How to Buyer Audit in an Apparel Industry

By | October 5, 2015

 

How to Buyer Audit in an Apparel Industry

Noor Ahmed Raaz
B.Sc. in Textile Engineering (CU)
Specialized in Apparel Manufacturing
Lecturer, Department of Textile Engineering
Atish Dipankar University of Science & Technology
Email: raju.uttara105@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 parameter before placing an order to the manufacturer which is known as buyer audit. Buyer audit is a set of queries about finding a company profile. This profile includes with company 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 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 together, workshops, etc

    Buyer Inquiry

What is 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 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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