PI Sheet and its items

P.I Sheet means P.I Proforma Invoice. After giving order booking to suppliers for Fabric/ Accessories by merchandising department Supplier Issue proforma Invoice.  In foreign trade transaction, a froforma invoice is a document that states a commitment from the seller to reserve some goods to be sold to a certain person, the buyer. the buyer places an order and if the seller agrees, it extend a proforma invoice and agrees to all the terms specified in it, the goods are send and the proforma is replaced by a commercial invoice Merchandising department has to check these things properly:  

Top part:

Ø     Name and address of seller

Ø     Invoice number and date.

Ø     Buyer name and address.

Body/middle part:

Ø     Product description.

Ø     Unit price.

Ø      Total price.

Bottom part:

Ø     Shipment date.

Ø     Shipment terms FOB or C&F.

Ø     Country of origin.

Ø     Terms of payment, at sight or 120 days.

Ø     Others special terms.

Grams per Square Metre (GSM)

GSM is the short form of Grams per Square Metre. GSM is the very most important thing which defines the weight of the fabrics of knit garments.

Garment price and quality based on many things like GSM, fabric quality, colours, finishing, prints, embroidery, style, etc. But GSM is the most important thing to be decided when confirming the prices between the sellers and buyers.

GSM is the weight of 1mtr x 1mtr fabric. It means 100cm x 100cm = 10,000 sq.cms. It can be found out by any one of the below ways.

By the weight of 100cm x 100cm fabric bit.

By the weight of 50cm x 50cm fabric bit multiplied by 4.

By the weight of 25cm x 25cm fabric bit multiplied by 16.

By the weight of 10cm x 10cm fabric bit multiplied by 100.

We must be aware that if we use the smaller size bit, accurate GSM can not be achieved. The bigger size of fabric bit is better used to get exact or closer GSM.

If we have fabrics, then we don’t have any problem in finding GSM, as we can cut any dimension to find GSM. But most of the times, we will have only the garments to find GSM. And we will have to keep the garment for style, making and other references. So we will be allowed to cut a small bit from the garments. Hence nowadays, round cutters are used. This system is used worldwide. With the help of this round cutter, the fabric will be cut into a small bit.

Then the GSM of the fabric can be found out by multiplying the weight of this round bit by 100. This round bit is to be weighed in an electronic scale with milligram accuracy. As this bit is very small and as the weight has to be multiplied by 100, the fabric has to be cut very sharply to get the exact GSM. Hence the blades of this round cutter are to be  sharp and new to get the exact GSM.

Consumption Sheet preparation

For Garment business fabric consumption is very much important and also essential. When Garments get order inquiry from Buyer then fabric consumption is very much needed to make cost sheet and when order is confirm then fabric consumption need for give a booking to supplier for fabric. In time of costing if Merchandiser make a less consumption of fabric then actual need as a result factory has to pay the money for fabric so the percentages of profit is less and sometime factory has to pay from their own pocket.  The less consumption of fabric is very much responsible dos a loss of factory. As like this if consumption of fabric is more then need then also factory has to face a great loss. Also buyer loses their attraction or wish of giving the order.  

On the other hand, after confirming the order with Buyer when garment give a order in fabric manufacturing factory in that they must have to be very much alert cause if they ordered less fabric then industry will short shipped the garment so as a result factory has to face a heavy loss and as well as Buyer can be unsatisfied and then they van also ask money against the short shipped and their loss. If factory order more fabric then need then extra fabric is stay in factory so factory has to face a loss here also. Factory has to face economic loss as well as it has to share the in-house place also. Sometimes for importing more fabric then need factory can have police case also.

For making a perfect and correct consumption merchandisers have to take care some important things. That are-

1. For a correct consumption of garments, merchandisers should have knowledge about the making of Garments. They have to know how to sewing each and every part of garments and how much extra fabric has to attach with the main measurement foe seam allowance.
2. Merchandiser has to keep a calculation for Garments sleeve hem, bottom hem, inner facing etc for extra fabric when they make consumption.
3. According to order if there is any matching required or any washing, dying, printing is required then extra fabric should include in consumption.  
4. According to fabric width (like 44/45, 51/58) then it’s essential when we make a consumption. We should take care of it when we give an order in fabric manufacturing company. The booking of fabric must be base on the fabric width.
5. Merchandiser also has to keep in head about the Shrinkage problem, so extra allowance is essential when factory make a pattern.
6. Fabric Consumption is to made according to as per Garments size ratio for per dozen.
7. Sometimes fabrics have to cut In bays, so for that extra fabric is needed.

Introduction about garments merchandising

We Should understand the term’ Garments merchandising’ at first ‘garments’ means apparels or clothing which we need to wear every day, every body, every time not only in our country. All over the world also ‘merchandising means buying producing and selling of any goods or product or services for the local or international market. If we combine this two English term ‘Garments merchandising’ then the meaning of garments’ merchandising becomes like following definition.

All the activities involved in procuring export order of any garment of any particular design for a specific quantity, analysis of the garment requires producing the garments. Production of those quantity level, production Scheduling and exporting the garments within fixed time frame. May be called garments merchandising.

From the said definition of garments merchandising it can be assumed clearly that procuring a garment export order that is export l/c. production of those garments as per buyers satisfaction within limited time is not so easy. The activities involved in garments merchandising is normally done by a dynamic and export person called garment merchandiser.

Shipping Procedure

Shipping is a part of Operations Management (OM) is systematic design, direction and control of process that transform inputs into service and product for internal and external customers. Our garments sector is running without proper practice of Shipping Procedures. Management of garments industry is not clearly aware of Shipping Procedures. But, proper practice of Shipping Procedures can reduce the cost to ensure sustainable growth of the company.

TQM of shipping is defined as an integrated approach of management by which quality services can be ensured to the customers. Shipping companies are service oriented and satisfaction of customers by providing excellent services is the prerequisite of shipping business. Shipping Procedure is required for ensuring customers satisfaction started from exporter door ended to importer door and cost reduction from suppliers as well as buyer’s account.

 
Objectives:
Clear understanding of Shipping Procedures like documentations, operations, communications, negotiations and marketing of shipping and it’s modern tools techniques required for garments, export and import companies so that participants can use in their working place to ensure sustainable smooth growth of the company.

Process:

When shipping a product overseas, the exporter must be aware of packing, labeling, documentation, and insurance requirements. It is important that exporters ensure that the merchandise is:

• Packed correctly so that it arrives in good condition;
• Labeled correctly to ensure that the goods are handled properly and arrive on time at the right place;
• Documented correctly to meet U.S. and foreign government requirements, as well as proper collection standards; and
• Insured against damage, loss, pilferage and delay.

Most exporters rely on an international freight forwarder to perform these services because of the multitude of considerations involved in physically exporting goods.

Execution of Garment Export Order

After receiving the garment export, without wasting any time. It is essential to prepare a time a schedule for the jobs to be done for safe execution of the export order. The main jobs for the execution of an export order as follows:

• Detail analysis of export L/C.
• Preparation of a time Schedule for the export L/C.
• Collection/Procurement of fabric And Accessories for the garment to be   export L/C. (Source, quality of items, cost of the items, receiving data of the items, quality and quantity, inspection of the items, etc.)
• Distribution of responsibilities for the job and duties.
• Production plan.
• Inspection of the produced garments for quality, quantity, packing and other requirements of the buyer.
• Preparation of Banking and shipment formalities.
• Continuous follow-up of progress
• Others.

Normally one person called garments merchandiser is engaged and given responsibility for a particular garment export order L/C.A garment merchandiser should monitor all the jobs related to execution of an export order. He/She should also maintain continuous liaison with the garment exporter and garment export order.

Process of garment production quality with required quality level with in schedule time is the most important and critical job of the garment merchandiser, Hence, through Knowledge is essential for a garment merchandiser for successful execution of the export order. With the change of time.  Nowadays, Garments quality became very important. To maintain the produced garments with required quality level. It is essential to start from fiber, yarn, fabric, dyeing, printing, finishing, garment production, garment inspection and quality control, testing. Garment washing/dyeing, garment finishing, packing etc .technical affairs. A brief discussion on that technical area is discussed systematically. To understand the discussion of the subsequent chapter .Theoretical and practical cooperation of others may be helpful for easy understanding.

The Process of Negotiation

A  Successful negotiation outcome does not generally occur through luck. by following a clear process. The Process reflects the different levels of knowledge of the subject of Negotiation, Various parties and the way they communicate at various stages in the Negotiation. The following is an outline of steps essential to effective negotiation

Negotiation Skills..................

One of the most important skills a buyer and a seller must muster is the ability to negotiate. As most high street fashion selling prices are very competitive. The greatest scope for improving profit in a product is the reduction of cost price. There are many factors that influence the final cost price of a product including fabric. Garment construction, order volume, lead time, and delivery terms. These particular issues are discussed in more detail throughout the book.

 

Negotiation is a process of communication and exchange through which the interested parties make a series of demands and compromises; it involves the trading of benefits between parties. The basic principal is to trade what is of low value to you but of greater value of the other party, thereby reducing the cost of success to you. However the aim of a negotiation should be to ensure that both parties are happy with the final outcome or agreement .otherwise one or the other will not continue to participate.

The old scenario of the retailer always winning and supplier always losing result in both parties effectively losing. Traditionally, the dominant fashion retail groups have seen the availability of large number of supplies as a means of trading one off against another to achieve a cheaper cost price consequently many of the suppliers who lost out ceased to do business with those retailers again. Short-time cost price gains resulted in short term relationships with many suppliers. With the end result being a large unwieldy and diverse supplier base operating as efficiently as it should

Procurement of Garment Export Order:

The most critical work is the procurement of garment export order. Normally garments export order is found fro, the potential garment importers called Garment Buyer. Anybody wants to collect garments export order, Should be able to convince The Buyer. When The Buyer is convinced about garment production, Garment quality, garment costing and garment delivery /shipment ability of a garment export order. To convince the buyer it is better if u can visit his/her office in aboard with your produced some sample garments and company profile. Even it will be more helpful, If u can invite and arrange the visit of your prospective buyer to your office, Factory to see production facility, Product quality, So that the buyer gets confidence about your garments export ability.

Without clear confidence among buyer and exporter from both sides may be a risky business deal. If a garment exporter can continuously deal with only two or three buyer with buyer Satisfaction, it will be sufficient enough to run garment production and garment export business smoothly round the year

RMG Sector prospectives in Bangladesh

When it comes to production of garments Bangladesh managed to hold a good position in world market for many years. But it has been good but never been better or excellent of the competition is growing in the world garments sector. Bangladesh is now facing huge competition from countries like china, India and Thailand. To stay on high position by competing with those countries she needs to develop their business by opening new product with a high quality with minimum price. To do that they needs to follow couple of practice and procedure by which they could earn maximum profit in the end. It is the assignment by which we tried to find the best way to develop business in the Apparel Industry.