DEVELOPMENT PROCURMENT & PRODUCTION MONITORING IN APPAREL INDUSTRY.

DEVELOPMENT PROCURMENT & PRODUCTION MONITORING IN APPAREL INDUSTRY.

Prepared for:
Mr.Farruque M. Masud Course teacher Apparel Merchandising.

Prepared by:
Md.Asaduzzaman ID:091011016 Semister:5th

May 13, 2011. Shanto-Mariam University of Creative Technology

May13,2011. Mr.Farruque M. Masud AMM Department. Subject: DEVELOPMENT PROCURMENT & PRODUCTION MONITORING IN APPAREL INDUSTRY.

Dear Sir, I am pleased to Submit above subject assignment as desired by you.I have tried by my best to make this report resourcfull. If you need any classification than please let me know.

Sincerely

(MD. ASADUZZAMAN)

TABLE OF CONTENT

1. INTRODUCTION 1.1. Objective 1.2. Methodology 1.3. Scope 1.4. Limitation 2. CONCEPT & IDEA 2.1. Marchendising 2.2. Importance of Marchendising 2.3. P.O. ,P.I. ,L/C 2.4. Marchendising Flow Chart 3. OBSERVATION 3.1. Company Profile 3.2. Buisness Development Procedure 3.3. Procurement Procidure 3.4. Production Planning Control & Monitoring 4. 5. 6. 7. CONCLUTIONS RECOMMENDATIONS BIBIOGRAPHY APPENDEX

INTRODUCTION
Bangladesh has an estimated population of 140 million (circa 2005), living in an area of about 55,000 square miles. It thus has the unwanted distinction of being the worlds most densely populated country, and this overpopulation is at the root of many of Bangladeshs socioeconomic problems. However, the population is largely homogeneous in terms of ethnicity, language, and religion, and this provides a valuable element of national cohesion. In spite of numerous constraints, the economy has been on a steady growth path for the last 15 years, mainly due to private sector dynamism. The constraints include pervasive political instability and violence, endemic corruption and disregard for the law, frequent natural disasters, inefficient state-owned enterprises that are hotbeds of trade unionism, lack of political will to carry through necessary economic reform, inadequate infrastructure at all levels etc. Bangladesh is a tropical country in South Asia that is situated in the delta of two major rivers that flow down from the Himalayas. The countrys land surface is therefore largely composed of alluvial silt, rendering the soil highly fertile. Historically, this has made Bangladesh an agricultural nation; although agriculture contributes only about a fifth of the national GDP, it employs three-fifths of the labour force. The research on the role of business associations in the United States, and themore substantial literature covering less developed countries, also suggests there is Increased pay-off to regions and firms through formal institutions of collaboration. For instance, Anna lee Siberian investigation of electronics firms in Silicon Valley points out the key role played by business associations, such as the Western Electronics Manufacturers Association and the Semiconductor Equipment and Materials Institute, in encouraging cooperative research and development, marketing, and information-sharing activities among such firms. Stewart Rosenfeld evaluation of the Northwest Area Foundations efforts to start new business associations among rural manufacturers in the states of Minnesota, Washington, and Montana suggests that firms credited their expanded sales to membership in such associations. Lynn McCormick history of abrade association among the small firms in Chicagos metalworking industry shows how it was a critical support during periods of restructuring by providing collective strategic industry planning, constant institutional organizing, and the collective provision of training, technological, and other services. Lastly, other research implies that many of the activities such associations provide are an important source of strategic information for the member firms. The Appalachian Regional Commission (ARC) wants to identify the extent to Which business associations and other intermediary organizations in which businesses Participate, such as research and development or technology-based consortia, non-profit regional development organizations; increase the competitiveness of firms in the thirteen states. Appalachian region. In addition, the Appalachian Regional Commission wants to Know the number and type of such intermediary organizations, the various strategies they utilize in servicing firms, and the opportunities for public-private sector cooperation in delivering such services. This paper focuses primarily on business associations and offers a framework for Analyzing the inter-firm institutional capacity of a particular sector and region. It draws son existing theoretical and case study material on business associations and other interfering situations. This framework is then applied to four key industrial sectors within 5

the\Appalachian regionfurniture, wood products, textiles, and apparelto identify areas of institutional strengths and weaknesses. The institutional capacity of these sectors is gauged by interviews with representatives of business associations and other intermediary organizations, and a review of the organizational literature they publish. The report concludes by suggesting critical areas of intervention for the public and/or quasi-public sector to strengthen these collective inter-firm institutions, as well as areas for future research. Plunkett Data provides complete apparel and textiles market research, business analysis and competitive intelligence tool-- everything you need to know about the business of apparel, textiles, fashions, design, clothing retailing and distribution, as well as manufacturing, technology and logistics including: 1. 2. 3. 4. Clothing and fashion design and designers Textile manufacturing, off shoring and outsourcing. Clothing manufacturing, including apparel, shoes and accessories. Globalization of the apparel and textiles industry, including contract manufacturing in such nations as China, Vietnam and the Dominican Republic. 5. Retail store chains in the fashion and apparel industry, including major department stores, shoe stores, clothing stores and specialty retailers. 6. The growing use of private label fashions (store brands) at major retailers. 7. Discount retailing of apparel at such chains as Wal-Mart and Kohls. 8. Growth in e-commerce sales of clothing and accessories. 9. Significant trends in clothing and fashions, including mens, womens and childrens clothing, shoes and accessories. 10. Global trade agreements, CAFTA, WTO. 11. The growing use of nanotechnology based textiles (Nan textiles and Nan fabrics), and the use of smart fabrics. 12. Apparel industry technologies. 13. Clothing distribution logistics and direct-to-store inventory methods, use of RFID. 14. Apparel industry software.

Whether you purchase the printed almanac or buy a subscription to the online edition, you will find a complete overview, industry analysis and market research tool in one superb, value-priced package. Globally, the World Trade Organization reports that international trade in apparel totaled $276 billion during 2005 (the latest data available), or about 2.7% of all world merchandise trade. World trade in textiles totaled about $203 billion during 2005, or 2.0% of world merchandise trade. Meanwhile, the manufacture of basic synthetic textiles, such as polyester fabrics, is facing a global manufacturing glut, combined with rising prices of basic materials due to the high cost of petroleum. Demographic changes will offer immense opportunities to U.S. fashion merchandisers. To begin with, the nation's 77 million Baby Boomers are beginning to enter the 60+ age category. As more and more of these people become seniors, their tastes and needs will bring great revenues to savvy apparel sellers. Meanwhile, the rapid growth of ethnic consumer groups in America, Hispanics in particular, will offer superb marketing and product development opportunities. This is an arena where great changes may happen swiftly. Some of the trends driving the changes include.

1.1. Objectives
The RMG business started in Bangladesh in the 70s but it was then merely a casual effort. The first consignment of knitwear export was made in 1973 and the first consignment of woven garments was made in 1977. In 1981-82 the contribution of Woven garments in the total export was 1.10%. Afterwards it is a story of sustained success for the Bangladesh RMG sector. The knitwear sector has grown over the years in geometric progression and become the prime driving force of Bangladeshs export earnings. Within a decade the contribution of Woven to the export basket became 42.83% (1990-91) and the knitwear sectors contribution was 7.64% (1990-91). Now Knitwear has become the largest export earning sector of Bangladesh contributing 41.79% to national export earnings at the end of FY 2008-09 (JulyApril). 1. Accelerating your Sales Cycle. 2. Sales Proposals that win every time. 3. Sales force Automation. 4. Quickly ramp up the new Sales Team. 5. Improve RFP consistency and Quality. 6. Quickly respond to Raps and Fries. If your objectives align with any of the above then we have the solution. The Business Development Manager will be responsible for: Development & winning of new business through identifying new opportunities, establishing relationships and securing of orders; add to the companys long-term profitability targets. Develop a pro-active call system to initiate first contact with potential customers and arrange subsequent meetings and follow up to introduce the company and gain new business. Analyze and research potential customers, gaining an understanding of their business, the industry they operate in, marketing and brand strategy and company culture to develop a business case for each customer. In conjunction with the designer and marketing manager design a potential product range incorporating a competitive cost analysis as part of the business case. Maintain an up to date knowledge of product trends and the companys product offering. Maintain an awareness of current market, economic and consumer trends, in order to maximize opportunities and minimize risk Ensure all communication and contact with potential clients is of a professional standard and reflect the companys values and philosophy. Attend sales related events and trade fairs to promote the company.

y y y y y

1.2.Methodology
Business Development Methodology, Core Processes presents a consistent framework for describing organizational units, business processes and infrastructures. A central theme throughout the book is quality and performance and use is made of generally accepted ISO standards. In addition it describes 40 core business processes divided into 9 groups. The emphasis is on describing processes from the point of view of what they do and planning, administering and managing them. Its purpose is to present concise descriptions which can be used to design or adapt process structures in any type of organization. The book is also well suited as a textbook for business process studies. Table of Contents: Introduction, Concepts and Definitions, Organizations, Infrastructures, Management Processes, Business Development Processes, Business Maintenance Processes, Installation and Deployment Processes, Engineering Processes, Client Interface Processes, Production and Service Delivery Processes, Logistics Processes, Supplier Interface Processes, Program and Project Management.

1.3. Scope
Successful flexible production districts in other countries show that business Associations and other intermediary organizations undertake a variety of activities to Promote regional development. This section offers a framework of the functions and scope of business associations for analyzing the inter-firm institutional capacity in the Appalachian region. This framework suggests the full range of activities that business Associations could undertake to promote the growth of firms, industries, and regions. Before detailing this framework, the key institutional features of the flexible production districts are highlighted.

1.4. Limitations
. The survey was conducted in a very short time so we were not able to collect more information. This survey made on business development in apparel Industries Bangladesh, so it was difficult to collect more samples in a short time. Only the big and the reputed Garments Company consider here as sample. The questionnaire contains some questions that, if answered properly might Damage the companys image. In this type of questions, the respondents mightprovide socially acceptable answers. This risk was unavoidable. Another limitation of this study is the persons private information were not disclosing some, data and information for obvious reasons, which could be very much useful. Lack of experience in this field. Lack of proper authority to conduct the interview program. Lack of much more books of this subject.

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ACADEMIC PART 2.1. Merchandising

The activity of promoting the sale of goods at retail. Merchandising activities may include display techniques, free samples, on-the-spot demonstration, pricing, shelf talkers, special offers, and other point-of-sale methods. According to American Marketing Association, merchandising encompasses "planning involved in marketing the right merchandise or service at the right place, at the right time, in the right quantities, and at the right price." Merchandising is the methods, practices, and operations used to promote and sustain certain categories of commercial activity.[1] In the broadest sense, merchandising is any practice which contributes to the sale of products to a retail consumer. At a retail in -store level, merchandising refers to the variety of products available for sale and the display of those products in such a way that it stimulates interest and entices customers to make a purchase. 1. Promotional merchandising 2. Trading industry 3. Retail supply chain 4. Licensing 4.1.Children 4.2.Adults 5. Prop replicas 6 .See also 7. References

Promotional merchandising
In retail commerce, visual display merchandising means maximizing merchandise sales using product design, selection, packaging, pricing, and display that stimulates consumers to spend more. This includes disciplines in pricing and discounting, physical presentation of products and displays, and the decisions about which products should be presented to which customers at what time.This annual cycle of merchandising differs between countries and even within them, particularly relating to cultural customs like holidays, and seasonal issues like climate and local sporting and recreation. In the United States for example, the basic retail cycle begins in early January with merchandise for Valentine's Day, which is not until midFebruary. Presidents' Day sales are held shortly thereafter. Following this, Easter is the major holiday, while springtime clothing and garden-related merchandise is already arriving at stores, often as early as mid-winter (toward the beginning of this section, St. Patrick's Day merchandise, including green items and products pertaining to Irish culture, is also promoted). Mothers Day and Fathers Day are next, with graduation gifts (typically sm all consumer electronics like digital cameras) often being marketed as "dads and grads" in June (though most college semesters end in May; the grads portion usually refers to high school graduation, which ends one to two weeks after Father's Day in many U.S. states). Summer merchandise is next, including patriotic-themed products with the American flag, out by Memorial Day in preparation for Independence Day (with Flag Day in between). By July, back-to-school is on the shelves and autumn merchandise is already arriving, and at some arts and crafts stores, Christmas decorations. (Often, a Christmas in July celebration is held around this time.) The back-to-school market is promoted heavily in August, a time when 11

there are no holidays to promote. By September, particularly after Labor Day, the summer merchandise is on final closeout and overstock of school supplies is marked-down some as well, and Halloween (and often even more of the Christmas) merchandise is appearing. As the Halloween decorations and costumes dwindle in October, Christmas is already being pushed on consumers, and by the day after Halloween retailers are going full-force with advertising, even though the "official" season doesn't start until the day after Thanksgiving. Christmas clearance sales now begin even before Christmas at most retailers, though they usually begin on the day after Christmas and continue on at least until New Year's Day but sometimes as far out as February. Merchandising also varies within retail chains, where stores in places like Buffalo might carry snowblowers, while stores in Florida and southern California might instead carry beach clothing and barbecue grills all year. Coastal-area stores might carry water skiing equipment, while ones near mountain ranges would likely have snow skiing and snowboarding gear if there are ski areas nearby.

Trading industry
In Eastern Europe, particularly in Russia, the term merchandising is commonly used within the trading industry and denotes all marketing and sales stimulation activities around PoS (point of sale): design, creation, promotion, care and training of the sales staff. Basically a merchandiser is someone who is continuously involved in business promotion by buying and selling of goods. In Asian countries such as India, this term is more synonymous with activities right from sampling or idea conception to dispatching of the shipment. It is a job description that involves leading and working with different departments within the organization, suppliers and buyers to deal with timely deadlines and accepted quality levels.

Retail supply chain

In the supply chain, merchandising is the practice of making products in retail outlets available to consumers, primarily by stocking shelves and displays. While this used to be done exclusively by the stores' employees, many retailers have found substantial savings in requiring it to be done by the manufacturer, vendor, or wholesaler that provides the products to the retail store. In the United Kingdom there are a number of organizations that supply merchandising services to support retail outlets with general stock replenishment and merchandising support in new stores. By doing this, retail stores have been able to substantially reduce the number of employees needed to run the store. While stocking shelves and building displays is often done when the product is delivered, it is increasingly a separate activity from delivering the product. In grocery stores, for example, almost all products delivered directly to the store from a manufacturer or wholesaler will be stocked by the manufacturer's/wholesaler's employee who is a full time merchandiser. Product categories where this is common are Beverage (all types, alcoholic and nonalcoholic), packaged baked goods (bread and pastries), magazines and books, and health and beauty products. For major food manufacturers in the beverage and baked goods industries, their merchandisers are often the single largest employee group within the company. For nationwide branded goods manufacturers such as The Coca-Cola Company and PepsiCo, their respective merchandiser work forces number in the thousands.

Licensing
In marketing, one of the definitions of merchandising is the practice in which the brand or image from one product or service is used to sell another. Trademarked brand names, logos, or character images are licensed to manufacturers of products such as toys or clothing, which then make items in or emblazoned with the image of the license, hoping they'll sell better 12

than the same item with no such image.For the owners of the intellectual property in question, merchandising is a very popular source of revenue, due to the low cost of letting a third party manufacture the merchandise, while the IP owners simply sit back and collect the merchandising fees.

Children
Merchandising for children is most prominently seen in connection with films and games, usually those in current release and with television shows oriented towards children. Merchandising, especially in connection with child-oriented films and TV shows, often consists of toys made in the likeness of the show's characters (action figures) or items which they use. However, sometimes it can be the other way around, with the show written to include the toys, as advertising for the merchandise. The first major example of this was the TV show "G.I. JOE A Real American Hero.," produced by Hasbro in the early 1980s, but this practice has been common in children's broadcasting ever since. Sometimes merchandising from a television show can grow far beyond the original show, even lasting decades after the show has largely disappeared from popularity. In other cases, large amounts of merchandise can be generated from a pitifully small amount of source material (Mashimaro). Barney

Adults
Example of professional sports merchandising A Boston Celtics cap manufactured by Adidas The most common adult-oriented merchandising is that related to professional sports teams. A smaller niche in merchandising is the marketing of more adult-oriented products in connection with similarly adult-oriented films and TV shows. This is common especially with the science fiction and horror genres. (Examples: Star Trek, McFarlane Toys) Occasionally shows which were intended more for children find a following among adults, and you can see a bit of a crossover, with products from that show oriented towards both adults and children. (Gundam model kits) Sometimes a brand of non-media products can achieve enough recognition and respect that simply putting its name or images on a completely unrelated item can sell that item. (An example would be Harley-Davidson branded clothing.)

Prop replicas
Yet another path official merchandising follows sometimes is the one so-called prop replica market. Mainly focused on fan-made articles, prop replicas are becoming more and more famous as users tend to collect those pieces of movie memorabilia that med/big companies do not mass-produce, reaching even higher levels of quality than certain 'licensed' replicas.

Visualmerchandising
Visualmerchandising is the activity of promoting the sale of goods, especially by their presentation in retail outlets.This includes combining products, environments, and spaces into a stimulating and engaging display to encourage the sale of a product or service. It has become such an important element in retailing that a team effort involving the senior management, architects, merchandising managers, buyers, the visual merchandising director, industrial designers, and staff is needed.

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Facility
Visual merchandising starts with the store building itself. The management decides on the store design to reflect the products the store is going to sell and how to create a warm, friendly, and approachable atmosphere for its potential customers.Many elements can be used by visual merchandisers in creating displays including color, lighting, space, product information, sensory inputs (such as smell, touch, and sound), as well as technologies such as digital displays and interactive installations.Visual merchandising is not a science; there are no absolute rules. It is more like an art in the sense that there are implicit rules but they may be broken for striking effects. The main principle of visual merchandising is that it is intended to increase sales, which is not the case with a "real" art. Visual merchandising is one of the final stages in trying to set out a store in a way that customers will find attractive and appealing and it should follow and reflect the principles that underpin the stores image. Visual merchandising is the way one displays 'goods for sale' in the most attractive manner with the end purpose of making a sale. "If it does not sell, it is not visual merchandising."Especially in todays challenging economy, people may avoid designers/ visual merchandisers because they fear unmanageable costs. But in reality, visual merchandisers can help economise by avoiding costly mistakes. With guidance of a professional, a retailer can eliminate errors, saving time and money. It is important to understand that the visual merchandiser is there, not to impose ideas, but to help clients articulate their own personal style. Visual merchandising is the art of implementing effective design ideas to increase store traffic and sales volume. VM is an art and science of displaying merchandise to enable maximum sale. VM is a tool to achieve sales and targets, a tool to enhance merchandise on the floor, and a mechanism to communicate to a customer and influence his decision to buy. VM uses season based displays to introduce new arrivals to customers, and thus increase conversions through a planned and systematic approach by displaying stocks available.Recently visual merchandising has gained in importance as a quick and cost effective way to revamp retail stores.

Purpose
professionals display to make the shopping experience more comfortable, convenient and customer friendly by:
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Making it easier for the shopper to locate the desired category and merchandise. Making it easier for the shopper to self-select. Making it possible for the shopper to co-ordinate & accessorize. Informing about the latest fashion trends by highlighting them at strategic locations.

Merchandise presentation refers to most basic ways of presenting merchandise in an orderly, understandable, easy to shop and find the product format. This easier format is especially implemented in fast fashion retailers.

VM helps in
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Educating the customers about the product/service in an effective and creative way. Establishing a creative medium to present merchandise in 3D environment, thereby enabling long lasting impact and recall value. 14

y y y y

Setting the company apart in an exclusive position. Establishing linkage between fashion, product design and marketing by keeping the product in prime focus. Combining the creative, technical and operational aspects of a product and the business. Drawing the attention of the customer to enable him to take purchase decision within shortest possible time, and thus augmenting the selling process.

History
When the giant nineteenth century dry goods establishments like Marshall Field & Co. shifted their business from wholesale to retail, the visual display of goods became necessary to attract the general consumers. The store windows were often used to attractively display the store's merchandise. Over time, the design aesthetic used in window displays moved indoors and became part of the overall interior store design, eventually reducing the use of display windows in many suburban malls.In the twentieth century, well-known artists such as Salvador Dal and Andy Warhol created window displays. It is also common practice for retail venues to display original art for visual merchandising purposes.

Multichannel Merchandising
Developing a Cross-channel Merchandising Strategy A companys merchandising strategy is at the heart of its growth and profitability. Saying that is not to minimize marketing and fulfillments roles, but without strong merchandise you dont have a business. Great marketing cannot compensate for the lack of good product, though great marketing can radically improve the sales for product.You cant look at merchandising in a vacuum. To be effective, merchandising has to go hand in glove with marketing in the retail, catalog, and e-commerce channels. Each channel has different strengths, and those in turn affect how well the channels sell merchandise. As much as we hear these days about Web 2.0, leading multichannel merchants are taking their merchandising strategies to new and higher levelsa sort of multichannel merchandising 2.0in which channels neither mirror nor compete with each other, but support each other in advancing company objectives. Winning strategies today not only entail the consistency of look and feel between channels, but consistency of goals and of the retailer's ultimate objective: enhancing the customer's total experience. Achieving this customer-centric focus among all channels goes well beyond the old concepts of appearing seamless, and of merely showing the same products in multiple channels. Its more about how to gain synergy between the channels that should result in greater sales than if the channels operate separately. Just how does merchandising tie into use by all channels? What are the best practices for merchandising retail, e-commerce, and catalog productand how can multichannel merchants implement those practices? Three-channel Excellence The multichannel retailer that provides a consistent image in every sales channel makes it simpler for customers to find and buy what he offers. When customers know they can rely on a merchant to offer a positive experience in any channel, they are more likely to shop in any or all channels.

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How well does one channel support the others? Consistency is provided in part by look and feel, as expressed by the company name, logo, mission statement, slogan, color schemes, label, shopping bags, gift wrap, and general design schemeonline, in the catalog, in stores. Synergy, however, cuts a lot deeper.One of the retailers that does the best overall job of multichannel merchandising is Cabelas The Worlds Foremost Outfitter of hunting, fishing and outdoor gear (www.cabelas.com). When you consider their cross-channel expertise, its impossible to separate the marketing and operational functions at which they excel. In fiscal 2006, Cabelas earned $85.8 million on sales of $2.06 billion. Total revenue increased 14.7% from the previous year. Business from the direct cannels (catalog and ecommerce) increased 4.2% to $1.06 billion, primarily from e-commerce growth. Cabelas retail revenue increased 32.3% to $820.3 million, led by four new stores and a 1.3% increase in comparable store sales. Financial services increased 29.9% for the year through the Cabelas CLUB Visa credit card (Source: Cabelas letters to stockholders).Even though Cabelas started as a cataloger, then migrated to e-commerce, with many of its stores ranging up to 250,000 sq.ft., its rapidly becoming retail-driven. Its interesting to see a direct company successfully make this change to retail in a big way. All three of Cabelas channels are massive and dominant in their merchandise niche. When shopping the stores, the product assortment looks to be several hundred thousand SKUs. The stores themselves are as near an outdoor experience as shopping can be. In the center of the stores is a multistory atrium called the Conservation Mountain with taxidermy mounts of various large game elk, moose, bear, etc. literally displayed on a mountain. Some stores we have been in have an African landscape. Others have a White Deer Museum which features record mounts and also abnormal antler configurations. Fish mounts ring the first floor of the store. Large freshwater aquariums show large regional species up close. I have seen elementary schools touring stores as if they were a natural history museum.For Fall 2007 Cabelas produced a 1,392-page, hardbound catalog (weighing about 4 lbs. mailed in a box) for its best customers. Within a month or so, specialty catalogs such as Waterfowl (240 pages) and Summers Best Clothing and Footwear 2007 (128 pages) arrived in best customers mailboxes. There are dozens of other specialized catalogs throughout the year. The entire back cover of the master catalog is dedicated to the existing store locations19 stores, and eight new stores scheduled for 2007. The cover shows small photo insets of stores. The Cabelas master catalog is a perfect example of cross-channel marketing and merchandising. It promotes the in-store and online Gun Library of world-class firearms and sporting collectibles, field test reports, and customer ratings and reviews, which are on the Web site. In addition the catalog offers comparison charts, buyers guides, and the online and in-store Bargain Cave (10,000 products that are overstock, returns not restocked, special buys, and clearance items). Throughout the catalog, customers and employees are featured with their hunting and fishing trophies and testimonials about Cabelas products. Cabelas produces the 60-minute television shows Cabelas Outfitter Journal and Cabelas Memories in the Field. For Memories in the Field, Cabelas asks viewers to send in their home videos of hunting and fishing adventures. If their videos are selected to be used, they receive $100 gift certificate to Cabelas. Cabelas also publishes the bimonthly Outfitter Journal magazine with in-depth articles from the most trusted and respected outdoor writers.

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Clearly Cabelas has developed an high level of constant interplay between events and sales that are happening at its stores and on the Web site, and between marketing and merchandising as well.The main point to be made here is that Cabelas in many ways makes it hard to separate one channel from another. For this multichannel merchant, maintaining synergy between the three channels is more important than looking at each channel as an isolated part of the business. In other words, where merchandising and marketing are working in concert the total sales will be higher than if channels work independently of each other. In spite of this, some multichannel businesses still suffer from a fear of channel cannibalism, and allow different channels to compete with each other rather than concentrate on serving the customer. In fact, there are many multichannel retailers whose neglect of potential cross-channel synergy and consistency and end up with a Web site, retail stores, and catalog that appear to be separate businesses. E-commerce edge In multichannel commerce, e-commerce provides many options which retailers did not have before the advent of online sales. Heather Dougherty, an analyst for Nielsen/Net Ratings (NTRT), states that JC Penney has one of the most productive Web sites among mainstream retailers. Nielsen/Net Ratings has consistently rated JC Penneys Web site among the top five Web sites nationally, based on the number of paying customers who visit the site. Compared to Cabelas, JC Penney takes more of a traditional department store approach to multichannel retail. Anyone who looked at just Penneys catalog numbers, might reasonably conclude that the businesses have stalled, but looking at all channels, you see that business as a whole is really growing. In fact Penneys catalog sales have declined dramatically, but the companys overall/total sales are much better than they have been. An interview with Bernie Feiwus, senior vice president of Penney Direct, suggests some of the reasons for the companys success. The Web site offers almost three times the number of products that are offered in Penneys retail stores. This gives the company a cost-effective way to sell bigger-ticket, often slower-turning items. Numbers from the companys financial reports also attest to the Web sites success. The company rang up over $1 billion in online sales in 2005, and sales through this channel are expected to overtake catalog sales, which declined from over $4 billion in the late 1990s to $1.7 billion last year. The company has supported this growth in several creative ways. In August of last year, Penney began making Internet access available at 35,000 checkout registers. The retailer not only uses the Web as way to drive traffic to its retail stores, but encourages cooperation through channels with such initiatives. Penney was one of the first major retailers to allow its online customers to exchange and/or return items at its stores. [Sources: Business Week, JC Penney Gets the Net, May 7, 2007; DM News, JCP.com is the lynchpin in JC Penneys multichannel strategy, July 27,2007) This sort of online support strategy can work in several ways. In table-top businesses, for instance, e-commerce can create an advantage. Suppose that on average, only one in five customers want serving dishes and other accessories for a dinnerware set sold in a store. The store can avoid having to stock such slow-turning items in the stores by directing interested customers to its online store to view the complete dinnerware set. 17

Many channels, one strategy In order to be sure that customers have a consistent experience across channels, the merchant has to put in place a multitude of policies and make them work with appropriate technology and training. For instance, customers should be able to expect the same level of customer service across channels. Customer service definitely includes the chance for a customer to talk to a live person or chat about a problem without spending hours looking online for a buried customer service number and then waiting for one of the small customer service staff to answer. Industry professionals agree that improved technology and the increasing prevalence of online shopping in the last few years mean that more customers are conditioned to expect that their orders will ship the same day theyre ordered, which would have been unheard of ten years ago. Multichannel merchants should offer seamless purchase and delivery options whether customers shop retail, catalog, online, or chose to pick it up in a store. Catalog and online orders should be available via quick shipment and at a reasonable shipping cost. That kind of channel inventory flexibility requires a willingness to ship (or allow customer pick up) from different channels to make the sale and satisfy the customer. Some direct businesses are gaining significant sales with drop-shipped product. One major retailer with direct sales over $200 million has 20% of its sales in drop ship. Similarly, there may be vendor assortments to which you can refer on your e-commerce site that do not take space in the catalog or store. The company should accept gift cards/certificates as payment and be able to validate them online across channels. Returns and customer loyalty programs should operate across channels, and make pricing consistent across channels. In cases where prices actually need to be different, the merchant should have a standard policy to explain and handle such cases.When developing your multichannel merchandising strategy, dont forget the importance of capturing a high percentage of data from all retail customer purchases and combining that with data from the direct channels. Many companies have found that multichannel customers achieve five to 10 times the value of single-channel customers. Mining the database allows businesses to know more about future merchandising by answering the question What do the better customers buy, and what will keep them buying? Multichannel businesses can face serious conflicts between the structure of their merchandising organization and sales and performance goals that sacrifice customer satisfaction to meeting the goals. For example, when a company separates merchants by channel, it must deal with the issue of who controls inventory. In the early days of ecommerce, companies frequently hired a Web master who handled all aspects of online sales. Now, organizations have migrated from just trying to put product up online to having merchants who are responsible for what is shown and for the copy itself. More catalogers are hiring dedicated online merchandise managers (with varying authority) somewhere between being a merchant with a plan to being the liaison between merchandising and Web master. In many two-channel direct businesses, the online unit typically has a copywriter, a marketer or two, at least one merchandiser, a producer, and a tech team. Control of buying and inventory remains with merchandising and inventory control. An organization that actively supports cross-channel merchandising should serve the customer without taking away accountability for channel managers, while at the same time maintaining a consistent

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merchandising direction. As businesses often make consolidated channel-buying decisions, not speaking with one voice to vendors, this can be a convoluted process. Inventory management, purchasing, and open to buy functions can also present serious issues. Without inventory and order management systems that are integrated across channels, a business has limited visibility and will have difficulty shipping from stores, if thats a goal. Without real-time online inventory integration, its impossible to know positively that you can ship for Web orders. An inability to move inventory or ship it from other channels to make the sale means inventory is frozen in one channel when its needed in another. A multichannel solution requires the merchant to aggregate or roll up inventory quantities needed in a specified time frame in order to place POs and plan receipts. Implementing the strategy How do operations, finance, and systems match this synergistic approach? The majority of multichannel businesses still have fragmented systems. Lacking systems integration, they must maintain information in multiple channels, which means greater potential for errors and inconsistency between systems. The best way to achieve the goal of cross-channel consistency is to have single operational data stores and data warehouses across all channels for access to cross-channel product assortment. In other words, youd like everybody to be using the same data information entered into one system of record and moved electronically to multichannel systems. The prescription to meet these needs starts with systems development. Open standards and service-oriented architecture (SOA), a way of designing programs so systems are integrated and can exchange data, is becoming more commonplace. More specifically, the sort of information needed to provide consistent customer experience and service across channels should include:
y y

y y y y y y y y

Online, real-time visibility of inventory across channels Item master and pricing products get priced via the item master, which has dozens of data points (description of item, vendor, when available, cost, retail selling price). Not having a single product master means a separate file or data base for each channel, greatly increasing the potential for error and inconsistency. Single vendor master Single purchase order writing and maintenance process Gift cards/certificates accepted as payment and validated online across channels Investigate alternative methods such as PayPal and Bill Me Later to gain more sales Returns accepted to any channel Overstock reduction and liquidation through stores and e-commerce. Determine what strategy gets the highest percentage of recovered cost. Customer loyalty programs across channels Consistent pricing and promotions across channels. This doesnt mean that better customers dont get specials or services (free shipping). It doesnt mean that there store sales or regional price points arent sometimes necessary, but there must be a rationale for discrepancies, and that means a sophisticated product-pricing engine that can manage all channels. There might be regional competitive reasons to change prices. Major software vendors are still working on this. Ability to offer customized or special merchandising products

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y y y

Product copy and length may vary between channels, but there should be a single statement of product information of the particulars about the product that remains constant across channels. Investigate and experiment with Web 2.0 features that can sell more productthese include 360-degree views, online instructional and demo videos, zoom features, product reviews, community chat rooms, YouTube.com, etc. Improved search tools on Web. Implement improved Search Engine Optimization (SEO) to get your site highly ranked. What internal Web site search have you developed to make your site easier to find products and suggested purchases? Test new products on the Web and then roll them out.

Smaller and emerging companies Weve talked about the big companies. In reviewing smaller company strategies, here are some pointers more appropriate for smaller companies:
y

y y y y

Build the strongest e-commerce site that you can afford. Many smaller companies use package shopping carts or vendor front ends. Does this give your Internet business the sophistication it needs to compete? Do your catalog and e-commerce tie together with your stores in terms of look and feel? How are you achieving the synergy building sales between channels? How can you get more sales by extending vendor lines through e-commerce? Investigate and implement the operational aspects of making the customer experience consistent between channels.

In summary, along with the advance of e-commerce, multichannel merchandising has entered a new realm. Different channels of the same business no longer have to compete for sales. Encouraging creativity between marketing, merchandising, and retail management will make different channels more synergistic, increasing sales beyond what channels can do singlehandedly.

Planogram A Planogram allows planning of the arrangement of merchandise on a given fixture configuration to support sales through proper placement of merchandise by Style, Option, Size, Price points, etc. It also enables a chain of stores to have the same merchandise displayed in a coherent and similar manner across the chain.The main purpose is to support ease of applicability to the merchandiser while also increasing selection & enhancing the merchandise display in a neat and organized manner.
WindowDisplay Window Display may communicate style, content, and price point. A window might combine seasonal and festive points of the year such as Back-to-school, Spring, Summer, Easter, Christmas, New Year approaching, Diwali, Valentine's Day, Mother's Day,Women's Day, etc.

FoodMerchandising
Restaurants, Grocery Stores, and C-stores are using visual merchandising as a tool to differentiate themselves in a saturated market. With Whole Foods leading the way, many are recognizing the impact that good food merchandising can have on sales. If a food 20

merchandising strategy considers the 5 senses, it will keep customers lingering in the store, and help them with the buying decision process. Aroma, if pleasant, can be used to help sell product and visual graphics on the boxes and packaging can make them look as good as they taste. Texture can be utilized to entice customers to touch, and samples are the best form of food advertising. Especially for large quantity items, the ability to experience the product before committing to the purchase is critical. Food merchandising should educate customers, entice them to buy, and create loyalty to the store.

Effective merchandising
Effective merchandising demands the most effective use of available retail space, with all retail practice ultimately seeking to capture the impulse of the customer to buy more and to buy better. An understanding of customer behaviour in store, often gleaned only through trial and error and observation can be used as a positive sales tool. Rationalising consumer psychology in what drives a purchase has led to the formulation of protocol in determining how best to set out a store, appropriate and effective product placement, and establishing an atmosphere of subliminal messages geared towards improving sales.

Effective Store Signage

In this day and age of modern computers, ink jet printers and desktop publishing programs, I am still amazed to see store owners that put little effort in to producing quality signage for their stores.Signage is one of the most important ways to convey your message to your customers. Your store name, promotions, pricing, and product information may all be conveyed through signage. Are you getting these messages across effectively? As a customer walks by your store, you have about 3 seconds to let them know what they will find inside. What message are you sending? Professional signage will attract the customer, provide just the right amount of information and invite the customer to enter your store or try your product.Unprofessional signage is confusing to the customer and sends a negative message about your store and product. Common problems include too many signs, ambiguous or misleading messages, spelling errors or signs that are difficult to read. I don't know about you, but I avoid stores that have have signs littered throughout the store that scream, "SALE! 9.99" and in small print at the bottom they add, "and up." Effective signage has the following qualities: 1. Quality Production You don't have to spend big bucks to get signs that look professional. Having said that, you still need to be willing to spend a few dollars to create the image that you want to represent your business.Consider the lifespan of the sign. Exterior signage that needs to last several years requires a fairly large investment. The shorter the lifespan of the sign, the less it should cost. If you are running a small boutique, producing your own short term promotional or informational signage is perfectly acceptable, provided you have the tools and skills to do it well. If you are producing signs on your own, they should be produced on a computer, not handwritten. This might seem too obvious to mention, but I still see stores using signs that have been written in black felt marker. Use a desktop publishing or word processing program and quality printer and paper. If your printer and paper are not good quality, take your computer file to a print shop to produce your image. Mount your final images on a heavy card, illustration board or foam core. 21

2. Simple Color Scheme Don't go crazy with color. Pick a simple, two or three color scheme and stick with it throughout the store. Pick a background color, text color and highlight color. Make sure that the colors have enough contrast to be easily read. Red on black, while a dynamic and high power combination, does not have enough contrast to be easily viewed. However, if the text is very large, bold and only one or two short words, you might be able to get away with it. Outlining the text with a thin white line will also improve the contrast. Also be careful with combinations such as yellow/green or orange/pink/red or green/blue. These combinations can be powerful and trendy, but require more work with design to make them legible. Strong contrasts such as white/black, yellow/black, red/white, white/blue increase visibility and legibility. 3. Easy to Read Make your signage easy to read. Don't try to put too much on one sign. Some signs are so full of tiny images, starbursts, exclamation marks, and small print, that you can't take it all in. One main image, a headline and a few bullet points are all you need on an informational sign. A sign in a store window should be even simpler. You need to get your message across immediately as the customer walks, or drives by. This means you can only use a strong image on your sign, a headline, or a simple combination of both. Some stores only use one word, such as 'SALE' or 'HOLIDAY' in the window, and provide more information inside the store.The more time the customer will be spending looking at the sign, the more information you can include. For example, a sign near your cash register, where your customer will be waiting for a transaction to be processed, can provide details of a contest or return policy. 4. Clear and Simple Message Keep your message simple. Avoid trying to say too much. Choose one main message that you want to convey. Do you want to tell about a sale, a price, product info, return policy? Rather than say this all at once, try a sale sign on the top of the rack, price and product info on the tag, and return policy at the cash register. When you craft your sign, write down the message you want to get across, then rewrite it in as few words as possible. Keep reducing until you have one to five words for your headline. If necessary, write a small amount of supporting information below. 5. Well Placed Be careful where you place your signage. Place it where it will catch your customers' attention, but will not block essential elements of your store.Think about how customers approach your store. If customers walk by your store, but your store name is only placed high up on your store front, facing the street, how will they see it? You also need to repeat the name on the door or window, and perhaps hanging from an awning or on a sandwich board on the sidewalk.Make sure signs don't block traffic flow, displays, or the view of the interior of your store. Here's an example of signage placement that could be improved! Window signage may not be visible to customers for other reasons that you do not realize. Is there a parking meter blocking the view of your window? What about a loading zone where delivery trucks park for a large part of the day, obscuring part of your store from view?

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Check for reflections on the window that make your interior signage invisible during the day. You'll need to check this at various times of the day to find out what happens to the light and reflections depending on the position of the sun. You can improve the visibility of your signage by improving the display lighting inside, and by using light colors in your windows. Light colored signage will stand out, while dark colors will recede and virtually disappear behind reflections on the glass.After placing your signs, double check how they look from a customers point of view. Step back and approach the store as a visitor. Walk from front to back and look at all your signage critically and reposition as necessary.

FASHION MERCHANDISING
Rent Designer Dresses to Wear without the Expensive Price Tag

Any good fashionista can list top fashion designers without batting an eye, but most could only dream of wearing these labels because of the high price of high fashion. Ai InSite explores new companies that are now renting designer dresses.

Fashion no longer needs to be sacrificed due to the high prices of designer goods. Ai InSite explores the trend of famous designer collaborating with mass retailers.

Online Sample Sales Accessible to All

Gone are the days of having to live in Los Angeles or New York City to get deals on the latest designer looks. Thanks to the evolution of online sample sales, shoppers across the country can get the same bargains from the comfort of their living rooms.

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Its a Fashion Buyers Market

Fashion buyers are tasked with the ongoing challenge of making the world look good, but more than just a passion for fashion is needed for them to correctly predict each seasons trends, and keep shoppers coming back for more.

Football Fashion for Women Kicks off Style

The number of women football fans is on the rise and theyre looking to express their football passion with football fashion. Thanks to that demand, football fashion selections for women are in abundance today more than ever, allowing female fans to show their team pride with more stylish clothing options than theyve had in the past.

Behind the Scenes of the Fashion Industry

Beautiful people, trendy outfits, and timeless sophistication make up the face of the fashion industry, but behind the scenes countless people work hard to maintain this glitzy and fabulous illusion. Ai InSite learns more about the fashion industry jobs we don't always hear about. Virtual Closets Help Take Guesswork out of Shopping

A number of fashionable new websites are providing consumers with virtual closets that let the track, mix, and match their clothes. Ai InSite learns more about the new trend.

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Retail Strategies Evolve as Shoppers Shift Spending Habits

A psychological recession among U.S. shoppers means a continued struggle for retailers and new business strategies for the fashion industry. Read more about the cautious spending patterns, and how retailers are responding.

Making Waves as a Swimwear Designer

Summer is quickly approaching and nothing evokes the season like swimwear. Every year, designers and industry insiders in this niche market work hard to bring new splashes to the swimsuit. Ai InSite talks to swimwear designers and gets some predictions for the hot looks coming this summer.

Androgynous fashion blurs traditional rules of style

A new fashion movement is giving men and women the freedom to blur traditional gender lines in expressing personal style. Still somewhat controversial, the trend of androgynous fashion is sparking the creativity of apparel designers, fashion-loving tastemakers, and style icons.

The Inside Scoop on Breaking into the Fashion Business

Fashion instructors, professionals, and recent graduates offer a real-world perspective on what it takes to break into the fashion business, from getting involved in the local industry to understanding the long hours and challenges. Read more about how aspiring designers get started in the competitive fashion industry.

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Shades of Green Pop Up at New York Fashion Week

Eco-conscious clothing has been gaining momentum in the mainstream fashion industry. Green f designers create earth-friendly designs that are ethically produced, use organic, recycled, or vega materials, and enforce fair-trade and fair-labor practices. Read more about how sustainable fashio showing up at major events like New York Fashion Week.

Create Retail Displays That Attract Customers

Retail is a competitive business. Even if your product is completely unique, you still have competition. There is always another store down the street - or in the next cyber-mall - that is aiming for your customers' wallet. Customers have a limited amount of disposable income, but their choices of where to spend it are infinite. While there are many aspects involved in marketing and gaining customer loyalty, one of the most important is your visual presentation. Does your merchandise display attract and interest the customer? Or does it overwhelm and confuse the viewer? Is the display simply bland and unremarkable? Here are some tips to help you create displays that will get the customers' attention: 1. Create a focal point An overwhelming display or a boring one can both have the same problem - a lack of focal point. Where do you want your viewer to look? Is there one main feature you want them to notice? Where will the eye travel through the display? Don't leave this to chance. Plan what the customer should do when they see the display. Perhaps a new product is the main focal point, with complimentary items placed in close proximity to encourage multiple sales. Many window and table displays are too low. The focal point should be at eye level to most viewers. Visitors will not work to get a good look at your display, they will simply walk on by without noticing. 2. Use line and shape to plan your design Don't just put your products together willy-nilly. Practice drawing a quick layout to help you visualize the plan for your design. Will your layout be horizontal or vertical? Will the products be arranged in straight or curved lines, in a pyramid or circular shape? Will the design combine a variety of elements, or just one? To experiment with this, draw rectangle that is roughly the same shape as your display space. Sketch geometric shapes such as squares, rectangles, circles, semi-circles and triangles in 26

various combinations to get a sense of an appealing layout. For instance, a large triangle could represent an arrangement of gift ware. A long vertical rectangle to the left of the triangle would represents signage placement. 3. Create balance Strong displays have visual balance. Dark colors appear heavier than light ones. Large objects appear heavier than small ones. This seems straightforward, but you need to think about this as you plan your display. Generally larger, darker items would be placed near the bottom of a display, with lighter items at the top to avoid appearing top heavy. Placing too many items, or heavy looking items on one side appears unbalanced. A grouping of many items on one side of the display can be balanced by one heavy item in just the right place on the other side. Think of weights on an old fashioned scale to get an idea of how this works. Balance matter We all respond emotionally to visual stimuli. Creating a display is about creating a mood and a desire within the consumer. A lack of balance creates an impression of instability and anxiousness. The consumer is not even aware of the feeling, he or she simply searches out an environment or merchandise presentation that gives them a positive feeling and creates an appealing mood. 4. Keep it simple Don't try to do too much. The goal is to attract attention to the product. On a slat wall, often simple rows are the best way to show the merchandise. Too often I have seen displays where every row or shelf has a different arrangement.Your goal is to make it easy for the customer to find what they are looking for and to make sense of your product arrangement. Keep your groupings logical by grouping similar products together, with complimentary products nearby. 5. Use proper lighting Lighting is overlooked far too often. When budgeting for store fixtures and merchandising, display lighting is not an 'extra'. Lighting your displays properly can make the difference between a display that makes people yawn, or makes them stop and look.Displays should not be lit directly from the top, or you will get unattractive shadows. Lights should be slightly off to the side, and to the front of the display. They should enhance the 3-dimensional quality of the product. Preferably the display will be lit from more than one angle. Lighting should be adjusted every time you change your display.If you don't have positionable lights in your key display areas, especially windows, get some as soon as possible. A good lighting store will have some for a reasonable cost and can give you advice on installing and using them. 6. Look at the display from all angles After you have completed your display, step back and look at it. Very few people will see it standing directly in front of it. Most displays are approached from the side and seen from an angle. Approach your display from all possible angles and view it as a customer would. Is your focal point still placed appropriately? Do you need to angle the display to the customers viewpoint? Is the signage visible and readable? Does the arrangement still appear balanced?

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Observe the direction from which most customers approach the display. Make sure that the best view of the display is the one that most of the customers will see.Putting these six tips into practice will help you create dynamic displays that attract customers.

Using Sight and Touch to Enhance Value

Value Value is defined as estimated worth, or the quality of a thing which makes it desirable or useful. When a customer makes a purchase, they estimate that the value of the product is at least equal to the price they are paying. Everyone wants to get their money's worth. The perceived value of a product must be higher than the sticker value. Pretty basic stuff. No one likes to get ripped off. The hard part is that value is subjective. We have formulas to determine price, but how do we determine value? The way each person perceives value may vary, but as a retailer, you should have a good idea of what your target market values. Your customers, as a group, may value the quality, aesthetics, or usefulness of your product. Or perhaps your product is one that brings prestige, or respect.Value may be subjective, but the good news is that you can control many of the factors that affect how your customers perceive it. You need to clearly determine what your target market values, and then you can enhance the perceived value of your product.Perception is knowledge that is acquired through our senses. To have an effect on the perception of value, appeal to your customers senses: sight, touch, smell, sound and taste. Sight Enhance the visual perception through your window and in-store displays, signage, store design, layout and merchandising.A cluttered environment can convey messages of disorganization, cheap products, poor management. Or in an antique shop, clutter may convey the anticipation of discovery, of finding a treasure of great value.To portray prestige and quality, products are usually presented in a well-designed environment with out clutter. Perhaps they are displayed with other products or props that are known to be valuable. Products are also valued for their own visual appeal. Customers buy products that enhance the image they are creating of themselves, their homes or businesses, etc. Find out from your customers what styles of dcor or clothing they like. Then tailor your buying to fit the tastes of the customer. Remember - your customers will not necessarily buy the same things you like.Successful retailers try to determine what style appeals to their target market, and only carry products that fit the market's needs. Less experienced retailers often make the mistake of trying to please everyone. The customer receives a mixed message instead of a clear visual picture of the image or product of the store. The key to making visual perception effective is attention to detail. All aspects of your business must convey the same message. The impression of a dirty washroom, or a poorly groomed employee can undermine the time & expense poured into merchandising and design. Touch Touch is very important to perception. Customers want to touch before they buy. Products need to be accessible to customers to touch, try on, experience.This is one of the barriers to internet retailing. The customers senses are limited to what they can see, or maybe only read about online. This is one of the factors that limit customers willingness to buy.The same is true of product packaging. Customers will tear open packages to get a chance to touch the item 28

before they buy it. Research has shown that customers are more likely to buy if they can touch the product first. They want to know the softness of the towel or the weight of the silverware. Stores that have locked display cases need to focus more energy on sales and service, because customers will refrain from asking for the cases to be opened. Many customers are reluctant to request assistance from the salesperson if they are just looking. The customer may not want to bother the salesperson, or may be trying to avoid an unwelcome sales pitch.Sample products removed from the packaging, or testers for products like lotions are opportunities for the customer to have a tactile experience of the product. How often do you purchase a product with out picking it up and examining it from all angles? You usually try on clothes, lie down on a bed or sofa or pick up dishes just to see if they feel right. Usually the less routine the purchase, and the more expensive the item, the more important it is to touch it before buying. When choosing products to sell, be aware of the tactile qualities. If you are selling towels, sell the softest towels you can find. Then emphasize these qualities as features in your selling strategies. The GAP is an example of a store that enhances its products' visual and tactile perception. The stores are clean, there is no clutter, and everything is visually appealing; from the clothes themselves, to the store design, the fixtures, washrooms, fitting rooms, and even the personal appearance of the employees. The product is easily accessible to customers and the clothes feel like they are good quality. The fabrics have weight, and are not likely to wear out quickly. Some of the cottons are brushed to feel softer. The clothes are made to fit well, so the customer feels confident.The clothes are basic, yet also follow fashion trends. It is easy to mix and match items. You don't have to worry about making a fashion 'faux-pas'. Through the visual and tactile appeal of their clothing and stores, the GAP has given their products attributes of quality, comfort, and fashion. The product is perceived as having a wide acceptance and even a certain respect and prestige. Think about your own business. Make a few quick lists: What are the values of your target market? What values are your products aimed at? What can you do to enhance the perception of these values? Write down the five headings: Sight, Touch, Smell, Sound and Taste. Under sight and touch write down at least one thing you could do to enhance these senses.

Using Scent, Sound and Taste to Create Value

we discussed how customers perceive value through their five senses. When we appeal to as many of those senses as possible in the retail environment and through the products we are selling, we improve our customers' shopping experience and their enjoyment of the product. We have discussed two of the most obvious senses that customers use when shopping, the senses of sight and touch. Perhaps less obvious, but very powerful motivators, are scent, sound and taste.

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Scent The use of strong scents in stores has become a rather touchy issue, and one that requires that each retailer be attuned to the needs of their target market.Stores like the Body Shop have been very successful with their wonderfully scented stores and products that you can sample. Department stores traditionally sampled perfumes at the entrance to increase sales of those products. Grocery stores owners know that the smell of fresh bread will entice hungry shoppers to buy. However, many customers find strongly scented products not only unappealing, but can cause allergic reactions that make it nearly impossible to shop in certain stores.A pleasing scent can create a wonderful ambience and add to the customers' shopping experience, particularly if it is a sample of one of the products you are selling. In some cases, the best scent may be the absence of any noticeable scent at all, adding to the impression that the store and environment are clean. When considering whether special touches like scented candles would be appropriate in your store, make sure you consider the preferences and sensitivities of your target market. As with many other issues, if you are unsure, ask your customers.Scent can also be a major factor in determining which product to buy. Everything from hand lotion to cleaning products are purchased with scent in mind. Many of these products work equally well, so the scent may determine which one is purchased. Sound Most retailers understand that music adds to the environment of their stores. People will expect to find classical music in an art gallery or museum shop, enhancing the belief that the shop is filled with merchandise that is high quality, tasteful, elegant and artistic.In stores that are trendy and have a young target market, music can be a major focal point. In most other cases, music provides a pleasant background. It is important that employees understand that the music is a part of the marketing and is intended to appeal to, or at least not offend, the customers. Music should add to the ambience of the store, but, unless it is crucial to the product and market, not be so loud to be immediately noticeable. It should cover up the sounds of customers moving about the store, employees working or the conversations of people across the room.Music stores have found that sound can be sampled, which is a great way to add value for the customer. Any time the customer has a chance to try out a product, they are more likely to buy. How many people buy a CD without sampling it on a headset first? People are usually afraid of the unknown. Sampling a product before buying helps us overcome this fear, without making a commitment. Taste Many retailers don't have the opportunity to offer customers the chance to taste their product. But those in the food industry certainly know the power of free samples. I can be very thrifty when need be, and pass over many unnecessary luxuries, but when it comes to food, I am easily swayed. My children beg me to take them shopping at Costco just to try all the samples. And of course, the marketing gurus know that my entire shopping excursion will be punctuated with cries of, "Mom! We need to buy this! Please! Can we go by that table again?"I know many people who are now addicted to those little frozen cream 30

puffs that they innocently tasted at a sample table.Even if you are not primarily a food retailer, but carry gourmet chocolates at the sales counter, you might try offering small samples occasionally. Perhaps you might host a special event where you offer refreshments to your customers. Appealing to your customers' senses is about enhancing their experience. The more the customer is actively involved in the experience, the more likely they are to buy from you, and to remember their experience. For this experience to be perceived as added value, it needs to be in tune with the needs and values of your customer, and it needs to relate directly to your product. Think about your business Write down at least one thing that you could do to enhance the senses of scent, sound and taste.

Ways to Motivate Your Staff

1. Relate positive stories Don't let negatives get everyone down. We all know how an aggressive customer, or a shoplifting incident can become the talk of the day, passed on from one staff member to the next. Make sure that the positive stories are being circulated just as much, or even more. Make a point of having a daily story about a great customer, a terrific sale or one of your excellent employees to tell as each staff member starts their shift. You can even turn the negative stories into positive ones by relating how well a difficult situation was handled by your staff. 2. Run a small contest During a stressful week, or even one where sales are slow, motivate your team with a daily fun contest. Pick a slow selling item, write up a list (or delegate a staff member to do it) of features and benefits for it, and run a contest to sell the most of that item for the day.Another option is to create bingo cards with a variety of fast and slow selling items. Give each employee a bingo card and see who can come closest to filling the cards. For prizes you might be able get small gift certificates from complementary retailers, collect points for a larger prize at the end of the month, or get the staff to brainstorm fun, no cost ways to recognize each other's achievements.Make sure your salespeople remember to always focus on the customer first - the contest is just for fun! Don't let it interfere with your customer service. 3. Treat your staff Surprise your team with a litte treat. A bag of popcorn or a few chocolates in the staff room for breaks, are always a welcome perk for a special occasion. An even bigger surprise is when you do it for no occasion at all! 4. Set achievable daily goals Do you set goals each day? Goals help everyone challenge themselves, and measure their own success.Are you sharing your store's daily goal with your team? Is it realistic based on the day's weather and recent traffic patterns?

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Once you have the daily goal set, divide that amount by the total number of hours you have scheduled that day. For each employee, multiply that hourly amount, by the number of hours the person is working on the selling floor for the day. That is their share of the daily goal. You may need to adjust that amount slighty to account for daily traffic patterns. Congratulate anyone who meets or exceeds their goals. When some staff are having difficulty reaching their goals, use it as an opportunity to coach them on their technique or product knowledge. 5. Reward achievements each day Reward your employees achievements on a daily basis. This may be giving each person a private compliment on something they did well. The recognition could also be shared with peers, such as writing a couple of lines about a team member's achievement and posting it for staff to read as they start their shift. Just a few small changes can help create a more positive environment in your store!

Tips for Hiring Quality Staff

Retailers are caught between a rock and a hard place when it comes to hiring. Working in retail is demanding and requires a variety of skills. Customers have high expectations of service people, and the service they receive can make or break your business.On the other hand, retail positions often pay close to minimum wage. The people applying for these jobs tend to be young and have little experience in the workforce. They may view a retail position as 'just a job' rather than a career choice. With these realities, how do you find quality staff for your business? 1) Write ads and signs that attract the applicants you are looking for. Be as specific as you can. "Are you interested in learning new skills? Do you enjoy working in a dynamic, challenging environment? Find out more about our retail careers."Usually ads like this are used to fill management positions, but should also be used to find prospects for entry level positions. 2) Make a list of the character traits required for the position you are hiring for. You can always train someone that lacks specific retail experience and is willing to learn, but you can't train character.Does the applicant have strong interpersonal skills? Do their extracurricular, school or volunteer activities show motivation, responsibility and independence? Do they have an eye for detail? 3) Take a skills inventory of your workplace. Besides the basic customer service and sales skills, look for people who compliment your own skills and those of your existing staff. Do you already have someone that is strong in merchandising? Do you need someone that is good with numbers for cash and inventory? Can you find someone with skills in teaching and training? By building a strong team from the beginning, you can delegate responsibility and empower your employees.

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4) Ask probing questions. Rather than simply asking the applicants to describe their skills, ask for examples of situations they have been in that demonstrate those abilities. For example, ask them to describe what types of situations are stressful to them, and to give example of stressful situations they handled effectively, or ineffectively. 5) Always, always, always do reference checks! It can be tempting to rush or skip this step when we need to hire quickly, or when an applicant seems to be the perfect candidate. Don't do it. You can save yourself many future headaches by conducting thorough reference checks. Again, think about the skills required in the position and brainstorm questions that are relevant. Don't forget that if you are looking for quality employees, you also need to be a quality employer. You need to follow through with adequate training, incentive programs, and career opportunities to create rewarding work environment, or your best employees will soon move on.

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2.2. Importance of Merchandising

The importance of retail merchandising
Recently I was told that merchandising and display are frivolous extra expenses for the small business owner who is just starting up. The implication was that expenses such as marketing, rent, inventory, utilities, staffing, etc. are 'serious' expenses, while merchandising and display are 'frills'. I couldn't disagree more. Merchandising and display are an important part of the marketing plan, and should have a reasonable budget allocated - even for a retailer operating on a shoestring. In today's competitive retail environment a retailer cannot afford to consider merchandising as a 'frill'. Everyone is competing for the customers' dollar. There are more choices out there for consumers than ever before. With all these choices, what will grab the consumer's attention? You've invested the money to get that expensive, high traffic location, but how will you keep the customers from walking right by your door? How will you encourage them to return? What is unique about your store? After investing money on the important priorities such as merchandise, great location, part-time staff, insurance, accountant, advertising, your carefully budgeted money can be lost if your store doesn't measure up to the customers' expectations. Posters covering the door and windows, hand lettered signs, lack of lighting and untidy displays send the message that your business isn't serious. If your store looks like a bargain basement, customers will expect bargain basement prices and may draw the conclusion that your product is poor quality. This judgement may have little to do with the product itself, but be the result of poor presentation. Merchandising is more than simply the arrangement of products on the shelf. It is an integral component of the business image. It should be considered when you design your logo, business cards, brochures, letterhead, packaging, and product mix. When you examine your merchandising, you examine what the customers' experience, from their first sight of your store front, until they leave store - hopefully with a purchase in hand. Merchandising is also about understanding the way customers shop. By using this knowledge, you can position your merchandise to increase sales. You need to create an environment that attracts the customer, is comfortable to shop, and encourages the customer to return.
y y y y y y

Are the store front and windows attractive & inviting? Is all signage clear, professional and legible? Is the store interior welcoming and comfortable? Is merchandise presentation appealing? Are seasonal and high-margin merchandise placed in high profile locations? Overall, is the store appearance professional?

Of course, if you are on a shoestring budget, you need to start small, but make sure you include a plan for growth. One of the exciting things about retail is that it is dynamic. If you 34

don't grow and change, customers assume you have nothing new to offer them. You don't have to overhaul the entire store, but rotate merchandise, change displays, and change signage to make the customer feel that there is always something new for them to see or experience. Including merchandising in your marketing plan and budget makes sense. It can make the difference between selling a product, or having it sit on the shelf.

The Importance Of Visual Merchandising

Visual merchandising today forms a critical element of retailing. Besides the facade and windows, which are clearly done up with an objective to attract passer-bys and induce walkins, there is also in-store decor that is designed to enhance the customers comfort and convenience while shopping and overall, offer a superior shopping experience. Consumer behaviour studies have confirmed that the lure of a beautifully done up show window and a tastefully decorated facade, more often than not, prove irresistible as they walk in to check out what is on offer. It also ensures exclusivity since no two stores should look alike. Besides, when the mood and theme of such displays change at regular intervals, it makes certain that the store remains top of mind. Loyal customers have often been known to anxiously wait for the next display. Stickiness in retail formats is also ensured by the imaginative use of colours, lighting, space furniture and visual elements with regard to instore displays. Once customers walk in, it is but imperative to ensure that they enjoy their first encounter with the store. After all, repeat visits will only happen if a customers first visit is a memorable one. The logical arrangement of counters, with clear passageways allows for easy access to merchandise. Rather than getting lost in the mazo that most large stores are, the customer feels more in control. Space is allocated to various product categories taking into account the number of SKUs stocked and shelv-es/counter space requirements are worked out accordingly. Clear passages are provided for products, which require touch and feel. All impulse purchase driven products are also clearly displayed so that the customers can reach them without any hindrance. Also, it has been observed that when a person enters a room, the human eye moves in a Z pattern, i.e. from rear left of the room to right rear, followed by front left of the room to front right. Care should be taken to do up the rear left end of the room in an appealing manner so as to guide the direction of vision and keep a shopper visually interested. A great deal of research has been undertaken on the impact of lighting on a customers purchase behaviour. Results clearly indicate that in general, stores that are brightly lit, with the lights cleverly blending with the interiors lead to higher customer comfort, and as such, more sales. Different types of lighting and interiors are used on different floors, the change reflecting the various products that are on display on a particular floor, the proposed target audience and the time of the year. The ladies floor, for instance, is most often subtly lit with soft lights or then again, in summers, cool bluish lights are used to impact an impression of coolness and comfort. The careful use of spotlights helps add to the appeal of products such as crystal and jewellery. Signages related to various product sections are put up clearly to demarcate areas, allowing customers a clear understanding of what is stocked where. With various brands having their own pull, brand signages are also put up within the product sections so that customers can find their favourite brands easily. Additionally, within the product sections, signages help to publicise the various promotional schemes that might be running in the store. Stores also 35

make use of signages to indicate the facilities/services available at the store, such as washrooms, cafe etc. Most stores have an in-house team of visual merchandisers who coordinate with the marketing team as well as the in-house merchandisers and suppliers. Each time any major changes in decor are contemplated, they present the visual display concepts to the group for analysis and selection. Subsequently, the same is executed. The visual merchandising team also makes projections vis-a-vis returns per sq. ft. for each section and each brand stocked. On promotions related visual merchandising, the inputs of the advertising agency are also sought so that the in-shop communication is in line with the tactical promotions advertising. With cost of visual merchandising generally amounting to 1% of sales, this is one communication tool that clearly has an edge over others in terms of drawing in shoppers, increasing flow of traffic and increasing sales.

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2.3. P.O.,P.I.,L/C

Proforma Invoice A Proforma invoice is an invoice provided by a supplier in advance of providing the goods or service. Suppliers will do this if for some reason they are not prepared to extend normal credit terms to the University. Finance strongly advise department to consider very carefully the risks of trading with companies in this way, as if the goo ds are never forthcoming it is unlikely the University will be able to recover the money and departments will bear that cost. However, in exceptional instances we do allow payments on proforma invoices, but before proceeding in this way departments are required to consider the following alternatives: Letter of Credit Letters of credit accomplish their purpose by substituting the credit of the bank for that of the customer, for the purpose of facilitating trade. There are basically two types: commercial and standby. The commercial letter of credit is the primary payment mechanism for a transaction, whereas the standby letter of credit is a secondary payment mechanism.

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2.4.

Merchandising Flow Chart

Master L.C

Development

Procurement

Production

Shipping

Banking

1.Email/comm unication 2.Meeting 3.Sample 4.Presentation

1.Communication with supplier 2.Price negotiation 3.Production monitoring 4.Quality 5.Delevery

1.Preproduction sample 2.Production plan 3.Production monitoring 4.Quality control 5.Packing

1.Find out shipping company 2.Customs formalities

1.Documentat ion and submission

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Merchandi ing Fl

Chart

PO PI B R M RC R

C MM RC

M C

39

OBSERVATION
3.1. Company Profile

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3.2. Buisness Development Procedure

Order placing
It is not surprise that the most often used methods for order placing are still traditional ones, including orally, fax and post. Table 1 shows the details of the proportions of order placing methods, both from customers and to suppliers As shown in Table I, fax is still the dominant method for order placing, both from customers and to suppliers. Except for email, the other electronic methods are seldom used. Downstream customers would more like to accept electronic methods for order placing than upstream suppliers.

Price negotiation
The price negotiation methods with customers and suppliers are summarized in Table 4 Most of the organizations negotiate the price with their partners are based on orders, and can achieve the agreement with few rounds. The second large choice for price negotiation is by time zone, which may be based on enough trust between supply chain partners.

Quality control
It is no doubt that quality is vital for any product at any time. The proportions of quality control methods by customers and to suppliers are shown in Table 5.Nearly all the respondents need to control the quality in different ways. The result reveals that the closer the supply chain members are to the final consumers, the stricter quality control they will require. To different supply chain partners, their request is different. For trusted supply chain partners, perhaps only final inspection is enough. But for general partners, in-line and final inspection are needed, even quality control staff resident in the partner' company. Third party quality inspection organizations are relatively welcome, mostly to the big company Purchase Order. Definition: A written sales contract between buyer and seller detailing the exact merchandise or services to be rendered from a single vendor. It will specify payment terms, delivery dates, item identification, quantities, shipping terms and all other obligations and conditions.

41

Purchase orders are generally preprinted, numbered documents generated by the retailer's financial management system which shows that purchase details have been recorded and payment will be made.

In FY 2003-04, knitwear for the first time exceeded woven wear and became the leader in terms of quantity exported with 91.6 million dozens. Knitwear is still leading in terms of quantity exported and is widening the gap day by day. Export quantity of knitwear items increased to 241.59 million dozens which is 163.74% higher than the year 2003-04 to 200708. On the month of December of the FY 2008-09, total knitwear export was 146.5 million dozens which is 30.58 million dozens higher than the same period of last year.

Investment Sectors
Private investment is welcome in all areas of the economy with the exception of the four reserved sectors: Arms and ammunition and other defense equipment and machinery Forest Plantation and mechanized extraction within the bounds of reserved forests Production of Nuclear Energy Security Printing and Mining 42

Potential Investment Sectors in Bangladesh

Bangladesh, traditionally known for jute and tea exports, has recently attracted attention for readymade garments and leather exports.

Textile
Bangladesh is best placed in the region for textiles and garments industry due to cheap labor and favorable trade status with the EU. Again, Government incentives for the spinning and weaving industries in the form of cash subsidy of the fabric cost to exporters sourcing fabrics locally. There is huge yarn and fabric demand supply gap in the RMG industries which is presently met by imports. Thus the potential for backward linkage industry is enormous Prospect for a huge textile industry capable to supply over 3 billion yards of fabrics a year to the export oriented garment industry has also been developed by the industry. Presently, about 85%-90% of this demand is met by import from countries like China, India, Hong Kong, Singapore, Thailand, Korea, Indonesia, Taiwan, etc. Fabric requirement is increasing at 20% per annum. This offers a tremendous opportunity for further investment.

Cost of some key production factors in textile sector Labor costs incurred in the textile industry is the lowest compared to its competitors
Thailand India Sri Lanka Vietnam Indonesia Pakistan China Bangladesh $ 1.00/Hour $ 0.60/Hour $ 0.45/Hour $ 0.40/Hour $ 0.40/Hour $ 0.40/Hour $ 0.35/Hour $ 0.25/Hour

Energy cost in Bangladesh is lower compared to India and Pakistan

India Pakistan Bangladesh $ 0.095/KwH $ 0.08/KwH $ 0.07/KwH

Other potential investment sectors

Leather goods, Frozen food, Jute goods, Oil and Gas, Coal, Power, Telecommunication, Air Transportation, Electronics, Light engineering industries, Tourism, Agriculture, Agro based industries, Computer software development, data entry & data processing.

Sanctioning/Registration Authorities Board of Investment

Registration of all industrial projects in the private sector outside the authorities of BSCIC and BEPZA. 43

Bangladesh Small and Cottage Industries Corporation (BSCIC)

Registration of industrial projects having capital investment not exceeding Tk. 30.00 million (For Build, Management, Reconstruction and Expansion maximum Tk. 45.00 million).

Bangladesh Export Processing Zones Authority (BEPZA)

Approval of all projects to be located in the EPZs.

Export Processing Zone (EPZ)

In order to stimulate rapid economic growth of the country, particularly through industrialization, the government has adopted an Open Door Policy to attract foreign investment to Bangladesh. Following this, EPZs have been created to provide complete infrastructural facilities including communication and utility connection where potential investors would find a congenial investment climate, free from cumbersome procedures. The Bangladesh Private Export Processing Act allows establishment in private EPZs entirely through foreign investment or through joint ventures or local initiative. Followings are the six EPZs of Bangladesh which are in operation now: Dhaka EPZ Chittagong EPZ Comilla EPZ Mongla EPZ Ishwardi EPZ Uttara EPZ (at Nilphamari)

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3.3. Procurement Procidure

Import and Export Procedure Export Clearance Form
These are one set of paper export clearance form. One set has two papers, one for custom, and other one for exporter. You can download them for your references.

Import Clearance Form

These are one set of paper import clearance form. One set has two papers, one for custom, and other one for importer.You can download them for your references. Insurance Certificate An insurance certificate is a representation of the insurance policy taken out by the buyer or the seller (depending on the Incoterms) for a shipment.

Blank insurance certificates are supplied by the insurer pre-signed and bearing the open policy number of the exporter. For an air shipment, an air waybill serves as an insurance certificate. For a sea shipment, an insurance certificate is issued as evidence of the existence of the Marine Insurance Policy. The marine insurance policy is a contract between the insured and the insurer which defines the terms of the agreement between the insured and the insurer.

Insurable Interest clause

In order to recover under this insurance the Assured must have an insurable interest in the subject-matter insured at the time of the loss.Subject to 11.1 above, the Assured shall be entitled to recover for insured loss occurring during the period covered by this insurance, notwithstanding that the loss occurred before the contract of insurance was concluded, unless the Assured were aware of the loss and the Underwriters were not.

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Forwarding Charges Clause

Where, as a result of the operation of a risk covered by this insurance, the insured transit is terminated at a port or place other than that to which the subject-matter is covered under this insurance, the Underwriters will reimburse the Assured for any extra charges properly and reasonably incurred in unloading storing and forwarding the subject-matter to the destination to which it is insured hereunder. This Clause 12, which does not apply to general average or salvage charges, shall be subject to the exclusions contained in Clauses 4,5,6 and 7 above, and shall not include charges arising from the fault negligence insolvency or financial default of the Assured or their servants.

Increased Value Clause

If any Increased Value insurance is effected by the Assured on the cargo insured herein the agreed value of the cargo shall be deemed to be increased to the total amount insured under this insurance and all Increased Value insurances covering the loss, and liability under this insurance shall be in such proportion as the sum insured herein bears to such total amount insured. In the event of claim the Assured shall provide the Underwriters with evidence of the amounts insured under all other insurances.

Where this insurance is on Increased Value the following clause shall apply
The agreed value of the cargo shall be deemed to be equal to the total amount insured under the primary insurance and all Increased Value insurances covering the loss and effected on the cargo by the Assured, and liability under this insurance shall be in such proportion as the sum insured herein bears to such total amount insured. In the event of claim the Assured shall provide the Underwriters with evidence of the amounts insured under all other insurances.And It is a condition of this insurance that the Assured shall act with reasonable despatch in all circumstances within their control.

Certificate of Origin
A Certificate of Origin is a document used in international trade. It traditionally states from what country the shipped goods originate, but "originate" in a CO does not mean the country the goods are shipped from, but the country where there goods are actually made. This raises a definition problem in cases where less than 100% of the raw materials and processes and added value are not all from one country. An often used practice is that if more than 50% of the sales price of the goods originate from one country, that country is acceptable as the country of origin (then the "national content" is more than 50%). In various international agreements, other percentages of national content are acceptable.

Shipping document
A shipping document is defined as a document that relates to dangerous goods that are being handled, offered for transport and transported and that contains the information required by Part 3, Documentation, relating to the goods but does not include an electronic record.

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The purpose of a shipping document

A shipping document identifies dangerous goods being handled, offered for transport or transported. It provides the shipping name, class, UN number, packing group, risk group, quantity and other relevant information. It also indicates the phone number where a person could provide technical information on the dangerous goods and, in certain cases, the emergency response plan reference number and the telephone number to activate the plan.

shipping document required

The Transportation of Dangerous Goods Act, 1992 and Part 3 of the Transportation of Dangerous Goods (TDG)Regulations require that shipments of dangerous goods be accompanied by a shipping document. Copies of the shipping document may be transmitted electronically to other parties involved in the handling, offering for transport or transporting of dangerous goods but a paper copy of the shipping document must accompany the dangerous goods at all times. The shipper must complete the shipping document before the carrier takes possession of the dangerous goods and give the completed document to the carrier. The carrier must, in turn, give the shipping document to the next carrier until the dangerous goods arrive at destination.

Must a shipping document be on specific form

There is no requirement to use a specific form except for air shipments. The Shipper's Declaration for Dangerous Goods is required for domestic and international air shipments. The declaration must be completed in accordance with the International Civil Aviation Organization Technical Instructions (ICAO Technical Instructions) (refer to Part 12 - Air). It is illustrated in section 8.1.7 of the International Air Transport Association Regulations (IATA Regulations).

Are additional documents required

Rail shipments require an additional document called a consist. A consist identifies numerically the location of the railway vehicles that contain dangerous goods in a train. It is kept with the shipping document (refer to section 3.3).

Are there any additional requirements pertaining to documentation

The location of the documents, during transport, is specified for every mode of transport. The shipping document must be kept for 2 years by the persons involved in the handling, offering for transport or transporting dangerous goods (some exceptions apply). The documents may be stored electronically.

Are there any circumstances where a shipping document is not required

A shipping document may not be required where the TDG Regulations have provided relief from documentation. These exemptions from documentation may be found in some Special Cases in Part 1, (i.e. limited quantities) and Special Provisions in Schedule 2 (i.e. Special Provision 32 for molten sulphur).

International shipments
The TDG Regulations permit shipping documents to be prepared in accordance with other Regulations for international shipments. However, refer to the Transportation of Dangerous Goods Regulations for additional requirements to be included on the document, such as emergency response plan information.

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For international marine shipments: The consignor may complete the shipping document in accordance with the International Maritime Dangerous Goods Code (IMDG Code), (refer to Part 11 - Marine) For international road or rail shipments from the United States: The consignor may complete the shipping document in accordance with the Code of Federal Regulations, Title 49 (CFR 49) (refer to Part 9 - Road and Part 10 - Rail)

The attached sample shipping document can be used for most Canadian shipments of dangerous goods.

Communication Method Between Buyer & Supplier Business Communication

Business Communication:communication used to promote a product, service, or organization; relay information within the business; or deal with legal and similar issues. It is also a means of relaying between a supply chain, for example the consumer and manufacturer. Business Communication is known simply as "Communications." It encompasses a variety of topics, including Marketing, Branding,Customer relations, Consumer behaviour, Advertising, Public relations, Corporate communication, Community engagement, Research &Measurement, Reputation management, Interpersonal communication, Employee engagement, Online communication, and Event management. It is closely related to the fields of professional communication and technical communication. In business, the term communications encompasses various channels of communication, including the Internet, Print (Publications), Radio,Television, Ambient media, Outdoor, and Word of mouth. Business Communication can also refer to internal communication. A communications director will typically manage internal communication and craft messages sent to employees. It is vital that internal communications are managed properly because a poorly crafted or managed message could foster distrust or hostility from employees.[1] Business Communication is a common topic included in the curricula of Masters of Business Administration (MBA) programs of many universities. AS well, many community colleges and universities offer degrees in Communications. There are several methods of business communication, including:


Web-based communication - for better and improved communication, anytime anywhere ... video conferencing which allow people in different locations to hold interactive meetings; 48

  

e-mails, which provide an instantaneous medium of written communication worldwide; Reports - important in documenting the activities of any department; Presentations - very popular method of communication in all types of organizations, usually involving audiovisual material, like copies of reports, or material prepared in Microsoft PowerPoint or Adobe Flash;

 

telephoned meetings, which allow for long distance speech; forum boards, which allow people to instantly post information at a centralized location; and face-to-face meetings, which are personal and should be succeeded by a written followup.

Short letter of confirmation

Satex S.p.A Via di Piera 00146 Rome Telefax: (06) 768899 Telex: 337847 Mr L. Crane Chief Buyer F. Lynch & Co. Ltd. Nesson House Newell Street Birmingham B3 3 El UNITED KINGDOM Dear Mr. Crane, Thank you for your order ( No Dr 4316) which we are making up. We have all the items in stock and will be advising you in the near future. Yours sincerely, D. Causio.

Sales confirmation by letter

Dear Sirs, We thank you very much for your oder No 0345 dated 17th July 2000 and are very pleased to confirm our sales on the following terms and conditions: 1- Commodity: bed sheet, blue 2- Quality and specification: as per catalogue No 75 3- Quantity: 2,500 pcs 49

4- Price, unit, CIF Manchester, including packing: GBP 1.25 each total value GBP 5- Payment: by irrevocable L/C as usual 6- Packing: in customery export cases 7- Shipment: immediate delivery

3,125

We hope when the goods reach you they will give you satisfaction in all aspects as our best attention has been paid to handling your order in general and to its delivery in particular. Meanwhile we are looking forward to having your repeat orders. Yours faithfully,

Order form with covering letter

Dear Sirs, Your reference LB/AHB We thank you for your offer of 5th July and enclose our order No 0345 for 4 of the items. All these items are urgently required by our customers. We, therefore, hope that you will arrange have them shipped immediatly. In the meantime we are looking forward to your early confirmation by cable. Yours faithfully, M u t hng (Order form)

Nylon Fabrics Ltd. 18 Brezennode Street Manchester 2 England Artexport 31 Ngo Quyen St. Hanoi SRVN

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Covering letter and pre-printed Offer

Dear Sirs, We thank you for your enquiry of 24th Feb. and enclose our offer for Blinds No TH50D and H50DA. We have made a good selection of patterns and sent them to you today by post: their fine quality, attractive designs and reasonable prices at which we offer them, we hope, convince you that these blinds are really of good value. There is a heavy demand for them from our customer abroad, which we are finding difficult to meet, but provided we receive your order within the next ten days, we make you a firm order for delivery by the middle of May at the price quoted. On orders for o ne thousand pieces or more we allow a special discount of 5%. We are looking forward to your early order. Yours faithfully, M u cho hng in s n (Pre-printed offer) The Vietnam Bamboo and Ratten Wares Import & Export Company E6 Thai Thinh Street, Hanoi- Vietnam Cable address: VN EXPORT Phone & Fax: 84 83.... Our ref: 28th Feb., 2000 Your ref: Messrs: John & Co. Ltd. 17 Leadenhall Street London, WC1

Offer No 123/MT
Item No Commodity 1 Blinds No TH500 2 Quatity Unit price 1,000 GBP 7 per pc GBP 7.50 per pc CIF London including packing Delivery August 2000 August 2000 ( both in one lot)

Blinds No TH50DA 1,500

Specification: as per samples sent to your representative Mr. David Smith during his visit to VN export. Payment: By irrevocable Letter of Credit Packing: in Export packing Validity: until 15 March, 2000. For VN Export (signed) Vu duc Hoan 51

3.4. Production Planning Control & Monitoring

Production Planning or Scheduling example Work Order 507025 Line Item Order quantity in DZ 750 Shipment Status date June15, 2011. Planned June11, 2011. 150 June12, 2011. 300 June13, 2011. 300

Long Pant

Achieved 507029 2 Shorts 300 June16, 2011. Planned 50 125 125

Achieved All the time of scheduling monitoring.

Order based on the result of previous talks

Order No Td44/50/12T November, 2000 The buyer: VN Export Address: 8 Trang Thi St. Hanoi S.R.V.N. The seller: Robinson and Co. Ltd. Address: 48 Oxford St. London Wl. England 30th

1. Object of order: the seller sells and the buyer buys the goods listed in the specification attached hereto, at the prices and in the quantity indicated therein. The said specification forms an intergral part of this order 2. Price and total amount: prices are understood to be CIF Haiphong including packing. Tho total amount of this order is GBP 20 000 3. Date of delivery: the goods are to be delivered in three parcels at the rate of one consignmnent each month. The first parcel is to be shipped in May 2000 4. Packing: in export packing in coformity with the accepted standards 5. Marking: each case to be marked in weather proof paint as follows:

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Order No TD 44/50/12T
Name of Shipper: Robinson and Co. Ltd Name of Consignee: Machinoimport Hanoi Case No 1/ and up Net weight: Gross weight: Measurement: ...cm x...cm x...cm 6. Technical Documents: two sets of drawings and instructions for assembly, operation and maitenance are to be shipped with the goods; one set is to be airmailed to the buyer not later than 30th April, 2000 7. Terms of payment: Payment to be effected in US dollars by an irrevocable and divisible letter of credit to be valid for 90 days; the L/C is to be opened by the Buyer in favour of the Seller for the total amount of the order with a London Bank within 15 days after the Buyer receive notification of readiness and notification that the necessary export licence has been obtained. Documents required for payment: a. Commercial invoices (3) b. Original Bill of Lading (1) c. Packing sheets (3) d. Test and Inspection cerfiticate (1) e. Copy of Export Licence (1) f. Insurance Policy (1) 8. Guarantee: 24 months after despatch. Should the machines prove to be defective during the guarantee period, the Seller undertakes to replace or repair any defective part free of charge: the guarantee does not apply to damage caused by improper storage or careless maitenance. Other terms are as agreed in the record of our talks on 15th Oct. and 20th Oct. 2000 attached hereto. For and on behalf of the Buyer (signed) Michael Hoan Vice Director VN Expor

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Enquiry for samples

Dear Sirs, We have received a number of inquiries for floor coverings suitable to use on the rough floor that seems to be a feature of many of the new building here. I would be helpful if you could send us samples showing your ranges of suitable covering and, if one is available, a pattern card of the designs in which they are supplied. Selling prospects for hard wearing floor coverings are good and we look forward to receiving your samples and pattern cards. Yours faithfully, Th tr l i (Reply)

Dear Sirs, We thank you for your letter of 18th Dec. for samples and a pattern card of floor coverings. We have today sent by air a range of samples, specially selected for their card wearing quality but regret we do not have the pattern card you require. For the purpose mentioned we recommend quality No 5 which is speacially made to stand up to the wear and tear of rough and uneven surfaces. We invite you to test the samples and are confident that they will meet your requiremnets. Meanwhile we enclose a copy of our price list and terms and conditions of trade, and look forward to hearing from you. Yours faithfully,

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4.CONCLUTION
The government and the RMG sector would have to jointly work together to maintaincompetitiveness in the global RMG market. Given the remarkable entrepreneurialinitiatives and the dedication of its workforce, Bangladesh can look forward toadvancing its share of the global RMG market. The industry plays a key role inemployment generation and in the provision of income to the poor. To remaincompetitive in the post-MFA phase, Bangladesh needs to remove all the structuralimpediments in the transportation facilities, telecommunication network, and powersupply, management of seaport, utility services and in the law and order situation.

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5.RECOMMENDATION.
Government also have some responsibility to improve the situation by providing- proper policy to protect the garments industries, solve the license problem, quickly loading facility in the port, providing proper environment for the work, keep the industry free. Our Garments Industries can improve their position in the world map by reducing the overall problems. Such as management labor conflict, proper management policy, efficiency of the manager, maintainable time schedule for the product, proper strategic plan etc.

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6.BIBLIOGRAPHY.
The Business of Merchandise Presentation By Robert Colborne (Delmar, Albany, NY) Contemporary Visual Merchandising By Jay and Ellen Diamond (Prentice Hall, Upper Saddle River, NJ) 1,001 Ideas to Create Retail Excitement By Edgar A. Falk (Prentice Hall, Englewood Cliffs, NJ) Retail BC's Retail Connections magazine, Western Home Furnishing Association's Western Retailer, Intimate Apparel Business, Arabian Retailer, Teeze magazine, edplay magazine, and LA Apartment. 1. Kunz, Grace (2005). Merchandising: Theory, Principles, And Practice. Fairchild Books. ISBN 1563673533. 2. ABC News: Coffins bearing baseball team logos. (accessed 2007-01-06) Retrieved from "http://en.wikipedia.org/wiki/Merchandising" Categories: Promotion and marketing communications # http://www.apparelmakers.org/2010/10/role-of-merchandisers-in-garments.html # www. bgmea.com

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7.APPENDIX.
y y y y y y y y

Latter of Credit Purchase Order Order Sheet Proforma Invoic Performa Invoice Commercial Invoice Packiing & weight List Packing list

The End

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