Merchandising Procedure for an Export Order

By | November 6, 2015

 Merchandising Procedure for an Export Order 

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: mnnabi@adust.edu.bd

Introduction:

In an export order, merchandising departments play an important role in order execution. There are several steps in merchandising departments for successfully processing of an export order. A good merchandiser should have clear knowledge about this procedure for execution of an export order The main tasks of an export order are ensuring 100% quality within the lead time for on time shipment. Today I would like to discuss about the merchandising procedure for an export order.

Steps of Export Order Procedure :

There are fewer steps in merchandising departments for processing of an export order which are as follow –

1. Inspiration / Big picture:

The design team of merchandising department continually research export order. Color, design and the trend team present to company executive board. The early trend team seasonally communicates top line seasons trends and lifestyle trends to the buyer and all the global markets.

2. Range Control:

The Merchandiser analyses the current season and sets the planning framework for the following year. Within the meeting Financials, footage, launch dates, option planning, Good/Better/Best, customer profiles and price architecture proposals are reviewed and agreed by the team.

3. Design Presentation:

The Designer quarterly communicates a departmental phased design presentation to the trading teams. The Buyer then works with the designer to agree the product direction and actions from the design presentation to ensure they incorporated into the base plan meeting.

Design Presentation

4. Base Plan:

Buyer– By phase a departmental meeting to review and agree the category option framework. The buyer and designer review the balance of the range, colors, fabrics, trims and styling details so the design packs can be created.

Merchandiser – bringing sales history, wish list and option plans.

5. Strategy:

Merchandiser and buyer work with trading and buying manager to prepare the strategy pack, the trading manager will present to the company executive board. The outcome of the meeting is hopefully sign-off from the company executive board.

6. Design Pack Sign-Off:

By phase the buying, design and technical teams review the thumbnails and design packs and ensure all details are correct. They generate a full size specification to develop the sample and to gain an accurate costing.

7. Selection:

Buyer – by phase presents the proposed range to the senior management team on the department.

Merchandiser – presents the financials to the senior management team on the department.

Designer – Supports the buyer provides trend overview by category at start of selection meeting. The outcome of the meeting is sign off the proposed range, product offer to the customer by customer profile, quantities by line, and the overall margin position and money spent. Post selection bookings and contracts are sent to suppliers.

8. Orders Placed :

Buyer confirms price, supplier, factory, fabric, freight cost, process cost, duty. Merchandiser confirms volume, warehouse, delivery date, store distribution, booking form is then sent to supplier, dates and deliveries are confirmed, when confirmed contracts are raised within 2 weeks of booking by trading support.

9. Approval Process:

The approval process splits between 2 teams, buying are responsible for strike off approvals, lab dip approvals, styling changes, trim and packaging approvals.The Technical team are responsible for the quality and fit process.

10. Garment Manufacturing:

After the design is sealed the factory will order all components, trims, fabric and threads, the order will commence and the shipping confirmation is applied for and the goods are shipped.

11. Deliver to Warehouse:

Landed Suppliers: Landed Suppliers own and are responsible for Goods until they are receipted into our warehouses. Within the new Network Strategy Landed Suppliers will deliver to each warehouse.

FOB Suppliers: FOB Suppliers will either deliver to CFS (Container Freight Station) for RDC consolidation at origin. Or go direct to buyer country and go through the consolidation in the buyer. This decision is made by the Flow Team. Merchandisers are responsible for Goods arriving at the Port of origin on Time.

12. Sample Review:

Buyer/ Designer/ Sourcing Manager – Review all the samples, selecting which samples need to be re-worked, re-costed and proposed for the range building stage. On samples that the team feel strongly for the fit process will start. (If not the sample may be re-worked inc; design packs)

13. Negotiation Process:

Buyer/ Sourcing Manager – Reviews the costs submitted from the supplier. Amendments are made to the samples resulting in cost price changes and further negotiations.The Buyer/Sourcing Manager will negotiate prices with the supplier.

Merchandiser – Supports the Buyer by providing foretasted volumes to achieve accurate cost prices.

Designer – Supports the Buyer in any amendments of product development / design packs to achieve target cost prices.

14. Range Build/ Ranking:

Buyer & Designer – Build the range onto the footage. Ensuring they have considered outfit building, color balance, styling, ‘magpie’ pieces, customer profiles, end use, margin, trend direction, price architecture and supplier production levels resulting in a well balanced commercial range. At this stage samples will be starting the fit process. Ranking puts the products in priority order from the highest buy through to the lowest buy.

2 thoughts on “Merchandising Procedure for an Export Order

  1. Kamrul

    Welcome to Anz Int, Bd.
    We are Apparel,garment’s, Knit,Sweater and Textile manufacturer and exporter with buying agent in Bangladesh.
    Kamrul
    Anz Int.
    Mob: +8801711848308
    E-mail: anzintbd@gmail.com

    Reply

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