Assignment

on

Study Of Product Development,Time and Action Calender

and
Vendor Selection Criteria

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 By- Anshul
Gautam

Introduction to Van Heusen

Van Heusen is the world’s largest selling dress shirt and premium business wear brand. It was
introduced in India in 1990 by Madura Garments and since then it has been India’s fastest
growing lifestyle and apparel brand. It is positioned as a corporate formal brand and targets the
Indian corporate executives. Van Heusen is known to incorporate the latest and most
contemporary international style in its range of products Collection in VH includes formal T’s
collection, the Innovative strike collection and the latest mettle collection. Range of products in
VH includes shirts, trousers, outwear, knitwear apart from an extensive range of accessories like
innerwear, neckties, belts, bags, shoes and cufflinks. VH is priced one shade lower than Van
Heusen as it targets middle to senior level executives. Currently VH is Rs.225 cr. Brand and sells
1.5 million garments a year.

It caters to the premium executive wear segment. Van Heusen garments are balanced and
sophisticated with a high quality finish. It caters to the premium segment in formal corporate
wear and is foremost in launching new and innovative collections. Van Heusen has a collection
of intelligent shirts (Oxyrich collections). Van Heusen is now coming up with an Innerwear
range in India.

Sub-brands of Van Heusen

Van Heusen has the following sub-brands:

• Van Heusen Man

• Van Heusen Woman

• V Dot

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Product development stages:

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Design is only one part of product development. Designers or Merchandisers have an idea for a
product that they think others will buy. When they transform this idea into a product, they have
designed the product. So, for an apparel product, design means that they have chosen the
materials, the styling characteristics, and the means of putting it together.

It often takes more than one try to make the product exactly like the idea they had in their mind.
These trials are called prototypes. After each trial, they test the prototype and maybe even ask
others to try it. All these steps make up the design process. (The design process is covered in
more detail later in this module.)

Product development is much more than the design of a product. Product development is a
process of continuous idea generation designing multiple prototypes to represent multiple
ideas developing a product concept that is valuable to the customer and helps to identify
competitors commercializing the product by preparing and costing it for volume
production and sales to many customers.

The product development process also encompasses the business part of design. It makes design
a commercial enterprise, setting the design process and product design evaluation within a
business context. It asks questions such as:

Is the design compatible with the other products in my business?

What products in the market does it compete with?

How many people might consider buying it (or, how large is its target market)?

Should the product design be adjusted for volume production? If so, how?

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 How can the product be improved after introduction to add value or to sell cheaper?

How long will people buy the product? What is its potential life span?

The product development strategy at every stage should reflect the company's business plan and
core mission. For example,

If the plan positions the business as the low cost producer of screen printed T-shirts, then
the product development process should focus on low cost design and production.

If the business plan is to be the technology leader in outerwear, then technical fibers,
fabrics, and clothing structures should be the main product development consideration.

If customer service is the business plan's competitive edge, then the product should
inspire loyalty between customer and designer.

Understanding Customer Needs:

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The first thing to consider in product development is what customer wants:

What are customers buying now?

What will they want in the future?

What would they buy if it were available?

It is important to identify NEEDS that potential customers may not even know they have.
Successful product development addresses customer needs.

Researching the market is the next step.

What's being offered in the market?

Who is offering it (i.e., the competitors)?

What are the current consumer trends in color, styles, and lifestyle?

A variety of methods make thorough research easy. This research can help them to determine
how their product fills a gap in the market. But research cannot assure 100% success to their
product. Use it as one step in their product development process.

They can do the research to identify customer needs on their own or pay someone else to do it.
They can also buy data from research that has already been conducted. The objective is to make
certain that someone needs their product and that it is different from other products being
offered. Each target group has specific design needs.

Trend reports:

There are a number of companies that sell trend reports-on consumer buying habits, fashionable
colors, and predictions or forecasts of the next new styles and products.
www.apparelsearch.com/color_trends_forecasting.htm lists a number of organizations that
sell their information on clothing and textile trends. The reports are generally expensive (i.e.,
hundreds of dollars) and are sold to many entrepreneurs, so others are using the same trend

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information. The information can be based on past sales or "educated" guesses by industry
professionals. Be sure to identify the source of the information and what it represents.

Consumer studies:

They can go directly to consumers and ask them what they are buying and what they would like
to buy. They can also test out their product idea in this way. They can ask their friends and
family or potential customers to evaluate their product idea using written surveys, interviews, or
focus groups.

Surveys and interviews should be short. Respect the time of their participants. A survey should
usually be no longer than one side of one page, easy to read and understand, and quick to fill out.
An interview should take no longer than a minute or two.

Focus groups have the added value of discussion among the participants. As the name suggests,
the discussion should be focused by the leader with a few general questions. But the participants
should be allowed to wander in their thoughts so that they reveal and describe their unmet needs.
It is a good idea to audio record focus group sessions so that they can listen to them many times.
Focus group discussions often uncover valuable information for product development through
free-form discussions.

Observations are another method to evaluate consumer needs and buying habits. Watching
customers interact with products similar to theirs and listening to their comments can give they
insights on what they value. Point-of-purchase interviews ask questions about the specific
products customers are buying at that moment. Intercept studies in shopping malls can be set up
to compare several products at once, often in a room off the main hallways. Shoppers are
selected randomly or by their interest in similar products on their current shopping trip.

Market competition:

Shopping the market is a tried and true method of identifying their competition. Buyers at the
major department stores shop the market regularly, sometimes as often as once a week. First,
decide where they would want to sell their product. Go to these stores, web sites, or catalogs and
look at the available products. Make a chart for future use noting the materials, colors, styles,
and costs of the products. Then, compare their product idea.

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Relationship between customer needs and their product

Analyzing their research results is the last step in understanding customer needs. They are
actually testing whether the market is ready for their product or service idea.

How is their product/service different from what's already available?

What makes they think the market is ready for their product or service idea?

Why do they think consumers will buy their product or service?

How much will they be willing to pay for it?

Idea Generation or Design:

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Designers' work is the generation of ideas. But contrary to many people's beliefs, ideas are not
usually "flashes of brilliance" or intuitive creativity. Design is hard work. It requires researching
ideas and trends, educated guesses, and trying out alternatives. Inspirations from art,
architecture, nature, or the streets can help they generate multiple ideas. Then they can try out
some of the ideas and decide which ones are best. The design process includes:

1-Analyzing customer needs

2-Defining the design problem

3-Ideating or generating ideas

4-Selecting design criteria

5-Implementing one or several prototypes

6-Evaluating prototypes against design criteria.

Individual designers use all of these steps, but often develop an order that works best for them. A
variety of methods can be used to generate design ideas.

Brainstorming is one of the simplest and most effective methods of generating ideas. They can
start with their initial idea - say, that people have many electronic gadgets that they need a way
to carry. Then, write down all of the possible ways that these gadgets could be carried.

Once they have a long list of options, they can start designing clothing and accessories based on
these possible carrying strategies. Brainstorming helps them to get lots of ideas and to consider
each one's merits.

Now, next to each item, they list all of the possible design solutions for carrying it, including
body placement, apparel, or accessory. Once they have a number of solutions for each item, they
can see whether several items can be carried using one design solution.

The objective is the same as brainstorming - to generate numerous ideas that they can evaluate
and perfect. One or several of these many ideas may lead to an innovative design that customers
will value and buy.

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A group ideation session can be especially successful at generating ideas that are innovative and
"outside the box." Getting a group of people together to brainstorm or develop mind maps
generates creative energy and "way out" ideas. "Way out" ideas sometimes identify a surprise
kernel that sends them on the road to an innovative product design. In all ideation sessions, it is
important to write down every idea, no matter how wacky. Then, go back and discuss the merits
of each idea, discussing how the design might look, how well it would carry, and so on. The best
ideas can be developed further during group discussion.

Experimentation with materials finishes, stitching, or draping can also be used to generate design
ideas. For example,

1-Draping fabric on dress forms to create unique design variations

2-Folding and stitching material to create texture, and

3-Painting or printing fabric inspired by color, nature, or street art.

Product concept: adding value to their product

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The product concept describes the value of the product idea to their customer - its value
proposition the relationship of the product to their overall business objective.

In the product concept stage, ask several crucial questions to identify the value proposition of
their product.

1-What extra value does the product bring to the marketplace?

2-How does the product create value for the customer?

3-How is the product different from what is offered in the marketplace now?

4-Will customers be interested in and willing to buy their product?

5-How many customers will buy their product? Will they buy more than one?

6-Incorporating design details can be a competitive edge

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Adding value to their product:

In general, there are four business processes where value can be added. They can build an
understanding of their product's value proposition by evaluating it against each process.

1. New product development process innovation by addressing a need, introducing new

materials, design features, brand name value, workmanship, packaging, quality. This is the
value proposition that most often comes to mind in entrepreneurship- being the first to offer an
innovative product.

It's always advisable to do thorough research on the market offerings and on whether consumers
will like their product. A business based on this value proposition needs to know and be different
from its competition. Customers should be able to describe the special features of the product
that makes them buy it instead of another. Innovation should be added throughout the product's
life cycle.

2. Inventory management process lowers inventory or raw materials and finished goods. A
company that can lower its inventory holdings and still offer a product in a timely manner has
value based on reducing costs. A good example is a custom-made dress that is made to order
with only enough fabric and trimmings purchased for the orders. Buying materials and producing
goods "just in time" to fill the orders is another example. Technology and computer software is
available to help the plan and organize their production to reduce inventory costs of materials
and finished goods.

3. Order-to-delivery-to-payment process - reduces the time and efficiency of taking orders,

producing goods, and delivering.

Streamlining the order-to-delivery-to-payment process can add value to a product. Some

businesses offer products similar to others in the marketplace, but offer shorter lead time for
production and faster delivery methods. Information technology is again the key. It offers
efficient communications with customers and business partners that speeds up the production
and delivery process. As off-shore and domestic options for apparel production increase, time
may make the difference in the decision to buy from one business rather than another. Innovative
fabric design can add value to their product

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4. Customer service process builds an effective communication process with customers
during initial inquiries, order and delivery, and post-purchase questions. Electronic
communication, technical manuals, and repair and maintenance agreements can aid customer
service.

From easy shopping and ordering processes to life-time guarantees of products and generous
exchange policies, customer service can be a successful business value proposition. Either by
itself or in combination with another value proposition, customer service is increasingly used to
differentiate product offerings.

5. Relating product value and business objectives:

After they have defined their value proposition, relate it to their business objectives. These
questions may help them.

1-What products or services compete with their products?

2-Will they compete on price? On function? On style?

3-Who are the potential customers or target market for their product?

4-When will they buy? How often will they buy? How many will they buy?

5-Will fashion innovators or fashion followers buy their product?

6-Will their product be bought repeatedly or just once?

7-Can the product be manufactured in quantity at a profit?

In this process silhouettes are developed, fabrics and trims are selected. Van Heusen firstly
designs the silhouettes and then selects the fabrics that are compatible with the silhouettes.

Fabric selection:

Fabric selection involves the designer visiting textile supplier showrooms, attending fabric
shows, or having textile sales representative present their lines at the apparel company. The
designers must not only valuate the aesthetic characteristics of the fabric but must take into
consideration the following factors:

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 1-Fibre content

2-fabric construction

3-Texture and engineered effects created by weave and configurations and yarn
selections.

4-Prints

5-Color range

6-Performance characteristics- wear factor, care requirements, sewing compatibility and

drape

7-Versatility for the use in multiple styles

8-Price and terms

9-Availability

10-Minimum order quantity

Silhouettes:

Silhouettes development involves transforming garment ideas into the final garment sketches or
technical drawings, which are hand or CAD renderings of the front and back of a garment,
including stitching details. Technical drawings usually do not include body silhouettes and are
used where construction and styling details are critical to the design. CAD drawings are being
used more frequently. Once the silhouettes are created, it can be transformed into different
garment styles by applying computer generated, or scanned, scaled fabric images. This use of the
computer technology streamlines the product development process. It allows designers greater
latitude in stretching their creative boundaries. These graphic images are then electronically
transferred to other members of the Product Development team for review and comments.

As the designers select fabrics and develop silhouettes, they are focusing on fulfilling the
requirements of the line plan. Line sheets are created for each style group in the line plan with

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the space allocated for the number of styles planned for the group. The designers provide
sketches of each style that is added to the group along with the fabric swatches and pertinent
prototype information. These line sheets are constantly reviewed by the merchandising to keep
the product development process on schedule. Designers also use style boards for reviewing line
development groups. Style boards are created on foam core board and show color sketches or
color CAD printouts of styles with in a group including fabric and color swatches.

Prototype Development:

After the silhouettes have been approved, the next step is to create a prototype or the first
sample. The prototype is the first critical opportunity for the product development team to see an
actual garment style and try it on a fit model ( a model who has body measurements equivalent
to these of the company’s target market consumer). This opportunity to evaluate the aesthetic of
the style on the human body is an important step. Merchandise must strive to maintain
consistency in the fit of the company’s products. Loyalty of the brand depends on the fit. There
are two primary methods for creating prototypes- draping and flat patterns.

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Van Heusen uses Flat patterns method, which is the process that involves altering basic pattern
blocks or slopers to achieve the desired silhouettes. it is more frequently used in ready-to- wear
apparels. slopers or blocks are set of patterns for each basic garment type produced by the
company. They have been refined over a period of many seasons to provide the exact fit desired
by the target market consumer. Today’s CAD pattern design system (PDS) is the most efficient
method that is used by the company.

Final design and Pilot production:

When they have decided to produce a final prototype of a product, they have to communicate the
information to others involved in buying materials and production. Most apparel businesses use
specification sheets for this purpose. The information necessary to purchase the right material in
the right amounts can be indicated.

A picture of the product with the sewing operations, stitch types, and seam allowances is needed
for the production department and sewing machine operators. The exact dimensions of the
finished product and the acceptable tolerances (e.g., a seam allowance can be +/- 1/8" off) can
help in quality assurance. A specification sheet is developed for each product

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The commercialization matrix: To get a product to market, they need to decide on:

1-Production method

2-Cost position

3-Volume

4-Profit risk

Optimizing their product for production focuses primarily on the first three items: production
method, cost, and volume. Commercialization Matrix

Production method:

The first decision is about production method. Once they have settled on a prototype design and
material, they need to prepare the design for production. This requires a product that can be
easily manufactured in quantity and at a price that will be profitable.

The prototype patterns and construction methods often need to be modified by:

1-Changing the shape of the seams to be more easily sewn

2-Reducing the number and types of seams

3-Choosing materials that are easy to cut and sew in volume

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 4-Reducing the amount of fabric or fabric waste by adjusting the design.

If they choose custom production, they will make individually designed and produced products.
Their prototype may not need changes before commercialization, i.e., they may make only one
final product. Their profit will come from high price rather than high volume.

The objective of mass production is to make the production process cost effective by

1-Increasing volume while

2-Reducing material and labor costs.

Modifying the prototype to accommodate volume and cost requirements is very important in a
mass production setup. It requires standardizing and simplifying the pattern pieces, seam
allowances, and seam types.

Mass customization is a relatively new business strategy that adds value as well as reduces the
cost of the product by

1-Making products to customer specifications

2-Involving customers in the design and delivery

3-Using advanced technology

This unique approach requires technologies that can produce small numbers of similar products
at a low cost. The production cost may be higher than mass production due to individualized
design and small production lots. But the cost is lower than custom due to extensive technology
use. Making products to order instead of as stock items, reduced inventory cost of finished goods
to zero. Profitability depends on getting enough orders at a price that will pay for the technology
and individual service.

Cost and pricing:

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Cost is the second decision they will make to optimize their product for a commercial market.
Based on their product concept and business plan, they need to produce at an appropriate cost
level for their product. Then, price it to sell.

There are several approaches to pricing that they should consider.

Cost-based pricing starts with how much it costs to produce one unit or piece. The direct costs
include materials, labor, and marketing. An overhead cost is calculated based on an annual rate
for all design and production. This includes rent, lights, heat, and travel to trade shows, for
example. The overhead cost can be calculated for each product unit as a percentage of the direct
costs or as a dollar amount and added directly to the unit cost. The final variable is profit.

Direct Cost + Overhead (% of direct cost) + profit = Cost-based Price

Overhead percentages vary widely based on a business's expenses. If they work out of their
home, their overhead would be much lower than if they run a factory with 25 workers and
extensive equipment. Direct costs might be high if they contracted out all of their production, but
their overhead would be lower.

Profit percentages vary dramatically based on the market, product innovation, and the prestige of
a product.

Demand-based pricing calculates prices based on:

1-What consumers will pay?

2-What comparable products sell for?

For example, they set the price based directly on competitors' prices.

Market penetration pricing is used to enter a new market, setting prices lower than competitors'
products in order to gain some of their market share.

If they want to establish a product as a prestige item based on its uniqueness, high fashion, or
quality materials, they may want to use status pricing. It assumes customers will pay more than

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the cost of a product warrants because of its value to them. This strategy can lead customers to
think their product cost more for production than it actually did and purchase it for that price.
This results in a higher profit for their product. The risk is that customers will not buy the
product at all because they think it is overpriced.

The potential for market success and profit needs to be considered before they start production.
Only those products that have the potential to sell in high enough volume to make profit should
be commercialized.

Commercialization:

For the styles that are estimated to meet acceptable price points and are approved by the review
committee, preliminary manufacturing specifications are prepared. Final production patterns are
created that accommodate all fit adjustments and production construction requirements. The
patterns are graded and prepared to be sent to manufacturing. Detailed production specification
sheets are prepared. These may differ according to the factory that will be making the style.
Sequence of operations and detailed manufacturing procedures are determined so that final costs
can be calculated. Another important function of the specification or commercialization is

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providing the proper wash care label instructions for the each garment style. These instructions
must provide warnings if a garment cannot be cleaned without harm to the product. This label
must be main legible throughout the useful life of the product. Merchandising must not overlook
this important function in product development.

Computer based product information managers (PIMs) provide a consistent platform for creating
specification sheets and transmitting the information to manufacturing or sourcing contractors.
The process often starts with a design work sheet, then progress to a prototype request and
finally the garment specifications which have been updated and expanded to include all changes
derived from the prototype production.

The commercialization matrix: To get a product to market, they need to decide on:

1-Production method

2-Cost position

3-Volume

4-Profit risk

Optimizing theyr product for production focuses primarily on the first three items: production
method, cost, and volume. Commercialization Matrix:

Product Maintenance and Extension:

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The product development process is not finished with product commercialization. A product's
expected life cycle should be planned for from product launch to the last sale. Product
maintenance and extension, including branding, are discussed in the next module, Product and
Business Life Cycles.

Some points kept in mind during Product development in Van Heusen:

While defining the range of the coming season three crucial factors are kept in mind by
the designers and the product team.

1-Brand’s USP

2-Market USP

3-Previous seasons best sellers

Brand’s Unique Selling Prepositions are the essential designs of the brand which it has
been heritage for the brand and are present in all the seasons irrespective whether they

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 are in trend or not. These are the brands designs which differentiate it from the other
competitors.

Market USP: These are the products or designs that are selling best in the market.
Basically, it is nothing but the Unique selling Prepositions of the competitor’s brands.

Previous season Best sellers: these comprises of the best sellers of the previous seasons.
Company tries to keep them in the market as they are still in demand. So, designers also
develop few products keeping in mind previous seasons best sellers.

Another key thing that is kept in mind while defining the product development process of
any season is the proposition of nature of the products. Van Heusen comprises of three
main categories in each Product category:

1-Classics

2-Contemporary

3-Fashion

Classics are those designs or styles, which are not changed and are present in every
season and it requires least modification. These are mainly USPs of the brand.

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 Contemporary are those designs and styles that require little modification. They are
mainly present season trend (based on market research). These comprise the designs or
styles that are trendier and are in present demand.

Fashion is the innovative designs or styles, which sets an upcoming trend in the market.
It provides an edge over competition. Most of the designers work on the fashion category
and try to convert it into contemporary product or design.

Summary of Product Development process in Van Heusen:

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 TIME AND ACTION PLAN

Time and action calendar defines the ideal time /date/ period within which the major activities of
an assignment should occur against a scheduled delivery window/deadline.- It is basically a
planning process for any activity to be performed, it is a management tool which is being used
for allocating time and following the same for the whole activity. It needs to be interactive so

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that in case there is a change in the time frame of any particular activity it. can be revised as per
the new schedule. Working within a time and action is important as it ensures that the
production/shipping takes place within the time constraints and with out undue airfreight of
piece goods or merchandise. It provides the buyer direction to the progress of workflow in order
to provide proper co ordination between the buyer and the various-departments in the
organization.

The time and action of any purchase order is determined by the following factors:

Fabric processing lead times (weaving, dyeing and printing).

1. Fabric approval time (lab dips, strike-off, desk looms etc.)
2. Garment spec approval (proto sample, salesman sample, size set, pre- production, bulk
production and shipment sample)
3. Trims and accessories sourcing , approval (interlining, sewing/embroidery thread, fusing)
4. Transit time of raw materials
5. Production lead time
6. Transit time of finished goods to port of exit.
Based on above factors, to make the concept of time and action calendar clearer, given below is
an example of a particular P.O.

TIME AND ACTION PLAN

Purchase order received for 20,000 pieces of men's short sleeve, knit T-shirt in five sizes.

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OPERATIONS /DATE WISE PLANNED DATE ACTUAL DATA

Lab dip submission 29th January 2003

Lab dip approval 1st-feb 2nd-feb

Knit down submit 3rd-feb 4th-feb

Knit down approval (new York) 5th-feb 5th-feb

ORDER CONFIRMATION DATE 15-feb 12-feb

P 0 date (45-60 days before shipment) 20th-feb 22-Feb

Order trims 20th-feb onwards 22nd-feb

Expected trims in-house date (diff. For diff. Trims) 5th-march 5th-march

Trims approval date 7th-mar 7th-mar

Bulk yarn order 12-15-feb 7th-feb

k /d in actual color submit (15 days after yarn 1-Mar 25th-feb

order)

Approval for the above (N Y or local ) 7th-mar 1-Mar

Fabric test submission 2-Mar 26th-feb

Approval for the above ( I T S test labs) 7th-mar 1st-mar

Garment test submission 8th-mar 28-Feb

Approval for the above (I T S) 13-Mar 3rd-mar

Size set submission 15th-mar not required

Approval for the above 17-Mar not required

Pre pro. Submission 15th-mar 8th-mar

Approval for the above 20th-mar 13-Mar

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Yarn dispatch start date 5-Mar 10-Mar

Yarn dispatch close date 20-Mar 25-Mar

Fabric knitting start date 8-Mar 13-Mar

Fabric knitting close date 28th-mar 28-Mar

Fabric dispatch start date 15th-mar 20th-mar

Fabric dispatch close date 3rd-april 3rd-april

Cut-trigger date-approved for cutting 18th-mar 29th-mar

Cutting start date 19th-mar 30th-mar

Cutting close date 30th-mar 10th-april

Sewing start date 20th-mar 31st-mar

Sewing close date 3rd-april 15th-april

EX-factory date 9th-april 16th-april

EX-country date 15th-april 27th-april

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 EXPLANATION OF TIME AND ACTION PLAN

The parameters defined by the export house to source fabric: - Fabric content, Weight, Count,
Price, Width, Construction Other Factors: - Flammability, ph values, Bursting strength, seam
strength, Dimensional stability, Colour fastness, Pigment appearance, Scam durability. Fabric
Quality approval has to be taken into consideration like Weight, Count, Content, Feel
The fabric swatch is submitted to the buyer for approval. Once the approvals are completed, final
order for fabric is placed. Wherever the fabrics have to be sourced from nominated sources, the
fabrics are ordered without going through approval Process as buyer approves the same directly
with the supplier.

1. The procedures for fabric approval

First is the desk loom approval in which the fabrics count& and construction is checked and then
comes the lab dips which the colourfastness, dimensional stability and weight per' meter square
are done in-house. Then these report i.e. desk loom approval and the Lab dip are submitted to the
buyer on a proper format for approval. Buyers do have their own standard laboratories from
which certification are essential. All submits are pre-screened it the local office prior to dispatch
to the head office for final check Once all the desk looms/ strike off/ lab dip is approved, the
fabric order is placed for the approve colours/patterns.

Fabric testing report:

Desk looms sent for approvals are tested normally for the below given parameters:
Name of the supplier.
Sample Description.
Tests
Color fastness to Rubbing, Dry, Wet
Color fastness to washing at -Change in shade

Count & Constructions:

Warp/inch, Weft/inch
Weight per Meter Square:, After wash. 'Before wash
Dimensional stability: Warp, Weft, PH' value.
Lab test is done on the rating scale and there is the minimum specification attached to it and it
should in between that limits and has to be signed by the lab in charge. The Merchandiser should
confirm with the buyer the light option, which has to be used for the lab dip.

2. Procedures for trim approval:

Trims are the accessories embellishments used in the making of a garment excluding the main
body fabric. The trim sample is submitted to the buyer for approval. Once the approvals are

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completed, final order for trims is placed. Wherever the trims have to be sourced from
nominated sourced, the trims are ordered without going through approval process.
Size set sample
Sales man sample
Pre production sample
Production sample
Proto sample
Desk loom
Under ideal conditions the lead-time in a sampling department are:

Stage 1:
1. After order confirmation the first sample sent to the buyer is proto sample, which is sent
approval of fit and style. Then the buyer sends the approval with comments. The general lead-
time in proto sample is 6-7 days in making the sample including the patter stage to the stitching
of the sample. It takes 3 days to reach the buyer So in total it takes 11- 12 day making and
getting the approval of the proto sample.
2 In the meantime the fabric department is said to source the fabric for its approval. The fabric
department demands for the desk loom from its vendor base asking for a test approval with the
testing can be done at the export house itself or the buyer has approved some of the testing and
then the report is sent to the buyer for its approval.
The general lead-time in getting the desk loom in house is around 7 days & then there is testing
done and it takes around 3 days, then the report is sent to buyer for its approval.

Stage2:
After the proto sample approval and the desk loom approval, the buyer demands for the size set
sample. For size set sample the export house needs the yardage sample. Yardage sample is
sourced from fabric supplier and then different size set samples are made and sent to the buyer
for its approval. The general lead-time taken in getting the yardage sample in house is around
15-16days. The time taken in making the sample is around 3-4 days so the total time taken in this
stage is
around 18-20 days.

Stage 3:
After the confirmation of size set sample comes the pre-production sample and it is made during
the batch setting It is an ideal case but in most of the case the sampling department makes the pre
Production sample and sends it for buyer approval. The general lead-time for the production of
preproduction sample is 1-2 day.

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Details of the sample

• Lot No.
• Buyer.
• Style description.
• Style reference number.
• Sketch page and details.
• Pattern made by and there position
• Fabrics used (original/substitute).
• Accessories used (actual/partial/substitute).
• Nature of sample made.
• Samples made by referring (sketch /original sample)
• Samples to be cut (combo no, size and no of samples to be cut)
• Marker request form The details, which are there on the marker request forms are:
 Garment description.
 Fabric description.
 Initial fabric report
 Trims status Report:
 sampling to PPC
 Sampling report
 Layout report

 Another document that is too important;.s thefinal inspection certification of the

packaged good without which AEPC endorsement can't be obtained. For the preparation
of invoice all the relevant details hence reached the shipping department, this has to be
ensured.

After this all the processes from the endorsement till the payment is to be followed up by the
shipping. But the merchandiser needs to communicate any message from the buyer as soon
as possible so that no glitches are there.

Documents involved in the process routed through the merchandiser:

Packing list:
For one Purchase Order only one packing list needs to be maintained. It must include
Quantity shipped, Shade, Size, Color, Dye lot. Packing list is to be secured inside a, colored
envelope attached to the 1st carton of the shipment when shipped through cartons
For GOH it is attached with the first garment on the rack.
Second copy of packing list to be attached with the Bill of lading.

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Final inspection certification:
After the final packaging of goods, buyer's representative undertakes inspection only after
certification of which the goods can be endorsed for exports. A copy of the inspection
certification sheet has been attached.

Finishing and packaging

Eaches:
Prepack:
Case pack:
Pack SKU

Carton marking:
It is the merchandiser's duty to get proper carton and marking approvals and communicate the
same to purchase. But this is to be instructed to the packaging department with proper sketch.

Carton Containing
Marking Packing list, Packing list, Less than standard quantity, Pre-pack Cartons, Pre-pack,
Case-pack Cartons, Case-pack
Other very important things that the merchandiser must ensure are:
• Each purchase order is being packed separately.
• No mixing of styles, colors, dye lots, shades or sizes within carton has been done unless
the purchase order specifies the garments to be pre packed.
• Garments are generally packaged in two ways:
• Flat packed
• Garment on hanger (GOH)
• Prepacks and case-packs apply only to flat packed merchandise.
• No GOH product is to be prepacked or casepacked.
• All garments must be individually packaged in polybags.
• All prepacks require an outer polybag which should be of a minimum thickness of .004
mm.
• Heat sealing is the preferred way of seating polybags. Otherwise tapes are to be used.
• Outer polybag's color must be transparent.

Shipping and documentation

Some technical terms used in the process:
1. Commercial Invoice:
Receipt for a transaction and or goods purchased (invoice) indicating the sender or seller and the
receiver or purchaser. A commercial invoice should contain an itemized list of the merchandise
with the complete description of goods with their unit value and extended total value. Depending

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on the Customs requirements of the destination country, there may be additional requirements,
statement or clauses that must appear as well.
3. Consular Invoice
A document required by some countrie describing a shipment of goods and showing information
such as the consignor, consignee, and value of the shipment. Certified by a consular official, a
consular invoice is used by the country's customs officials to verify the value, quantity, and
nature of the shipment
4. Packing List
A document prepared by a seller/shipper, which details exactly what, is in each package shipped
by commercial invoice line item.
4. Letter of credit:
A document issued by a banker instruction by a buyer of goods authorizing the seller to draw a
specified sum of money under specified terms.
5. Bill of Lading (B/L)
A document issued by a common carrier to a shipper that serves as:
A receipt f6r the goods delivered to the carrier for shipment.
A definition of the contract of carriage of the goods.
A Document of Title to the goods described therein.
This document is generally not negotiable unless consigned "to order."
6. Certificate of Origin

A document containing an affidavit to prove the origin of imported goods. It is used for customs
or foreign exchange purposes or both. Certificates of Origin are commonly certified by an
official organization in the country of origin such as a consular office or a chamber of
commerce.

7. Inspection Certificate
A document certifying that merchandise was in good condition, or in accordance with certain
specifications immediately prior to shipment.
Transshipment: - The transfer of a shipment from one carrier to another in international trade,
most frequently from one ship to another.
The tools available with the merchandiser:
8. Shipping document request form:
It includes:
Country of destination
Order quantity
Pcs. per carton
No. of cartons
Gross and net weight of the cartons.
Clearing and forwarding agents name
Buyer's name

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Date of shipping the merchandise.
During sending instructions for documents preparation the merchandiser must ensure ending
following information to avoid any hence of miscommunication:

1.Purchase Order Number

2. Gender of the wearer.
3. Fiber content in % by weight
4. Knit or woven
5. Type of fabric
6. Name of item.
7. Country of destination
8. Port of loading
9. Terms

10. Rate of the goods shipped

9. Fabric control statement:

Attached sheet of the fabric control statement shows how the merchandiser follows up with the
shipping department about the fabric status for a given lot. This is information to the shipping
dep -artment about the number of excess pieces being sent to the buyer. Attached is the exhibit It
includes info about the fabric requirement; fabric received from the supplier, issued to the
factory, balance shortage of the fabric. It also documents the reasons for shortage of the fabric, if
any.
10. Consumption comparison chart:
This is a follow up on the order that what was the planned consumption and the actual
consumption is compared to calculate the excess or shortage of the fabric. It includes the follow
up on purchase consumption ( consumption calculate d at the of purchase including the wastage),
actual consumption as per the pieces cut and also the consumption as per the pcs shipped. 3% of
wastage at the cut stage and 2% after the shipping is under accepted limits.

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 VENDOR COMPLIANCE

Guidelines for Vendors

While respecting cultural differences and economic variances that reflect the particular countries
where we and our vendors do business, our goal is to create, and encourage the creation of,
model facilities that not only provide good jobs at fair wages, but which also improve conditions
in the community at large. Therefore, we actively seek business associations with those who
share our concerns.

Legal Requirements:

We expect our vendors to be law-abiding citizens and to comply with any and all legal
requirements relevant to the conduct of their business. We will seek vendors who respect the
legal and moral rights of their employees.

Nondiscrimination:

We will not do business with any vendor who discriminates in employment, including hiring,
salary, benefits, advancement, discipline, termination or retirement, on the basis of gender, race,
religion, age, disability, sexual orientation, nationality or, social or ethnic origin.

Child Labor:

Employees of our vendors must be over the applicable minimum legal age requirement or be at
least 14 years old or older than the age for completing compulsory education in the country of
manufacture, whichever is greater. Vendors must observe all legal requirements for work of
authorized minors, particularly those pertaining to hours of work, wages, minimum education
and working conditions. We encourage vendors to support night classes and work-study
programs, especially for younger workers.

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Forced Labor:

We will not be associated with any vendor who uses form of mental or physical coercion. We
will not do business with any vendor who utilizes forced labor whether in the form of prison
labor, indentured labor, bonded labor or otherwise.

Harassment and Abuse:

Vendors must treat employees with respect and dignity. No employees shall be subject to any
physical, sexual, psychological or verbal harassment and/or abuse.

Health and Safety:

Employers shall provide a safe and healthy work environment to prevent accident and injury to
health. Vendors should make a responsible contribution to the health care needs of their
employees.

Wages and Benefits:

We will only do business with vendors who pay employees, as a floor, at least the minimum
wage required by local law or the prevailing industry wage - when available, whichever is
higher, and who provide all legally mandated benefits. Employees shall be compensated for
overtime hours at the rate established by law in the country of manufacture or, in those countries
where such laws do not exist, at a rate at least equal to their regular hourly compensation rate.

Hours of Work:

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While permitting flexibility in scheduling, we will only do business with vendors who do not
exceed prevailing local work hours and who appropriately compensate overtime. No employee
should be scheduled for more than sixty hours of work per week and we will favor vendors who
utilize workweeks of less than sixty hours. Employees should be allowed at least one day off per
seven-day week.

Freedom of Association:

Employees should be free to join organizations of their own choice. Vendors shall recognize and
respect the right of employees to freedom of association and collective bargaining. Employees
should not be subjected to intimidation or harassment in the exercise of their right to join or to
refrain from joining any organization.

Environmental Requirements:

We are committed to the environment and will favor vendors who share this commitment. We
require our vendors to meet all applicable environmental laws in their countries and to nurture a
better environment at their facilities and in the communities in which they operate. Commitment
to CommunitiesWe will favor vendors who share our commitment to contribute to the
betterment of the communities in which they operate. PVH has been committed to the
enforcement of these standards and has an on-going approval and monitoring system. Our goal is
to engage our suppliers, contractors and business partners in the implementation of these
standards.

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