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1 Introduction
Buying houses started their journey in Bangladesh approximately after 1980. This house acts
as a medium of garments industry. Without the garments support buying house cannot do
anything. Therefore every buying house needs to build up a good relationship between them.
Basically Buying houses try to communicate with buyers of other countries who want to buy
products. Then they contact with garment factories in Bangladesh who can make those kinds
of products and fulfill buyers demand. Like this they create a contract between these two
parties. Sometime buying houses make their own sample section, so that they do not have to
go to factories for colleting sample and they can attract customers faster and easily. On the
other hand, they create a show room of their product to attract the buyer. Moreover, this
house maintain the merchandiser to follow up the product processing line perfectly and also
build a quality assurance team for checking the actual quality of the product.
1.1.1 Process of Buying House Activities
Contact with the Buyer
Communicate
Meeting
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Shipping
With the direct discussion and observation with the responsive person of British Council
Face to face interview with the top personnel who actually arrange the workshop.
From annual reports, booklets, manual. It also collected from published documents,
office circulars, souvenir, published papers and reports of different workshops.
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The general objective of this assignment is to fill partial requirement of BBA degree.
Specific objective
Besides fulfilling the degree requirement, this report intends to cover comprehensive
analysis on merchandising activities in RMG sector.
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to achieve more quantity to maximize its profit. Now this company has become very renown
in the field of garment factory because of its positive approach from the very beginning along
with the garment activities.
The company has a dynamic management team to control the overall operation and under
their leadership its strong workforce (designers, merchandisers, quality controllers,
technicians, compliance and supports service team members) focus on each customer to
professionally manage the entire supply chain to product design and development, through
raw material and factory sourcing, production planning and management, quality assurance
and export documentation and distribution to customers' warehouses worldwide.
2.2 Branches of CRL FASHION
CRL FASHION [Bangladesh Office]
BLOCK-A, HOUSE # 25
60 Halsey avenue,
BARIDHARA-BASUNDHARA,
BADDA, DHAKA-1229,
BANGLADESH
Tell: 0088028401377
Cell: 088-01711-637362
Web : www.crlfashion.com
2.3 Company Culture
The focus at CRL fashion is pretty simple: customers, creativity, doing what's right, and delivering
results. Together, we call it "wearing your passion." And it's the perfect match for the kind of people
we attract as both employees and customers.
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We believe that how we do business is as important as what we do. We act with integrity, and we
give back to the communities in which we do business.
Deliver: result
We deliver the best result possible we're committed to taking responsibility, setting priorities and
meeting our goals.
All the products are manufactured for men, women and kids.
2.5 Buyers
Road Runner Apparels, Canada
Texville, Hong Kong.
UFO Jeanswears, Canada.
Ven Laere International, SA, Belgium.
Angeles Garcia Ramirez, Spain.
Alphadventure SL, Spain
2.7 Sources
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Amount of turnover
2008
US $2.03
2009
US $1.02
2010
US $0.74
2011
US $1.97
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The Company Has A Dynamic Management Team To Control The Overall Operation And
Under Their Leadership Its Strong Workforce (Designers, Merchandisers, Quality
Controllers, Technicians, Compliance And Supports Service Team Members) Focus On Each
Customer To Professionally Manage The Entire Supply Chain To Product Design And
Development, Through Raw Material And Factory Sourcing, Production Planning And
Management, Quality Assurance And Export Documentation And Distribution To Customers'
Warehouses Worldwide.
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Clear conception of the usual potential quality problems in the garments manufacturing.
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Good knowledge of the usual raw material inspection systems &garments inspection
systems.
Knowledge of the quota system used in each of the producing countries, duty rates,
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Its products are offered to the customer through physical samples to the buyer, soft copy of
samples through website, internet, e-mail etc. Besides when buyers come to Bangladesh CRL
FASHION'S CEO along with the merchandiser meets with them to show different type of
products.
4.3 Exchange and Transaction
Buying House people and buyer's people exchange then- views regularly to solve each
problem. They regularly communicate mainly with e-mail and internet messengers like
Skype, yahoo, Google talk etc. Besides more clarification they send samples or documents
through courier service holder.
4.4 Price negotiation & Order confirmation
Price negotiation is the most important part of merchandising and marketing. Order
confirmation depends on how cleverly and logically one can negotiate price with buyer.
Competitive price is the key element of price negotiation. To make competitive price first of
we have to know about the product that buyer want to buy from us. Then we will calculate
the raw material price, manufacturing cost & shipping terms of the product.
4.4.1 How to prepare garment price
There are processes for fixation of export prices which are as under:
1. FOB (Free On Board).
2. C&F (Cost & Freight).
3. CIF (Cost, Insurance & Freight).
FOB means 'free on board' i.e. exporter doesn't bear the cost of freight of ship or air. It is
buyer (Importer) who himself bears the freight of ship or air.
C & F means Cost of Freight i.e.
FOB (Cost) + Freight of Ship = C & F.
In the case ship or air freight is carried by the exporter while quoting price, the exporter
quotes price a bit higher than FOB. The whole responsibility including the sending of goods
to the selected port of the importer is shouldered by the exporter ship or air. Freight may vary
from place to place and shippers to shippers.
CIF means cost insurance & Freight In this case in addition to the bearing of freight the cost
of insurance is also borne by the exporter. The exporter, while quoting CIF price, quotes
much higher than C&F value i. e; C & F + Insurance=CIF. Normally we can add 1-2%
insurance charge with CIF price.
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During the fixation of FOB price of a T-Shirt following notes are to be followed
carefully:
1. Cost of fabrics/Dzn. garments.
2. Cost of Accessories/Dzn. garments.
3. C.M (Cost of Manufacturing) /Dzn. Garments.
4. Cost of embellishment (if any) likes print, embroidery, etc
5. Commercial cost.
6. Commission (if any)
Order of 10000 pieces of Knit
Fabrics: 100% cotton, single jersey 160 GSM (white color)
Measurement
Half chest
Back length
Sleeve Length
Arm Hold
Shoulder
Neck (inside)
Front neck droop
Back neck droop
Neck rib width
Bottom
56cm
74cm
25cm
25cm
49cm
16cm
9cm
10cm
2cm
56cm
Formula:
(B/L + S/L) * 1/2 CHEST *2
*GSM*DOZON
100*100*1000
Here,
B/L + S/L
1/2 CHEST*2
74
56
+25
*2
99cm
112
+8
+8
107cm
120
Now,
107*120
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*160*12
10000000
=2.46kg.
Style A
Fabrics
Accessories
=$ 2.00
=$ 3.00
= $ 23.56/dozon
Now,
1 pc
= $ 23.56/12
= $ 1.96
Add: FOB
= $ 0.12
= $ 2.08/pc CNF
Measurement
Fabric Booking (16 yds * $ 2.50)
= $ 41.60
Accessories
= $ 6.00
Wash
= $ 2.00
= $ 16.00
Packaging (7*.80)
= $ 5.60
Total
= $ 71.20
Per piece
= $71.20/12
= $ 5.93 FOB
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for fabrics knitting and then coloring of the fabrics. After dyed fabrics is ready to make
garments.
4.6 Trim booking
Various kinds of trims are used in Basic T-Shirt. To buy or make booking for trim firstly we
have to know from buyer what kind of trims they required for their T-Shirt. After collection
trimming information from buyer we have to develop the same and need to get approval.
Then we will book trim from respective trim manufacturing house. It is very important to buy
all the necessary trims before start garment production.
4.7 Product development (KNIT & WPOVEN)
Product development is another important responsibility for RMG merchandisers. Before go
to bulk production various stage of sampling has to pass in order to develop a product for end
user. Those are below:
1. Initial Sample
2. Style Approval
3. Pre-production (PP) Approval
4. Photo Sample
5. Shipping Sample
4.9.1 Cutting
Before sending the fabric to cutting section we unfold the fabric and keep it in open air for
one or two days. We do that because when the fabric is kept folded it remains squished. But
when air passes through it comes into original texture. If we cut the fabric without doing this
it can shrink or lose after cutting.
4.9.2 Making/Swing
Sewing section is the section where cutting part are joined to make a garments. In sewing
section sewing machines are set up according to the kind of final product.
4.9 3 WASH
After making the product we send it to wash section. There are different types of wash like
fade wash, strong wash, silicon anjime wash etc.
4.9.4 Finishing
Finishing section is the last part of production. When sewing completed then finishing and
packing started. Thread cutter workers are cutting loose thread. Iron man workers are ironing
goods. Then Packing man workers are putting goods in to poly bag and export carton. But
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there should have balance process from thread cutting to carton process. Iron people must be
increases as per the demand of packing people. Boiler should be always in fit position.
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Satisfaction quality can be ensured from the customer from the customer's point of view by
providing:
Right Product.
Right Quality.
Right Time.
Undamaged Condition
Goods must be designed to meet customer's needs and make manufacturing process
and maintenance easily.
Marketing must ensure accurate advertising, trade description with constant feedback
for improved design.
AQL-1.0
Sample
Size
13
13
13
50
50
80
125
200
315
500
800
1250
Accept
Defects
0
0
0
1
1
2
3
5
7
10
14
21
AQL-1.2
Sample
Size
8
8
32
32
50
80
125
200
315
500
800
800
Accept
Defects
0
0
1
1
2
3
5
7
10
14
21
21
AQL-2.5
Sample
Size
5
20
20
32
50
80
125
200
315
500
500
500
Accept
Defects
0
1
1
2
3
5
7
10
14
21
51
21
AQL-4.0
Sample
Size
12
13
20
32
50
80
125
200
315
315
315
315
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Accept
Defects
1
1
2
3
5
7
10
14
21
21
21
21
Maximum buyer of the world follows this above chart for inspecting their garments. When
garments will be ready for shipment, an inspector should follow the above acceptance level
of quality products. It is applicable for all types of garments. So this chart is very important
for Quality Control and Quality Inspection of a Garment. Factory will have to follow and
work on the basis of this chart. Factory should have to submit their AQL report to the
respective buyers before shipment
5.3 Principles of Quality Management
The main objectives is to prevent errors by early detection and action
The need to make the requirement complete and clear at all levels, from this
change.
5.4 Purpose of Quality Control
It is a long standing trading of any organization to offer the customers first quality
merchandise. The purpose of this quality control program is to assist manufacturers in
meeting the high standards. In addition, company's quality control program can also help the
supplier with their operation. Quality control program not only help spot and reject defective
items, but more importantly they pinpoint production operations that need special attention,
thereby reducing the number of defects in future production. This type quality control
provides basis for management decision in the manufacturer's plant. For the purpose of this
manual; the defect refers to* a condition that renders merchandise of second quality and or
unacceptable because the defect is one or more of the following:
1. It is conspicuous.
2. It will affect the salability of the product.
3. It will affect the serviceability of the product.
4. It is significantly different from the specification.
5. It is understood that all performance and legal requirements be following to the letter
(that is L/C or any other contact between the buyer & seller) with no division allowed,
including requirements of the following:
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1 Flammability
2. Refurbishing (Cleaning)
3. Labeling
5.5 Quality Process
CRL FASHION is weak in research on production but their quality is 100 percent ok. Quality
procedure starts from cutting to packing. Their quality and inspection procedures go ahead
with following steps.
At first factory has to handover the order to merchandiser and QA people. This team is
responsible for this order. Every morning they have to discuss the whole status in the
daily meeting with General Manager.
Factory will make the sample for final changes and comments from the buyer on the
products. QA and merchandiser will study together with approved FIT samples and
the comments from buyer.
After receive the fabrics and accessories in the company they send it to the factory,
one of the QA and merchandiser concerning that particular order will stay in the
factory from morning to evening.
CRL FASHION tells their factory to makes pre production meeting before going into
as bulk production is started QA inspector goes for inline inspection. Initially every
day, then every alternative day, depends on the situation.
In the middle stage of production if standard for quality result is acceptable then it is
given permission for pre-final inspection. Here it is checked for case pack, carton
quality, shipping mark, assortment, presentation etc.
After pre-shipment result is acceptable it is permitted for doing final inspection and if
advise how to control perfect measurement for concern garments. How to minimize
consumption. And etc.
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Name of vessel
Destination
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7.2 Findings
From the beginning of discussion we found many positive and negative things in the CRL
FASHION. Some cases this buying house is doing better than other manufacturing company
and some cases doing not satisfactory. These can be happen because it is really difficult to do
better in all area. Its mission is found to make the company larger in future. But company
Organogram is not perfect. Decision making power can be decentralized to achieve more
fruitful result. Company Research and Development sector is comparatively poor. It can take
more positive steps to gain powerful R & D. It is mentionable that only R & D can show the
way how the company will make its future plan to run proper business.
Its production department is not also well equipped with plan and process. In the same way it
is found Finishing department, packing department, store department could be more strength
if proper steps are taken. The marketing plan, marketing strategy, marketing process is found
more or less satisfactory. But with the help of this kind of marketing plan company cannot
survive in the long run. It has to take updated marketing strategy.
If I talk about companys financial features I must say it is expectable. Companys growth
rate increases sometimes highly and sometimes very slowly. This kind of unparallel growing
will not indicate bright future in the business.
7.3 Recommendation
Different parts are discussed in the many area of the company. I have found many areas
where the company is not doing well. But this company can do better in future if proper steps
are taken. From my concept I would like give following recommendations: Factorys mission and vision must be well set up from the very beginning. Its vision
should be specific and very logical. It can take minimum 12 to 15 years to reach its
targeted vision. Its vision must be with human benefit related. Its vision should avoid
dominating others in the illegal way. In the same way its mission should be acceptable
level. It should set up its strength accordingly in the balance way. From the beginning
it can recruit skill worker and well machineries. To keep those skill workers for long
time there should have proper benefit and remuneration.
Company Organogram should be set up properly. Managing Director should
decentralize his/her power to different sectional Director. In the same way Director
should decentralize their power to different sectional boss. But nobody should be
released from ones responsibility. This way each sectional boss can achieve his or her
targeted work.
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Company should set a Research and Development team. This R & D team should
work with companys different activities. This R & D will find out the weak area and
accordingly necessary steps should be taken by the concern management. This R & D
will do report on companys worker, laborer, working place, working environment,
supply chain related, marketing related etc.
Productivity should be increased with proper production plan and steps. This
production plan will be done by production manager and his subordinates who are
directly related with production. He should discuss with Cutting Manager,
Accessories Manager, Finishing and Packing Manager.
Technological materials should be properly utilized for all area where necessary.
Computer based pattern, design, marker should be utilized. Internet, e-mail should be
properly established in all area of the manufacturing unit.
There should have strong HR department which will looks after the benefits and
packages for all types employee. This Team should recruit proper people.
7.4 Conclusion
Buying house type companies are very important for Bangladesh. Because more than 76% of
the countrys foreign incomes are earned from this line. More than 2 million people are
engaged with this sector. So countrys economic situation becomes more and stronger for this
buying house sector. So buying house must be well equipped by hook or by crook. CRL
FASHION is also renowned BUYING HOUSE Company in the present sector as well as
garment market in Bangladesh. There are lots of problems are existing in the company and its
factory. These kinds of problems cannot be removed in short. It will take time. This is very
positive indication that now a day's high educated peoples are coming in this sector. CRL
FASHION is now bearing more than 15 MBA holders in the current operation both company
and factory. Moreover some peoples are pessimistic about future of CRL FASHION. But I
think this is not correct. This factory is now going up word day by day. As I have gone
through the inside and outside of this company I have given some advices for the betterment
for future. If CRL FASHION tries to follow my recommendations I am sure that in future this
factory will be within the TOP TEN in Bangladesh Buying House sector.
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