Merchandising department is the star of the department among all the working departments in the Export concern, because Merchandising is the only department having maximum control over the departments and total responsible for Profit and loss of the company.
After LPG (Liberalization, Privatization & Globalization) the business gets more important and now merchandising is on its hot seats. So, it is necessary to understand the day to day happenings of the star department.
Merchandise- means goods bought and sold; and trading of goods.
Merchandising- is an activity of selling and promoting the goods.
a. What does a Merchandiser do?
Merchandiser is a person who interacts with the buyer and seller, and also puts efforts into proper relation between buying offices/ buying agents/ agency and seller/ exporter in terms of executing an order.
b. Merchandiser in garment industries:
In the field of marketing and services, Merchandiser is at a position of utmost importance, He is the person who co-ordinates with various departments for a uniform business.
Objects of Merchandising
Merchandising denotes all the planned activities to execute and dispatch the merchandise on time, taking into consideration of the 4 Rs to replenish the customer.
- Right Quantity: To dispatch right quantity of product what buyer ordered.
- Right Quality: It should be with right quality as accepted both parties.
- Right Cost: Everybody wants more from what they are paid.
- Right Time: No one wants to wait idle even in a Restaurant. Keeping delivery schedule is mandatory.
Qualities of Merchandiser
- Communication Skill: The communication is very much important to promote the business activity. The merchandiser should remember that communication must be lurid and should having face to face conversation with the buyer.
- Planning Capability: Merchandiser should be capable of planning, based on the planning the order is to be followed. If the planning is not done properly it will directly affect the delivery time of the order.
- Decision making: For a Merchandiser, decision making power is most important. He should think about the decision to be taken and to act in a right way.
- Loyalty: Loyalty is an essential character of human beings. Especially for the business people like merchandiser it is a must.
- Knowledge about the field: Merchandiser should have adequate knowledge about the garments, Computer knowledge, and technical knowledge to communicate with different people in the business is a must.
- Co-ordinate & Co-operate: Merchandiser is the person who is actually co-ordinate with the number of departments. To Co-ordinate with different people in the industry he should be co- operative.
- Monitoring ability: Merchandiser should monitor to expedite the orders.
- Other qualities: Education, Experience, Situational Management, Ability to Evaluate, Dedication, Knowledge of expediting procedures.
Function of Merchandisers
- Developing new samples, execute sample orders
- Raw materials / Accessories arrangement
- Production scheduling (or) route card drafting
- Approval of various Process, Pattern and size set
- Pre production follow up
- Meet Inspection Agencies
- Production controlling
- Identifying shortages and make arrangement for the shortages
- Following quality assurance procedures, quality control procedures
- Monitoring the in-house, sub-contractors and junior activities
- Buyer communication
- Communication with sub-contractors, processing units & other 3rd parties
- Proper reporting
- Highlighting to the management
- Record maintenance
- Developing samples
- Placement of orders to suppliers
- Taking measures for consistent production
- Taking preventive action to maintain the targeted performance in all areas of activities
- Attending meeting with superiors and furnishing the required details about merchandising
Costing or Calculating Garment Price
In many companies, costing is done by costing officer & CEO. But in some places, it is done by the Merchandisers.
Some important terms in costing
- Yarn cost
- Process cost
- Process loss
- CMT (Cutting, Making & Trimming)
- Negotiation (getting the best out of a deal)
- Commission percentage (%) for Middle man
- Buyer specification (It is buyers responsibility to specify the quality required)
- Mode of Shipment (sea, air)
- FOB (Free On Board)
- CIF (Cost, Insurance and Freight)
- OH (Over head)
- Quota(Not applicable nowadays)
- Profit (level of %)
One of the Major responsible jobs handled by Merchandise department is Quality Control
Textile Testing & Inspection
TESTING: (1) ANALYSING
Analyzing is one time process, which takes place at the time of confirming the order with the Buyer as well as the raw material quality. Total cost of the garment is definitely based on the raw material quality & composition. Ex: Count & Construction of the yarn used in the fabric or garment, Fibre composition of the raw material, Type of Dye or print used in the garment, etc.
Testing is a process to understand, the quality of the produced item meets the requirement of the buyer. Testing is done on every lot or selected lots or wherever buyer asked.
Inspection is the visual examination or review of raw materials partially finished components of garments and completely finished garments in relation to some standards, specifications, or requirements as well as measuring the garment to check if they meet the required measurement.
Types of Inspection:
1. Incoming material inspection:
After fabric is received, the same should be inspected for the following purpose
4. Color Streaks
5. Color matching
2. In - process Inspection:
Inspection done in between any process or in between any sewing operations, this may be on partially finished (or) semi finished garments.
3. Flip checking:
Inspection done in between by the operators or by is assistance during the sewing operations before the garments are bundled.
4. Patrol inspection:
Inspecting activities of a particular area or line. It is called as line supervision.
5. Pre-Final Inspection:
It is done to the final inspection merchandiser or QC or both can do pre-final Inspections. After pre-final inspection if garment are passed. It will send to final Inspection. After final inspection only, the decision of passing or rejecting is made.
Inspection should be done in 100%. In the inspection center.
7. Original of final Inspection:
First time inspection of the packed merchandise goods is called original inspection. If QC are gratified with the quality of merchandise. We can pass a lot, if quality of merchandise is not up to the standards, rechecking should be done. Again it should be produced for re inspection.
8. Final Random Inspection: It is random inspection done according to the customers individual requirements. Standard after the shipment have been completed, packed and ready to ship. Colour appearance, workmanship, style etc will be checked against the customers specification.
a) Internal Quality Controller:
Inspection done by the Company internal quality control to check the quality parameters before to Final Inspection.
b) Quality represented by buying Agencies:
Inspection done by buying Agencies quality control to check the customer requirement.
c) Third Party Inspection:
Inspection done by third party like SGS or ITS.