International Purchasing & Supply Management

Modular Learning System

Specific to Garment Sector

Module 2
Specifying Requirements
& Planning Supply

Unit 1
Introduction

This module covers how to determine and specify all the different dimensions relating to
the goods and services that a garment enterprise needs to purchase.

What to purchase?
 T-shirt, Shirt, Trousers, Dress etc.

How much to purchase?

 50, 500, 50,000, 500+500+500

Where and when delivery should be made?

 At Delhi Airport/Delhi Dryport (Patparganj), Dadri (Noida)
 15th January 2010, 31st December 2009

What support & services are required of supplier?

 24x7 communication
 Allocation of one merchant for the client account.

What information the supplier will need in order to perform effectively?

 Purchase Order/Letter of Credit
 Fit Approval
 Print Approval
Unit 2
What Needs to be Specified

What needs to be specified?

 Operational, capital, production & non-production

Specifying the product or service.

 In terms of performance, functionality, design, colour, durability.

Specifying quantity, delivery & service.

 Where, when, how the product or service should be delivered
 What service is expected from the supplier

The process of specifying requirements and planning supply

 How the process of specifying purchases and planning supplies should be
conducted?
 How supply targets are established?
 How supply targets serve as a basis for developing & prioritising purchase
specifications?

WHAT NEEDS TO BE SPECIFIED

The suppliers needs complete information in order to reliably meet the buyer’s
expectation.

If the information is not complete and correct, there is disruption in production plan,
delays in supply (clarification, correcting errors with supplier)

WHO SPECIFIES?

Merchant along with the help of Purchase Department specify. Purchase department
brings supply market knowledge/commercial awareness.

Types of requirements

a. Operational requirement – Maintenance suppliers, stationery etc.

b. Capital requirement – Building, photocopier etc.
c. Production requirement – Fabric, trims
d. Non-production requirement – Spare parts, tools, fuel, machine oil.

WHAT CAN BE SPECIFIED

A. Specifying the required product/service.

In case of a garment, the key components are fabric and accessories. When ordering, for
example, a men’s T-shirt, one needs to specify the quality of fabric (cotton, polyester,
viscose, blend etc.) and the quality of accessories (button, zipper, thread etc.).

Information like specification sheet, measurement chart etc. also need to provided to the
supplier to ensure correct fit of the garment. The accompanying details should include
the cutting, stitching, finishing and packing instructions.
B. Specifying the performance requirement
If we take the case of proactive and stringent buyers, the performance parameters of a
garment are informed to the supplier at the time of order booking. The parameters
include factors like colour fastness to rubbing and washing (colour bleeding etc.), tear
strength (the amount of stress a garment can sustain), dimensional stability (shrinkage
due to washing). In some countries, the law prohibits import of garments which have
been dyed using azo chemicals or which have a more that prescribed nickel content.

C. Specifying Inspection requirements

The supplier should be aware of the level of inspection. Generally AQL 4.0 or AQL 2.5
is used in garment manufacturing. AQL means Acceptable Quality Levels. Simply put,
AQL is defined as the maximum no. of defects per 100 units that, for the purpose of
sampling inspection, can be considered satisfactory as a process average. An AQL 2.5 is
more stringent that AQL 4.0.

Inspections are required in various areas and at various stages. They are specified by the
buyer whenever they initiate business with any new factory. The method of inspection of
fabric and accessories is specified. All types of fit approvals and final approvals required
to go ahead with production is informed to the supplier. The buyers also specify at the
outset the inspections that will be required during various stages of production (pre-
production inspection, initial inspection, mid-inspection, final inspection etc.)

D. Specifying Quality Assurance documents

In order to closely monitor the quality control systems in a factory, the buyer prescribes
an inspection format which has to be diligently filled by the quality inspector and the
report sent to the buyer as well as the quality control department of the factory. This
may be generated daily or as prescribed by the buyer.

E. Specifying packing requirements

For any garment order it is very important to issue the packing instructions.
For an order of men’s T-shirt in 3 colours viz. red, yellow and blue and sizes small,
medium and large, it could be solid packing (one carton can have only one colour and
one size eg. few cartons will have only red colour in small size, few other cartons will
have only red colour in medium size and likewise for other colours). In case assortment
packing is advised, colours and sizes can be mixed as per assortment instruction.
In the packing instructions one also needs to specify whether each garment needs to be
put in individual polybag or one set of garments should be put in a blister (blister is a
large polybag).
Another option in packing is that the garment can be folded and put in the carton (Flat
pack) or they can be put on hangers (GOH = garments-on-hanger).

F. Specifying Transport requirements

When giving an order to a factory the buyer should discuss the method of transportation
whether the goods need to be sent by train or by sea or by aero plane depending on the
fragility of the product as well as urgency to receive the goods. It can also be a
combination of modes of transportation. For eg. The goods can be sent from the factory
in Gurgaon to the New Delhi Railway Station by truck. The goods can be loaded on
train and sent to Mumbai. In Mumbai, the goods can be stuffed in the container and sent
to New York by sea.
G. Specifying quantity and delivery
The purchase order for one style of garment should clearly specify the quantity. For
example, an order of men’s T-shirt style XYZ in colour Red, Blue and Green in sizes
Extra Small, Small, Medium and Large, the order quantity table would look like this:

STYLE XYZ : MEN’S SHORT SLEEVE T-SHIRT

SIZE EXTRA SMALL MEDIUM LARGE
COLOUR SMALL
RED 100 200 250 50
BLUE 200 400 500 100
GREEN 100 200 250 50

Sometimes when the buyer has limited space in the warehouse, instead of taking the
delivery of entire quantity, they split the quantity and instruct the supplier likewise.

Total quantity – 50,000 pcs.

25000 pcs – delivery
Delivery schedule for STYLE XYZ : MEN’S SHORT SLEEVE
T-SHIRT. Total quantity – 50,000 pcs.
Quantity Delivery
25000 pcs Jan 11, 2009
15000 pcs Jan 25, 2009
10000 pcs Feb 8, 2009

Since garment manufacturing is labour intensive, there is always a variation in quality

levels of each garment. The quality of the garment can be controlled, but only to an
extent. The efforts are made to avoid the rejections but they can’t be eliminated totally.
At the outset of an order it can’t be determined how many correct pcs. of garments the
factory will be able to deliver. As an international norm, a factory should deliver the
order qty with a variation of ±5%. For an order quantity of 100 units, the factory can
deliver a maximum quantity up to 100 + 5% =105 (in case the rejections are very less)
and a minimum quantity of 100 – 5% = 95 (in case of substantial rejections). This clause
is mentioned in the documents given by the buyer to the factory while booking the
order.

H. Specifying Point of Delivery

When the price and delivery dates are being negotiated, it is important for both buyer as
well as supplier to finalise the point of delivery as well. For example, if the price of
men’s T-shirt is agreed upon as $5.00 ex-Mumbai F.O.B., it clearly means that for $5.00
the supplier based in Gurgaon will manufacture the T-shirt, bear the cost of
transportation to Mumbai and also bear the documentation charges over handing over to
customs. Beyond that point, the sea freight, insurance etc. and all other charges will
accrue to the buyer.
Some examples of points of delivery are – ex- Gurgaon, ex-Delhi railway station, ex-
Delhi India Gandhi International Airport, ex-Mumbai, ex-Rotterdam port, ex-buyer’s
warehouse.

I. Specifying supplier service and responsiveness

As a buyer, one needs to explain the level of responsiveness expected from the supplier
eg. a merchandising team allocated to handle the buyer’s orders. Reply to all e-mails
within 24 hours is highly desirable. A credit of 3-6 months would be an added
advantage. Today every buyer also requires the supplier to create new ranges every
season, make range presentation, offer new fabric qualities and most important of all -
Develop samples within specified time frame!!

J. Other information
Specify what is and what is not included in the purchase
 E.g in exports, specify whether supplier will pay for transport from Delhi to
Mumbai, insurance charges and custom charges, sea freight, air freight. (These
issues are generally covered by use of INCOTERMS)
 Information like Contact Person & details, Company Profile etc.
 What purpose is the product being purchased for, eg. Sporting activity,
promotional event, special discount offering, casual wear or active sports
 Any legislative policies? Eg. No azo dyes, No child labour, No nickel/no
palladium, Needle detection machine mandatory.
 Company’s buying policies for example
- L/c at site, DEPB, T/T payment
- Discount / cancellation in case of delays
- Buying at specified price points
- Seasonal bookings
SPECIFYING THE PRODUCT OR SERVICE

Product/service specifications serve to define factors such as design, performance, and

functionality. Size, colour, safety requirements, labeling are other issues to be included.

Over as well as under specifying are equally bad.

Under specifying: may leave room for error- leaving supplier to establish the best
method to achieve them. The resultant product may or may not perform as required.

Over specifying: specifying something to a point that it will be impossible to source. In

this case the buyer must bear the risk if the product doesn’t perform.

PRODUCT SPECIFICATIONS

There are different types of product specifications.

a. Brand or trade names. Eg. Lycra, Tencel, poplin by Century.

b. Supplier/industry codes – industrial catalogues. Thread shade card by
‘Telephone’, Pantone book.
c. Samples – fit samples, button or trim samples to be followed for production.
d. Technical specifications
- Physical characteristics (count, construction, gsm)
- Design details – (specification sheet, measurement chart, flat sketch,
colour standard, print artwork, checks/stripe details)
- Tolerances (+ 0.5 cm tolerance in measurement, AQL 2.5 or 4.0)
- Materials used (Cotton, Polyester, Viscose)
- Process/methods involved in production (1 way cutting, fabric to relax
for 24 hours before cutting, embroidery process, enzyme wash etc.)
- Maintenance requirements (wash separately, iron reverse)
- Operational requirements (shrinkage, stretch, colour fading)
e. Composition specification – [eg. (i)45% viscose/40% cotton/15% linen
(ii)120 gsm, 100% cotton, single jersey, bio-polished, mercerized (iii) trims –
100% wool.] Third party verification is often required by the buyer.
f. Functional & performance specification: active sports wear – breathability,
stretch, resistance to sweat, colour fastness – 3 to 4, seam slippage – 25 lbs,
shrinkage – 1 to 2%, Dimensional stability and appearance after laundering –
Maximum -5 % length x width

FIGURE 3.2-1 WHEN TO USE DIFFERENT PRODUCT SPECIFICATION TYPES

spec type where appropriate

*Information on product specifications

Can be obtained form sources like
a. Specialized industry journals, directories, technical handbooks.
b. Business contacts (suppliers & other buyers), AEPC directory.
 c. Fairs, exhibitions eg. IIGF, GARTEX, PREMIER VISION, MAGIC,
ELEMENTS
d. Institutes and institutions like NIFT, AEPC, NITRA etc.

Specifying testing & inspection requirements

a. Review and approval at design stage. FITS: fit/size set approvals, COLOUR: lab
dip approval, PRINT: strike off approval, TRIMS: button, zipper, label approval.
b. Pre-production, Inline, Mid Inspection, Final Inspection.
c. F.P.T.(Fabric Processes Testing)/G.P.T.(Garment Processes Testing) prior to
shipment.
d. ‘O.K. to Ship’ report required along with other shipping documents while
sending the shipment.

Internal Standardisation

It means reducing the numbers of different specifications to the extent possible. Internal
standardization has many benefits:

a. Reduces time and effort needed to develop specs.

b. Helps in concentrating on fewer items, focus better on quality and sourcing.
c. Allows a firm to buy larger quantities of fewer items and negotiate better prices.
d. Large volumes with fewer vendors results in better understanding and
communication.
e. Fewer items need to be stocked, cost of inventory less.

*Lack of internal standardization often results in increased costs.

VAULE ANALYSIS/VALUE ENGINEERING (VA/VE)

VA/VE is a structured problem solving approach that is used to develop new designs and
improve upon existing designs. Simply put VA/VE seeks to increase the value of
something.

VALUE = FUNCTION/COST

Value can be increased by :

1. Providing the same function at a lower cost e.g same style, same fabric, same T-
shirt at a lesser cost.
2. Increasing the quality/scope of the function at the same cost e.g same material
and inputs, better design and colours hence better esteem value at same cost.
3. Increasing the function proportionately more than the cost e.g. cost of adding a
patchwork or embroidery is nominal but it adds far more value to the T-shirt
which means the T-shirt can be worn at casual parties too.

THE VA/VE APPROACH

Fig 3.6-1

 The preparation phase

Define the scope of analysis (men’s T-shirt to be sourced at cheaper price) and
select a team. A cross–functional team (merchant, designer, fabric and trims
 purchaser, production coordinator) should carry out the exercise. It may be
useful to involve a supplier representative. The marketing department and
customers may be involved depending on what is being value – engineered. The
team should frame the objectives of the study.

 The information phase

Collect information about the product (Men’s T-shirt) being analysed, including
what it is intended to do (covers the body), its performance levels (should be
stylish, different, should retain its physical and visual attributes even after 15-20
washes), what components are used (single jersey, pique, rib, buttons, stitching
thread, packing material, mode of shipping) and what the costs are (including
cost of inventory, manpower employed to control warehouse etc.)

 The functions analysis phase

The team must establish the functions that the product is expected to perform –
primary as well as secondary functions.

e.g. men’s t-shirt : primary function – to provide cover.

Secondary function serves as a style statement, acts as a differentiating factor
from the peer group.

Having established the functions, allocate the costs amongst the functions. It is
radically different way of looking at cost (i.e. looking at the cost of functions
rather that cost of components).

 Speculation phase
The team must now review the functions in order of cost – highest first. it should
discuss questions like: It should discuss questions like
• Is the function necessary?
• Does it add value?
• Is its cost proportional to its usefulness?
• What else achieves the same function?
• Is there anything better for the intended use?
• Can it be sourced for less?
• Can it be made in a different way?
• Can standard product do the same job?

Once all the ideas have been captured, they should be refining and combined into a
small no. of potentially workable solutions.

 The Development Phase

Different groups within the team may be set up to develop each alternative
potential solution.
 The Evaluation Phase
Each potential solution should be reviewed by the full team to zero in on which
solution is to be taken forward based on how well are the objectives, costs and
risk levels met.

 The Implementation Phase

 An implementation team should be formed which will prepare the specs for the
chosen design solution against which the suppliers would quote their prices.

When to undertake VA/VE studies

Even when standard items (Men’s T-shirts) are available, a VA/VE study needs to be
undertaken when competition forces prices down, and the firm needs to cut costs to
maintain profits (Reliance selling denim pants for Rs. 199.00).
 SPECIFYING QUANTITY, DELIVERY AND SERVICE

When planning the quantities to be purchased, a buyer needs to be able to determine the
likely demand over a given period of time.
It is important since
1. Demand changes over a period of time
2. Quantities purchased should not substantially deviate from actual demand.
3. It is required when negotiating long term contracts with suppliers.
4. Stock replenishment systems require the estimates to calculate requirements in
the supply lead time, determine safety stocks & order quantities.

A continuing Demand generally reflects four characteristics:

(Pls include the graphs used in the ITC book)
a) Trend – demand follows continuous progression.
b) Cyclical Fluctuations – demand increase or decrease over extended period of
time (economic recession).
c) Seasonality – demand is often predictably above or below average due to
weather, holidays, festivals etc.
d) Random Variations – occasional random events that affect demand in ways that
are not generally repeated.

FORECASTING DEMAND
i. Expert Opinion
ii. Market Testing
iii. Quantitative Analysis
iv. Using Computer based materials planning system.

i. Expert opinion involves consulting experts for their opinion.

a. Scenario Analysis – Experts determine the likely demand scenario based on
certain assumptions. It involves identifying best and worst case scenario and
then settle for the most likely scenario.
b. Delphi Technique – Group of experts make predictions anonymously &
independently. Each prediction is compared/debated and a consensus is arrived
at.
(*Expert opinion is sought when there is no historical data or when fashion is evolving
rapidly.)

ii. Market Testing- conduct trial sales for limited period to a sample of target
population.
iii. Quantitative Analysis – forecasts based on Quantitative Analysis are of two types
a. Time Series Analysis
b. Causal Methods.

a. Time-Series Analysis
- Involves use of past demand data to generate a forecast.
- Appropriate where conditions are relatively stable.
- Historical data is a reasonable quality
- Assumes that past patterns of demand will continue in the future.

Examples of Time-Series Analysis techniques include

 1a. Drawing the “BEST FIT” trend line.
2a. Moving straight averages.
3a. Moving weighted averages
4a. Moving exponentially weighted averages.
5a. Trend and seasonality – adjusted forecasts.

b. Causal Methods: forecasting by establishing a cause-effect relationship between

independent variables and demand for a product e.g. reduction in priced leads to
increase in sales:
The method used is Linear Regression. The two methods involved in this are:
1b. Simple Linear Regression
2b. Multiple Linear Regression
QUANTITATIVE ANALYSIS TECHNIQUES FOR FORECASTING DEMAND

1a.Drawing the ‘BEST FIT’ trend line.

- Draw a trend line that ‘BEST FITS’ the past data and extend it into the future.
- Can be calculated mathematically.
- Ensure that roughly half of data points are above the line and rest below and
their distance from the line is balanced.
2a. Moving Straight Averages (M.S.A.)
- This method works well only when demand pattern is stable.
- It’s an average of specified no. of data points e.g. demand over past 12 months.
- Demand forecast for 13th month = demand in 12 months/12.
3a. Moving Weighted Averages (M.W.A.)
- Same as MSA except that each demand figure is multiplied by a weighting
factor.
- Greatest weight is applied to the most recent data.
- Weighting factor is chosen arbitrarily.
- The total weighting factor should add up to 1.

Period Demand Quantities Quantities X Weighted Quantities

Weighting Factor
-4 10 10 x 0.05 =0.50
-3 25 25 x 0.10 =2.50
-2 30 30 x 0.175 =5.25
-1 35 35 x 0.275 =9.625
0 50 50 x 0.40 =20
Straight 30 total weight = 1.0 =37.875
Average

MWA is better than MSA, but, again it is only suited to relatively stable demand pattern.

4a. Moving Exponentially Weighted Forecast

- Same as M.W.A. except weights are taken from an exponential series.
- Recalculating projection for each period is easier than M.W.A.

New forecast = Past forecast + α (Past forecast error)

= Past forecast + α (Actual Demand – Past
forecast)

- The value of ‘α’ is normally between 0.1 and 0.4

- Higher ‘α’ means more notice is taken of recent demand.
- By computers we can find value of ‘α’ that minimises the errors.

*BIAS  Persistent under– or over- forecasting is know as BIAS. Computers use

tracking formula that detects and alerts when there is a BIAS.

Example
Period(t) 1
Past forecast ft 50
Actual Demand dt 60
 Forecast Error (dt - ft ) +10
α = 0.2
New Forecast ft+1 52
Given α =0.2
Actual Demand=60
Past Forecast =50
Formula ft+1 = ft + α (dt - ft )

Period(t) 1 2
Past Forecast ft 50 52
Actual Demand dt 60 72
Forecast Error (dt - ft ) +10 +20
α = 0.2
New Forecast ft+1 52 56
Given α =0.2
Actual Demand=72
Past Forecast as calculated for period 1 =52

5a. Trend and Seasonality Adjusted Forecasts

- Requires a computer based forecasting system.
*refer to page 48 – 51 for solved example.

1b. Simple Linear Regression

- Applicable when one independent variable influences the demand of a product
and the relationship is linear.

D = a – { b x P}

D = the forecasted demand for Men’s T-shirts.

a = a constant which expresses the value of Demand when the independent
variable P is set to zero.
b = the slope (or regression co-efficient) which expresses the causal
relationship between independent ‘P’ and dependent ‘D’ variable.
P = the price of Men’s T-shirts.

The values of ‘a’ and ‘b’ are developed from past experience i.e. by analysing
past data.

1b. Multiple Linear Regression

- Applicable when 2 or more independent variables influence the dependent
variable in a linear relationship.

D= a–{b1 x P} – {b2 x t}

D = forecasted Demand for T-shirts

a = maximum production capacity of the firm
P = price of T-shirt
t = temperature
 b1 = quantity of T-shirts by which demand increases or decreases when price
‘P’ decreases or increases by Rs.10.00
b2 = quantity of T-shirts by which demand increases or decreases when
temperature ‘t’ increases or decreases by 1°C.

Today there are Computer-based methods which normally provide a wide choice of
trend line forecasting techniques, with the ability to test each technique in order to
decide which is best suited to the available data.

Process of Forecasting Demand

a. Collection and analysis of past data.
b. Adding deterministic overrides.
c. Management review and action.

a. Collection and Analysis of data.

- Take the historical demand data.
- Cleanse it for any anomalies (eg. stockouts etc. when demand for those periods
appear to be zero).
- Select the best ‘FIT’ technique to forecast.

b. Adding Deterministic Overrides.

- New conditions arise (change in fashion, production technology, govt. policies,
user preferences, prices etc.)
- The above may cause the past demand patterns to require adjustments or in
some cases set aside altogether!
- Statistical forecasts based on past data is like driving a car using only rear-view
mirror. The deterministic over rides are road signs up ahead warning the car
driver, for example, to slow down.

c. Management Action
- Regularly check actual demand against forecasts.
- Understand the reasons for variances.
- Take required actions e.g. reduce costs, better designing, more realistic pricing,
better promotions.

Determining the Quantity to Order

The main issues to consider are:

a. The Economic Order Quantity (E.O.Q.)
This approach seeks to balance the two dimensions that affect costs.
- Inventory holding costs (tied up capital and costs of physically holding stocks)
which increase with order size.
- Ordering costs (administration costs of placing orders) which decrease as order
size increase.
b. Stock Replenishment Systems
It takes E.O.Q. as starting point, along with demand forecasts and desired levels of
safety stocks. Two approaches can be adopted to determine the quantities and timings
of orders:
- Re-order level replenishment systems – This type of system triggers orders
whenever inventory drops to a pre-determined level.
 - Periodic review replenishment systems – In this case, the time interval
between orders is fixed instead of order quantity. At each fixed interval the
order quantity is set to cover demand over the next period.

*JUST–IN–TIME : deliveries are made by suppliers directly to the company’s

production line.

*Call–off, framework or blanket contracts : buyer specifies the total amount to be

purchased in a season as per forecasted demand (+ certain margin to account for forecast
error) and then take specific deliveries as and when needed. This reduces administration
& stock holding costs.

SPECIFYING DELIVERY
Includes specifying delivery-times and schedules, the point (s) of delivery, transport and
packing. The type of stock replenishment system and the contract type influences the
timing or orders and deliveries e.g. Men’s T-shirt with embroidery on contrast coloured
collar (collar is in different woven fabric and body is 100% cotton, single jersey fabric).
- The lead-time available to a supplier depends on when certain information is
received from the buyer.
- The most critical longest lead-time component is the fabric. At the time of
order, the buyer has to specify the fabric detail or specify the date by which the
fabric details will be confirmed. Based on this data (and if fabric is readily
available) the supplier can quote the delivery date. The other design details viz.
embroidery designs, thread colour, measurement chart may come at a later date
which also need to be specified by buyer.
- If the buyer wants to approve the fit samples etc., colour of fabric and
embroidery design at office in Europe or USA it will affect the delivery date.
- Lab testing and inspections prior to shipment affect the lead time.
- To ensure on-time delivery, buyer should demand time & action calendar from
supplier and later take progress reports against the plan. Buyer may have to
visit the supplier to ensure that the supplier has sufficient spare capacity.
- ‘Liquidated Damages’ clause may be specified in the contract (which is signed
by supplier) which further reinforce the importance of on-time delivery.
- For availability of supplies for the long term, the buyer should enter into long –
term contractual arrangement with more than one supplier.

Specifying the Delivery Point

- The lead time depends on the point of delivery.
- If ex-factory date is 1st June then,
ex-Delhi airport will be 2nd June.
ex-Mumbai sea port will be 7th to 10th June.
ex-Rotterdam port will be 28th to 30th June.
- Goods shall be released from customs in 3-5 working days.
- Goods can reach the Mother Warehouse in 2-3 days.

Specifying the Method of Transport and Packing

- Method of transport - by Sea
- by Air
 - Method of packing - Flat Pack or Stand-up Pack
- Individual Packing/Blister Packing
- Hanger Packing + Flat Pack
- Hanger Packing + Hanging in container
- Polybag quality (PELD, PP)
- Carton Quality (3 ply, 5 ply, 7 ply)
- Carton Marking
- Packing List/Packing Criterion

Specifying Supplier Service and Responsiveness

a. Supplier responsiveness.
- Specific merchant allocated for the account.
- New designs + costing to be given within 3-5 days.
- Daily production & finishing reports to be sent.
- e-mail replies within 24 hours.

b. Technical Support & Training

In case of special stitching machines, computer embroidery machines or new software
for merchandising & production, following must be specified:

- No. of work days of technical supervision or assistance during

commissioning and start–up.
- Training requirements.
- Provisions for a minimum no. of hours of technical support.

c. Maintenance and Repair

- e.g. repair technician to be on –site within 48 hours of notification
- e.g. critical spare parts to be delivered within 24 hours.

d. Other Information
- Contact Information – technical, purchasing and finance contact person and
contact details.
- Background Information – the supplier should be educated about buyers
organization in terms of:
i. What products & services the firm offers,
ii. Which markets it caters to,
iii. Its position in key markets,
iv. Its turnover, no of employees,
v. Total purchase budget.
- Statement of intent :
i. What occasion the t-shirt is being bought for,
ii. How important it is – high/low,
iii. Whether it is a part of new launch or a discount campaign.
- Basis for evaluating the offers - buyer should specify:
i. Approximate Quantity - high, very high, low very low,
ii. Target Price + Quality Level,
iii. Very near Deliveries or late Deliveries.
- Applicable legal requirements - buyer should communicate the legislative
requirements to the supplier, e.g.
i. Azo testing is mandatory.
ii. Needle detection machine is a must for a manufacturer of kidswear
iii. No child labour
iv. Applicable legislations such as health and safety, environmental
protection, import regulations/restrictions
v. Relevant company policies.