How to Conduct a Buyer Audit in the Clothing Industry: A Step-by-Step Guide

By | October 5, 2015

How to Conduct a Buyer Audit in the Clothing Industry: A Step-by-Step Guide

Noor Ahmed Raaz
Specialized in Apparel Manufacturing
Owner and Editor in Chief Textile Merchandising
Asst. Prof., Department of Textile Engineering
Atish Dipankar University of Science & Technology
Email: textilemerchandising1@gmail.com

 

Buyer Audit:

Every buyer always wants to deal with the right manufacturer for establishing a successful order. Therefore, the buyer needs to check some important parameters before placing an order to the manufacturer, which is known as buyer audit. A buyer audit is a set of queries about finding a company profile. This profile includes with company’s location, capacity, product, types of product, machinery details, product price, terms, and conditions, etc.

How to Make a Good Buyer Audit:

An international buyer generally collects information from the following sources

  • Different embassies working in his country.
  • News media.
  • Yellow page of the export promotion bureau.
  • Own website of the company.
  • Ministry of Commerce and Industries.
  • Foreign trade fair in this country.
  • From other buyers, other resources persons like Merchandisers, Fashion Designers, and Production people.
  • Different websites of the internet.
  • by Facebook, Twitter and other social media.
  • By different types of training, get-togethers, workshops, etc

    Buyer Inquiry

What are the Buyer Audit Points?

  Generally, a buyer makes an inquiry as follows-

  • First, he/she checks the Company profile (The details about machines, products, workers, existing buyers, skills, reputation, bonded warehouse, etc) of the factory.
  • Previous records of works, the rate of success.
  • He/she checks compliance and Code of contact of the company with the labor law of the country.
  • Safety measures of the workers, security procedure of the products.
  • Proper authorization of the company from the government of the country.
  • Negotiating Bank Support.
  • Facility of the power supply and alternating power supply.
  • Strong and weak points, etc

In the final round if the buyer gets satisfaction above study then he/she sends an inquiry paper of 4 parts where he/she asks the supplier to give a price quotation for the asking products as per the described requirement attached there.

In the paper, the following components are available-

  • Shipment date and Quantity.
  • Product details of fabrication.
  • Size chart of the product manufacturing.
  • Technical sheet for sewing instruction.
  • Accessories and print/embroidery options.
  • Payment terms of cost.
  • Wash, lab test, and other service requirements.
  • Packing list details and assortment (proportion of packing in each carton), etc.

Calculation:

After receiving the inquiry, the company makes a costing considering all the aspects and informs the buyer about the price of the asking product (which is called a Price quotation). Sometimes, the buyer makes a negotiation to reduce the price and makes a confirmation to give the order for the asking product.

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