5.1 Marketing and Merchandising Department
The duty of this department is to communicate with the buyers and aware about the pricing based on fabrics materials and production cost. Marketing division is supported by an independent sample production in order to meet all sorts of sample enquiry from the end of buyers. The marketing strategy is designed to sell quality product at low price. Merchandising section consists with the sorts section it has planed to customize every inch shelf space in each story with goods in the right quantity and at the right time.
5.1.2 Financial Department
OPEX Garments Limited finance its money from the bank. Facilities will be provided to open back to back LC for exportable items and the proposals for importing capital machineries with soft term loan with lesser interest rate. They have an independent unit dealing accounts and financial activities of the company. They fund allocation of the industry is directly led by the general manager (Finance and Admin) under the supervision of chairman of the industry. This unit responsibility covered the areas; determine daily cash flow requirements, credit collections, inventory control, recording and monitoring, allocation of resources, providing financial data on company’s strategic decisions.
5.1.3 Commercial Department
Every employee in this department are sincere in there work. They prepare all the documents regarding exports and imports with care. They also follow up customer’s formalities and banking. If they wish they can ask the buyer about the account. And the department also consists with the accounts and finance department.
5.1.4 Sample Department
Buyers usually provide sample to the garments factory. They also give sketch pad in which they mention their requirements. By considering their sample and other requirements, the factory tries to supply the products.
5.1.5 Production Department
Production department is one of the important part of a buying house because its handle how to manufacture the product completely. In production unit they follow the sketch of style of a give sample. Each of the manufacturing unit is run and managed by the individual director of the production. Directors are assisting by dedicated production team to achieve maximum output in the production. Daily productions are measured production analysis team.
5.1.6 Store Department
Store section is also essential part of the company. It also linked with merchandising section. Job of this department is to keep inventory or record of fabrics materials and supply to department of production, cutting and finishing.
5.1.7 Quality control Department
OPEX Garments Limited have trained quality control team who closely supervise production line in each of the manufacturing unit. Individual quality control team is assigned for each manufacturing units to look after product quality and productivity. They also prepare production planning and all issues are controlled evaluated by the concern director of each manufacturing unit.
5.2 Marketing Concept of OPEX garments Limited:
OPEX Garments Limited follow the marketing philosophy that, “the job of the company is not to find the right customer for right product but the right product for right customer. The produced the product as per buyer requirements the discuss with the buyer before manufacturing a product because if buyer wants to make any change in pattern they can change.
5.2.1 Marketing mix of the Buying House
The marketing mix strategy of OPEX Garments Limited includes:
· Product: OPEX Garments Limited tryst always to deliver the product as the buyer wants. They always provide better service and higher quality. Design, packaging, sizes all of there are selected by the buyers.
· Price: By negotiating with the buyer they fix a price for the product.
· Discount: It the buyer increases the quantity of the product them the company gives them some discount.
· Payment period: The buyers pay after the shipment of product.
· Credit terms: The buyers pay to the company by credit which call letter of credit (LC).
· Promotion: OPEX Garments Limited uses direct marketing and personal selling strategy for advertising or increase their sale. The company attracts the buyer by direct mail tale marketing. Internet marketing is known as direct marketing. Personal selling is the most effective tool for buying process.
5.2.2 Necessity of the Merchandiser
OPEX Garments Limited merchandising team makes direct interface with the manufacturing units to avoid communication gap in production stage. Merchandising can be either direct or indirect. Some time the company merchandising directly in the foreign markets.
A merchandiser fixes the supplier to buy raw materials for production. At first the merchandiser contact with the supplier’s by any phone call or by visiting their office. The merchandiser talks with the supplier about the raw materials. OPEX Garments Limited has managed the merchandising section by young, qualified and highly trained merchandiser. They are well exposed and highly professional. Merchandiser of the company must have some knowledge about the important issues of garments which significant for merchandising such as:
5.3 Key Success Factors for Merchandiser
The buying house export trade starts with the buyers placing an order with the seller. There fore it must be noted that if the vendor is unable to secure order from buyer, he is out of business. In order to be successful in securing orders continuously he must consistently make delivery in the right quality, at the right time and at the right price. To maintain these attributed and standards price, quality and delivery the vendor will be require consistently upgrading their production facilities, increasing productivity and having a strong management team.
5.4 Merchandising Process:
5.4.1 Communication:
Communication may be through Internet or face to face setting. In OPEX Garments Limited both two ways are available. Merchandiser of the company communicates their buyers with directly. They also are their own website for the buyer.
5.4.2 Determining Price
Once the merchandiser of OPEX Garments Limited receive client’s product specification such as sketch, design, measurement, design sheet, tech pack, fabric construction & color or even sample. They explain the clients about the manufacturing cost, time and other factors. If the cost is reliable for the buyer they finally agree to make business contract with the company.
5.4.3 Sample making
When the estimated price is acceptable then the merchandiser of OPEX Garments Limited develops the sample from their industry according to the sample will be evaluated by the buyers.
5.4.4 Signing Contract
After making the sample the merchandiser of OPEX Garments Limited gives an accurate price. When they get sample approval from the clients they both sign a contract to further the process. Here they agree on price, delivery period, shipping method etc. Then the customer issues an L.C. (Letter of Credit) through their bank to the OPEX Garments Limited against the work order.
5.4.5 Final Approval
After signing the contract the merchandisers of OPEX Garments Limited purchase the required fabric. When the fabric is approved then they make another sample for final approval. Upon approval they start manufacturing the product. It requires three or four months to manufacture, tag, label and package for shipment.
5.4.6 Labeling Requirements
For the consumer information and protection according to the us labeling Act. All garments to import into the U. S. A. must by label with correct and sufficient information as follows:
· Identification number: They use identification number as RN 00000
· Country of origin: The Company must clearly indicate on the label where the goods are made. Such as: Made in Bangladesh.
5.4.7 Fiber contents
Fiber contents of the Textile consumer goods must be clearly shown on the label such as:
· 40% Polyester
· 30% Rayon
· 30% Cotton
5.4.8 Packing
Packing is a important part for maintaining merchandising. If the merchandisers are not aware about packing the product may hampered. As for reason they may loss a lot of money after completing the packing it is ready for shipment.
5.4.9 Payment by L/C
Business transaction begins with a purchase order which represent by the mail or phone call or a fax received from the buyer. But it is not secure to the company. The order should treat as an agreement binding both parties the buyer and seller. For that contract they are L/C. It is for the seller to use to obtain payment for the merchandise shipped. The L/C means it is issued by the bank for the buyer and received and accepted by the seller. It cannot be cancelled or withdrawn by the buyer or the opening bank unless with the consent of the buyer.
5.4.10 Workers Health, Safety, working environment and other benefits:
Salary payment date : Within 7th of every month
Overtime payment : Along with monthly
Salary as per workers attendance
Washroom : Separate washroom and toilet for male and female.
Medical Benefit : An M.B.B.S. Doctor is appointed for the treatment of workers. In case of work related accident the company bears the cost of treatment and surgery.
Emergency Exit : Emergency exit sign board marked for easy evacuation.
Other Benefit : Separate lunch Area
Festival Bonus
Annual Picnic
Working Environment : Congenial and attractive working conditions prevail in the factory.
5.4.11 Major Clients:
Buyer’s Name
|
Country
|
Wal-mart
|
US / Mexico
|
George
|
U.K.
|
K-Mart Corporation
|
Canada
|
Casino
|
Switzerland
|
Banex Ltd.
|
Netherlands
|
Jarra
|
Germany
|
Carrefour
|
Norway
|
E.P. Ag
|
Switzerland
|
S.B. Trading
|
Italy
|
4-You A/S
|
Denmark
|
The Resource club Ltd.
|
USA
|
KK Kraft
|
Germany
|
MK. P.
|
Netherlands
|
5.4.12 Product development:
Ø Develop sample for buyer upon receipt of spec / sketch and other details.
Ø Organize fabric and accessories from local and foreign sources.
Ø Negotiate price and delivery.
Ø Strictly control the quality, right from beginning of production to export and follow fit comments of the buyer.
Ø Day-to-day in-line inspection by the standby quality controllers.
Ø Undertake Initial, mid term and final inspections by our highly skilled technicians.
Ø Keep day-to-day Email / Fax / Phone/chat communication with buyer.
Ø We believe in commitment and positive attitude, which is the route of success in every sphere of trade and life.
5.4.13Research & Development:
Ø Research and development or RESEARCH AND DEVELOPMENT is related with product development.
Ø Concerned Merchandiser forwards the Fabrication Info to the Product Library and will get the exact match.
Ø If there is required match, Documentation and Planning is done, Merch is developed and PD Plan is made by the PD center.
Ø If there is no exact match, Technical evaluation (Pricing), Documentation and Planning is carried out. RESEARCH AND DEVELOPMENT starts working here. After that PD Plan is made by the PD center.
5.4.14 Responsibilities of the research development &Manager:
Ø She decides the fabric styling, finishing Routes. He submits the fabric in the Lab.
Ø He compiles the results.
Ø He sends the results to the buyer.
Ø If OK for the results, Data is inserted into the computer for making the file. If result is not OK, we refinish the fabric.
Ø RESEARCH AND DEVELOPMENT sends the developed samples to the P.I. Lab, for the quick wash and sees the results after the 3 washes and required GSM is produced. After the quick wash, 20-30 g (weight) of the fabric is reduced just because of chemicals and detergents. Maximum sample weight is 10 Kg but is according to the merchandiser’s requirement. Yarn Count, Single Knit/Double Knit, Width and GSM is calculated and observed in RESEARCH AND DEVELOPMENT
5.4.15 DATA ANALYSIS & INTERPRETATION
For which of the following reasons you are not satisfied with your buyers.
1.
|
For which of the following reasons you are not satisfied with your buyers.
|
No.
|
Criteria
|
Total Respondents
|
Frequency
|
Percentage Responded
|
1.
|
High bargaining tendency in exchange
|
100
|
100
|
100%
|
2.
|
Uncompromising attitude towards contingencies such as hartal
|
100
|
100
|
100%
|
3.
|
Tendency of undesirable rejections
|
100
|
33
|
33%
|
4.
|
Fleeting tendency in business relationship
|
100
|
29
|
29%
|
5.
|
Cultural ethnocentrism
|
100
|
3
|
3%
|
Interpretation:
The criteria of the reasons of dissatisfaction are selected, as the satisfaction of the buyers is the important for the survival of the Industry.
Among the criteria, high bargaining tendency in exchange is one of most selected criterion among all the other criteria. This criterion is chosen to investigate whether foreign buyers show the bargaining tendency and how much that is in this industry. With the highest response it is revealed that the tendency prevails and it dissatisfies the respondent buying houses.
The second criterion is chosen for the questionnaire to look into whether the foreign buyers are patience to different undesired contingencies in our country. The respondents with another highest response has shown that they face strong impatience d lie to this type of contingencies.
The third criterion is chosen to investigate whether buyers undesirably reject garment products and how the buying house views it. Here it is revealed that buying houses are strongly against the product rejection by the foreign buyers. However, sometimes they are victims of such situation.
The fourth criterion is chosen to investigate the existence of fleeting tendency of foreign buyers. . This criterion reveals that' a portion of buyers do not value the long-term relationship with buying houses rather for trifling reasons they break their relationship with existing buyers.
The fifth criterion is chosen to see the existence of cultural ethnocentrism among the buyers. We have seen that the buying houses hardly face this problem.
2.
|
For which of the following reasons you are not satisfied with your suppliers (garment factories)
|
No.
|
Criteria
|
Total Respondents
|
Frequency
|
Percentage Responded
|
1.
|
Failure to maintain
|
100
|
97
|
97%
|
2.
|
Failure to maintain delivery on schedule
|
100
|
87
|
87%
|
3.
|
Unsuitable location
|
100
|
9
|
9%
|
4.
|
Fleeting tendency in business relationship
|
100
|
7
|
7%
|
5.
|
Higher bargaining tendency
|
100
|
4
|
4%
|
Interpretation:
The reason of dissatisfaction towards the suppliers (garment manufacturers) of buying house is asked to investigate the criteria that may hamper the smooth function between the buying house and its suppliers.
First criterion is chosen to investigate the importance of suppliers product quality. With its highest responses it has found that buying house is often' disturbed for the poor product quality of suppliers.
The second criterion is chosen to investigate the emphasis on the scheduled product delivery by garment manufacturers. Here it has found that buying house also gets very much annoyed by the late, delivery of suppliers.
The third criterion is selected to see the emphasis of buying houses to the suitable location of garment manufacturers. With its response this criterion has shown that buying houses poses insignificant value on this matter.
The forth criterion is chosen to determine the Fleeting tendency of suppliers toward the buying house. The result shows that only few number of suppliers holds this tendency.
The fifth criterion is chosen to see the bargaining tendency of suppliers. From the table it is clear that the supplier do not posses high bargaining tendency.
3.
|
Which of the following obstacles to export garment products through buying houses can be treated as major / minor
|
|
(a) Major obstacles
|
No.
|
Criteria
|
Number of respondents
|
Frequency
|
Rank
|
1.
|
Casualties such as natural calamities or political crises
|
100
|
100
|
1
|
2.
|
Failure to deliver on time
|
100
|
86
|
2
|
3.
|
Unskilled garment workers
|
100
|
73
|
3
|
4.
|
Unproductive workers
|
100
|
54
|
4
|
5.
|
Fraudulence in trading
|
100
|
37
|
5
|
|
(b) Minor obstacles
|
No.
|
Criteria
|
Number of respondents
|
Frequency
|
Rank
|
1.
|
Rejections of products resulting from inefficient supervision
|
100
|
100
|
1
|
2.
|
Inefficiency of buying house in negotiating
|
100
|
50
|
2
|
3.
|
Child labour aspect
|
100
|
43
|
3
|
4.
|
Gender inequality
|
100
|
27
|
4
|
5.
|
Shortage of sound base heavy factory
|
100
|
24
|
5
|
Interpretation
These questions were asked to find out severity of major or minor obstacles to RMG export process. As these problems of export process makes the job of buying house difficult to convince buyers.
The first major obstacle, natural calamities and political crises are responded by all of the respondents and ranked as first. This reveals that the activities of buying houses are very much vulnerable to this type of obstacle.
Failure to deliver on time got the rank of second major obstacle from the answer of the respondents as it is another suffering to the smooth functioning of this export marketing process.
The third obstacle is inefficient garment workers- a virulent gangrene in the production system. This criterion is also marked by more than two third of the respondents thus it is ranked as third.
Fourth criterion is the unproductive labor. Their barren productivity, as hampers the scheduled production process, is ranked as fourth major obstacles from the answer of the respondents.
The final one is the fraudulent in trading which cleans the violation of the rules in the agreement by the garment manufacturers. This is found as less frequent among the other major obstacles to RMG export, to the eyes of the buying houses.
The next part is the minor obstacles, which have the minor impact in the smooth function of RMG; export thereby poses minor impact on buying house.
The highest response among the minor obstacles is the rejection of the products due to the inefficient supervision of the production process of buying houses. All the respondents responded it. Indicating a frequent minor problem.
The second one, was the ineffective communication skill posses by the buying houses. A large part 'of the respondents has mentioned it as the minor obstacles as a result it got the second rank.
The third ranked minor obstacle was the utilization of child labour in Bangladesh and its related aspects. Here we have seen that although the consumerism is against this utilization but it is sometimes defeated for the availability of low cost labour.
Fourth ranked minor obstacle was the aspect of gender inequality in Bangladesh. Buyers allover world have a opinion against this matter. As result they are sometimes unwilling to order in our country where this gender inequality prevails.
The fifth ranked minor obstacle was the lack of sound based heavy garment manufacturing industry in Bangladesh. As a result we are deprived from a high level of orders which could be avail otherwise. How ever the response to this question is 25%.
4.
|
Which of the following problems of a buying house can be treated as major / minor
|
|
(a) Major problems
|
No.
|
Criteria
|
Number of respondents
|
Frequency
|
Rank
|
1.
|
Supplier's poor product quality
|
100
|
96
|
1
|
2.
|
Short shipment
|
100
|
87
|
2
|
3.
|
Stock lot or total LC unutilized
|
100
|
73
|
3
|
4.
|
Document delay
|
100
|
57
|
4
|
5.
|
Improper document
|
100
|
52
|
5
|
|
(b) Minor Problems
|
No.
|
Criteria
|
Number of respondents
|
Frequency
|
Rank
|
1.
|
Shortage of backward linkage
|
100
|
80
|
1
|
2.
|
Commission recovery
|
100
|
73
|
2
|
3.
|
Poor accessory supplier
|
100
|
71
|
3
|
Interpretation:
This question is asked to know the severity of the major or minor problems, faced by buying house in their normal business operation. This question is segmented in two sections: major problems & minor problems. After getting the respondent answer I have showed the rank of major and minor problems separately in the above table according to number of frequency of each criterion.
Major problems are those are those that have serious harmful impacts on the activities of buying houses.
One of the major problems faced by the buying houses is the poor product quality of the RMG products. For this poor quality buyers become dissatisfied and avoid the further contact with the same buying houses. Almost every one agreed and marked it as a major problem. Thus it is rap-ked as first.
Short shipment or the failure to supply the desired products is another significant problem of buying house with the huge response of the respondents at is ranked as second.
Stock lot or the cancellation of total shipment is another important problem and marked by 730/0 of the respondent thereby ranked as third major one.
Document delay and the improper document are the concluding major problems of buying houses.
800/0 of the respondents said that the shortage of backward linkage industry is a problem for the buying house industry thus it is registered as topmost minor problems of buying house.. With a slight difference in response commission recovery problems has defeated the poor accessory supplier in this category. So, it is clear that the activity of buying houses is hampered by an of above minor problems.
5.
|
Rank the following statements regarding the backward linkage industry of garment export.
|
No.
|
Criteria
|
Number of Respondents
|
Frequency
|
Rank
|
1.
|
Poor product quality
|
100
|
95
|
1
|
2.
|
Insufficient number of such industry to meet the total demand
|
100
|
93
|
2
|
3.
|
Lack of consciousness to understand the consequences of late or poor quality delivery
|
100
|
91
|
3
|
This question is asked to know the importance placed on backward linkage industry by the buying houses as a necessity of its smooth functioning. These questions have revealed the causes for which buying houses faces problem to get accessory or other material from this industry.
The first criterion is the poor product quality or supply of the accessories. As a result the smooth production of RMG garment products is hampered. For this reason the respondents have ranked the 'poor quality of the product' as the topmost.
The second criterion is asked about the absent of the industry supplier of accessories in the production process of RMG products. Although if is ranked as the second but from the data of the table it is clear that majority of the respondents agreed with the statement.
The third criterion is the lack of consciousness of the accessory suppliers to understand the consequences of poor or late deliveries of their products. Huge number of respondent also agreed with the statement treated this problem as major.
6.
|
Do you face any problem in your supplier selection process?
|
No.
|
Criteria
|
Number of Respondents
|
Frequency
|
Rank
|
1.
|
Tendency to stay with existing suppliers ignoring the necessity to fin out more efficient one
|
100
|
61
|
1
|
2.
|
Employee personal relationship with suppliers
|
100
|
57
|
2
|
3.
|
Failure to choose desired suppliers during seasonal excess demand
|
100
|
49
|
3
|
4.
|
Difficulty in choosing committed suppliers
|
100
|
43
|
4
|
Interpretation:
This question was asked to investigate the problems in selecting the effective and efficient suppliers. The selection of effective and efficient suppliers is must for the effectiveness of export marketing process of RMG products.
The highest criterion is the tendency of buying houses to remain attached with the existing suppliers ignoring the importance of finding out the more efficient ones. This is a traditional tendency of business people to depend on the existing stakeholders. This is thereby is a restriction to choose the new efficient suppliers.
The second one is the personal relationship of buying house employees with suppliers. This- is an important reason of inefficiency in the selection process of suppliers because in this process expert employees have influence and their bias may distort the effectiveness of the selection process.
The third criterion is the failure to select the desired efficient suppliers because their power of choice becomes limited while the excess demand is created by seasonal effect.
The fourth criterion is the failure to understand whether a new supplier will be committed to the agreement because he is not tested previously.
