I have gone through this study, as a part of the primary role of this company is to bring order of various types of garments products from foreign buyers of developed countries and local buying house and execute these orders in our factories. The practical knowledge of work I have achieved from KUN SOURCING LTD has provided me the base of my investigation. Although the highest foreign currency eamers, the sector of exporting the garment products from our country to different buyer countries does not prove itself an easy working domain. A lot of problems are scatte red all over in the marketing process of garment products to different countries. As a novice of internship in the KUN SOURCING LTD. I have observed the problems, which it is facing in, it’s all over marketing process.
Some of the problems lie in the part of garments sectors and residuals may be found in the counterpart of its related working domain. As a fresh achiever of knowledge I have tried to investigate the problems of export the garment products for its surface to the bottom and tried to find out the possible solutions. 1. 1 INTRODUCTION: In Bangladesh, the future of garment industries is brighter in the era of globalization. Ultra modern technology are being used in the woven and kint garment industries in the outside world other than Bangladesh. To survive in the free market of the world, we have to use world standard latest technology in our ready made garment sector. The report will mainly focus on the appraisal of “Merchandising department” at KUN SOURCING LTD. Dhaka.
The proposed study will cover the appraisal, practice, procedures and techniques followed by the merchandising department in the preparation of order to shipment in Bangladesh is an under developing country. The development and progress of the country largely depends on Export performance. In case of Bangladesh, among the Export Sectors, the ready-made garments (RMG) are the main earning source of foreign currency. In the garment and Textile indoustry, meachandisers have been playing a vital role for the execution of export orders. There are large numbers of merchandising personnel who are working in the garment and textile sector 1. 2 BACKGROUND OF THE STUDY: Without the practical knowledge, theoretical knowledge is valueless.
From this point of philosophy Institute of Business Administration (IBA), Rajshahi University has introduced an internship program with a view to achieve practical knowledge associate with the different fields of business. So after acadimic education this internship program was great opportunity for me to see the real business world, acquire practical knowledge and to be a smarter world business professional. For this reason to do my internship in KUN SOURCING LTD a Buying House I communicate with the country manager with a forwarding letter that was issued by the IBA office and with my curriculum vita. I am very much grateful to the authority of KUN SOURCING LTD for giving me the opportunity of doing my internship in this organization. 1. 3OBJECTIVES OF THIS STUDY:
The main objectives of this study are scrutinize Merchandising Department of KUN SOURCING LTD. Academic knowledge is not perfect, practical knowledge is essential with it. The objectives of the study are to gather knowledge through practical work. It will fulfill the experience through theoretically as well as practically. • To work in reputed company. • To define and evaluate the Merchandising Dept. • To observe the effectiveness of Merchandising Dept. • To get the additional knowledge in different sectors about the organization. • To indentify the problems of the Merchandising dept. • To interchange opitions of the officials regarding their organization. To know the economic condition of Bangladesh through KUN SOURCING LTD • To know the condition of the exporting organizations (specially garments related) of Bangladesh • To know the operational procedures of KUN SOURCING LTD as a Buying House. 1. 4METHODOLOGY OF THE STUDY This is a descriptive type of research that has undertaken insights and understanding about overall operation of KUN SOURCING LTD in Bangladesh. This report is prepared on the basis of primary and secondary sources. The relevant information are collected through direct interview of the personnel engaged in various department of KUN SOURCING LTD The secondary information was collected from different past files, which were collected form personal visit of the company files. Primary sources Direct conversation official records Observation of various organizational procedure Expert opinion b. Secondary sources
Relevant papers and different books and publications. Manual of different departments. 1. 5LIMITATIONS OF THE STUDY: The main limitations of the study are as follows: • Due to the shortage of time I could not get at depth knowledge of the Merchandising operation and implementation practices in the company, as the period for which I was assigned to work as a merchandiser was very short. • The merchandisers of the company are always busy, so they could not provide every information timely. • Sufficient records, facts and figures are not available. These constraints narrowed the scope of the real analysis. • Usually Company is not willing to provide their actual ata of financial statement because of their security. • Personal barriers like inability to understand some official terms; office decorum etc. creates a few problems to me • For newly entrance in this sector. • The activities of a merchandiser are not documentarily arranged. • The activities of merchandiser bear from factory to factory. • There is no special training department for study.
1. 7RATIONALITY OF THE RESEARCH: It appears that merchandising is the most important and essential part of textile. But unfortunately in Bangladesh, merchandising planning and controlling is reported to be unsound in case of private sector industrial undertaking. It indicates that merchandising lanning and controlling is extremely poor in all textile sectors like four knitwear Ltd. In Bangladesh which in has adversely affected quality of the individual units. So far our knowledge goes; there is no other study on the subject. The rationality of merchandising system is stated bellow: 1. To know properly about merchandising of Four knitwear ltd. 2. To improve product quality. 3. To reduce lead-time. 4. To develop or set-up Background linkage industry. 5. To improve productivity. 6. To develop infrastructure. RESEARCH METHODOLOGY 2. 1 Description of the research design 2. 2 sources of data 2. 3 Data collection instruments 2. 4 Methodological assumption RESEARCH METHODOLOGY
The objective of research is to portray accurately the characteristics of a particular individual, situation or a group. Research refers to the systematic method consisting of enunciating problem, and collecting the facts or data, analyzing the facts and reaching certain conclusions either in the form of solutions towards the concerned problem or in certain generalizations for some theoretical formulation. Research is the process of gathering, recording and analyzing critical and relevant facts about any problem in any branch of human activity. It refers to a critical and searches into study and investigation of problem, a proposed course of action a hypothesis or a theory. Research refers to a search for knowledge.
In fact research is an art of scientific investigation. The research methodology comprises of all activity that carried on in connection with marketing management. The purpose of research is to discover answer to question through the application of scientific procedures. The main aim of research is to fins out the truth which is hidden and which has not been discovered as yet. Defining the problem and research objectives. Developing the research plan. Collecting the information. Analyzing the information. Presenting the findings. The scientific method, methodologies, model building and cost benefit measures of value of information can create a good research. 2. DESCRIPTION OF THE RESEARCH DESIGN: Research Design A research design is the determination and statement of the general research approach or strategy adopted for the particular project. Meaning A research design is purely and simply the framework or plan for a study the guides, the collection and analysis of the data. It is a blue print that is following in completing a study. A central part of research activity is to develop an effective research strategy as design. This will detail the suitable method of investigation. 2. 2SOURCES OF DATA: Collection of facts (raw facts) is known as data. There are two types of data are available based on source. These are: 1.
Primary Sources of Data. 2. Secondary Sources of Data. PRIMARY DATA The data collected for a purpose or when the researcher investigates a particular problem at hand is known as primary data Sources of primary data: Primary data for this study collected through direct observation and personal interview with questionnaire. SECONDARY DATA When an investigator uses data, which have already been collected by others for another purpose, such data is called secondary data. This type of data is primary data for the agency that collected them for the first time, and become secondary data for someone else who uses these data for his own pure Sources of
Secondary Data: The major data have been used in this study are basically are of primary data. Secondary data for this study was collected from the organization and several reports. 2. 3 DATA COLLECTION INSTRUMENTS: Direct observation and personal interview with questionnaire is the main instrument to collect the data. Both primary and secondary data have been used for the purpose of the study. The primary data have been collected on the basis of prepared questionnaire. Some secondary data and information have also been collected from the organization and several reports. 2. 4 METHODOLOGICAL ASSUMPTION: There is no project, which is free from assumptions.
For every research some assumptions will have to be made before starting a project. The assumptions are made about the study with respect to the organization prevailing concepts and practices in the present environment. In some cases assumptions will be correct which lead to the achievements of goal. But in certain other cases it may be limited by many some situations, thus not obtaining the objectives 1. It has been assumed that direct observation and personal interview with questionnaire would be the easy way for data collection on Four Knitwear Ltd. merchandising Management. 2. It has been assumed that the research methodology, which has been adopted for the study, is appropriate. 3.
It has also been assumed that the respondents have been given the proper (correct and genuine) information. CONCEPTUAL FRAMEWORK 3. 1 Concept of Merchandising 3. 2 Responsibilities of a merchandiser 3. 3 Quality of a merchandiser 3. 4 Function of a merchandiser 3. 5 What buyers like or dislike in a merchandiser? 3. 6 Purposes of merchandising 3. 7 Merchandising Management 3. 8 Objectives Merchandising 3. 1CONCEPT OF MERCHANDISING: The term “merchandising” is well known to the person specially involved in garments trade. The term merchandising has been derived from the term “merchandise”. Merchandise means goods that are bought and sold. The term merchandiser may be defined as the person who merchandises the goods especially for export purposes.
Garments merchandising means buying raw materials and accessories, producing required garments, maintaining required quality level and exporting the garments within schedule time frame. 3. 2 MAJOR RESPONSIBILITIES OF A MERCHANDISER ARE GIVEN BELOW: 1. Order sourcing/supplies 2. Negotiation 3. Production 4. Calculating Yarn/Fabric consumption 5. Calculating costing of the product 6. Monitoring Quality aspect 7. Product development 8. Liaison with Buyers Customers & Factory 9. Factory Scheduling 3. 3 QUALITY OF A MERCHANDISER: From the above definitions we can assume that a person involved in garments merchandising needs a wide range of knowledge and skill. a) Good command of English and adequate knowledge of technical terms for accurate and efficient communication. ) Good knowledge of yarn, fabric, dyeing, printing, finishing, dyeing color fastness, garments production etc. c) Clear conception of the usual potential quality problems in the garments manufacturing. d) Good knowledge of the usual raw materials inspection systems and garments inspection systems. e) Knowledge of the quta system used in each of the producing countries, duty rate, custom regulation, shiping and banking documentation etc. 3. 4 FUNCTION OF A MERCHANDISER When an export order is placed to a merchandiser, he has to schedule the following main function to execute the export order perfectly in time. 1. Fabric requirement calculations. 2. Accessories requirements calculation 3. Sources of fabrics 4.
Possible date of arrival of fabrics And accessories in the garments factory 5. costing 6. Garments production planning 7. Pre shipment inspection schedule 8. Shipment document All the main functions, mentioned above are important but the procurement of fabric and accessories are most important as because there are many technical parametes involved, specially in thus area, in most cases collection of fabric for the garments is a major problem. to procure a fabric, we should clearly specify the technical specification of the fabric during placing a fabric supply order. 3. 5 WHAT BUYERS LIKE OR DISLIKE IN A MERCHANDISER? ** What buyers like in a merchandiser? 1. Good presentation: Calculator, Paper, and Scale etc. . Manner: Manner should be polite, good Behavior, Smart talking 3. Time Awareness: You should be punctual & sincere 4. Knowledge: About product, your company & about buyers 5. Sensibility To the needs: Lessening, understanding 6. Appearance: Smart Dress, Formal dress, and casual dress ** What buyers dislike? 1. Poor sales presentation 2. Unacceptable manner 3. Time wasting 4. Un smart appearance 5. Poor knowledge 3. 6 PURPOSE OF MERCHANDISING: 1. To collect order from the buyer. 2. To shipment the order in time. 3. To follow up the working of worker. 4. To determine the actual price of the product. 5. To improve the quality of the product. 6.
To increase the good will of the textile. 7. To seek new buyers. 3. 7 MERCHANDISING MANAGEMENT: merchandising management constitutes the most significant part of textile companies. A company starts their activities by starting the activities of a merchandiser. When a company receives an email from buyer, then the activities of a merchandiser start and a merchandiser always look after all activities from production to shipment. 1. Receive email of the buyer or buying house 2. Determine the actual price of the product 3. Send sample of the product 4. Ensure a good quality of product 5. Follow up the production process. 6. Monitoring the payment. 3. 8 OBJECTIVES OF MERCHANDISING:
Efficient Management of merchandising should ultimately result in the maximization of sales of products. In order to minimize cost Stated differently that the objectives of merchandising management consist two counter-balancing parts:- To maintain merchandising system for efficient and smooth production and sales operation. To maintain a minimum cost to miximize profitability. These two conflicting objectives of merchandising management can also be expressed in terms of cost and benefits associated with inventory. That the industry should minimize cost of product for increasing more sales and more profit. Merchandising is an important task of a textile company.
To complete merchandiser activities successfully a merchandiser has to follow some procedure or sequence that are given below. Fore casting: It is an important term for merchandising. At first a merchandiser have to decide in what type product he will produce. There are various products in textile sector. After deciding the product then he will start for order sourcing. Order Sourcing: Sourcing is a term use to describe the process of determining how and where item will be procedure. It includes the decision on the selecting supplier for material procurement and vendors for apparel production. The stages of sourcing: 1. Internet 2. Business directory (yellow pages) 3. Advertising 4. Buying house 5. All country of Embassy 6.
To exhibition Factor for sourcing: Sourcing decision depends on some factors- 1. Product factor: Style, design, quality standard, price reference, 2. Company/vendor factor: Company good will, previous history, minimum order quality, quality standard, and service ability 3. Country factors: Political: The present political stability Economical : financial, banking, insurance etc. facilities or tax free or others opportunities Cultural & language: In time delivery, previous history, morality, religious factor, ability of speaking English education. Geographical: Distance, transport cost. *Checklist for selection a vendor/factory: Informations: 1.
Name and address of the company. 2. Contact number and person 3. Major market of customers (which customer they deal) 4. Major products, (which products they experienced) 5. Capacity (monthly or annually) 6. Physical size of the plan. 7. Number of employees 8. Financial status 9. Location of production 10. Production facilities 11. Quality standard 12. Minimum order quantity. Negotiation: Its not contest. Its opportunity to establish good working relationship. Which obtaining a good deal. Or, negotiation is a stimulating way to arrive at acceptable solution to the need for something whither it is a need to resolve the difficulties or to settle terms.
The aim of negotiation/approach “Win Win solution” Both parties are benefited. The skill for negotiation: 1. Discovering common interest and removal of personal issues. 2. Questioning skill 3. Listening effectively 4. Understanding body language. 5. Observation and judgment. 6. Influencing skills Introducing: Actually merchandiser activities started by introducing with the buyers. Introducing may occur by two ways. 1. Buyer to seller 2. Buyer to buying house and buying house to seller. Generally they communicate with them by email and telephone or mobile. Enquiry: At the time of introducing the buyer send their requirements, which include which type’s products, he needs.
They also provide sample size, sample photo; style etc. Source Fabric: After receiving the enquiry a merchandiser have to find from where fabric can be found as per buyers requirement. There are two sources of fabric. 1. Local source 2. Foreign source. Both local and foreign it needs to open a L/C. In textile sector generally back-to-back L/C is used to collect Fabrics. Prepare Lab Dipping: It is an important part of sampling. if buyer wants color size product then he need to send them for proper coloring. After that lab test is send to the buyer for approve. For an example Letter that is send to lab is given below. source. Both local and foreign it needs to open a L/C.
In textile sector generally back-to-back L/C is used to collect Fabrics. Prepare Lab Dipping: It is an important part of sampling. If buyer wants color size product then he need to send them for proper coloring. After that lab test is send to the buyer for approve. For an example Letter that is send to lab is given below: Gets approval Lab dipping: Lab dip confirmation & may be fitting & workmanship changes: 1. Start with dyeing the fabric (if necessary start tests bulk) 2. Sending preproduction samples or size set in original fabric with all already Confirmed details. After checking & necessary changes, the confirmation of labels, print. Start of label, print, and patch production. Order Bulk Fabric Production:
Dyeing: After the buyer approves lab test, and then sample is sent for dyeing Fabric Printing: Fabric printing is the process that applies a single or multi colored/design on a white of dyed background fabric, using textile dyes. If there is any need of print, then it is sent for print. Source Prepare Trims & Accessories: for preparing a product a company need various types of trims and accessories. These are very much important for textile product. Such as tag, pin, scope tape etc. so it is the duty of a merchandiser to sourcing accessories before start production. Develop a Sample: Sample is the physical form of buyer’s specification or style/design. After draw a cache a sample is prepared for the buyers and sends to the buyers. Sampling may be in two ways. 1.
Sampling after confirmation price. 2. Sampling before confirmation price. For sampling a merchandiser need Fabrics, yarn, level, etc. Types of sample/Stages of sample: 1. 1st pattern: The first physical version of any garment as per the artwork done by designer and/or developer. 2. 2nd pattern: Usually designer/developer always asks for some changes to the first pattern. Second pattern is made as per comments. 2. Sales man sample: Sample is made when PRICE is confirmed and orders are on speculation, usually in L size in all color combinations of expected or 3. Production: It is a reference to the buyer that the bulk is being produced as per specification.
Buyer wants to be assured that correct material is sourced and line Workmanship confirm to the quality. 4. Marketing/Developing sample: 5. Counter sample (Based on buyer requirement,) Where first pattern is made on designers artwork, Counter sample is to make not on designer’s artwork, has to follow another sample given by the merchandiser 6. Fit sample/red tag sample/Proto type sample: Samples are made with actual color and material to be worn by the models on the event of SHOOTING for catalog. 7. Approval sample: In any discrete period of time, whenever it required any revision in the sample, a new sample is made (some times mock-up is workable too) as per new specification.
It is sent to buyer for his APPROVAL of the conformity that-revision is done correctly. 8. Preproduction sample/size set sample/production sample: When material for bulk production arrived, factory makes a sample with the actual material and sand to buyer 9. Shipping sample: A sample is kept from every Pre Shipping inspection to be referred, if required, after the order has been delivered. Usually for any dispute (e. g. Claim) shipping sample is important. 10. Mock up sample: Any part of the garment to make for particular purpose, not complete garment. Sometimes it is necessary to send to the buyer any part of the garments. such as sleeve, collar, neck etc and some accessories. SWATCH:
Swatch is a presentation of all the materials is (Fabric & Accessories) used for any specific style/order. Usually small piece of fabric and each piece of accessories are attached in board paper in a systematic manner. Swatch is very important for production line to make the correct construction of a garment and QC department ensures it. 6. Pricing: It is the most important factor for a merchandiser. A merchandiser is the person who fix or determining the price of the product. Deals will be done or not is totally depend on the price of the product 9. Shipping sample: A sample is kept from every Pre Shipping inspection to be referred, if required, after the order has been delivered. Usually for any disputes (e. g.
Claim) shipping sample is important. 10. Mock up sample: Any part of the garment to make for particular purpose, not emphasis on quality. So it is needed to care always on quality. A quality product always turns more buyers. Arrange Shipping Sample: Shipping sample is very important for shipment. Shipping sample means the representative of the product that we produced for the buyer. Sample must be repetitive according to color, size. Follow-up Export Procedures: A merchandiser must follow the export procedures by himself 4. 2PAYMENT MONITORING: After getting order from buyer A L/C have to open by the buyer L/C means Letter of Credit. It is a conditional undertaking of payment.
It is a document issued by a bank on behalf of an applicant undertaking to make payment to a beneficial up to a stated amount of moneys within a prescribed time limit and design stipulated documents. Types of L/C 1. Revocable L/C: This type of credit can be amendment or cancel by the applicant without only prior notice to the beneficial. Here all risks are involves for the seller but buyer has more flexible. 2. Irrevocable L/C: This type of credit ca be amendment or cancel only to the agreement of all parties concern. 3. Irrevocable & Confirmed L/C: This type of credit involves the undertaking of the abvising bank in addition to that of issuing bank.
It means that issuing bank request a 2nd bank to add its own confirmation to the credit. So that the confirmation bank is reponsible to make payment if the issuing bank to pay the beneficiary. 4. Transferable L/C: This type of L/C that is transferable as per the need. 5. Back-to Back L/C: This type of L/C can be against a valid expert L/C. Master L/C. It is so much popular in textile area for open a L/C then need some things that are given below: 1. Trade license 2. Memorandum Certificate 3. Membership certificate 4. IRC 5. TIN 6. Bond license 7. Insurance 8. Factory Insurance 9. Agreement with the house owner ** L/C Export Document: 1. C. O 2.
Inspection Certificate 3. U. D 4. G. SP. ** Benefits of L/C Sellers End: 1. Without having cash payment 2. Guaranteed business without investing any cash involvement 3. Risk free Buyers end: 1. Guaranteed business without investing any cash involvement 2. Without having cash payment 3. Risk free 4. Same with quality product. The buyer should be ensured that he would the quality product. Get The Feed Back: *** The above flow-charts just an example. Buyer-to-Buyer it can be different. 4. 5 NAME OF BUYERS COUNTRY: 1. Germany 2. Canada 3. Italy 4. France 5. Singapore INTRODUCTION: The “Merchandising” is known to the persons specially involved in garments trade.
The term merchandising has been derived from the “merchandise”. Merchandise means buying and selling huge amounts of goods. The term “MERCHANDISING” may be define as Person who merchandises the goods, specifically for export purposes. Garments merchandising means buying raw materials & accessories, producing garments, maintaining required quality level and exporting the garments within scheduled time. I am working as a merchandiser in the organization. Here five merchandisers working with different Buyer. At first the Buyer gives them a inquiry sheet with measurement chart sketch of sample. Then they make a development sample & send it to the Buyer.
Buyer makes comments on it, it is OK/NOT. Then the question of price the merchandiser going to negotiate. Sometimes they successful, sometimes they being fail. If they success they order Yarn, Trims, & accessories. In front their shipment time they are trying to arrange everything as early as possible. When size set made then they measure it. If it is OK the Yarn provide for 100% production. In production process the merchandiser just follow up his order, whit is the condition of his order? During that total time merchandiser inform his Buyer what is the condition of his product. In our 90 days working period I have also follow up five whole worth order. 4. MERCHANDISER IS A DATA BUS BETWEEN BUYER & SELLER Merchandiser is he/she who builds up relationship with the buyer and acts as a Seller. He plays a vital role in an organization in a sense that he bears more responsibility than other in regards to execution of an order. The responsibilities which he bears on the job are as follows: • He represents as a buyer to the Factory. • He represent as a seller to the buyers. • He inspects Quality as a buyer (form the Buyer’s point of view). • He negotiates a price for the sellers. • He looks at the deal from seller’s point of view. • he looks into the business to flourish more in the future. • He ries to offer the deal more competitive without compromising the Quality. • His object is to satisfy the buyers to progress more of the future business. • His aim is to impress the buyers by means of: 1. Right products 2. Right Quality 3. Right Quantities 4. Right Time 5. Undamaged condition 4. 2 MERCHANDISING CHRONOLOGICAL PROCESSES: OMMUNICATION IN INTERNATIONAL BUSINESS: • Telephone Conversation. • Fax/E-Mail • Formal Meeting • Lunch & Dinner 4. 17 THE INFORMATION NORMALLY GET ABOUT AN ORDER: 1. Factory Loading 2. Factory Capacity 3. Factory History 4. Factory Setup Details 5. Market Reputation 6. Type of Buyers Dealing 4. 18 HOW A MERCHANDISER MEET BUYERS REQUIREMENTS: 1.
Merchandiser detail to buyer about factory profile. 2. Merchandiser Understand the Order sheet. 3. Arrange the all component for order execution. 4. Production Tracking. 5. Timely Shipment. 4. 19 METHOD OF PUERCHASING RAW MATERIALS: Here fabric and some related accessories are the main raw materials. They are: 1. Lab-Dip 2. Approval the Lab-Dip 3. Collect price Quotation 4. Negotiation 5. P. I. Received 6. Back to Back L/C transfer 7. Delivery Chelan received 4. 20PROCEDURE OF IMPORTED GOODS: • Procure of IRC • Price Inquiry (Quotation) • P. I. Received and Placing Order • L/C Opening • Received Shipping Advice • Racing Customs • Closing Transaction About Kun Sourcing Ltd
Kun Sourcing Ltd is proud to introduce as one of the promising state of art garment manufacturing and sourcing solution house of the country that is committed to provide the best quality goods product to its buyers with sincerity and integrity. Over the years we have served different clients in different capacity. Now, we have put together our collective effort and experience to create a Legend of our own. Kun established in 2005 as a diversified joint venture buying house of France-Bangladesh to provide legendary service to the customer with the aim & motto of J. I. T-Just in time shipment of ensured high quality Knitwear-Woven-Sweater with competitive pricing to meet the increasing & flexible demand of the customers.
Within this short period we are going to earn quite fame, name & success in the world of & local market in terms of Competitive price, Service, Quality & Commitment. Kun Sourcing for in time consignment to the buyers, so quality was never been compromised with anything, as one of the new but skilled buying house in the country. We have over 10 Light knit, 5 Woven wear, 7 Sweater (heavy Knit) & Designer Wear (Haute couture) working as our Vertical line (manufacturing partners) to provide our buyers with quality product along with in time shipment. We can provide you form our diversified product lines with all kinds of garment wear sports wear for Kids, boys, girls, men, women with your provided lead time.
Our Management-Merchandising-Quality assurance teams who have come from the garment and textiles education background as well as have working experience from renowned factory and buying house with high profile buyer like-PUMA, Esprit, C & A, H & M, S. Oliver, American Eagle, Signal, Bilka, Foetex, Carrry, Mim, Li Youn, Gloster etc. who are leading the wheel of the company with dedication towards maintaining the standard quality as well as maintains tight timing that let the other members to be committed to keep consistency with the specifications as well as standard to deliver in time. Our head office is located in Dhaka, Bangladesh with technically & mechanically very sophisticated professionals from various nations like Italy, Philippine and Bangladesh. Provide word class quality with the best value for the client satisfaction • Assisting Buyers in development, production and salesman samples • Identifying proper factories based on each enquiry capable of servicing each order in respect of quantity, quality, timely delivery etc. • Evaluating a factory as per the compliance requirements of Buyers Processing Export orders and monitoring the same from sampling to shipment. • In line as well as final inspection of all the goods as per the AQL quality standards required by the buyer. • We always focus to provide world class quality with the best value for the client satisfaction • Assisting factories in their Merchandising requirements • Assisting factories by giving guidance in implementing effective manufacturing management procedures and engineering techniques to make sure that its schedule is kept & work under extreme dead line. • Implementing ffective Management Information System so that the buyers get up-to-date information of their orders • We also function as merchant exporters by getting packed shipments from the factories Company Profile Business Type: Trading House Business and garment manufacturer. Year of establishment: In the year of 2005 we started our operation. Area of specialization: We can provide and serve you with the following local and imported textile product: • All kind of garment wear • Work wear • Sports wear • Haute couture Market segment: Our buyers are mainly from European & American countries. Management Inventory (Head officer) and professionalism: Kin Sourcing Ltd.
Comprises of Managing Director (1), Executive Director (1), Director (3), Technical Director (1), Head of Merchandising (2), Production Manager (3), Merchandiser (2) & Assistant Merchandiser (2) As maintaining shipment timing is a vital factor for this type of business, so the management professionalism is as follows: Heavy knit (Sweater) factory: 7 heavy knit (sweater) factories of Bangladesh are working with us. They offer a large variation of good quality as desired. WOVEN: • Shirts/Tops/Capri • Dress Pant/Trousers/Boxer • Shorts/Overalls/Pajamas • Jackets/Corporate Clothing • Windbreaker • Nightwear/Bate Robe • Swimwear COMPOSITE KNIT: • Basic t-shirts/Underwear • Polo shirts/Sweat Shirt • Fancy items/Promotional Items • Sports wear/Technical wear • Sleepwear SWEATERS: • Basic sweat Pullover • Cardigans • Vest • Tank Tops We providing a large number of knit items like • T-shirt • Polo shirt • Rugby polo-shirt • Tank top • Boxer shorts • Long pants • weat shirts • Ladies top • Pyjamas • Underwear • Panty • Mock neckt • shirt • End to end stripe polo • Spaghetti strap ladies top etc for men, women and kids. Promotional and others- Besides woven knit, sweaters we make some promotional and other products according to our client need which included work wears, kitchen wear, handkerchief, cap hand gloves etc. Sweaters- Kun is well known suppliers and manufacturer of different kind of sweater such as cardigan, pullover fancy work.
We are technically sound in this field, in Bangladesh we are basic yarn as well as fancy yarn like 100% acrylic, 100% Cotton, 100% nylon, cotton 60% acrylic 40%, acrylic 72% lurex 26%, acrylic 50% wool 50%, acrylic 70% wool 30%, acrylic 70% alpaca 12% wool 10% mohair 3%, acrylic 50% mohair 50%, acrylic 70% alpaca 30%, acrylic 85% wool 15%, etc. Technically and Mechanically skillful directors with vast experience particularly in the field of garment to uphold company image by providing superb design for garment wear and sophisticated technical knowledge for effective organizing power. They all take dynamic part in the business process with their skill and professionalism. Production manager, Merchandising manager and all merchandiser are from renowned Garment factory and have trading house work experience and leading our company with their technical and mechanical knowledge to fulfill the buyer satisfaction Kun Sourcing Ltd. ade some sister concern to support itself with the required product. All the factories had been covered by legal MOU and chosen like • Which are equipped with modern technology and machineries • Controlled by skilled local and foreign technician. • Well established and compliance certified. As we know that in time shipment is expected by all buyers so we don’t make contracts with those who are fails in commitment. Most of the factories have their own experienced foreign technicians that help us to meet the buyer’s expectation. We have 15 factories working with us and maximum of them are knit composite (own spinning, own dyeing) setup which helps them to deliver product to buyer’s timely.
That is why we can maintain the consistency of in time shipment. Light Knit Factories: Right now 100 light knit factories of Bangladesh are working with us. They are well experienced and habituated to do all kinds of knit items. We can deliver all shipment with their time limit. Woven Factories: 5 woven factories of Bangladesh do our woven works equipped with all modern and advanced machineries to serve us quality with in limited time. Our services: • factory and product sourcing • product development • factory evaluations • price negotiations • sampling follow-up • merchandising follow-up • quality control inspections • shipping coordination . 10 REQUIREMENT POLICY OF THE EMPLOYEE: • The company recruits new employee & executive by giving advertisement on Daily Newspaper, Poster or any other system. • Applicant must give his/her passport size photograph and Bio data. • The company never shows any side policies behave. • Child labors not permit for work (The workers must 18 above years old). • The company always follows the Industrial Law for joining new employee/worker 2. 11 TRAINNING FACILITIES: There is no specific training department for employees and executive. Recently the authority his taken an initiative step to introduce the training department. 3. 2 DIFFERENT DEPARTMENT: Quality Control Department. • Accounts Department. • Commercial Department. • Merchandising Department. • Marketing Department. 3. 2 (A) QUALITY CONTROL DEPARTMENT: This department always cares on quality. This dept. control by the Q. C. Managers. They verify the quality as the buyer indicates their order. They audit all the process, pre-production to packing & final audit. Q. C. process is indicated previous 3. 2 (B) ACCOUNTS DEPARTMENT: All the accounts of the organization are controlled by the accounts & Administration department. Accountant record all the accounts, calculate profits or losses, prepared financial report. 3. 10 List of Clients or Foreign Buyers : SL |Buyer Name |Origin | |1 |Kappahl |Sweden | |2 |Aldi/norma |Germany | |3 |Long Street |U. S. A. | |4 |N K D |Germany | |5 |Kik |Germany | |6 |TS Solutions |Sweden | |7 |Ventex |U. S. A. | An Overview of Garment Industry of Bangladesh.
Bangladesh’s textile industry, which includes knitwear and ready-made garments along with specialized textile products, is the nation’s number one export earner, accounting for 80% of Bangladesh’s exports of $15. 56 billion in 2009. Bangladesh is 3rd in world textile exports behind Turkey, another low volume exporter, and China which exported $120. 1 billion worth of textiles in 2009. The industry employs nearly 3. 5 million workers. Current exports have doubled since 2004. Wages in Bangladesh’s textile industry were the lowest in the world as of 2010. The country was considered the most formidable rival to China where wages were rapidly rising and currency was appreciating.
The garment industry of Bangladesh has been the key export division and a main source of foreign exchange for the last 25 years. The industry provides employment to about 3 million workers of whom 90% are women. Two non-market elements have performed a vital function in confirming the garment industry’s continual success; these elements are (a) quotas under Multi- Fibre Arrangement1 (MFA) in the North American market and (b) special market entry to European markets. The whole procedure is strongly related with the trend of relocation of production. 3. 11 Value Chain Analysis : As buying houses provide service as intermediary between garment manufactures and foreign buyers, their success depend on the value they are able to provide to both of these groups.
So to analyze its ability to provide value to its customers I have analyzed KUN SOURCING LTD. ’s ability regarding this matter. Value chain analysis is a useful framework for systematically identifying strength and weakness of activates necessary to design, produce, market and support its products and each of these activities could add value to product, or service. Each of them can also be source of competitive advantage for a firm. Value provider activities of KUN SOURCING LTD. Can be divided into two major categories, primary activities of KUN SOURCING LTD. And it’s supporting activities. Primary activities contribute to the physical creation of the products, its sales and transfer to the buyer, and after sales service.
Support activities assist the primary activities and each other. KUN SOURCING LTD Value chain could see as below : The Value chain : Primary and support Activities |Firm infrastructure | |Human Resource Management | |Technology Development (If any) | |Inbound Logistics |Operation |Outbound Logistics |Marketing Sales Service | Following Factors affect the primary and secondary activities of any value chain of KUN SOURCING LTD. |Inbound |KUN SOURCING LTD’s effectiveness in achieving orders. | | | |Soundness of accessory control systems of KUN SOURCING LTD | | |Operations |Productivity of personnel compared to that of key competitors of KUN SOURCING LTD. | | | |Efficiency of service processes of KUN SOURCING LTD. | | | |Effectiveness of service control systems of KUN SOURCING LTD. to improve quality and reduce | | | |costs. | | | |Its efficiency to plant layout and workflow design. | |Outbound logistics |Timeliness and efficiency of delivery of finished goods and services of KUN SOURCING LTD. | | | |Efficiency in shipping activities of finished goods. | | |Marketing ; Sales |Its effectiveness of market research to identify customer segments and needs. | | | |Innovation in sales promotion and advertising of KUN SOURCING LTD. | | | |Motivational competence of H. R. capital of KUN SOURCING LTD. | | | |Development of and image of quality and a favorable reputation of KUN SOURCING LTD. | | | |Its extent of brand loyalty among consumer. | | |Extent of market dominance within the market segment or overall market. | | |Customer |It means to solicit customer inputs for service improvement. | | | |Its promptness of attention to customer complaints Service. | | | |Its appropriateness of warranty and guarantee polices. | | | |Its quality of customer education and training. | | | |Its ability to provide replacement parts and repair service. | | |Human Resource |Efficiency of recruiting, training, and promoting all levels of employees of KUN SOURCING LTD. | |Management | | | | |Its appropriateness of reward systems for motivating and challenging employees. | | | |A work environment of KUN SOURCING LTD that minimizes absenteeism and keeps turnover at desirable| | | |levels. | | | |Active participation by managers and technical personnel in this professional organization. | | | |Levels of employee motivation and job satisfaction in KUN SOURCING LTD. | | |Technology Development |Success of research and development activates of KUN SOURCING LTD. | | |Quality of working relationship between personnel in KUN SOURCING LTD. | | | |Timeliness of technology development activates in meeting critical deadlines. | | | |Qualification and experience of technological personnel in KUN SOURCING LTD. | | |Procurement |Development of alternate sources by KUN SOURCING LTD for inputs to minimize dependence on a| | | |single supplier. | | | |Procurement of raw materials by KUN SOURCING LTD. | | | |On a timely basis. | | | |A lowest possible cost. | | | |At acceptable level of quality. | | |Its procedures of procurement of plant, machinery and building. | | | |Its development of criteria for lease versus purchase decision. | | |Firm Infrastructure |Its capability to identify new product market opportunities and potential environment | | | |threats. | | | |Its quality of the strategic planning system to achieve corporate objectives. | | | |Its coordination and integration of all activates associated with the value chain among | | | |organizational sub units. | | |Its ability to obtain relatively low cost funds for capital expenditure and working | | | |capital. | | | |Its ability to obtain relatively low cost funds for capital expenditure and working | | | |capital. | | | |Its level of information systems support in making strategic and routine decision. | | | |Timely and accurate information for management on general and competitive environment of | | | |KUN SOURCING LTD. | | | |Its relationship with policy makers and interest groups. | Findings of value chain analysis.
I have found the following findings related with the value chain aspects from my working experience in the organization and the personal interview through my working tenure : Findings related to primary activities : • Although for their unsatisfactory services at beginning stage KUN SOURCING LTD. Lost some big American buyers but now KUN SOURCING LTD reveives order mostly from European countries. Most of these buyers are permanent for their satisfactory services, which show their effectiveness in achieving orders. • For the both in source and out policy of accessory control KUN SOURCING LTD. Timely receives the accessory and other materials with out any bottle neck situation. Employers of KUN SOURCING LTD are satisfied with the existing productivity of the employees of KUN SOURCING LTD. • The acceptable level of satisfaction of both of its buyers and supplies shows their efficiency in their existing service processes. • The central location of the company is in the city heart at Nasirabad, Chittagong is the success of KUN SOURCING LTD. regarding place. • Strategy of 4Ps in marketing strategy. • Only a small percentage of their total annual orders are usually rejected by their buyers, which proves their efficiency. • KUN SOURCING LTD is able to deliver the finished goods on time for the advantage of owing a shipping business. They overlook the necessity of market research to identify the customer segment and needs. • As they don’t have any personal web site or online advertising. So it is clear that they ignore the importance of these marketing tools. • Although it encourages the customer feedback but any advantageous means is absent in this regard. • It doesn’t provide any official guarantee or warranty to buyers for the products or services they provide. Findings related to supporting activities : • They don’t provide any training to their employees. • Absence of employee reward system except their normal pay scale. • Nice working environment is strength for this organization. • Professional pace of work exist within the management. Existence of technological support such as e-mail, fax, scanner, phone, printing device etc. in the organization. • Company doesn’t hold any policy regarding employee creativity or inanition. • Company holds international outlooks for exporting. 3. 13 Key Success Factors : Key success factors (KSFS) are important areas in which good results will ensure successful competitive performance for Kun Sourcing Ltd. In this industry key success factors refer to- • good communication skills. • supervision to maintain desired quality. • Committed to the on time delivery. • Selection of efficient and honest garment manufacturers as suppliers. 3. 14 Company competitive situation Completive Competition of KUN SOURCING LTD
In our country as garments manufacturing company, KUN SOURCING LTD has s surpassed a strong competition for its success. To analyze its festivity as a factory it is necessary to look into the competitive situation of the garments industry. The ‘Five Forces Model of Industry Competition’ developed by Michael Porter is the must commonly utilized tool for examining the competitive scope of KUN SOURCING LTD in buying house industry. It may describe the competitive environment in terms of five Basic competitive forces. It is also applicable to this buying house industry. And thereby it is an important tool for KUN SOURCING LTD to consider the competitive situation of its own industry. The orces with their influencing factors are as below : The Five Forces Model of Competition : So, The Five Forces model of competition describes the competitive environment of KUN SOURCING LTD. In terms of five basic competitive forces : The threat of new entrants : As the buying industry in our country is in the stream of growth the industry provides a good feed to new entrants. So in this industry KUN SOURCING LTD as buying house needs high strategic stakes to survive. The bargaining power of the firm’s suppliers : In this industry as garment manufactures are numerous and their forward integration systems are not strong for their illiteracy or inability to convince the foreign buyers.
Therefore KUN SOURCING LTD as a buying house enjoy little bargaining tendency of garment manufacturers. The bargaining power of the firm’s customers : In our country buying house industry faces a little bargain over the negotiation as boon of quota system. As a result the bargaining power of KUN SOURCING LTD. is very little. But this scenario will change after the withdrawal of quota system. The threat of substitute products : In this industry this aspect is not considered because there is no perfect substitute for their provided service. The intensity of rivalry among competing firms : In this industry there prevails heavy competition among the existing buying houses.
There are about 300 hundred buying houses in this country and they compete strongly with each other for the orders from their buyers. So this aspect is a great constant for KUN SOURCING LTD. 3. 15 SWOT Analysis of KUN SOURCING LTD According to our survey in five leading Company we found some problem which are given in a chart with their percentage- |Primary Problems | |Problems |High |Medium |Low |Total | |01. Raw-materials |3 |2 |0 |5 | | |60% |40% |- |100% | |02.
Marketing problems |1 |3 |1 |5 | | |20% |60% |20% |100% | |03. Machinery problem |5 |0 |0 |5 | | |100% |- |- |100% | |04. Inefficient Workforce |3 |2 |- |5 | | |60% |40% |- |100% | |05.
Licensing problem |1 |1 |3 |5 | | |20% |20% |60% |100% | |06. Quota problem |4 |1 |0 |5 | | |80% |20% |- |100% | |07. Poor government Policy |3 |2 |0 |5 | | |60% |40% |- |100% | |08.
Labor unrest/ strike |5 |0 |0 |5 | | |100% |- |- |100% | Chart : Primary problems of Garments Industries. Main object of nay industry is to provide employment for those who live in the particular area. I man not in the favour of recruitment policy of this firm. According to their policy 8% of employees are from other areas of Pakistan while only 20% are employed from this local area of Faisalabad. During internship, I observed that few were employed from this area and which is not healthy trend. Thus in my opinion.
I suggest that this ratio of local area should increase to 35% which will be suitable and justified for this local area. Promotion Policies : In Kohinoor Industries Ltd. Promotion is given on party basis, in other words, we can say that management shows the picture of “ Yes Minister”. Where promotion are given to those who justify themselves. Thus due to this, those workers are usually promoted who know a little while an efficient, learned and qualified person goes beyond. Thus in order to compete with other competitive companies, management has to revise it’s promotion criteria and must be given sonority and qualification basis. SWOT ANALYSIS
Analysis form viewpoints of strength, weaknesses, opportunities and threats of the company is as below ;- |Factors |Performance | |Company Reputation | | | | | |Market Share | | | | | |Customer Satisfaction | | | | | |Product Quality | | | | | |Service Quality | | | | | |Pricing Effectiveness | | | | | |Distribution Effectiveness | | | | | |Sales Force Effectiveness | | | | |Innovation Effectiveness | | | | | |Geographical Coverage | | | | | | | | | | | |Finance | | | | | |Cost or Availability of Capital | | | | | |Cash Flow | | | | | |Financial Stability | | | | | | | | | | | |Manufacturing | | | | | |Facilities | | | | | |Economies of Scale | | | | | |Capacity Utilization | | | | | |Able-dedicated Workforce | | | | | |Ability to Produce on Time | | | | | |Technical Manufacturing Skill | | | | | | | | | | | |Personnel | | | | | |Dedicated Employees | | | | | |Flexible or Responsive | | | | | Strength of KUN SOURCING LTD Skilled workforce : From its inception KUN SOURCING LTD look into combination of effectiveness and efficiency regarding its objectives. As a result within a few days it got the higher regard form its byres.
In fact, its swift growth of the company is the combination of two skills required for a competent buying house : Communication skills : From its inception KUN SOURCING LTD has proved themselves attractive in the eyes of the foreign buyers because of its strong communication skills. For example, as the perpetration of entering the European market the organization has convenience of Italian buyers on the progress of the manufacturing process of their ordered garment products. Collaboration with suppliers : To provide higher value in their value delivery process KUN SOURCING LTD has built the long term relationship with some competent suppliers.
This collaboration makes this organization honest to its commitment of quality and scheduled delivery to its buyers. Permanent Buyers : For its reputation of committed organization it has built a marketing network with some prominent buyers. These buyers are not easily vulnerable to other buying houses, as they are satisfied KUN SOURCING LTD for and effectiveness. Collaboration with backward linkage industry : To be ever successful in their commitment to their buyers they always assume the on time delivery of the accessories needed in the manufacturing process. Merchandizing inc. has taken the responsibility of supplying these accessories to the manufacturing process for its assured supply.
Fore the convenience of this responsibility they have built long term relationship with the suppliers of accessories that they don’t manufacture and done necessary paper work with strong term and conditions with those accessory suppliers. Company owned fabric accessory supplier : To assure the on time delivery of accessories KUN SOURCING LTD has shard the responsibility of supplying a part required accessories. The sister concern company devoted to this responsibility. Long-term relationship with buyers : KUN SOURCING LTD honors the long-term relationship with their buyers. Weaknesses of KUN SOURCING LTD : Fail to attract big Buyers : Despite effectiveness and efficiency one on the weakness of KUN SOURCING LTD is its short capacity.
For its low level capacity KUN SOURCING LTD it’s deprived from potential growth resulting form its present reputation, which could be achieved otherwise. Not international standard certified : KUN SOURCING LTD is not ISO certified organization. Not to say that, being as a proof of quality, ISO certificate is very much essential for the spreading of its market. Have not a Rich Web Site : KUN SOURCING LTD could be more communicative if it had a rich web site. Much of the business correspondence executed on online. Buyers would feel more convenience if KUN SOURCING LTD had a informative web site of its own. Opportunities of KUN SOURCING LTD : They are in the growth industry. With the advantage of increased attraction toward fashion buying houses are enjoying a petineum growth in its industry.
This is an opportunity for KUN SOURCING LTD ot increase its sphere own world. Cheap labor industry : In our country Bangladesh with all other emplyers KUN SOURCING LTD has the base access of cheap labor. Threats of KUN SOURCING LTD : Local competitors : Bangladesh is a lucrative domain for foreign buyers of garment products. As a sesult the buying house industry itself is very lucrative to the local entrepreneurs. Political unrest : In our country political instability often hampers the effectiveness and efficiency of business organization. Thereby political is a notable threat to the smooth function of KUN SOURCING LTD. CHAPTER : FOUR FINDINGS 4. Findings From Primary Data : • Bangladesh has a good future in Readymade Garments (RMG). Manufacturer is the potential tools for RMG. Maximum number of respondents use manufacturer form RMG. • It is found that majority/maximum numbers of respondents are not satisfied for its Low CM. • It is found that majority of the respondents are using Manufacturer for RMG. • Maximum Foreign Buyers are satisfied with the low Wages. Huge Workers attracts Foreign Buyers to investment this sector. • Most of the Foreign Buyers gets product as soon as their requirement. • As yarn market is a competitive market so market would be more price sensitive as well as quality.
So they have to take pricing strategy very carefully. Maximum Foreign Buyers should be informed perfectly so that they get accurate information form their reliable sources. 4. 2 Findings from the secondary data : The following findings are perceived from the answer of the questionnaire. Through theses findings I tried to present the existing scenario of buying house industry of Bangladesh under two classifications. Under First classification the finding regarding the efficiency and effectiveness of buying houses is presented and under second classification the findings regarding the present and future problems of the industry is presented. Finding regarding their efficiency and effectiveness : According to the survey most of the buying houses are not efficient in suppliers selection process because of their tendency of long time inefficient trade, harmful employee bias and lack of discretion to certify the efficient suppliers for the first time as the soar of the system. • The study also shows that a large part of RMG orders are brought annually by the buying hoses which determines their effectiveness in bringing order of RMG products but inefficiency remains unknown. • While joking into the efficiency of backward linkage industry it is discovered that this industry is afflicted with poor product quality, inadequate capacity and the lack of consciousness to committed delivery. • It has found that the foreign buyers reject small portions of, goods shipped.
It is a good sing for buying house although indicting the lenient view of foreign byres towards the buying house. • Their inefficiency once again has proved when I found that they are very much reluctant in taking any promotional step to convince buyers. • Buying houses attempt their heart contents to maintain the product quality. Findings regarding the problems of buying house : • The dissatisfaction of buying toward their buyers mainly based on the buyer’s uncompromising attitude toward the failure of commitment due to contingencies. • From the study I have seen that obstacles to garment exports can be separated into two parts : major obstacles and minor obstacles. Among the major obstacles causalities such as natural calamities, strike, hartal or political instability are affecting the export marketing of garment products severely. • Among the minor obstacles inefficiency of production process supervision by the buying house is most noteworthy. • Again form the study I have seen that problems of buying houses can be separated into two parts : major problems and minor problems. • Suppliers poor product attacks most severely as major problems of buying houses and as the minor problem shortage of backward linkage industry distgurbs buying houses drastically. • After the withdrawal of quota system buying house industry will face the tremendous competition to survive. • The employees of this industry are lacking required communication and technical skills. There are no effective institutional programs in public or private universities to teach the required skills to the employees of this industry. CHAPTER : FIVE Recommendations and Conclusion 5. 1 Recommendation Solution of marketing problems : • Buying house should be more careful and attentive in monitoring the production of the garment manufacturers so that production goes on schedule and any unwanted occurrence such as short shipment may not occur due to late delivery. • In the findings have mentioned that buyers do not want to negotiate on quality. So, maintaining product quality for buying house is very important. To maintain appropriate quality, buying house should take necessary steps such as training course for their quality controller or inspector etc. For improper document or document delay buyers cannot receive his product form the ship in his country for which relationship between he hand buying house should be always careful in preparing right documents. They also should send documents at right time. • The total industry should keep in mind that they need a truly international outlook for exporting to attract buyers as well as long-term commitment with both of their buyers and suppliers. • The total industry must achieve an international reputation for quality to challenge the quota free environment. • They should ensure that they have all the resources for garment export. • They should start marketing through trade fair. They should start marketing through Internet. Solution of banking sector problems : • Requirement of obtaining approval from Bangladesh Bank for creating Forced/ Demand loan by the lien banks should be withdrawn. • Back to back A. D/Force loans should not be considered as default loans. Loans of this nature should be converted into interest free block Accounts and amortized against future proceeds. • The overdue F. B. P. created against the liability of any L/C should also not be considered as default loans. • Exporters failing to clear the liabilities in case of Back-to back P. A. A/ Force loans overdue F. B. P etc. should be allowed to open L/Cs. Bangladesh/ Bank should provide the lien banks with adequate funds for necessary payment of cash incentives to our exporters without delay. • Mandatory compulsions set forth in the ECG policy should be waved. • Procedure of obtaining prior permission form Bangladesh Bank for exporting goods against stock-lot should be withdrawn. • Negotiation Bank should be authorized to take into consideration for deciding upon discount unto 20%. • Condition for obtaining approval for discount form the Bangladesh Bank should be relaxed and discount approval by the EPB should be treated valid. • From the date of document negtiation, forty-five days should be allowed for fund remittance. Overdue interest should not be charged in the event if remittance is delayed. All private sector commercial banks should immediately cease charging L/C Acceptance charges like the nationalized Banks of the country. • Fresh laws should be enacted announcing that the Banking Companies Act passed by, the Jatio Shangsad (The parliament of the country) on 13th March 1997 is not applicable to the export-oriented RMG sector of the country. • Procedure of making down payment for rescheduling loans should be withdrawn. It should be rescheduled in accordance with the applications, when submitted, by the exporters encored. In such case, the rescheduled amount may be adjusted by charging @ 20/0 on the future exports proceeds. Legal action may be taken is case any of the exporters fail to adjust the dues after three consecutive rescheduling. In case of Stock lot, requirement for submitting statement by the commercial banks to the NBR should be waived. • RMG exporters should not be held responsible if proceeds against their exports are not realized owing to the reasons beyond their control. • Opening of LO/C based on Realization Clause should be re-introduced. Solution of Air shipment problems : • To strengthen the security in cargo shade of Airport forming and to take necessary steps to exporting through air at the pick time of RMG. • To waive the high royalty rates at specific times of the tear so that the emergency import of raw material and export of readymade garment could remain steady. To formulate a joint action plan with the chairman of the BGMEA standing committee on port and transport. • Duty free market access should be allowed for essentially all products exported by the LDC’s on a not-reciprocal basis to improve their economies. 4. 4 Conclusion Garments export contributes major foreign exchange to our economy. However the exuberance of foreign currency through garment export is very much dependent on the effectiveness and efficiency of this industry. So removing all its inefficiencies and ineffectiveness this industry should move ahead with a vision to support the garment export of our country especially to face the challenges of quota free environment after 2005.
But there haven’t any quota system we can earn a lot foreign currency and participating in the healthy economy. Among the major obstacles causalities such as natural calamities, strike, hartal or political instability are affecting the export marketing of garment products. As a result the buying house industry itself is very lucrative to the local entrepreneurs. To be ever successful in their commitment to their buyers they always assure the on time delivery of the accessories needed in the manufacturing process. To ensure a rich flourish it needs a channel, which will bridge between buyers and manufactures of garments a win-win relationship.
No doubt, role of RMG Buying House Industry, marketing to distribution, is very important to establish this bridge. For the convenience of both buyers and suppliers, the buying house industry today has developed enormously with a vision to perform marketing and distribution task of garment industry. Also government and buying house should remove major error and digitalized this department. Bibliography : • Annual Report of KUN SOURCING LTD. • Annual Report of KUN SOURCING LTD sister concern. • Different types of document of KUN SOURCING LTD. • Various published documents from BGMEA. • World Wide Web. Appendices Definitions : C;F Cost and Freight Same as CIF except that insurance is covered by buyer. CIF
Cost, Insurance and Freight a pricing under which the seller pays all expenses involved in the placing of merchandise on board a carrier and in additional prepares the fretight and insurance to an agreed destination. Carrier A transportation line tat holus cargo CFR Cost and Freight Cost indicated that the seller will deliver the goods on to a vessel and pay all the normal charges to get the cargo to the named seaport. The buyer risks from the time the cargo is placed on the vassal on the seaport of loading. Export License A governmental permit is required to export certain products to certain destinations. FOB (free on board) As in FOB vessel a pricing term under which the seller deliver goods on board the ship at the point named at his own expense. Insurance certificate
Document by the insurance company, usually to the order of shipper, under a marine policy and in cover a particular shipment of merchandise. Irrevocable And irrevocable letter of credit is one which can not be altered or cancelled once it has been negotiated between buyer and his bank. Letter of credit A document issued by the bank at buyer’s request in favor of a seller promising to pay an agreed amount of money upon receipt by the bank of the certain documents within a specific time. Maturity Date The date upon which a draft or acceptance becomes due for payment. All countries having these designations receive equal treatment respect to customs and tariffs. 5. 1 Questionnaire : SL |The Process of data analysis |Strongly Agree |Agree |Neutral |Disagree |Strongly | | | | | | | |Disagree | |1 |Inconvenient location for collecting Finished| | | | | | | |Product | | | | | | |2 |Unskilled garment workers | | | | | | |3 |Child labour | | | | | | |4 |Casualties such as natural calamities or | | | | | | | |political crises | | | | | | |5 |Supplier’s poor product quality | | | | | | |6 |Supplier’s personal relationship with | | | | | | | |suppliers | | | | | | |7 |Failure to choose desired suppliers during | | | | | | | |seasonal excess demand | | | | | | |8 |Failure to maintain delivery on schedule | | | | | | |9 |Short shipment | | | | | | |10 |Document delay | | | | | | |11 |High bargaining tendency in exchange | | | | | | |12 |Inefficiency of buying house in negotiating | | | | | | FINDINGS ; SWOT ANALIYSIS OF THE COMPANY 6. Findings of the Merchandising Department of FOUR KNIT WEAR LIMITED 6. 2 SWOT Analysis of Company. 1 FINDINGS OF MERCHANDISING DEPARMENT OF ROUR KNIT WEAR LTD : It appears that merchandising management is one of key areas of garments sector. But unfortunately, in Bangladesh merchandising management planning and controlling is reported to be unsound I indicates that merchandising management planning and controlling is extremely poor in entire garments sector in Bangladesh, which in turns, has adversely affected the getting order from abroad. In practice, I see some problems when I investgate merchandising management system in Four Kint Wear Ltd. A.
Lack of Proper communication of different level of department. B. Failed to follow merchandising management technique like buyer attention technique, sampling techniques, order delivery techniques etc. for what reason it failed some time to determine target order quantity. C. All the people are very helpful at Four Kint Wear Limited. Aganin some people use find they are agree to help but did not agree to teach. D. There in no specific training and research department in Four Kint Wear Limited for internally develop employees and workers. E. Company should evaluate not only the responsibility of the merchandiser but also the efficiency of the merchandiser. F.
In this company they (merchandiser) do not keep nay record in the computer for further needed. They keep record only for present need. G. Pricing is the most important for better merchandising, but I do get a clear idea how they determine price. They are interest to know this to their junior merchandiser. H. Merchandiser still use old model computer for their communication. I. There is no permanent marketing merchandiser of this company. Without marketing merchandiser a garments company do not get order form buyers. J. So it is very much necessary to control the discipline. 6. 2 SWOT ANALYSIS. The SWOT analysis having identified the company’s internal strength weakness as well as external opportunities and threats.
We need to consider by previous marketing and other related analysis an overall picture has revealed of Four Kint Wear Limited. It can develop new function business of corporate strategies to accomplish this change. A SWOT analysis is shown in the below. 6. 2. 1 Strength of the company : Strength is the power of a company by using it a company may achieve the competitive advantage “Four Kint Wear Limited. is a well reputed company in the textile industries of the country. ” It is an enormous activity in the textile industry. Here the existing strength of the company is mentioned as below : • No loan form any bank • A large amount of Assets. A well known reputed brand name. • Good quality of product. • Well environment. • Management competence. • Sound marketing skills. • Good material management system. • Availability of efficient and qualified human resources world latest. • Appropriate organizational style. • Appropriate control system. • Good financial management. • It has in-house power generation capacity is 150 kilowatts. • Roads leading to the complex have been built by are maintained Four Kint Wear Limited. • Tube wells ensure an abundant flow of water. 2. 2 Weakness of the company : Weakness is the internal and existing limitation of a company for which it is unable to be many competitive advantages.
Some weaknesses of the Four Kint Wear Limited. are- • Lack of proper promotional program. • Top management always pressure on lower management. • Too much labor turnover rate. • Depends on fully foreign order. • Developing people skill assessing process requirement text time. • Integration of section output ; input still need further co-ordination among the section. • Poor security in store. • Small capital. • Old model computer system that is very slow to work. • No security in sure of computer. • So much Salary discrimination. 6. 2. 3 Opportunity of the company : An inventorying opportunity is an area of seller head in which a company can perform profitable.
The opportunities identified for the Four Kint Wear Limited are as follows : • Company can expand its product line by introducing differentiation or introducing new product. • The good will and demand of these kinds of products are increasing data by day especially in the European market. • Greater possibility to product diversification with quality. • Supervisor and foreign technician live on site to provide 24-hour coverage. 6. 2. 4 Threats of the company : Threat is an external obstacle or barrier for which a company can’t achieve its predetermined goals. The major threats of this company are as follows : • It is mainly depend on won capital. It does not get any tax advantages. • Govt. has given G. S. P. Generalized system of performance) facilities. But these facilities will continue only to 30th June 2005. • Political unrest or instability is the threat of this company. Because of Hartal and political violence. Production is hampered and it cannot supply the product at the right time. • Increasing foreign company’s domination. And most important threat war to one country to others. Apart from strength and weaknesses of the company some of the landmark opportunities ad threat can be pointed below : Opportunities : 1) With arrival of the year 2003, the company will get well chance to have more export overseas due to exemptions of trade restrictions. ) In the current state of slumping textile industry, Kohinoor Industries can still heighten as a potent market player with good use of its resources. 3) Company is consistently investing in Research and Development to improve the quality existing products and entered into new products. This will help company in forth coming time to sustain and enhance its market share. Threats : 1) Textile Industry as a whole is adversely affected by over capacity and demand recession and unfortunately the future seems to be grim. 2) Due to apathetic view towards advertising and publicity, it is feared to lose the share of customer’s mind for the product of the company. 3) Bad image of Pakistani goods. 4) Political instability. SWOT ANALYSIS OF KUN SOURCING LTD
During my internship I observe some strengths, weaknesses, opportunities and KUN SOURCING LTD are given below : STRENGHTS • Big buyers from market. • Well known strong supplies • Strong departmental structure. • MANAGEMET INFORMATION SYSTE department. • Quality provider. WEAKNESSES • Not a big player in market. • Low integration between departments • Too much decentralized the departments. • No RESEARCH AND DEVELPMENT • No marketing research. OPPORTUNITES • In WTO (World Trade Organization) implement quota will free this will be opportunity for especially KUN SOURCING LTD because he can produce much more.