EXPORT SET UP

EXAMPLE:GOENKA KNITWEAR LTD.

COMPANY NATURE: 100% export oriented garment unit. It receives the buyer order and executes it in its own factory.

From receiving the inquiry of the buyer and manufacturing, to shipment of theproduct to the buyer, all activities are taking care of by the company.

Their international standard production unit is equipped with modern quality control procedure and microbiological lab with latest technology and a group of top professionals. Each stage of production undergoes rigorous testing and quality control process. The finished products are again tested to ensure the desired standard of quality before placing products in the market..

Business Lines/ ProductsManufacturing and Exporting:• Ladies T-Shirt• Gents T- Shirt • Polo shirt

Export Partners: •Germany•France• Turkey•South Africa• Canada

The raw materials and active ingredients of products are imported from reputed manufactures ofMalaysia, Indonesia, Italy, France, Germany, Japan, Singapore, England, Switzerland and USA.

OBJECTIVES OF GOENKA KNITWAER LTD: To manufacture HIGH QUALITY products at COMPETITIVE price. “No compromise with Quality” is the key policy of the Top Management. They believe that, they are reasonable and accountable to all concerned with whom they deal; namely: their employees, their business associates, their consumers and their buyers.

PRODUCTS OF FOUR KNITWAER LIMITED: Ladies T- Shirt Gents T -Shirt Polo shirt Child shorts pant Ladies hooded jacket

Various Departments of Goenka Knit Wear LTD:

Merchandising Department: this department is very much important for every garmentindustries. Merchandiser is a data bus between buyer and seller. Merchandising departmentperform the activities from collecting order to reaches the product on buyer. This departmentis responsible for providing all the raw materials needed for all kinds of garments products.

Accounts Department :all the accounts of the organization are controlled by the accounts and administration department. Accountant record all the accounts, calculate profits or losses, prepared financial report .

Finance /Commercial Department:. Import-export, L/C open, or any other banking activities performed by commercial department. Commercials manager cover all the activities.

Shipping Department: transportation solutions for the export order are streamlined by this department. Human Resource Department: this department is very much important managing staff and employee of the company. It looks after the problem and opportunities of the company’s employee.

Production Department

VARIOUS DIVISIONS UNDER PRODUCTION DEPARTMENT:

1.Knitting and dyeing division: Here the fabric is manufactured by converting yarn into loop form and than these Loop are locked/intermeshed / inter looped together, which form a structure/fabric called knitted structure/knitted fabric.

Knitted Fabric for clothing

•Single jersey• Double jersey• Rib category Double jersey•La-coste

2.Cutting section

3. Sewing section Tools & equipment of sewing section are given below:

1. Rack for cut fabric keeping (for every line)2. Desk for trims keeping (with lock for every line)3. Issue register (one for every line)4. Attendance Register (one for every line)5. Drawing / Marking table (Three for every line)6. Supporting table for bigger components operation (as per required)7. Desk (one for every operator)8. Basket (five to six for each line)9. Shoe bag (one for each operator & helper)10. Toilet Card (one for every line)11. First Aid Box (for every floor)12. Fire extinguisher (at every corner of the factory)

13. Hammer 14. Z punch plunk 15. Big scissors 16. Small Scissors / clipper (for every operator & helper) 17. Are puncher / gimlet 18. Hand needles 19. Bodkin 20. Manila board /paper board 21. Tailor chalk 22. Pencil 4. Wash room

5. Iron section

6. Finishing section

7. Quality control department: This department keeps a check on quality through the Q.C. Managers. They verify the quality as per the buyers specifications and their purchase order. They audit all the process, pre-production to packing & final audit. 8. Store section

MAJOR RAW MATERIALS OF GOENKA KNITWEAR LTD: •Fabric•Threads• Labels•Buttons•Zippers•Cartons•Tags•Poly bags•Folders•Strikers•Eye lets

LIST OF WORK-IN-PROCESS:

1.Cutting: Fabric is cut in the cutting section according to the size and design. At the time of cutting the fabric the Cutting master have to keep a check on the following: •Shrinkage percentage• Shade variation• GSM and DIA • Knitting pattern direction •Dyeing variations• 2.Printing: After cutting the fabric, different type of printing may be needed. In Goenka Knit wear ltd. Printing is done by third party. So we need to outsource the printing to various printing units as per our requirement.

3.Sewing: In sewing section, cut fabrics are sewed. 4.Garment Wash: After sewing the garment might require a particular wash effect. It depends on the buyers requirement. Since 1978 garment prewash has become extremely popular.

following are different prewash techniques for garments:•Normal Wash: Wash in hot water added with detergents and softener. If we wish to have a more pronounced washed look on the garment we should add some sodium to wash. Depending on what kind of fabric the garment is made of and the extent of washed look needed, we have adjust the water temperature, the amount of detergent or sodium and the length of time to wash.

•Pigment Wash: Pigment wash is actually same as normal garment wash. Pigment wash needs 50.c-60.c to wash the garment in order to ensure that the color spreads evenly over the garment.

• Bleach Wash: In bleach wash, you just have to add bleach to the water in the tumble for washing. However, timing is very important because any garment over bleached can not be corrected or reversed back to a lesser bleached condition. • Stone Wash: The idea of washing with porous volcanic stones is to give the garment a strong and rough wash. To achieve the pronounced washed effect through abrasion on the exposed areas, such as the seams and pocket corners. Sometimes we add bleach to the wash to make the color fade more seriously.

Washes (cont.)

•Acid Wash:

•.Enzyme Wash: Enzyme is a of live cell. We use it to the wash because we want it to break some of the fibers on the surface in order to give the fabric a soft, sanded or preached effect.

• Caustic Wash: When garments are stitched and ready for wash, we wash them with caustic and hot water.

5.Finishing: Thread cutting, rectifying small mistakes, mending and ironing. 6.Quality control: A quality controller checks the finished garments and ensures that they qualify according to the spec sheet of the buyer.

There are two main aspects to consider when discussing the quantity of a garment.

A . Design quality: Design quality is concerned with material, style, fit and construction aspect.

B . Manufacturing quality: Manufacturing quality is concerned with the degree to which the garment produced agrees with the sample or specifications. the stitching quality and measurements are important aspects. Satisfactory quality can only be ensured through:Knowing the customers needsDesigning to meet themFaultless constructionCertified performance and safetyClear instruction manualsSuitable packagingPrompt delivery Feed back of field experience

7.Tagging: Finishing product is tagged here here by the hangtag

9.Polybag packing: It is used in order to ensure product stays clean and free from dust and protect it from any damage. The number of pieces in a poly bag varies according to the buyers specification.

10. Cartons/Packing: once the garments are put in a poly bag ,the product needs to be put in a cartoon for shipping. After packing the product, we need to attach a packing list to each cartoon which contains the details of product assortment. It includes.Packing list Shipping Mark: 1. Main Mark (AS per buyers Instruction) 2. Side Mark Merchandise Description (Assortments)

11. Taping, Strapping each carton

12. Inspections: It is an important part of merchandising. Before the shipment is dispatched from the export house the buyer or buying house inspect the product to ensure that it meets the specifications ordered in terms of garment quality, quantity , packaging requirement etc. The inspection procedure is given below: Carton Check: during inspection the inspector generally checks following: A. Quantity of Carton (As per packing list). B. Quality of Carton:1. Ply of carton2. Size of carton3. Strength of Carton etc.

Cartons Selection for merchandise inspection:From the shipment Lot Q.C selects a sample Carton and picks out merchandise from thoseCarton to be inspected in terms of quality. Points to be considered:1. Color of the merchandise2. Size of the merchandise3.Construction of the merchandise.3. Carton should be picked randomly.

N.B. The inspection must be marked on the carton to avoid any unaccepted situation.

. Inspection(Cont.):

Packing and packaging check: After carton selection we check the packing methods used for the shipment order Following points are emphasized on:Packing:1. Position of garments inside the carton2. Inner carton/inner box3. Protector check4. Poly bag Check5. Assortment Check

12.Shipments: After produced the products the company have to shipment the products in time. Generally products are shipment in two way: a. Sea port b. Airport. It only depends on buyer decision.

MERCHANDISING IN EXPORT SET UP

CONCEPT OF MERCHANDISING:

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

It refers to the planning, buying and selling activities required to have the right fashion oriented merchandise at the right time, in the right place, in the right quantities, at the right prices.

MAJOR RESPONSIBILITIES OF A MERCHANDISER ARE GIVEN BELOW

•Coordinator of all activities at the manufacturer's end•Correspondence with buying Agencies•Could be handling many buyers at a time•Takes care of PD, sampling, costing, negotiations,delivery schedules, production planning, fabric and trim orders, regular follow up. •Sources of information are limited as compared to buying house merchandiser•Is directly responsible for the merchandise•Ensuring inspections and quality levels.

1. Order sourcing2. Negotiation3. Production4. Calculating Yarn/Fabric consumption5. Calculating costing of the product6. Monitoring Quality aspect7. Product development8. Liaison with Buyers , Customers & Factory9. Factory Scheduling

QUALITY OF A MERCHANDISER:

From the above definitions we can assume that a garment merchandiser needs a wide range of knowledge and skill:

A. Good command over English and adequate knowledge of technical terms for accurate and efficient communication. B. Good knowledge of yarn , fabric , dyeing, printing, finishing , garments production etc.

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

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

E. Knowledge of the EXPORT PROCEDURE used in each of the producing countries , duty rate , custom regulation, shipping and banking documentation etc.

FUNCTIONS OF A MERCHANDISER :

It is the responsibility of the merchandiser to ensure that the order is executed in the right quality, quantity and delivered at the right time.

When an export order is placed, a merchandiser has to schedule the following :

1.Forwarding fabric requirement to the purchase department.

2.Forwarding Accessories requirements to the accessories purchase department.3.Interacting with the buyers to get the various sample and accessory approvals.

4. Ensuring that the fabrics and accessories are in-house in the factory as per production schedule.

6. Garments production planning and a constant check on the time and action plan.

7. Pre shipment inspection schedule. 8. Shipment documentation

Garments Merchandising CHRONOLOGICAL PROCESS OF MERCHANDISINGSample Sample is the physical form of buyer’s specification or style/design.

It is a Reference garment that corresponds to:

· The artwork (styling) done by designer and/or developer· Particular purchase order.· Any revision to the style work.· Confirm to any specific requirement.

Sequence Of Sampling

1ST Pattern→ 2ND Pattern→ Counter Sample→ Salesman Sample→Photo Sample→ Approval Sample (Size Set, Mock-Up)→Pre- ProductionSample→ Production Sample→ Shipping Sample.

First Pattern First pattern is the first physical version of any garment as per the artworkdone by designer and for developer.

Human Mind→ Sketch→ Paper Pattern→ Sample

Purpose : See the design work & test the fitting

Status : Nothing specific

Material : Available

Price : Not confirmed

Quantity : 1 (for customer) + 1 (for merchandiser)

Delivery : As per urgency

Second Pattern

Usually designer /developer always ask for some changes to the first pattern. Second pattern is made as per their comments. Counter Sample Where first pattern is made on designers artwork, Counter sample is to be made not on designer's artwork , but has to follow another sample given by the merchandiser according to buyer’s specification.

Purpose : See the workmanship &test the factory skill

Status : Nothing specific

Materials : Available

Price : Not confirmed

Quantity : 1 (for customer) + 1 (self keeping)

Delivery : As per request

Salesman Sample Salesman sample is made when price is confirmed and orders are being considered.usually in one size in all color combinations of expected order.

These samples are paid for by the buyer

Buyer holds meetings with its customers and record their response on orderquantity per color, size etc. And finally places an order to their vendor.

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.

Photo Sample Photo samples are made as per actuals with actual color and material to be worn by the models on the event of shooting for catalog.

Approval Sample

In any discrete period of time, whenever any revision is required in thesample, a new sample is made (some times mock-up is worked on too) asper new specifications. It is sent to buyer for his approval for the conformation that-the revision is done correctly.

SIZE SET: Consists of 1 pc of each size of the garment for each color combination.MOCK UP: Any PART of the garment to be made -for PARTICULAR purpose,not complete garment

Pre- Production Sample

When material for bulk production is in house in the factory, the factory makes a sample with the actual material and sends to buyer. Production Sample

It is a reference to the buyer that the bulk is being produced as per specifications.

It is the first garment produced in the production process of that order.Buyer wants to be assured that correct material is sourced & line workmanship conformed to the quality level.

Shipping Sample

A sample is kept from every Pre-Shipping inspection to be referred for the buyer and the exporter, after the order has been shipped. Usually for any disputes (e.g.Claim) shipping samples is important.

Swatch

Swatch is a presentation of all the materials is (Fabric & Accessories) usedfor any specific style /order. Usually small piece of fabric and each piece ofaccessories are attached in board paper in a systematic manner. Swatch isvery important for production line to make the correct construction of agarment and QC department ensures it. Concerned merchandiser shouldconfirm/approve the swatch.

Trims

Trims cover all the items used in the garment except the basic fabric.There are hundreds of items used to manufacture the garments, Properselection of trims and its quality are very important for styling, otherwisethe garment may be rejected or returned by the customers.

ORDER FOLLOW UP PROCEDURE

Just after the placement of the order a merchandiser has to study the requirement in the order sheet:1. Classification of order:Study order Specification DetailsOrder details/Style details Quantity Fabric Trims/Accessories Delivery terms & Conditions.

2. Monitoring of contract:Opening and maintaining filesDistribute the order specification to the relevant dept. Sample controlling.Sourcing of supplies.

3. Monitoring Import export procedures Banking procedures Customs procedure Warehouse arrangement

4. Arrival of purchased Materials Completion of custom procedures Inspection/Identification Storing of clothing materials

5. Factory production: Execution of order Meeting the Quality standards Checking work in progress

6. Co-Ordination with Buying Agents Liaison with buying office personnel for related manufacturing issues 7. Logistical and distribution Arrangements Freights forwarding (sea/air)

8. Financial Transactions Follow up Final payment

Merchandising is an important task of a textile company. To complete merchandiser activities successfully a merchandiser has to follow some procedure or sequence that are given below. Fore casting:It is an important term for merchandising. At first a merchandiser have to decide in what type product he will produce. There are various products in textile sector. After deciding the product then he will start for order sourcing. Order Sourcing: Sourcing is a term use to describe the process of determining how and where item will be procedure. It includes the decision on the selecting supplier for material procurement and vendors for apparel production. The stages of sourcing: 1. Internet 2. Business directory (yellow pages) 3. Advertising 4. Buying house 5. All country of Embassy 6. To exhibition Factor for sourcing: Sourcing decision depends on some factors-

Factor for sourcing: Sourcing decision depends on some factors- 1. Product factor: Style, design, quality standard, price reference, 2. Company/vendor factor: Company goodwill, previous history, minimum order quality, quality standard, and service ability3. Country factors:Political: The present political stabilityEconomical: financial, banking, insurance etc. facilities or tax free or others opportunities

Cultural & language: In time delivery, previous history, morality, religious factor, ability of speaking English education.Geographical: Distance, transport cost

Information’s:1. Name and address of the company.2. Contact number and person3. Major market of customers (which customer they deal)4. Major products, (which products they experienced)5. Capacity (monthly or annually)6. Physical size of the plan.7. Number of employees8. Financial status9. Location of production10. Production facilities11. Quality standard12. Minimum order quantity.

Negotiation: Its not contest. Its opportunity to establish good working relationship. Which obtaining a good deal. Or, negotiation is a stimulating way to arrive at acceptable solution to the need for something whither it is a need to resolve the difficulties or to settle terms. The aim of negotiation/approach “Win Win solution” Both parties are benefited. The skill for negotiation: 1. Discovering common interest and removal of personal issues. 2. Questioning skill 3. Listening effectively 4. Understanding body language. 5. Observation and judgment. 6. Influencing skills

Introducing: Actually merchandiser activities started by introducing with the buyers. Introducing may occur by two ways 1. Buyer to seller 2. Buyer to buying house and buying house to seller. Generally they communicate with them by email and telephone or mobile. Enquiry: At the time of introducing the buyer send their requirements, which include which type’s products, he needs. They also provide sample size, sample photo; style etc. Source Fabric: After receiving the enquiry a merchandiser have to find from where fabric can be found as per buyers requirement. There are two sources of fabric. 1. Local source 2. Foreign source. Both local and foreign it needs to open a L/C. In textile sector generally back-to- back L/C is used to collect Fabrics

Prepare Lab Dipping : It is an important part of sampling. If buyer wants color size product then he need to send them for proper coloring. After that lab test is send to the buyer for approve. For an example Letter that is send to lab is given below: Date: ToMr. BabulKnit Concern Ltd.

Sub: Lab Dip Programmed Buyer Name: Info-united Art:-Zob-3 Fabrics- 65%Cotton, 35%Polyester, S/J 180 GSM SL # Color Name Pantone/Shade Fabrics Remarks 01 Orange 158 C

Gets approval Lab dipping: Lab Dip confirmation & may be fitting & workmanship changes: 1. Start with dyeing the fabric (if necessary start tests bulk)2. Sending preproduction samples or size set in original fabric with all already Confirmeddetails.After checking & necessary changes, the confirmation of labels, print.

. Start of label, print, and patch production

Order Bulk Fabric Production

FABRIC DYEING: Once the Lab dip is approved by the buyer for color, the fabric is sent for dyeing.

Fabric Printing : Fabric printing is the process that applies a single or multi colored/design on a white of dyed background fabric, using textile dyes. If there is any need of print, then it is sent for print.

Source Prepare Trims & Accessories: for preparing a product a company need various types of trims and accessories. These are very much important for textile product. Such as tag, pin, scope tape etc. so it is the duty of a merchandiser to sourcing accessories before starting production.

Develop a Sample: Sample is the physical form of buyer’s specification or style/design. After draw a cache a sample is prepared for the buyers and sends to the buyers. Sampling may be in two ways. 1. Sampling after confirmation price. 2. Sampling before confirmation price. For sampling a merchandiser need Fabrics, yarn, level, etc. Types of sample/Stages of sample: 1.1st pattern: The first physical version of any garment as per the artwork done by designer and/or developer. 2. 2nd pattern: Usually designer/ developer always asks for some changes to the first pattern. Second pattern is made as per comments. 2.Sales man sample: Sample is made when PRICE is confirmed and orders are on speculation, usually in L size in all color combinations of expected or 3.Production: 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.

4. Marketing/Developing sample: 5.Counter sample (Based on buyer requirement,) 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 6. Fit sample/red tag sample/ Proto type sample: Samples are made with actual color and material to be worn by the models on the event of SHOOTING for catalog. 7. 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 newspecification. It is sent to buyer for his APPROVAL of the conformity that- the revisionis done correctly.

8. Preproduction sample/size set sample/ production sample: When material for bulk production arrived, factory makes a sample with the actual material and sends to buyer.

9. 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. 10. Mock up sample: Any part of the garment to make for particular purpose, not complete garment. Sometimes it is necessary to send to the buyer any part of the garments, such as sleeve, collar, neck etc and some accessories.

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.

Pricing: It is the most important factor for a merchandiser. A merchandiser is the person who fix or determining the price of the product. Deals will be done or not is totally depend on the price of the product.

ORDER FOLLOW UP PROCEDURE

Just after the placement of the order a merchandiser has to study the requirement laid down in the order sheet:1. Classification of test*Study order Specification Details*Order details/Style details* Quantity* Trims/Accessories* Delivery terms & Conditions.

2. Monitoring of contract:*Opening and maintaining files* Distribute the order specification to the relevant dept.* Sample controlling.* Sourcing of supplies.

3. Monitoring Import procedures* Banking procedures* Customs procedure* Warehouse arrangement

4. Arrival of purchased Materials* Completion of custom procedures* Inspection/Identification* Storing of clothing materials

5. Factory production:* Execution of order* Meeting the Quality standards* Checking work in progress

6. Co-Ordination with Buying Agents * Liaison with buying office personnel for related manufacturing issues 7. Logistical and distribution Arrangements * Freights forwarding (sea/air) 8. Financial Transactions * Follow up Final payment

Confirmation of the production.1. Only if all confirmation has been given, the production can start2. Pay attention & special care to all further production instruction from the buyer.3. Send pre-shipment production to buyer.4. Before shipment inspect the production by buyers nominee5. Ship the goods within shipment date

Production Execution Tracking: A. Cutting the Fabrics:After confirmation of production and approve of the cutting the fabrics from the buyer, the cutting muster started to cut the fabrics

B.Sewing : In swing section the finish fabrics are sewing. There are various types of sewing machine that are given below: 1. SNLS (PLAIN) 2. DNLS (TWO NEEDLE) 3. O/L 3-6THREAD 4. FLAT LOCK 3, 5 THREAD5. FEED OF THE ARM6. MULTI THREAD CHAIN STITCH7. CUCLE MACHINE8. CUFFS ROLLING9. COLLARTURNIN10. EYELET HHOLE11. EYELET ATTACH12. BUTTON HOLE13. BUTTON ATTACH14. THREAD RE-CONNING15. BLIND STITCH16. ZIG ZAG17. BACK TAPE18. SNAP BUTTON ATTACH19. CREASE MACHINE

Washing:It is most important factor in textile sector. In different stages of production, various spot we found in products that are needed to wash. Various spot we found in products that are given below:1. Oil spot2. Dirty spot3. Print spot4. Fabrics spot5. Etc.

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.

** If we open a L/C then need some things that are given below: 1. Trade license2. Memorandum Certificate3. Membership certificate4. IRC5. TIN6. Bond license7. Insurance8. Factory Insurance

9. Agreement with the house owner ** L/C Export Document: 1. C.O2. Inspection Certificate3. U .D4. G.S.P

**Benefits of L/CSellers End:1. Without having cash payment2. Guaranteed business without investing any cash involvement3. Risk free

Buyers end:1. Guaranteed business without investing any cash involvement 2. Without having cash payment 3. Risk free 4. Same with quality product. The buyer should be ensured that he would get the quality product