The document is a dissertation submitted by Md Sazzad Hossain for a Bachelor of Arts degree in Apparel Manufacturing Management and Technology. It discusses merchandising activities in the apparel industry of Bangladesh and includes chapters on literature review, research methodology, and an academic overview of key merchandising concepts and skills required. The dissertation provides a comprehensive overview of apparel merchandising in Bangladesh.

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Merchandising Activities in Apparel Industry Of Bangladesh
BY
Md Sazzad Hossain
ID: 121011419, Group: E
A DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE DEGREE OF
BACHELOR OF ARTS (HONORS)
IN
APPAREL MANUFACTURING MANAGEMENT AND TECHNOLOGY
UNDER THE DEPARTMENT OF
APPAREL MANUFACTURING MANAGEMENT AND TECHNOLOGY
WE ACCEPT THIS DISSERTATION AS CONFORMING TO THE REQUIRED STANDARDS:
......................................................................................................................................
NOORUL MUQADDIM
ASSISTANT PROFESSOR AND DISSERTATION SUPERVISOR
DEPARTMENT OF APPAREL MANUFACTURING MANAGEMENT AND TECHNOLOGY
DATED THIS 23rd DAY OF APRIL, 2016, IN AMMT CAMPUS, SMUCT, AND DHAKA, BANGLADESH

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DISSERTATION CERTIFICATION
I Sazzad Hossain, Id No: 121011419 affirm that this Dissertation, submitted in partial fulfillment of the
requirements for the award of Bachelor of Arts in Apparel Manufacturing Management & Technology
under the Department of Apparel Manufacturing Management& Technology, Shanto-Mariam University
of Creative Technology, Dhaka, Bangladesh is unreservedly mine unless otherwise referenced or
acknowledged. The documenthas not been submitted for qualifications or other purposes at any other
institution.
.............................
Sazzad Hossain
April , 2015

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ACKNOWLEDGEMENT
I am grateful to the following people and acknowledge that without their valuable contributions, this
thesis would not have been successfully finished.
Mr. Noorul Muqaddim, my supervisor, who has not only guided us through the work process but also
has provided his own valuable critiques. He has challenged me on several occasions as an approach to
stimulate me too efficiently implements my exposure on this Dissertation.
Thanking you in anticipation.

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TABLE OF CONTENTS
Abstract_______________________________________________________________01
CHAPTER – 1
1.1 Introduction _______________________________________________03
1.2 Evaluation Of Merchandiser In Garments_________________________04
1.3 Types Of Merchandiser _______________________________________04
CHAPTER – 2
2. Literature Review
_____________________________________________________06
CHAPTER – 3
3 Research Methodology ____________________________________________________
08
3.1 Aim ___________________________________________________________________
08
3.2 Objectives_____________________________________________________________08
3.3 Methodology
________________________________________________________08
3.4 Data Collection
……………………………………………………………………………08 3.5
Data Screaming … …………………………………………………………………….....…09
3.6 Scope …………………………
……………………………………………..........09 3.7 Limitation of the Report
…………………………………………………............................09
CHAPTER – 4
4. ACADEMIC OVERVIEW ………………………………………..
………….10
4.1 Concept of merchandising
technology:………………………………................................11
4.2 Skill & knowledge that a merchandising requires ………............................................12
4.3 Mentor & motivate …………………………………………………….13

5. 5
4.4 Work of merchandising
……………………………………………....………...……………13
4.5 Work Flow Diagram
…………………………………………………….......................…..14
4.6 Data Collection …………………………………………..................................................15
4.7 Application of the P.O. Sheet in the Factory
………………................................….…..….16
4.8 Machine Wise Sewing Thread Consumption PER Inch
………….........…....……….…..….16
4.9 How do calculate button ligne from mm
(millimetre)……………......................................17
4.1.1 How to calculate fabric consumption for knits garment........................................… 17
4.1.2 Basic qualifications should have the technical Merchandisers …..............…... 18
4.1.3 Process flow chart of Merchandising ……..........................................……..19
4.1.4 Negotiation with the buyers............................................................................20
4.1.5 Preparing a detailed T & A
...................................................................................22
4.1.6 Fabric ordering ……………......................................................................................22
4.1.7 Responsibility of Senior
Merchandiser……………………………………………………26
4.1.8 Function of a Merchandiser.......................................................................................27
4.1.9 Importance of Purchase Order....................................................................................31
4.2.0 Guidelines for a merchandiser....................................................................................33
4.2.1 Classification of different types of samples...................................................................34
4.2.3 Fabric consumption calculation Men’s........................................................................35
4.2.4
Costing………………………...…………………...…………………………............…37
4.2.5 CM (Cost of making)..................................................................................................41
4.2.6 Some Important Instructions to be a Good
Merchandiser................................................42
4.2.7 Merchandising Calendar.............................................................................................48
RESULT..........................................................................................................................52

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LIMITATION...................................................................................................................53
RECOMMENDATIONS……………………………………………………….…....................54
CONCLUSION...................................................................................................................55
RREFERENCES................................................................................................................56

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ABSTRACT:
Bangladesh's export earnings carry more than 78% contribution from the Garments, Apparel,
and Knitwear Industry. The objective of this thesis is to provide an extensive overview of
Garments Merchandising, as well as a reference and guide for its study. The chapters are
written for the garments merchandising professional for detailed easing information, who
wants an overview or specific information in one particular area. The book is organized
comprehensive information on all aspects of Garments Merchandising from the initial
concept of Garments Marketing, Garments Merchandising, Qualification of a good
merchandiser, Merchandising procedure, Chronological process of Merchandising, important
document for a Merchandiser, Costing and Consumption, Garments dry process, Garments
washing, Inspection, Basic knowledge for a merchandiser, L.C and Other Documentation are
included in this paper. This thesis paper contains the most recent technological information
regarding industry practice as well as industry standards. The use of photographs and tables
will help the reader to understand very easily.
Merchandising plays a great role in our economy. The living standard and prosperity of a
nation vary directly with increase the foreign currency of a nation and it’s totally depends of a
merchandiser who deals not only liaison with the buyer but also directly work in the field of
production. Electrical power is an important index of a country’s economic and technological
progress.

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Chapter -01
INTRODUCTION_

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1.1 INTRODUCTION
Merchandising is a specialized management functions within the fashion industry. It is the
business that moves the world fashion from designers showroom to retail sales floor and in to
the hands of consumers. It is the internal planning that takes place within a retail organization
in order ensures adequate amount of merchandise are on hand to be sold at prices that the
consumers are willing to pay to ensure a profitable operation.
We should understand the term “Garments Merchandising” at first. “Garments” means
apparels or clothing which we need to wear every day, everybody, every time not only in our
country, all over the world also. “Merchandising’ means buying, producing and selling of any
goods or products or services for the local or international market. If we combine this two
English term “Garments Merchandising” then the meaning of “garments merchandising”
becomes like following definition. All activities involved in procuring export order of any
garments of any particular design for a specific quantity, analysis of the garment requires
producing the garments, production of those quantity of garments with specific attention to
required quality level, production scheduling and exporting the garments within fixed time
frame, may be called garments merchandising. From the said definition of garments
merchandising it can be assumed clearly that procuring a garment export order that is export
L/C, production of those garments as per buyer satisfaction within limited time is not so easy.
The activities involved in garments merchandising is normally done by a dynamic and expert
person called garments merchandiser. The person “Garments Merchandiser” is one of the
important key people of a garments production and garments export sector.
In Bangladesh, the future of garments industries is brighter in the era of globalization. Ultra
modern technology are being used in the woven and knit garment industries in the outside
world other than Bangladesh. To survive in the free market of the world, we have to use
world standard latest technology in our readymade garment sector. The study will cover the
practice, procedures and technique followed by the merchandiser in the preparation of order
to shipment. Bangladesh is a developing country. The development and progress of the
country largely depend on export performance. In case of Bangladesh, among the export
sector, the ready-made garments are the main earning source of foreign currency. In the
garment and textile industry, merchandisers have been playing a vital role for the execution
of export orders.

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1.2 EVALUATION OF MERCHANDISER IN GARMENT:
The concept of term “Merchandising” can be traced dated back from the early historic period when
the emergence of the trade between the countries. There are numerous notes about the existence and
evolution of trade between the bigger civilizations in those periods like Greek, Roman, Indian,
Chinese, and Egypt .But during those days the meaning of the term merchandising confined merely to
exchange of materials or commodities which were availed from nature or produced from nature and
they were not manufactured for specific purpose or specific customers. There was exchange of
materials which fulfils the basic needs of living like commodities, live stocks, textiles and luxurious
items like gold diamonds, precious stones etc…Earlier days the production of goods was home based
and family oriented which were not mass produced. In the industrial period, home production was
replaced by factory system and hand operations were replaced by machines. Mass productions were
followed by large-scale consumption.
The term “Merchandising” got its significance after the industrial revolution that emerged during the
20th century after World War 2 and particularly during the period when there was a dramatic shift
from Custom Made Tailoring to Ready Made Garments. During this period there was great demand
for product development. Merchandising evolved as a bridge between the design and sales to fill the
needs. It got its further momentum when the market concept which give more impotence to the
customer needs, emerged in the industry.
The period between 1960 and the early 2000 saw dramatic changes in the structure, focus and content
of apparel companies particularly in U.S. During 1970’s there was a remarkable growth surge to the
apparel industry which continued trough the 1980 and 1990. United States played a major role in the
evaluation of merchandising in apparel industry.
1.3 Types Of Merchandiser:

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Chapter -02
Literature Review_

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LITERATURE REVIEW:
The term merchandising means simply to buy and sell commodities for a profit. The role of
merchandising varies depending upon whether it is performed in retail or manufacturing
context, Merchandising involves the conceptualization, development, procurement of raw
materials, sourcing of production and delivery of product to buyers. The merchandiser must
combine logical and analytical thinking with initiative and expressive creativity. I Collect
some important statement of merchandising activities from books, Magazine, report, article
& wed portal. A number of literatures in this regard have been reviewed
Shakawat (2008), Merchandising activities may include display techniques, freesamples, on-
the-spot demonstration, pricing, shelf talkers, special offers, and other point-of-salemethods.
According merchandising encompasses "planning involved in marketing the
rightmerchandise or service at the right place, at the right time, in the right quantities, and at
the right price.
Velumani Du.(2009) ,added that merchandiser is a person who interacts with the buyer and
seller, and also puts efforts into proper relation between buying offices/ buying agents/
agency and seller/ exporter in terms of executing an order.
Md. Harun(2007),include thatThe activity of promoting the sale of goods at retail.
Merchandising activities may include display techniques, free samples, on-the-spot
demonstration, pricing, shelf talkers, special offers, and other point-of-sale methods.
According to American Marketing Association, merchandising encompasses "planning
involved in marketing the right merchandise or service at the right place, at the right time, in
the right quantities, and at the right price."
In Wikipedia it is defined as “In the broadest sense, merchandising is any practice which
contributes to the sale of products to a retail consumer. At a retail in-store level,
merchandising refers to the variety of products available for sale and the display of those
products in such a way that it stimulates interest and entices customers to make a purchase.”

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Chapter -3
RESEARCH
METHODOLOGY_

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3.1 Aim:
To develop and implement Quick Response system in Apparel Merchandising for reducing lead
time, costs as well as factory profit. How to improve skills and educated, experience employers in the
apparel sector of Bangladesh
3.2 Objectives of Study
 To know the management Procedure in Garments Industry.
 To know merchandising activities
 To compare the technical & practical part.
 To mark a comment over the whole Internship Report.
 To mark out the important part of Internship Report.
 To focus on the valuable part of Internship Report.
 To verified the important of marketing where I am doing internship program.

3.3METHODOLOGY
This report has been prepared on the basis of experience gathered during the
period of internship. For preparing the report, I have also got the information from annual
report and website of the SB knit composite Ltd. I have presented my experience and finding
by using different chart and tables in the analysis part. I have also write down my report on
the basis of primary and secondary data.
3.4 Data Collection
Primary source
 Face-to-face conversation with the respective officers and staffs.
 Practical work experience
 Time to time discussion with the officials of SB knit composite Ltd.
 Experts’ opinion and commend.
 Collection of relevant information.

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Secondary source
 From library books
 Newspaper
 Article
 Magazines
3.5 Data CollectionInstrument
The following date collection instruments are used during preparation of Dissertation.
 Questionnaire :
Data has been collected through questioning owners, workers, labor union leaders and staff.
 Checklist :
Checklist has been used during the preparation of the dissertation.
3. 6 Scope:
1. To satisfy the buyer.
2. Large number of labour.
3. Good business environment.
4. EU is willing to established industry in big way as option china particularly for knits,
including sweater.
5. Energy at low price.
3.7 Limitations:
The main limitation of the report is that it includes the data of a few industries but not all
RMG industries because there was not enough time, and also permission by factory owner.
During visiting the factories were not available from the part of concerned person for their
work load. This study is a working document. Parts of the background study can become
updated at any time.
1. Communication problem.
2. Time schedule problem.
3. Data information & internet problem.

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Chapter -04
Academic Overview_

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4.1 Concept of merchandising technology:
Considering these definitions of technology, merchandising itself is a kind of technology. The
impact of merchandising technology may have some effect on consumer behaviour, industrial
and economic structure and activity, and furthermore, on human life, ideas, and creative
activity. Therefore using a broad definition we can call merchandising in ways that reflect
social and cultural value.
The ultimate goal of merchandising technology is to use time effectively, increase
merchandising accuracy, and optimize benefits to the firm and the customers. In today's
markets, scientific knowledge and techniques relate primarily to use of computers, infor-
mation systems, telecommunications, and related hardware and software. The operational
definition of merchandising technology used in this text reflects this more limited perspec-
tive: Merchandising technology is the systematic application of information technology and
Telecommunications to planning, developing, and presenting protract lines in ways that
reflect social and cultural value. [5] In the textile business, merchandisers have a particularly
strong role because of the intensive nature of product range. The process of buying and
selling goods and services are termed as merchandising. In other words, the area of a
company that develops strategies to have the right merchandise, at the right places, at the
right time and at the right locations to meet the needs and wants of the target customers.
Effective merchandising saves time and money. It coordinates various departments in the
organization. Merchandising forms an effective liaison with the buyers. It identifies and
develops potential new buyers. It builds good relationship with the buying houses and
merchandiser attends to queries, order processing and evaluation of apparel products. So
merchandising is of greater importance in apparel industry.

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4.2 Skill & knowledge that a merchandising requires:
A merchandiser must have the following skill:
 He must educated, intelligent, smart and courageous.
 He must have sound proficiency in English, both written & spoken.
 He must be sound in basic computer literacy (MS office management knowledge).
 He must have basic idea of fabric, types of fabric, fabric construction, fabric defect,
fabric quality control, fabric consumption, costing & printing.
 He should be familiar with trims & accessories required for garments, their sources,
costing, printing, etc.
 He must have knowledge of garments costing & pricing.
 He should be familiar with sampling procedure, garments specifications, style etc.
 He must be able to work under presser.
 He must be hard working and motivated person;
 A merchandiser must be able to work in team; [6]
This way is very common for the apparel merchandiser because they basically do their first
impressive communication through profile sending to the foreign buyers and try to ensure
them the future business obviously will be up to the mark. Determining how and where to
manufacturing apparel product has to become a major concern for most companies. A good
sourcing executive must have a working knowledge of manufacturing processes, quality
assurance procedures, garment costing, product development, government quota and
important legislation, international cultural and business practices, and international
communications.[
A merchandiser always should have a mentality to impress the buyers by means of:
 Right Product.
 Right Qualities.
 Right Quantities.
 Right Time.
You have to have some knowledge of manufacturing. merchandising has to look at the
garments and review cost of fabric, details added to the garments such as pockets, zippers,
pleats, etc. all of which create the manufacturing cost. Merchandising is responsible therefore

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for getting quick costs because as beautiful as a garments might be, if it’s too expensive to
manufacturing, it might have to be dropped.
A merchandiser should have adequate knowledge regarding following:
Different types of wash/dry processing
Different types of dyeing and printing process of fabric
Different types of fabrics/accessories and current market price of them [8]
4.3 Mentor & motivate:
Because there’s staff turnover, prepare a “cheat sheet” of the merchandising basics and make
it a part of a new recruit’s job description to read and put the basics into practice. Take a few
shop employees at a time to other stores in your town. Visit all sorts of different types of
stores—gift shops, clothing stores, kitchen and tabletop shops, grocery stores, etc. Point out
which merchandising methods used in those stores
could be adapted for use in yours. Identify the best merchandisers on your staff and ask them
to mentor one or two others. Have them lead by example and work one-on-one with their
“mentors”
to help them develop skills and gain confidence.
4.4 Work of merchandising
 Study of fashion trend & fashion forecast in association with fashion designer.
 Studying potential target customer.
 Sourcing information about the customer & his profile (type of customer).
 Sourcing information about product, its categories, style, specifications,
assortments size details etc.
 Sourcing foreign buyers.
 Negotiating orders, cost calculation, pricing, securing order through master LC.
 Sourcing fabrics, trims & accessories.
 Placing order for the above materials & making regular follow up.
 Getting sample made, making costing & pricing of the same.
 Rectifying sample if necessary.
 Completing the whole sampling procedure as per customer requirements.
 Getting buyers approval of the sample.
 Estimating lead time.
 Production & shipment planning.
 Monitoring production & product quality.

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 Making regular liaison with the customer.
 Follow up of customer instruction in respect of packing & packaging.
 Arranging product delivery on time.
 Follow up with the customer in respect of shipment & payment again exports
order.
 Quick response follows up in respect of any of the buyers query. [10]
4.5 WORK FLOW DIAGRAM:
Export order collectCosting of
accessories
Send to the buyer
Sample making
production Get approval
Line balancingIn-house of
accessories
Production
continuing (follow up)
Inspection of the
produced garments
Garments Industry
Merchandiser
Production merchandiser
Process Flow
Assembling with poly
bag, carton etc
Conclusion
Preparation of banking

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4.6 DATA COLLECTION:
Collection of facts (raw facts) is known as data. Direct observation and personal interview
with questionnaire is the main instrument to collect the data. Primary data have been used for
the purpose of the study. The primary data have been collected on the basis of prepared
questionnaire. I am collect lots of data which is related to my study topic technical
merchandising in Apparel industry. This collected data are given below:
Normally there are two types of invoice :
1. proforma invoice: it is needed at primary stage of any order for opening
L/C.
2. Commercial Invoice: it is needed at final stage of any order for asking
payment from buyer.
A merchandiser always should have a mentality to impress the buyers by means of:
 Right Product.
 Right Qualities.
 Right Quantities.
 Right Time.
Samples always should be sent with below information on tag:
b) Date
c) Style
d) Color
e) Size
f) Full description of garment
g) Fabric description (content, construction, weight etc)
h) Name of customer
i) Name of vendor
j) Unit price (if needed)
k) Any sample sent to buyer must be the good one in terms – no matter for what the
customer is requiring this.
Woven fabric three types. Such as,
I. Yarn dyed
II. Solid dyed
III. Printed.

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4.7 Application of the P.O. Sheet in the Factory:
From the previous discussion, this is much clarified that the Purchase Order Sheet is how
much essential for beginning the production of a particular order to be purchased.
Way of Application:
 When an exporter or a buyer confirms a merchandise to purchase, he sends a Purchase
Order Sheet to the assigned merchandiser.
 After receiving the P.O. sheet, it has to be sent in each department of the factory
related to the purchasing from getting order to the shipment of the merchandise.
Therefore, the P.O. sheets are copied a few copies –
a) for cutting section,
b) for commercial section,
c) for each production floor,
d) for the merchandiser himself,
e) For others if needed.
4.8 Machine Wise Sewing Thread Consumption PER Inch:
From this post you will get information regarding the sewing thread consumption depending on type of Mach
Machine Name Classification Require thread/inch
Plain Machine, 1 Needle, 2.5"
Plain Machine 2 Needle 5"
Over lock 3 Thread 13.25"
Over lock 4 Thread 16.75"
Over lock 5 Thread 18.75"
Flat lock 3 Thread 16.75"
Flat lock 5 Thread 22.25"
Bar tack stitching 7" Generally P/Operation
Preparation of production files for production starting
 Measurement sheet
 Assortment
 Fabric quantity
 Approval Sample
 Order sheet
 Packing list
 Carton measurement.

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4.9 How do calculate button ligne from mm (milimetre)
If Button length (dia) is 12.7 mm then Button ligne will be ?
Rule:
Button dia (in mm) / 0.635 = button ligne
12.7 mm / 0.635 = 20 L (L = ligne )
Result = 20 L
Chart of button ligne (mm to ligne)
Pricing Terminologies used in Garment Exports
Free on Board (FOB): In garment exporting, pricing of the garments mostly quoted on FOB.
FOB is defined as a term of sale under which the price invoiced or quoted by an exporter
manufacturer or a buying agency includes all charges up to placing the goods on board a ship
at the port of departure specified by the buyer.
4.1.1How to calculate fabric consumption for knits garment?
Like other business, garment factory is set for profit generation. Profit can be improved by
saving from each cost factors of garment making. Fabric is most important constitute of
garment and it represent around 60-70% of total product manufacturing cost. Fabric cost of a
product depends how much fabric is consumed to make the garment including cut wastes and
end bits.

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DISCUSSIONS:
A thesis paper, also referred to as research paper, is a paper that provides the reader with
sufficient information about a particular topic. Our thesis paper introduced as will be
presented to you as a basic Performa of merchandising. In preparing this thesis paper the
needs of both the teacher and the taught have been kept constantly in view so that it may be a
useful guide to those who are willing to get a merchandising job as well as to those who are
already in the job. Because, this paper will provide a fresh idea about each important
document needed the merchandising job.
Apparel Merchandising – Apparel merchandising involved in garments trade (Goods are
bought and apparel sold).
Merchandising is defined as the set of techniques and action intended to highlight products at
the right place, at the right time, in the right quantities, at the right price to make returns of
customer satisfaction.
4.1.2 Basic qualifications should have the technical Merchandisers:-
 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, colour
fastness and garments production etc.
 Clear conception of the usual potential quality problem in apparel merchandising.
 Good knowledge of the usual raw materials, raw materials inspection system and
apparel inspection system.
 Knowledge of the buyer’s compliance and various standards.
 Knowledge of the quota system, free-trade, shipping and banking documentation.
Main function of a Merchandiser to execute an order perfectly on time (schedule):-
 Fabric requirement calculation (consumption, YPD).
 Accessories requirement, calculation.
 Sourcing of fabrics.
 Sourcing of accessories.
 Possible date of arrival of fabrics and accessories.
 Costing.
 Garment analysis and production planning.

25. 25
 Performa making, swatch making and distribution to the production unit and quality
concern people.
 Pre-shipment inspection schedule.
 Arranging shipping documents and final inspection.
4.1.3 Processflow chart of Merchandising:
Merchandiser
Negotiation with buyer & collect order
Costing
Sample making
Get approval & placement of order
Collect accessories for production
Line balancing
Production monitoring
Final Inspection
Banking

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Shipment
4.1.4 Negotiation with the buyers:
Business Collaboration
Negotiation with the buyers Business Collaboration The most critical work is the
procurement of garment export order. Normally garment export order is found from the
potential garment importers called garment buyer. Anybody wants to collect garments export
order, should be able to convince the buyer. When the buyer is convinced about garment
production, garments quality, garments costing and shipment ability of a garments exporter,
he or she can think about issuing a garments export order. Without clear confidence among
buyer & exporter from both sides, may be a risky business deal. If a garment exporter can
continuously deal with only three or four buyer with buyer’s satisfaction, it will be sufficient
enough to run garment production & garment export business smoothly round the year. A
successful negotiation outcome does not generally occur through luck, but by following a
clear process. The process reflects the different levels of knowledge of the subject of
negotiation, various parties and the way they communicate at various stages in the
negotiation. The following is an outline of steps essential to effective negotiation:
Production merchandiser Process Flow
Production merchandising process starts once the order / fabric commitment is received and
the product development department hands over the file to production merchandiser and ends
when the goods reach the buyers. The entire cycle involves all activities directly or indirectly
related to procuring of materials, planning and monitoring of the order. A brief outline of the
procedure is as below:
Receipt of order
o Receipt of an order means final confirmation of the order from the buyer.
o Since, this is the final confirmation it is done by means of a legal document called a PO
(purchase order) or an FC (fabric commitment)

27. 27
o PO (purchase order) – this is a legal document stating the quantity, delivery, price, style
no, buyer, vendor details. On receipt of a PO it is very important that the merchandiser
checks all details and confirms that they are correct like – quantity, delivery date, and
price, style no, style description, color no & reference if mentioned, shipment mode,
shipment port, vendor address, buyer address.
 FC (fabric commitment) – fabric commitment is a legal document confirming that the
buyer will be buying the said quantity of a particular fabric. A garment style no need not
be mentioned on this document as it is a commitment only for buying fabric. This kind of
a legal document is used by the buyer when there are very probable chances of change in
the style or the same fabric is being used in a number of styles and the buyer has still not
PREPARE
DETAILED T&A
FABRIC ORDERING FIT CYCLETRIM ORDERING
FABRIC PO,
PI, LC
PILOT YARDAGE IN-
HOUSE
INSPECTION
SHRINKAGE TEST
BULK IN-HOUSE
INSPECTION
TEST REPORTS
TRIM PO,
PI
BULK IN-HOUSE
INSPECTION
TEST REPORTS
FIT
APPROVAL
SIZE SET &
SEALER SAMPLE
APPROVAL
PRE-PRODUCTION MEETING
ALL DEPARTMENTS
ADVISED OF THE
T&A
RECEIPT OF ORDER
PILOT RUN APPROVAL
BULK
CUTTING
SEWING
FINISHING
PACKING
FINAL AUDIT
SHIPMENT OF GOODS
AUDITS DONE AT
VARIOUS STAGES
OF PRODUCTION,
TOP/PRS
SAMPLES SENT
TO BUYER AS PER
REQUIREMENTS.
PREPARE
DETAILED T&A
FABRIC ORDERING FIT CYCLETRIM ORDERING
FABRIC PO,
PI, LC
PILOT YARDAGE IN-
HOUSE
INSPECTION
SHRINKAGE TEST
BULK IN-HOUSE
INSPECTION
TEST REPORTS
TRIM PO,
PI
BULK IN-HOUSE
INSPECTION
TEST REPORTS
FIT
APPROVAL
SIZE SET &
SEALER SAMPLE
APPROVAL
PRE-PRODUCTION MEETING
ALL DEPARTMENTS
ADVISED OF THE
T&A
RECEIPT OF ORDER
PILOT RUN APPROVAL
BULK
CUTTING
SEWING
FINISHING
PACKING
FINAL AUDIT
SHIPMENT OF GOODS
AUDITS DONE AT
VARIOUS STAGES
OF PRODUCTION,
TOP/PRS
SAMPLES SENT
TO BUYER AS PER
REQUIREMENTS.

28. 28
decided on the quantity to be purchased in each of the styles. Hence in such a situation the
buyer gives a block booking for fabric.
o Once the order is received four different activities are started off simultaneously. These
activities are – preparing a detailed T&A, Fabric Ordering, Trim Ordering, fit cycle and
sample approvals.
4.1.5 Preparing a detailed T & A
o Preparation of a detailed time and action (T&A) calendar is very essential in
production merchandising. The reason being, large no of activities have to be
followed up for each order and a merchandised may be handling large number of
such orders and hence it is essential that all activities are listed. This minimizes
the risk of missing out any of the activities. Hence while preparing a T&A one
should list down as many activities as one can think of which are essential in
smooth running of the order. A detailed discussion on T&A is done later in this
module.
o This T&A is prepared by the merchandiser in consultation with all the concerned
departments such as – sourcing (fabrics & accessories), production, and quality
assurance, logistics.
o Once the T&A is finalized the same should be circulated to all concerned
departments. Another important aspect of the T&A is fixing the responsibility.
Along with finalizing the date by which a particular activity has to be completed,
the merchandiser should also mention the name of person who is responsible to
complete the activity by that time.
4.1.6 Fabric ordering:
o This activity involves ordering of fabric with the mill. The important points to be taken
care of during this activity are:
 Accurate computation of the requirement. This is essential to ensure that during
bulk production the materials do not fall short nor are they in access and there are
leftovers after the order is shipped. An accurate calculation of material
requirement can be done if the BOM (bill of materials) as provided by the buyer
in the specification sheet is studied thoroughly. Apart from just ensuring that the
quantity is correct the BOM also helps in checking that all materials required in
completion of the order are ordered and nothing has been missed out.

29. 29
 Selecting the best vendor for the materials in terms of quality, price and delivery.
o The fabric order is places by the merchandiser by means of a purchase order. The
purchase order should list down the following very clearly –
 Name & Reference no of the article
 Quality description of the article
 Quantity
 Price
 Delivery date
 Quality parameters as required by the buyer
 Payment terms
 Pilot yardage requirements if any.
o The mill sends a PI (Performa invoice) confirming the details as mentioned in the PO. In
case of any changes required in the PO the same are also mentioned in the PI. The mill
also provides its bank details on the PI so that the factory can work out the payments.
o There can be various kinds of payment term agreements between the buying and the
selling parties as below –
 Some %c of payment in advance, the balance at sight – example, 20% advance, 80%
at sight. This means that 20% of the total value of goods is paid in advance, the
balance 80% is pain once the goods are received by the buyer (factory). This payment
can be done by means of DD (demand draft), cheque or TT (telegraphic transfer)
 LC (letter of credit) – in this payment mode the banks of both parties are involved.
The buying party (factory in case of fabric) opens up a LC with its bank and the same
is transferred to the mills bank. On acceptance of the LC by the mills bank, this
becomes a legal contract between the two parties. Once the goods are dispatched the
mill submits the dispatch details (Invoice, packing list and Air way bill details) in its
bank and gets the payment for the goods. The mills bank then approaches the factories
bank and gets its payment from the same. The factories bank then gets the payment
from the factory. The LC once made, a copy of the same should be called in by the
merchandiser and studied to make sure all details as mentioned are correct. The
details to be looked at are:
 Name & Reference no of the article
 Quality description of the article
 Quantity
 Price
 Delivery date
 LC expiry date

30. 30
 Fabric inspection report – this is generally a third part inspection done by buyer
nominated inspection company like ITS, MTL etc. The most common and used method
of inspection is the 4-point system. In this system every defect is given a point between 1
to 4 based on the nature of the defects. A maximum of 4 points per yards of fabric can be
allocated. Fabric having more that 40 points per 100 square yards is considered to be
reject. Different customers have different point levels depending upon how premium the
brand is and also on the nature of the fabric. For example: a man made fiber should have
lesser defects that a natural fiber and hence acceptable points level for polyester is kept
lower that that of cotton.
 Fabric shade band – the mill segregates the fabric on the basis of shade and makes a
shade band. In general a maximum of 3 shade bands are acceptable by customer, however
this can again vary from customer to customer. The customer evaluates the different
shades by means of a grey scale rating acceptable.
 Fabric test report (FPT – fabric performance test) – yardage from bulk is sent to the
nominated testing laboratory such as MTL, ITS for testing the physical and color
parameters of the fabric as required by the customer. The testing laboratory also provides
a wash care instruction for the fabric, which essentially means the best washing
conditions for the fabric.
 Fabric shrinkage report – the mill tests 10% of the fabric to confirm that the fabric
adheres to the specifications as laid down by the customer. For example if the customer
accepts +/- 3% shrinkage, fabric having 5% shrinkage is rejected. The determining the
shrinkage the fabric is tested as per the best washing conditions advised by the testing
laboratory on the fabric test report.
 Once fabric passes through all the above tests and inspections it is shipped to factory. The
factory again checks the fabric on 4-point system and also checks the shade bands and
also does fabric shrinkage test to confirm that they adhere to the requirements of the
buyer.
 With regards to fabric inspection the factory generally inspects 10% of the fabric, in case
there is a problem the factory goes on to inspect 100% of the fabric.
 For fabric shrinkage test – different procedures have to be adopted for ascertaining the
shrinkages for a washed and a non-washed style.
 In case of a non-wash garment testing 10% of the fabric is sufficient to determine the
shrinkage that needs to be included in the pattern. The fabric is washed based on the
recommended wash care instructions in the FPT.

31. 31
 In case of a washed garment, 100% fabric should be tested for shrinkage. The test is done
as per the wash recipe. Once all rolls are tested, the rolls are segregated as per the
shrinkages and different patterns are made to incorporate the shrinkages.
 Factory then also checks the fabric for shade banding, compares the same with the once
sent by the mill and if found acceptable sends one sent out to log the same with customer.
Once the buyer confirms that the shade bands are ok, the fabric is ready to be cut.
 Trim ordering – a similar process as done for the fabric is done for trims except for pilot
trims. The factory can call in trims for sampling and these are called as PROMO TRIMS.
 Fit / sample approval – while fabric and trim ordering is happening, simultaneously the
sample approval procedure is also underway. The moment a style is selected it goes to the
tech department for fitting. Here models wear the samples and they are evaluated in terms
of fit, construction, measurement. The buyer then sends out comments, which are called
as fit comments. In case another sample is requested the factory makes the same
incorporating the comments and send again to buyer. This process is called fit cycle.
Different customers have different no of fit cycles.
 Pp sample - Once the fit sample is approved the factory makes a PP (Pre-production)
sample. This can be called by different names such as sealer sample, green tag sample etc.
This sample is sent out the buyer for final approval and once approved becomes the final
sample on the basis of which entire production is made and audited. This is the most
important sample and one should take care that everything on this sample is correct as
this then becomes the standard.
 Size set - Once PP sample is approved the next step is to make a SIZE SET. All the fit
samples and the PP samples are in the medium size, now the medium size is graded into
the different sizes as per the purchase order. The basic purpose of size set is to ensure that
grading between sizes is correct.
 Pre- production meeting – in this meeting everybody concerned with the style sits
together to make sure that everybody is on the same page and understands the product.
Hence, this meeting has the merchandiser, production in-charge, cutting, finishing, fabric
in-charge, line supervisor, pattern master, sample master etc. All tentative problems are
discussed and solutions sought to execute the order smoothly.
 Pilot run – once pre-production meeting is done the factory does PILOT RUN. Factory
cuts 100 – 200 garments based on the order quantity. The pilot run is done on the

32. 32
assembly line and is aimed at ensuring that the operators of the assemble line understand
the required quality levels. This is very essential since all samples prior to the pilot run
(fit samples, PP & size set) are made in the sampling unit.
 Once pilot run is approved the factory goes into bulk production. In line and interim
inspections are preformed during the production process to ensure that the final product
quality meets the required quality level.
 Once 80 – 90 % of the goods are packed a pre-final audit is done. This helps in taking
corrective action if required before the final audit. Generally since the final audit happens
very close to the shipment date, the pre-final gives factory a chance to amend problems if
any.
 The last is the Final audit. This is the last checkpoint before shipment. All aspects
(packing, packaging, measurement, construction & visuals) are evaluated. Once the
garments adhere to the required quality standards in all the parameters the shipment is
passed and then the shipment is moved to thee logistic team.
 Now the merchandiser interacts with the logistic department, takes the shipment schedule
and sends the same to the customer.
4.1.7 Responsibility of Senior Merchandiser
 Sample development
 Price negotiation
 Order confirmation
 L/C opening
 Opening summery
 Sourcing
 Material collection
 Production planning
 Production monitoring
 Quality assurance
 Arrange final inspection

33. 33
4.1.8 Function of a Merchandiser
Procuring of garments orders:
-Receiving order inquiry.
-Garment costing.
-Garment price quotation.
-Price bargaining.
-Order confirm.
-Confirm schedule
Procuring of raw materials:
-Preparation and calculation of fabrics and accessories required.
-selection of appropriate suppliers.
-Possible date of arrival in the factory.
- Costing and payments.
-Follow up delivery of fabrics and accessories as per schedule.
-Sending standard specification of desired materials.
- sending procuring information to the stores.
-Inspect
Production of garments:
-To know order quantity.
-To know shipment date.
-Garments production planning (sample section, production section, quality control section,
finishing section, store etc)
-Pre-shipment inspection schedule.
- final inspection schedule.
Shipment of garments:
-Mode of transportation (Sea, Air….)
-shipping lines (own/buyer)
-FOB/CNF/CIF (Cost and Freight, Cost Insurance Freight)
-Export documents.
Negotiation with buyer
A successful negotiation outcome does not generally occur through luck, but by following a clear
process. The process reflects the different levels of knowledge of the subject of negotiation, various

34. 34
parties and the way they communicate at various stages in the negotiation. The following is an outline
of steps essential to effective negotiation:
Preparation
Effective preparation is also vital to successful communication. It is essential that the buyer also has
identified the maximum and minimum positions that she will accept for a range of factors including:
product price
order size
Lead- time.
Offer
The buyer and supplier can make specific proposals to set the boundaries of the negotiation.
Counter and revised offers
This is the real bargaining where elements of the order, such as number of units, product details, lead-
time and so on are being decided in the context of an overall cost price the buyer should make firm
proposals.
Qualities of technical Merchandiser:
For a merchandiser, the most important quality is that he must have to be educated.
He must be very skilled in English language as he has to communicate with the foreign buyer
and supplier.
He must have to be computer literate, i.e. a good idea about computer operating e.g. office
program like Ms Word, Ms Excel and Ms Access etc.
He must have enough knowledge about browsing e.g. e-mail sending and receiving, net
searching etc.
He must have a good appearance and should be smartly dressed.
He should be capable of thinking at multi-level stage because he has to maintain
communication outside the factory with buyer and supplier as well as inside the factory
with various sections like sample, marker, sewing etc.
A merchandiser should have adequate knowledge regarding following:
Different types of wash/dry processing
Different types of dyeing and printing process of fabric
Different types of fabrics/accessories and current market price of them
 A merchandiser always should have a mentality to impress the buyers by means of:
 Right Product.
 Right Qualities.

35. 35
 Right Quantities.
 Right Time.
Purchase order sheet:
What does a P.O. contain?
The Purchase Order is provided to the vendor as a record of the Purchase. A sample Purchase
Order Sheet indicates the followings-
Purchase Order Number
- The number is assigned to the purchase order. This is used to identify a
definite order and for departmental record keeping.
Vendor’s Name and Address
- The complete name and address of the individual or company which
manufacture the merchandise.
Ship To
- Receiving Department address.
Deliver To
- The complete name and location of the individual who requested the ordered
goods.
Date
- The date at which the purchase order was received and also the date at which
the order will have to be shipped.
Payment Terms
- Payment terms defined by Purchasing Department of the buyer.
Ship Via
- Shipping instructions entered by Purchasing Department.
F.O.B.

36. 36
- Shipping terms defined by Purchasing Department.
Freight Terms
- Freight terms defined by Purchasing Department.
P. O. Line No.
- The sequential line number which corresponds with the line on the requisition
(i.e., the first item would be line 1; the second would be line 2, etc.).
Quantity
- The quantity of the item being purchased.
UOP (Unit of Purchase)
- The packaging of the item to be purchased (i.e., each, box, package, poly,
dozen, carton etc.).
Unit Price
- The unit price of the item ordered.
Total Price
- The total quantity of the item multiplied by its unit price.
Description
- The complete description of the item ordered in detail, i.e. color, size ratio,
critical designs, buttons and other trims, printings, sewing thread used etc.
Total
- The total amount of all items on the purchase order.
- During partial shipment, color-wise and size-wise quantity to be shipped is
mentioned.
For Questions Concerning This Purchase Order
The buyer's name and telephone number to contact for questions concerning this
purchase order.

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4.1.9 Importance of Purchase Order:
The Purchase Order Sheet is abbreviated to PO Sheet. This is one of the very important
documents for both buyer and manufacturer. It can be explained from the both buyer’s and
seller’s point if view.
From the buyer’s point of view,
A Purchase Order Sheet is used to request product e.g. garments like shirt, trouser, shorts,
kid’s item etc. from manufacturer. Rather than calling the manufacturer to request their
purchase, they send them a Purchase Order Form.
On the Purchase Order Sheet the buyer describes three most important things:-
What it is that he requires i.e. garment details?
When he wants it i.e. the date of delivery?
How much he expects to pay for it i.e. unit price and total price?
By using this Purchase Order Sheet, the buyer can ensure his receive exactly what have been
ordered at the right time and at the right price.
From the seller’s point of view,
The manufacturer can use the purchase order to clearly specify the delivery details, billing
information and order details for supplier or manufacturer.
a) The manufacturer can identify the followings from a Purchase Order Sheet:
Purchase details and requested delivery date
Delivery details for the items purchased
Billing and supplier information
Quantity and unit price of each item
Total price of the purchase
b) By using this Purchase Order Form, the manufacturer can:
Monitor the delivery of goods from suppliers
Put in place an approval process to control project expenditure
Ensure that suppliers deliver exactly what was requested
Report the status of procurement to management.
Application of the P.O. Sheet in the Factory:
From the previous discussion, this is much clarified that the Purchase Order Sheet is how
much essential for beginning the production of a particular order to be purchased.

38. 38
Way of Application:
 When an exporter or a buyer confirms a merchandise to purchase, he sends a Purchase
Order Sheet to the assigned merchandiser.
 After receiving the P.O. sheet, it has to be sent in each department of the factory
related to the purchasing from getting order to the shipment of the merchandise.
Therefore, the P.O. sheets are copied a few copies –
a) for cutting section,
b) for commercial section,
c) for each production floor,
d) for the merchandiser himself,
e) For others if needed.
After receiving the copies of P.O., first the cutting section starts their action and the
hereafter functions go on accordingly one after another.
Possible Problems during Application:
The application is not so much easier as described before. There may create lots of problems
regarding the copies of P.O. The most two of them are as below –
As the activities start from the cutting section, the P.O. sheets should be reviewed as very
good and notified the number of pieces to be cut as per size and color. Then the
cutting master proceeds on his function. But the problem arises when he is to find out
the necessary points (color –wise and size –wise quantity) from each of the large
number of P.O. sheets. It becomes very difficult for him to spend such a huge time
beyond this. Besides, sometimes in our country the cutting incharges are not literate
enough to study the P.O. sheets as well.
Another problem arises when a large number of P.O. sheets have to be copied. We know
that the Purchase Order for a particular product may contain a lot of sheets having
different P.O. number. The merchandiser does not do this work himself rather it is
generally done by the peon or the photocopier. So, often it occurs that there have to
face problems during copying them and arranging them in order according to the P.O.
number.

39. 39
Solution of the Problem:
The problems mentioned above must have to be eradicated in order to minimize the obstacles
during further functions. And a merchandiser is the only one who can find out the solution.
Just he has to perform one more function after obtaining the P.O. sheets.
The merchandiser studies the P.O. sheets from point to point and prepares a Microsoft Excel
Sheet notifying each important point separately. The necessary points to be mentioned are as
follows –
1. Factory Name,
2. P.O. Number,
3. Style #,
4. Color Ratio,
5. Size Ratio,
6. Quantity as per size,
7. Total Quantity,
8. Poly – no. of pieces per poly,
9. Carton – no. of pieces per carton,
10. Delivery Date,
11. Order replete or not.
Therefore, a lot of P.O. sheets will be summarized in one sheet that makes easier to study for
others as well as also increase the productivity.
A sheet is given next where there a number of P.O. sheets are summarized. If it is compared
with the P.O. sheets stated before, we shall find out that how much it is easy to study than
that of a number of sheets.
4.2.0 Guidelines for a merchandiser:
These guidelines are very important for a merchandiser that helps him to do his job
efficiently. These are the care instructions while a merchandiser is sustaining his
responsibilities. These care instructions are divided into two steps as following:-
1. Preliminary Care Instruction- for fabric lab test.
2. Final Care Instruction- issued after garment test. It may vary due to use of special
trims (rubber patch, print, appliqué, lining, etc.
Description of various care instructions are given below-.
During Submitting Samples:
Samples always should be sent with below information on tag:
Date
Style

40. 40
Color
Size
Full description of garment
Fabric description (content, construction, weight etc)
Name of customer
Name of vendor
Unit price (if needed)
Any sample sent to buyer must be the good one in terms – no matter for what the
customer is requiring this.
4.2.1 Classification of different types of samples:
1. Development sample
2. Advertisement sample
3. Fit sample
4. Photo Sample
5.Pre- production sample
6. Lab test sample
7. Size set sample
8. Seal sample
9. Counter sample
10. Production sample
11. Shipment sample
Development sample:
Which sample made by available fabric and accessories, with different design and style, to
collect order from the Buyer. That sample is called Development sample.
Advertisement sample:
This sample required from Buyer as used for advertisement of coming design in the show room
of the Buyer.
Fit sample:

41. 41
From all the sizes of the order M or L size sample made and sent to the Buyer for Dummy
fitting. After confirmation of fitting Buyer will made a size spec of all sizes by grading from this
size.
Pre-Production sample:
Which sample made by actual fabric and accessories and sent to the Buyer for final approval to
start production, this sample is called Pre-production or P.P. sample.
Lab test sample:
This sample made by actual fabric and accessories and sent to the Buyer nominated laboratory
for testing of fabric construction, GSM, Shrinkage, color fastness, print and embroidery color
bleeding and accessories color bleeding also.
Size set sample:
According to Order sheet all size sample made by actual fabric and Accessories and sent to
local Buying House for approval to start Production these sample is called Size set sample.
Seal sample:
size set approval one sample they seal, sign and tagged then It is hanged in the production floor
this sample is Seal sample.
Counter sample:
Which sample reserved with the pattern for repeat order from the Buyer this sample is called
Counter sample.
Production sample:
When production start in Apparel Industry , from the first output sample need from Buyer
to compare with the Pre production sample.
Shipment sample:
When all production is completed and ready for shipment that time sample required from Buyer
covering all color and all size, those sample is called shipment sample.
4.2.3 Standard Merchandise Test Method:
Merchandisers always have to be aware of buyers’ satisfaction, i.e. how the buyer will be
satisfied as much as possible. To do this, the requirements of buyer should be fulfilled
accurately, such as –
Required Crocking Fastness

42. 42
Required Light Fastness
Required pH (for washed garments)
Required Dimensional Stability of Garments
ETC.
The merchandiser must have to check those factors on the garments. Though this includes in
the quality department, merchandisers should have a good idea about the testing metho
4.2.3 Fabric consumption calculationMen’s:
Item Men’s T shirt:
Measurement
Measurement chart
No. Parts Actual measurement(cm) Allowance
(cm )
Total
1 Chest 96 6 102
2 High point solder 65 5 70
3 Sleeve length 20 5 25
4 Arm hole 46 3 49
5 Neck 58 3 61
6 Neck width 4 3 7
Formula:
For Body
CPD (Consumption per dozen)= Length × Width×12
pices×GSM/10000000
= 102×70×12×150/10000000
= 1.2852 kg
Here, GSM is 150
For Sleeve
CPS = Length × Width×12 ×2 parts×GSM/10000000
= 25×49×12×2×150/10000000
= 0.441 kg

43. 43
Here, GSM is 150 and in 1 piece of T-shirt has 2 sleeves
For Neck
Neck = Length × Width×12 ×GSM/10000000
= 61×7×12×200/10000000
= 0.10248 kg
Here, GSM is 200
Total consumption = body + sleeve + neck + 7 % wastage
= 1.2852+0.441+0.10248+0.07
= 1.89868 kg/dozs
So total fabric required to make one dozen of T-shirt
4.2.4 Costing
Coat a price for 1 dozen Men’s T-shirt
1. Fabric consumption 2 kg/dz $5.0/kg $10/kg
2. Accessories $2/dz $2/dz
3. CM (cost of manufacturing) $2/dz $2/dz
Total =$14
A) Direct cost (raw materials) = $14.0
B) Indirect cost (15% to 20% of direct cost)
Indirect cost = $14.0 x 20%
= $2.8
Total = $14.0 + $2.8
= $16.8
C) Profit @5% = $16.8 x 5%

44. 44
= @0.84
Therefore, total cost = $16.8 + $0.84
= $17.64
= $18
So, the cost for 1 dozen mean’s T-shirt is $18
Costing tips for the knits Items Costing:
Before start costing
1) Fabrication: You must take clear idea regarding the fabrication before taking the order
from the buyer / buying house. After then, you must ensure that, you have strong source of
the followings fabric.
2) Size spec: Make sure that, you have got the correct/latest size spec with the
measurement of all the sizes, which will be ordered. Many times we see that, PO sheet has
come with new bigger size which was not during the costing.
3) Fabric color: Try to know that, how many colors the style has & also try to know that,
color wise order qty ratio.
4) Qty: Take information regarding approximate order qty.
5) Shipment date: Asked buyer for the shipment date & check with your production
department that, they have enough space for shipped out the followings qty within the require
ship date Or tell your possible date.
6) Test requirement: Let you know that, the order has any test or not.
7) L/C payments term: Take a previous l/c copy from them & discuss with your
commercial people regarding all the terms along with payment terms.
8) Inspection: get a confirmation from the buyer that, who will inspected the goods. If
third party then who will pay their charges.
9) GSP: confirm that, buyer has need the GSP or not.
Calculating Fabric Consumption

45. 45
1) Body Consumption: Calculate the body fabric consumption at first. If possible
calculate it after make the pattern. Be confirmed regarding the dia. Calculate the consumption
with adding + 5 gsm extra which fabric is sells in kg (s/j, pique, rib etc). Or reduce 2” (in
width) from the both side which are in yards (tricot, taffeta etc). Moreover, if the garments
are wash garments then make sure that, the pattern has the wash allowance.
2) Rib: Calculate the rib consumption carefully because sometimes the garments have rib
at cuff opening & bottom hem. Some people mistakenly do the consumption considering one
cuff.
3) Neck tape: Calculate the consumption of neck tape.
4) Appliqué & others fabric: Make sure that, you are not missing any appliqué & any
other fabric.
5) Estimate the wastage: Normally we add 9% wastage for the knit items. However, it’s
may vary depends on how many process the garments have. If it is with only front chest print
then 9% is ok but if with all over/rotary print, with heavy wash etc then you must increase the
wastage. Moreover, if the garments with pigments dye then add minimum 25 to 30% wastage
because in this pigment dye garments reject percentage is very high.
Others item
1) Print: If the garments have print then make sure that, you have a clear art work of it.
Check that there clearly mentioned the print quality, dimension & placement. Send the art
work to your printers for a better price idea. Also let you know from your printers regarding
the difficulties of the followings print. Many times we found that, buyer has asked for so
many type/kind prints in same body which is so difficult for production. Such as, if buyer
asked for Flock + discharge & foil print in at the same artwork then it is not possible for
production.
2) Embroidery: Discuss with your embroidery supplier regarding the embroidery & take
price quotation.
3) Wash: Take the wash price quotation from washing factory.
4) Test: Confirm the charges of test from the testing company.
Accessories & trims
1) Sewing thread: Confirm that, which thread you need 100% cotton, spun polyester or
filaments. Then ensure the count 50/2 or 40/2 or any other denier. Its may vary on
fabrications. Regarding the pigment dye garments we normally used cotton grey color cotton

46. 46
thread. Calculate the sewing thread consumption part by part & add require wastage
percentage.
2) Labels: Take the quotation from your supplier for the entire woven & satin/paper label.
3) Tape: Calculate the consumption of tape if it has, such as Velvet, herringbone or
canvas etc.
4) Elastic: Make sure which denier & width it need. Then take the quotation from
supplier.
5) Zipper: If the garments have zippers then confirm that, from where you will purchase
that. Many time the logo zipper need to import the mold from abroad. Make sure the zipper
quality, such metal, nylon or vislon zipper. Check the zipper measurement from your
production department and get prices from your zipper supplier.
6) Button: Take the button price from your supplier if the garments have it.
7) Inter lignin: Calculate the inter lignin price if the garments need.
8) Patch or badge: Calculate the patch or badge or others metal item if the garments
have.
9) Finishing item: Tissue paper, silica gel, hang tag, barcode sticker, back board, h/tag
string, scotch tape, security tag calculate the prices of these item.
10) Hanger: Take the quotation of hanger.
11) Poly: Make the measurement of poly. Confirm the quality & with adhesive or not.
12) Carton: Find out the carton measurement & take the prices from carton supplier along
with top, bottom & divider.
13) Gum tape: Confirm the gum tape quality that, whether it is normal transparent or with
any logo. Then take the price quotation.
14) PP belt: Take the price quotation of pp belt if buyer asked it.
15) Carton sticker: Take quotation for sticker.
Commercial cost
Normally we add 3% of total purchase (Fabric cost+ other item cost + Accessories cost) as
commercial cost if the L/c payments terms is as sight.
If the l/c is 60 days deferred then you can add 7.5% additional cost of total price and it will be
15% for 90 day deferred.

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4.2.5 CM (Cost of making)
Calculate the CM after discussion with your production department. It’s vary depends on
require machine qty & output qty.
Profit
Normally we add 20% of CM cost with the price as profit.
Yarn selection:
Yarn selection is the most important for a merchandiser. It is the another responsibility of
merchandiser. Different types of yarn are used in this industry to make fabric. It depends on
buyer requirements.
Yarn count calculation for different types of fabric weight is as follows-
Fabric Name Fabric GSM Yarn count Machine Dia Finished dia
Single jersey 110-120 40 s/1 18.5”-34.5” 17"-- 33"
125-135 34 s/1 18.5”-34.5” 18" -- 34"
140-150 30 s/1 18.5” -34.5” 19" -- 35"
160-170 26 s/1 18.5” -34.5” 20" -- 37"
180-190 24 s/1 18.5” -34.5” 20" -- 37"
200-220 20 s/1 18.5” -34.5” 21" -- 38"
Interlock 220-230 30 s/1 18.5”-34.5”
230-245 28 s/1 18.5”-34.5”
250-260 26 s/1 18.5” -34.5”
270-280 24 s/1 18.5” -34.5”
1/1 Rib 180-190 30 s/1 18.5” -34.5”
190-210 28 s/1 18.5” -34.5”
210-230 26 s/1 18.5” -34.5”
230-250 24 s/1 18.5” -34.5”
Pique 170-180 30 s/1 18.5" -- 34.5" 25" -- 47"
180-200 28 s/1 18.5" -- 34.5" 25" -- 47"
210-220 26 s/1 18.5" -- 34.5" 26" -- 48"
220-245 24 s/1 18.5" -- 34.5" 27”-49”
260-270 20 s/1 18.5”-34.5” 28”-50”

48. 48
Single lacost 170-180 30 s/1 18.5" -- 34.5" 24" -- 45"
190-200 26 s/1 18.5" -- 34.5" 25" -- 46"
210-220 24 s/1 18.5" -- 34.5" 26" -- 47"
220-245 22 s/1 18.5”-34.5” 27" -- 48"
Double lacost 170-180 34 s/1 18.5" -- 34.5" 25" -- 48"
190-200 30 18.5" -- 34.5" 26”-49”
210-220 28 18.5" -- 34.5" 27”-47”
220-250 24 18.5" -- 34.5" 27”-45”
Lycra Jersey 170-180 34 s/1+40dI 22" / 25" 21" / 24"
Lycra Jersey 190-200 30 s/1+40dI 22" / 25" 22" / 25"
Lycra Jersey 210-220 26 s/1+40dI 22" / 25" 23" / 26"
Lycra Jersey 230-240 24 s/1+40dI 22" / 25" 23" / 26"
4.2.6 Some Important Instructions to be a Good Merchandiser:
Tips to be well – Organized
Always try to be a good negotiator with the suppliers and prices need to be vetted with
minimum 3-4 parties.
Keep all records of quotations as reference.
Make a list of work to do and prioritize them for action.
Make a Master file against a program for details records.
Use file dividers to keep different information in a systematic way.
Update your file regularly with relevant important information. This is a must.
Tips for Presentation:
Try to be very good in presentation. It is much more important because it gives a better
impression of the company to the buyer.
Review the definite program very well as much as possible.
Take an over – all good idea about the program.
Try to be relaxed and do not take any pressure in mind before presenting.
Try to be polite in manner during presenting the program.
And the most important thing is that try to be confident yourself.
Tips for Writing Mails:

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a) Try to present yourself as a dutiful person to his job within the mail.
b) Put date accurately.
c) Give a relevant subject and regarding topic.
d) Be specific about your statement.
e) Try to shorten your statement as much as possible.
f) Do not start a mail with negative approach – even the email is regarding negative
issue.
g) If there is a request from buyer that you can not comply, submit your message in a
different way and try to provide options (if possible) with alternate solutions.
Hence, in an over – all sense, good merchandising is –
 to be smart enough in negotiation,
 to be very good in planning,
 to be intelligent in maintaining things,
 to be able in keeping good relationship,
 And to be well organized for keeping records (very very important).
Merchandising Chronological Processes:
A). Salesman Samples, Counter Samples, Approval Samples, Photo Samples,
Preproduction Samples, Production Samples, Shipping Samples.
B). Swatch and Trims, Trim’s related Affairs, Communication in international
Business.
Sample: Reference garment corresponds to
• The artwork (styling) done by designer and/ or developer
• Particular purchase order
• Any revision to the style work
• Conform with any specific requirement etc.
a). Sequence of sampling
 Serial No. Name of Sampling
 1 1st Pattern
 2 2nd Pattern
 3 Counter Sample
 4 Sales Man Sample
 5 PHOTO Sample
 6 Approval Sample (Size Set, Mock-up)

50. 50
 7 Pre-production
 8 Production Sample
 9 Shipping Sample
b). First pattern
 Def.: The first physical version of any garment as per the artwork done by designer
and/or developer.
 HUMAN MIND > SKETCH > PAPER PATTERN > SAMPLE
 Purpose: See the Design work & test the fitting
 Status: Nothing specific
 Material: Available
 Price: Not conformed
 Quantity: 1 (for customer) + 1 (for Merchandiser)
 Delivery: As per urgency

c). Second pattern
 Usually designer/ developer always ask for some CHANGES to the first pattern.
 Second pattern is made as per comments.
d). Counter sample
Where first pattern is made on designers artwork, Counter sample is to make not on
designer’s artwork, has to follow another sample given by the merchandiser.
 Purpose: See the Workmanship &Test the Factory skill.
 Status: Nothing specific
 Material: Available
 Price: Not conformed
 Quantity: 1 (for customer) + 1 (for self keeping)
 Delivery: As per request
e). Salesman sample
Sample is made when price is confirmed and orders are on speculation, usually in L size in all
color combinations of expected order. Buyer arrange a meeting with its customer and record
their response on order quantity per color, size etc. and finally place order to their vendor.

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 Purpose: Sales Meeting by Retailers, Market Appraisal, Demand / Order Forecast
 Status: Final stage of the order confirmation
 Material: Actual
 Price: Confirmed
 Quantity: There is minimum quantity per color combination
 Delivery: Very important to meet the delivery date.
f). Photo sample
Samples are made with actual color and material to be worn by the models on the event of
shooting for catalog.
g). Approval sample
In any discrete period of time, whenever it required any revision in the sample, a new sample
is made (some times mock-up is workable too) as per new specification. It is sent to buyer for
his approval of the conformity that- the revision is done correctly.
h). Size set
Consists of 1 pc from Each Size for Each Color combination.
j). Pre-Production sample
When material for bulk production arrived, factory makes a sample with the actual material
and sends to buyer.
k). Production sample
It is a reference to the buyer that the bulk is being produced as per specification. Buyer wants
to be assured that correct material is sourced and line workmanship confirm to the quality.
l). Shipping sample
A sample is kept from every Pre Shipping inspection to be referred, if required, after the
order has been delivered. Usually for any disputes (e.g. Claim) shipping sample is important.
m). Swatch
Swatch is a presentation of all the materials is (Fabric & Accessories) used for any specific
style/order. Usually small piece of fabric and each piece of accessories are attached in board
paper in a systematic manner. Swatch is very important for production line to make the
correct construction of a garment and QC department ensures it. Concerned merchandiser
should confirm/approve the swatch.

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n). Trims
Trims cover all the items used in the garment except the basic fabric. There are hundreds of
items used to manufacture the garments, proper selection of trims and its quality are very
important for styling, otherwise the garment may be rejected or returned by the customers.
Following is a part of list that covers some names of the trims:
• Zipper/Fastener
• Sewing Thread
• Main Label
• Flag Label
• Button
• Elastic
• Eyelet
• Tags
• Tag pin
• Plastic clip
• Sticker
• Hanger
• Poly bag
• Scotch tape
• Gum tape
• Photo Board
• Back Board
• Tissue
• Carton. Etc.
o). Communication in international business
• Telephone Conversation.
• Fax/ E-Mail
• Formal Meeting
• Lunch & Dinner
p). The information normal get about an order
1. Factory Loading

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2. Factory Capacity
3. Factory History
4. Factory Setup Details
5. Market Reputation
6. Type of Buyers Dealing
q). How a merchandiser meets buyer requirements
1. Merchandiser detail to buyer about factory profile.
2. Merchandiser Understand the Order sheet.
3. Arrange the all component for order execution.
4. Production Tracking.
5. Timely Shipment.
r). Method of purchasing raw materials
Here fabric and some related accessories are the main raw materials. They are:
1. Lab-Dip
2. Approval the Lab-Dip
3. Collect price Quotation
4. Negotiation
5. P.I. Received
6. Back to Back L/C transfer
7. Delivery Chelan received
s). Procedure of imported goods
• Procure of IRC
• Price Inquiry (Quotation)
• P.I. Received and Placing Order
• L/C Opening
• Received Shipping Advice
• Facing Customs
• Closing Transaction

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t). How does the accepted order is passed on the floor
1. Merchandiser searches the scope of knitting machine according to required Gauge.
2. Make production schedule
3. Trim & Accessories Card Prepare
4. Make well finishing according to buyer requirement in case of -
• Labeling
• Zippering
• Buttoning
• Ironing
• Packaging
• Cartooning
u). How merchandiser tracks his production in the factory
1. Follow-up yarn supply in factory
2. Knitting follow-up
3. Linking follow-up
4. Accessories supply
5. Finishing follow-up
6. Ready for export
4.2.7 Merchandising Calendar
Firms commonly establish a merchandising calendar that guides the timing of product
development processes and/or the purchase of finished goods for line development. A line
planning, development, and presentation calendar includes weeks of the year in relation to
product development activities. It also defines product development in relation to the selling
periods the firm has defined. The activities included in a merchandising calendar are the
same items presented in the merchandising taxonomy in Chapter 3, "Merchandising
Processes."
A merchandising calendar for a children's wear company that sells the line at wholesale and
in outlet stores. According to the calendar, the firm has four selling periods-spring, summer,
fall, and holiday. The product development cycle for a selling period is about 30 weeks. The
calendar identifies 49 activities required to develop the line. The numbers 1, 2, and 3 in the
shaded boxes represent the development of three different merchandise groups that will be
made available to vendors sequentially to keep fresh merchandise on retailers' shelves during

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a single selling period. Designers are key players in the product development process.
Responsibilities for product development are discussed here from the perspective of creative
design and technical design.
During-the-Period Trend Analysis
Merchandise planning and forecasting is an ongoing, dynamic process. A merchandise plan is
only good as long as it meets the needs of the firm and its customers. Plans should be
reviewed at least every four weeks and modified as the need becomes apparent. Trend
analysis needs to be conducted (luring the current selling period, because after the period
ends, it may be too late for planning the same selling period for next year. Trend analysis
might develop during the season as follows:
 Evaluate fast sellers
 Determine the appeal of the product-quality, style, color, fit, price, other.
 Reorder for continued sales potential, if time permits.
 Rework merchandise presentation to feature similar and related merchandise.
 Update trend analysis.
 Evaluate slow sellers
 Determine problem(s) with the product-quality, style, color, fit, price..
 Rework merchandise presentation to better display merchandise.
 Mark down promptly if price is too high.
 Consider stage of fashion cycle.
 Update trend analysis.
End-of-Period Trend Analysis
Analyzing overall productivity by classification is the final component of classification
analysis. In a multi-store operation, it may be useful to look at combined statistics for a
classification by store. The evaluation criteria include sales volume, turnover, markdown
percentage, maintained markup, and current sales trend. The means are presented for each
criteria at the bottom of the table. Sales volume is total sales for the classification during the
selling period being evaluated. Turnover is the number of times average inventory on hand

56. 56
was sold. Percent markdown is markdown dollars as a percent of net sales. Maintained mark
up is the difference between cost of merchandise, including its transportation, and selling
price. Percent change in sales reflects the sales trend as compared to the same selling period
last year. Other criteria might be included depending on the firm's goals.
Documentation of merchandising
Production merchandising process starts once the order / fabric commitment is received and
the product development department hands over the file to production merchandiser and ends
when the goods reach the buyers. The entire cycle involves all activities directly or indirectly
related to procuring of materials, planning and monitoring of the order.
I). Order confirmation document:
 Copy of master LC.
 Contract sheet:
 Contract no
 Style no
 Shipment date
 A.Q.L
 Order quantity & size Ratio
 Fabric description
 Labels & position
 Buyer’s comments & regarding approved sample.
 Proved trim card.
II). Import document:
 Performa invoice.
 Commercial invoice.
 Packing list.
 Utilization permission.
 PSI (Pre shipment Inspection) Certificate.
III). Documentation on received of the material at the factory:
 Inventory report.

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 Swatches (on received fabric and accessories).
IV). Documentation: Production oriented
 Production Plan.
 Daily production report.
 Daily quantity report.
 Daily production and inspection report
V). Export documentation:
 IC (Final Inspection certificate).
 BL (Bill of lading).
 AB (Airway bill).
 PL (Packing list)
 Certificate of origin.
Payment monitoring:
After getting order from buyer A L/C have to open by the buyer .L/C means Letter of Credit.
It is a conditional undertaking of payment. It is a document issued by a bank on behalf of an
applicant undertaking to make payment to a beneficial up to a stated amount of moneys
within a prescribed time limit and design stipulated documents.
Types of L/C:
1. Revocable L/C: This type of credit can be amendment or cancel by the applicant
without only prior notice to the beneficial. Here all risks are involves for the seller but
buyer has more flexible.
2. Irrevocable L/C: This type of credit ca be amendment or cancel only to the
agreement of all parties concern.
3. Irrevocable & Confirmed L/C: This type of credit involves the undertaking of the
advising bank in addition to that of issuing bank .It means that issuing bank request a
2nd bank to add its own confirmation to the credit .So that the confirmation bank is
responsible to make payment if the issuing bank to pay the beneficiary.
4. Transferable L/C: This type of L/C that is transferable as per the need.
5. Back-to-Back L/C: This type of L/C can be against a valid expert L/C. Master L/C.
It is so much popular in textile area.

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If we open a L/C then need some things that are given below:
1. Trade license
2. Memorandum Certificate
3. Membership certificate
4. IRC
5. TIN
6. Bond license
7. Insurance
8. Factory Insurance
9. Agreement with the house owner
Benefits of L/c:
Sellers End:
1. Without having cash payment
2. Guaranteed business without investing any cash involvement
3. Risk free
Buyers end:
1. Guaranteed business without investing any cash involvement
2. Without having cash payment.
RESULT:
Merchandising is an important work in garments sector. Without merchandiser no garments
can run smoothly. Without buyer no garments company can exists. For this reason buyer
satisfaction is very important. In garments sector buyer means especially foreign buyer who
come to our country and buy products from our garments. At this time of giving order if
buyer satisfied with the help of merchandiser then the buyer will come again. Buyers another
condition is delivery the products in due time. Merchandiser take care this condition
seriously. Because if buyers do not get products due time then they will not come again that
garments. So merchandisers are handling and caring all kinds of work from taking order to
delivery products to buyers and always wants to satisfy them because garments or garments
sector’s welfare depends on buyer’s satisfaction.

59. 59
LIMITATION:
 It was very different to collect the information from various personnel for the
job constraint.
 Garments policy was not disclosing some data and information for obvious
reasons.
 Due to time limitation many of the aspects could not be discussed in the
present report.
 Since the garments personals where very busy, they could provide me little
time.
 Another significant problem faced during the preparation of this report was the
contradictory explanation of a single subject by different employee.
 Because of the limitation of information some assumption was made. So there
may be some personal mistake in the report.
 The time 5 months only, which is insufficient to know all activities of the
garments functions.
 Lack of experience in this field.
 Lack of proper authority to conduct the interview program
 Due to long distance between the factory and University campus it was very difficult
to communicate and meet with the supervisor.

60. 60
RECOMMENDATIONS:
 Company should not plan to produce without considering its actual plants capacity.
 Machine break down is a common cause of production delay affecting delivery
schedules. So, company should improve maintenance and repair of sewing machines
and equipment.
 Company should introduce more efficient layout and work methods
 It should cut idle sewing machine time and reduce wasted time of workers
 It should reduce stocks and organize production more effectively
 It should allow more efficient changeover to new products
 Learning more skills
 Paying more attention to productivity, quality and delivery schedule.
 Avoiding absences and lateness and working harder
 Adapting faster to production changes and following rules
 Meeting targets and standards
 Avoiding accidents and making useful suggestions
 The company should be more aware of JIT (Just in time) in allover its function.
 The company should also pursue its vision of innovation, speed and service-driven
marketing, activities to the complete satisfaction of the customers.
The above recommendations should be achieved in terms of:
 Creating an open mind towards the improvement process.
 Broadening the perspective beyond normal tasks with focus on meeting requirements
of internal customers i.e. next process.
 Overcoming the cultural and attitudinal for the improvement.
 Transfer of Process improvement methodology.
 Delivery process for establishing the internal customer supplier linkages, performance
indicators and establishing preliminary improvement targets and action plans on some
of the issues.

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CONCLUSION:
Today’s garments fully depend on merchandising. A good merchandiser can develop the
quality of product and increase the sales of the product. Merchandising is a big job and is a
complex one. It is so much important in our garments industry.
Merchandising is a managerial work. It is the centre of all garments related activities. I learn
sample development. Garments costing, quality, banking, buyer negotiation by thesis.
Bangladesh is a developing country in this unemployment problem is slightly overcoming by
our garments or apparel sector. Merchandisers goal is to collect order, execute, develop the
best & supply the best and achieve the safety and trust from buyer.

62. 62
RREFERENCES:
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