respectively. Finally we are going to shipment the product.


Figure 4: Merchandising Process.


Recommendation & Conclusion

6.0 Recommendation and Conclusion

6.1 Recommendation

To survive in the competitive market and earn a potential market share HV.KNIT products, here are some of the recommendations for betterment of their products.

  • HV.KNIT division must get rid of older data entry system, which is, paper based system because it takes much time to flow the information from field to head office. This system also requires more man power, and more man power leads to more human error.
  • Although initial capital investment would be high, still this division should adopt automated system for issuing data of sales as recommended above.
  • Employees must have to train up to learn how to access to the internet and log on to this application, how to insert data, how to run the application in order to make this system effective.
  • This tool must have to be maintained properly.

6.2 Conclusion

FM FASHION is one of the leading local buying houses with multinational image. It provides varieties of products to its customers by managing four business units: sweater Division (Heavy knit), Knit Division (Light knit), woven division and accessories division. FM FASHION is new in Bangladesh but they have huge experience in marketing and developing as it is successfully operating. Still, it needs help to survive and compete with other players in the market. As FM FASHION’S mission is to achieve business excellence through quality by understanding, accepting, meeting and exceeding customer expectations.

Although heavy knit division is performing well, still it must maintain some strategy to compete and become top in the market.



Name of the respondent
Contact no.
Name of the interviewer

Please response all the questions:

  1. What is the position of HV.KNIT products in the market?
  2. Total market share?
  3. Which products is the main competitor of HV.KNIT Products?
  4. How the products are sent to the buyer?
  5. How many machines are in the HV.KNIT factory?
  6. In what frequency employees report to their immediate supervisor?
    • Daily
    • Weekly
    • Biweekly
    • Monthly
  7. What is the reporting Media?


· Hand written.

· Both.

  1. Which layer of employees makes what report to their next level?
  2. How each layer of employee