SMART Merchandiser

UNIT VII

DEVELOPING T&A

MERCHANDISING
To make available the Right quantity of Right quality merchandise to the customer on TIME

MERCHANDISING
Different working scenarios Many Customers
Many Styles
Many Designs

Limited Customers
Many Styles
Limited Designs

MERCHANDISING
Common Features of every Customer
Purchase Order with strict deadlines Design corrections Lengthy sample process Multi-stage approvals Specified Packaging Economy in Transport On Time In-store Date

MERCHANDISER IS A ONE POINT CONTACT FOR THE CUSTOMER

MERCHANDISING
Merchandiser Responsible for
Samples Costing Materials Production Delivery

ALL THESE TASKS MUST BE PERFOMED IN A PRE-DETERMINED TIME FRAME

MERCHANDISING
THE TOTAL PRODUCTION PROCESS INVOLVES MANY DEPARTMENTS ITS TEAM MANAGEMENT ITS TIME MANAGEMENT

PROCESS FLOW IN APPAREL INDUSTRY

DESIGNER VENDOR MERCHANT TECH PACK & STYLE SAMPLING SAM & SAMPLE CONSUMER BUYER IE

FABRIC MILL

SAMPLING

VENDOR MERCHANT

PO

BUYER

VENDOR MERCHANT

SOURCING FABRIC SWATCH COTTON SPINNING WEAVING PROCESSING FINISHING BULK FABRIC

BULK FABRIC APPROVAL LAB TESTS, REPORTS & APPROVALS EMBROIDERY & PRINTING

BULK FABRIC INHOUSE CUT PLAN & CUTTING

BUNDLING & NUMBERING FABRIC INSPECTION

SEWING

CHECKING & TRIMMING

CONSUMER STORE WAREHOUSE DELIVERY TO FORWARDER TAGGING & PACKING

FINISHING & IRONING

DOCUMENTS

FINAL INSPECTION

Designers Calendar
Month Event Start Date End Date Job owner Task

Jan Feb

Fabric shows

10th January

28th February

Fabric designer or designer

Visit fabric trade shows in Europe, Asia And North America look for fabric trends, designs, colors, constructions and qualities. Collect new fabric developments. Place order for sample yardages. Visit womens wear international trade shows particularly those held in Paris, Milan, London, New York, and Hong Kong for inspiration. Identify emerging fashion trends and styles. Develop alternate themes / stories. Prepare sketches, color schemes. Develop lines or collections. Discuss and select items for each line. Finalize number of lines. Select fabrics and colors for each item and line. Select Trims and accessories Finalize styles and details. Select sketches, fabric combos, trims and accessories, measurements, and construction details. Prepare tech-pack and release to buyer.

Jan June

Womens wear shows

5th January

30th June

Designer

June Sept Work at studio

30th June

30th September

Designer / Technician

Oct Nov Work at studio

1st October

20th November

Designer / Technician

Designers Calendar
December Work at buyers office Work at vendors company 1st December 15th December Buyer Buyer sends the tech-packs to selected vendors for product development. As the buyer sources from selected vendors, he considers them reliable and consistent in their performance in the past seasons. Selected vendors receive the tech-pack with instructions. Usually 10 days time is given to make the samples. A final date is set when the line samples have to be ready and dispatched. Merchandiser arranges for fabrics and trims. Sample department readies patterns and makes samples. It takes 10 15 days depending availability. Outer limit for sample exit to the buyer will be 15th January. January Work at buyers office 20th January 31st January Buyer Buyer receives samples from all suppliers or vendors by 20th January. He makes a line review with all complete samples in actual fabrics and trims. He then organizes a review with his middle management. Date about 25th January. The next presentation will be to all his store managers. Feedback from them is important in deciding which items will remain and which to be knocked out of the line. Date about 30th January. Finally, line is reviewed by top management and approved. Date about 5th February. The line is ready for the Autumn / Winter. December - January 20th December 15th January Vendor

Designers Calendar
February Buyers office 10th 20th February February Buyer Buyer prepares the purchase orders based on the vendors whose samples are selected. Based on his buying plan, he may also give some styles / quantities to those vendors whose samples were not selected. He needs to maintain a good relationship with all his vendors.

Merchandiser's Calendar for Fall '08

(DEC 16 22) 10-Dec 1. Buyer sends techpacks 20-Dec 1. Proto sample making starts 1. Proto sample making 1. Proto sample making (DEC 23 - 29) (Dec 31 JAN 6) (JAN 7 - 13) 13-Jan 1.Proto sample making 2.Proto sample exit 3.Product Costing (JAN 28FEB 03) 30-Jan 1. Line review 2 (FEB 04 10) 5-Feb 1. Line review 3 (FEB 11 - 17) 1 15-Feb 1. Buyer releases purchase order 2. Buyer send comments on proto sample (First fit sample) 3.Raw material sourcing starts 4. Vendor receives PO and comments (FEB 18 24 ) 2 20-Feb 1. 2nd Fit Sample exists (FEB 25 - MAR 3) 3 2-Mar 1. 2nd Fit approved 2. Fabric & trims approved (MAR 4 - 10) 4 5-Mar Raw material ordered (MAR 11 - 17) 5 17-Mar Raw material production (JAN 14 - 20) Jan-20 1. Buyer receives proto samples (JAN 21 - 27) 25-Jan 1. Line review 1

(MAR 18 24) 6

(MAR 25 31) 7

(APR 1 - 7) 8

(APR 8 - 14) 9 8-Apr

(APR 15 - 21) 10 15-Apr 1. Marketing samples exit to buyer

(APR 22 28) 11 24-Apr 1. Preproduction sample exits

(APR 29 MAY 5) 12 2-May 1. Bulk fabric & trims warehoused

1. Raw material production

1. Raw material production

1. Raw material production

1. Pilot yardages and promo trims arrive 2. Raw material shipped (MAY 27 JUN 2) 16

(MAY 06 - 12) 13 8-May 1. Raw material quality inspection 2. Size set patterns ready

(MAY 13 19) 14 14-May 1. Fall Production starts

(MAY 20 - 26) 15

(JUNE 3 - 9) 17

(JUNE 10 16) 18 14-Jun

1. Fall Production starts

1. Fall Production continues

1. Fall Production continues

1. Fall Production completes 2. Fall Final inspection & truck out to Consolidator

MERCHANDISING & TIME MANAGEMENT

Consider each purchase order as a Project A Project is made of many tasks Each Task has many sub-tasks Identify time needed for each sub-task Merchandiser Tasks
1. Costing
Getting Consumption Getting SAM Calculate Cost Arrange Materials Discuss Techpack Check Sample Despatch Send sample fabric to supplier Get approval from customer Place order for fabric

2. Sample Making

3. Material Sourcing

MERCHANDISING & TIME MANAGEMENT

Merchandiser is responsible for all activities.
Of all departments Concerning the Purchase Order

Merchandiser to make action plan for PO

Identify tasks by each department Assign time for each task
if needed for each sub-task

Merchandiser to assign dates

Time and Action Plan for Fall season Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Action Owner No. of Days 1 M M S S S M I. E M So M M M So M 4 0 1 2 0 0 1 0 1 0 1 0 3 0 Target Date

Release Tech-pack Receive Tech-pack Send Tech-pack to Sample Section Sample Section to make pattern Sample Section make sample in alternate fabric Sample Section to give fabric consumption Send Tech-pack to I.E Section Industrial Engineering Section estimate minute requirement Indent for fabric & trims. Cost from Sourcing Section Give fabric & trims costs Prepare sample garment cost Send garment sample & price Indent for sample fabric & trims required Procure sample fabric & trims Issue fabric & trims to Sample Section

Merchandising Process

Sample Process

Sourcing Process

Material Quality Process

Production Process

Gantt Chart in Merchandising

Identify Key Tasks Identify milestones the key task and time Assign key tasks to the team within merchandising, sample, sourcing, production departments Identify key task owner

Define Milestones

Milestone Deliverables

Prepare Gantt Chart

Prepare the Gantt Chart by department
The Key task Task Owner Start Date End Date Duration

GANTT CHART

Gantt Chart

PERT Chart
Key Task Predecessor Optimistic (a) Normal (b) Pessimistic (c ) Expected Time
Te=(O+4M+P)/6

C Start Finish

Creating a PERT Diagram

Determine the Early Start & Finish of each activity by:
Start at the beginning move towards the end ES & EF for the start activity is always 0 since they are milestones Use the EF of the predecessor activity as the ES of the current activity EF of an activity is computed by adding its ES with its duration For activities with 2 or more predecessor activities, use the predecessor with the higher EF as the ES of the current activity

A D:4 ES:0 EF:4 LS:0 LF:4

D D:6.33 ES:4 EF:10.33 LS:8.68 LF:15.01

F D:4.5 ES:10.33 EF:14.83 LS:15.01 LF:19.51

Start D:0 ES:0 EF:0 LS:0 LF:0 B D:5.33 ES:0 EF:5.33 LS:3.84 LF:9.17

C D:5.17 ES:4 EF:9.17 LS:4 LF:9.17

Finish D:0 ES:19.51 EF:19.51 LS:19.51 LF:19.51 E D:5.17 ES:9.17 EF:14.34 LS:9.17 LF:14.34 G D:5.17 ES:14.34 EF:19.51 LS:14.34 LF:19.51

Creating a PERT Diagram

Compute for the critical path by adding the duration's of various paths for all activities Determine if any activities have slack by subtracting the activitys LF & EF

Critical Path
Critical Path: A-C-E-G Path A-D-F = 14.83 work days Path A-C-E-G = 19.51 work days Path B-E-G = 15.67 work days

TIME IS COST
Cost of material is physical cost Cost of time is intrinsic cost or invisible cost Time available for sourcing to production is 90 days. Delay in inspection consumed 2 more days. Planned shipment on 3rd of May, now delayed to 5th May Vessel movements feeder from Chennai to Colombo thrice weeklyMonday/Wednesday/Saturday Custom clearance and cargo movement need 2 days prior to sailing. Vessel sailing on 8th Saturday Vessel movements mother vessel from Colombo thrice a month 1st / 10th / 20th Planned for 10th vessel. New sailing date 20th Sailing time from Colombo to NY 24 days

TIME IS COST
Buyer Plan in store on 5th June Feeder Vessel 3rd May Mother Vessel 10th May Sailing Time 24 days Total Transit Time 32 days

Revised Schedule due to delay in store 19th June 5th May 20th May 24 days 40 days A TWO DAY DELAY CAUSED LOSS OF SALE OF TWO WEEKS OF A TOTAL OF FIVE WEEKS