Lecture # 1 By

J.N.Vohra B.Text, M.Tech, F.I.E,C.Eng., M.I.M.A, MPMA

Order Procuring

Implement Order

Sampling

Identifying trends (through research, study of the historical seasonal lines of the specific buyers to whom lines have to presented) Sourcing key items (fabrics, accessories etc.) to develop assortments (garment collection) that drive the business Ensuring colour, fit and quality of garments (Sample Development) for presentation to the visiting buyer Working out the costing of each sample Working out production capacity and types of machines required for each style in a given set-up (or to identify the fabricator for entrusting the bulk production on receiving the order)

Assisting management to enter into purchase contract for specific styles approved or brought by buyers Studying carefully the specs given by the buyers and details of shipment Sending the pre-production samples for the approval of the buyer.

S.No. Buyer Division Style#  Confirmed Price 

Order Confirmation 

 date

Del. Month* 

Ordered Quantity

Qty (in prod.)

Merchant

1 Ladies 233 $5.60 18‐Mar 22‐Jun 1250 1312 Anu

2 Men 5120 $1.92 03‐Jan 22‐Jun 820 860 Anu

3 Men 7511 £4.70 04‐Feb 15‐Jul 2280 2394 Mona

4 Kids 7254 £3.80 04‐Feb 8‐Aug 5200 5460 Mona

5 Kids H12 € 3.65 29‐Apr 08‐Sep 8200 8600 Shilpi

6 Kids H15 € 3.50 29‐Apr 08‐Sep 4000 4200 Shilpi

Total 21750 22826* Ex-factory

A B C D ES.No. Style# Qty Price/Pc Conversion 

in Rs.*Value/Pc in Rs.       (B x C)

Value     (Lakhs.)           (A xD)/100000

Merchant

1 233 1250 $5.60 46.00 257.60 Rs. 3.22 Anu

2 5120 820 $1.92 46.00 88.32 Rs. 0.72 Anu

3 7511 2280 £4.70 73.00 343.10 Rs. 7.82 Mona4 7254 5200 £3.80 73.00 277.40 Rs. 14.42 Mona

5 H12 8200 € 3.65 62.50 228.13 Rs. 18.71 Shilpi

6 H15 4000 € 3.50 62.50 218.75 Rs. 8.75 Shilpi21750 Rs. 53.65

Raw Materials Gross 70.00Accessories  Gross 50.00Wages Fixed 7.00

Pc rate 28.00Add‐ons Outsourcing 36.00Packing 8.00Power 3.00Fuel 2.00Overheads 10% 20.40

Sub Total 224.40Add

Discounts 2% 4.488Rejects 3% 6.732

Leftovers 3% 6.73217.952

Sub Total 242.35MinusSalvage of Left Overs 2% 4.85

Draw Backs 10% 24.2429.08

Cost Price 213.27Above is just guidelines

CostingStyle No. 233

Gross raw material include cutting or yarn wastagesGross accessories include wastagesFixed wages include sweepers, carriers,sample knitters, sample stitchers, sample checkers Piece rate wages include, stitchers,  knitters, menedrs, linkers,  pressers, washers, checkersAccessories include Buttons, Zips, Threads, etc.Add ‐ons include Printing, Embroidery, Patch Work, beaad work, frilling, special finishes Etc.Packing Include labels, Tags, Polythene, Hangers, card board, cartons, strappings etc.

A B C D ES.No. Style# Ordered 

QtyValue/Pc Cost Price/Pc Profit/Pc     

(B‐C)Profit (Lakhs)      (AxD)/100000

Merchant

1 233 1250 Rs. 257.60 Rs. 213.00 Rs. 44.60 Rs. 0.56 Anu

2 5120 820 Rs. 88.32 Rs. 76.00 Rs. 12.32 Rs. 0.10 Anu

3 7511 2280 Rs. 343.10 Rs. 310.00 Rs. 33.10 Rs. 0.75 Mona4 7254 5200 Rs. 277.40 Rs. 245.00 Rs. 32.40 Rs. 1.68 Mona

5 H12 8200 Rs. 228.13 Rs. 198.00 Rs. 30.13 Rs. 2.47 Shilpi

6 H15 4000 Rs. 218.75 Rs. 201.00 Rs. 17.75 Rs. 0.71 Shilpi21750 Rs. 6.28

Styles Qty Last Date for File Release

Start Finsh Ex-Fac Ex-Ind Merchant

1 A 4642 17-Feb 24-Feb 9-Apr 12-Apr 22-Apr Anu

2 B 5708 27-Feb 6-Mar 18-Apr 27-Apr 4-May Mona

3 C 3700 28-Feb 6-Mar 24-Apr 25-Apr 2-May Mona

4 D 1500 7-Mar 13-Mar 4-Apr 6-Apr 13-Apr Shilpi

5 E 4030 10-Mar 17-Mar 25-Apr 27-Apr 4-May Shilpi

6 F 5122 13-Mar 20-Mar 7-May 12-May 19-May Anu

7 G 6855 25-Mar 5-Apr 28-Apr 16-May 23-May Shilpi

8 H 1830 28-Mar 6-Apr 23-Apr 16-May 23-May Mona

9 I 1340 30-Mar 6-Apr 25-Apr 27-Apr 4-May Shilpi

10 J 3238 30-Mar 6-Apr 10-May 12-May 20-May Anu

Sourcing fabrics, yarns, accessories and packing materials etc. for the bulk production Preparing Time and Action Plan (TnA) for the production department to pursue Pursuing the production plan and production pick samples for the approval of the buyer. Keeping liaison with the buyers (for which the accounts are held by the merchandisers) for any modifications in the order/specs required or to answer the queries of the buyer. Getting the samples checked from in-house or outside lab for any specific tests (such as washing fastness, light fastness, presence of azoic dyes, metal tests etc.) asked for by the buyers.

Getting the shipment checked for quality and obtaining the inspection report from the inspecting person/agency Approving the shipments after quality inspection report Preparing invoices, packing lists, and quality check reports Following the instructions of the buyers regarding dispatch instruction Passing on all the documents to the accounts section to process the papers for obtaining payments as per the terms of the buyer