Buying

Cycle &
Order
Manageme
nt

Role of a Merchandiser in an
Export House

Buyer Contact & Communication

Product Development & Sampling
Order Bookings
Fabric & Trim Sourcing
Costing & Negotiation
Fits & Pre-Production Approvals
Maintaining Records/ updates in ERPs
Fabric Booking
Trim Confirmations
Color / Fabric approval
Fit approval
Testing
Product Safety
Production & Line Planning
Production Follow up
Quality Audits & Shipment Status
Quota / Embargo Movements
Vessel / Flight Planning
Documentation
Plan Factory Capacity & Allocations

Roles and responsibilities of an Export

Merchandiser or Manufacturers
Merchandiser can be classified under
following headings

Handling an Export Inquiry

Pre order receivable activities
Order confirmation & PO Receipt
Pre-Production activities & Approvals
Supply Chain activities
Production & Follow ups
Quality Audits
Shipment Planning & Pre Shipment Activities
Dispatch of Goods
Post Shipment activities

Lets us Recap
before starting
further

Fashion Industry Levels

of merchandising
Retail Organization Merchandising
Buying House Merchandising
Export House Merchandising

Merchandising Definition
which we understood
Merchandising is the process of
planning, buying and selling the
merchandise for profit.
Merchandising is planning,
developing and presenting the line.

Merchandising in Retail
Organization
It is the internal
planning that takes
place within a retail
organization in order
to ensure adequate
amount of
merchandise are on
hand to be sold at
prices that the
consumers are willing
to pay to ensure a
profitable operation.

Merchandising in Retail
Organization
Merchandising is planning ,
developing , and presenting product
lines(s) for identified target
market(s) with regard to pricing,
assorting, styling and timing.
Line Planning
Line Development
Line Presentation.

Merchandising in Buying
House
A set of activities involved in buying
and selling, finding customers ,
providing them what they want,
when they want it and what price
they can give for that, and are
willing to pay that price.
A definition true for both Retail
Organization and Buying House

Merchandising in Exports
House or Manufacturing Unit
The activities involved in
coordinating and
communication of order
information with Buyers
merchandiser, achieving
right product ,at right
price, ensuring on time
delivery, at right place by
communicating all style
related information &
schedules with any raw
material supplier and the
relevant departments at
manufacturers end

Sourcing Structure

Introduction Of
Retail Merchandiser
Buying House Merchandiser
Exporters or Manufacturers
Merchandiser

Organizational Structures

Retail Organization

Buying House

Export House /
Manufacturing Unit

Buying Cycle

Buying Cycles
The fashion industry traditionally splits
the year into 2 main
seasons
: spring/summer
( Feb to July ) and autumn/winter
(August to January) .
But , the competitive and constantly
changing fashion business has
introduced a more frequent introduction
of merchandise i.e. introducing a new
range every 3 months.

Buying Cycle
The buying Cycle refers to the key events
& the processes in which the fashion
buyer is involved in order to buy a
garment range for a retail or a mail order
company.
The length of the buying cycle varies
between company to companyusually
takes a year between reviewing the
current seasons sale and delivering into
stores.

Below Table lists the main events in buying cycle

chronologically( Example of buying cycle for a
phase 1 autumn/winter range)
Review of Current season's sales

early August

Budget Planning

mid august

Comparative Shopping

august to september

Directional Shopping

august to october

Fabric Sourcing ( for samples)

october to december

Range Planning

october to november

Garment Sourcing for range

presentation
Pre-selection

november
early december

Price Negotiation with supplier

november to december

Final Range Selection

mid december

Placing orders for ranges

december to january

Product development-sample
fittings,fabric testing
Bulk Garment Manufacture

January to april
April to July

Delivery of products to retailer

June to August

Purchase by Customer

August to October

One more example.

AUTUMN / WINTER 08-09 CALENDER

Process

REVIEW EARLIER COLLECTION & SALES

STYLE & OPTION PLAN PER HIT(1,2,3)
IDENTIFICATION OF VENDORS FOR SAMPLING
CONCEPT STUDY
FREEZE KEY CONCEPTS(THEME&COLORS) by
STYLE & DESIGN SHEETS
VENDOR LISTING FOR SAMPLING PERIOD
SAMPLING PERIOD
COSTING
PO issue by
SILVER SEALING SAMPLES BY
FABRIC ORDERS TO BE PLACED BY
PRE PRODUCTION SAMPLE & FIT APPROVAL
PRODUCTION PERIOD (Aprox.70 days)
REVIEW MERCHANDISE PRODUCTION STATUS
DELIVERY (VENDOR TO WAREHOUSE/GOODS INWARDED
AT WAREHOUSE

HIT-1
HIT-2

HIT-3

10th Feb
1st April
1st May
10th March
1st May
1st June

11th March-12th 2nd May-3rd

2nd June-3rd

April
June
July
12-Apr
3rd June
3rd July
20th April-10th
10th June-30th 10th July-30th

May
June
July
12th April
3rd June
3rd July
10th April-20th
1st June-10th
1st July-10th

April
June
July
20th April-10th
10th June-20th 10th July-20th

May
June
July
20th May-30th
1st July-5th

1st Aug-5th Oct

July
Sept

10th Sept-20th
10th Oct-20th
1st Aug-10th Aug Sept
Oct

1. Review of current seasons

sales and budget planning
Sales review or range direction
meeting
Let us see How it goes in a Retail
organization.

RIG LADIES

SS09 SELLTHROUGH PERFORMANCE

FULL PRICE SALE

MC

INWARD

SOLD

END OF EOSS
ST

INWARD

SOLD

ST

RIG Ladies Knits

39964

24068

60%

41680

34146

82%

RIG Ladies Blouses

41749

25043

60%

45072

37511

83%

RIG Ladies Bottoms

12041

5732

48%

13556

10359

76%

TOTAL

93754

54843

58%

100308

82016

82%

AW09 MCWISE PERFORMANCE (Wk 6-11)

CENTRAL
QTY
MC

AWS/
AW 08

AWS/A
W 09

VALUE
VARIANCE

AWS/
AW 08

AWS/
AW 09

VARIANCE

RIG Ladies Knits

162

189

16%

0.68

1.04

53%

RIG Ladies Blouses

198

264

33%

1.16

1.96

69%

RIG Ladies Bottoms

53

156

197%

0.53

1.64

211%

413

609

47%

2.36

4.64

96%

TOTAL

PANTALOON
QTY
MC

AWS/
AW 08

AWS/A
W 09

VALUE
VARIANCE

AWS/
AW 08

AWS/
AW 09

VARIANCE

RIG Ladies Knits

947

864

-9%

5.89

6.78

15%

RIG Ladies Blouses

763

945

24%

3.10

4.73

53%

RIG Ladies Bottoms

344

750

118%

3.29

7.63

132%

2055

2559

25%

12.29

19.15

56%

TOTAL

*AW09: PT-wks 7 to 11; CT wks 9 to 11

*AW08: PT- wks 9 to 13, CT- wks 11 to 13

AW 09: HIT 1 SELLTHROUGH

HIT 1
MC

TOTAL
STOCK

SOLD

ST

RIG Ladies Knits

20412

4716

23%

RIG Ladies Blouses

25126

5020

20%

RIG Ladies Bottoms

10836

4302

40%

TOTAL

56374

14038

25%

* PT wks 6 to 11; CT wks 8 to 11

AW 09: BUY VS SALES

TOTAL
MC

STOCK

ACTUAL AWS

SOLD

NWC

RIG Ladies Knits

43499

1053

5291

36

RIG Ladies Blouses

49658

1208

5894

36

RIG Ladies Bottoms

20654

907

4441

18

113811

3168

15626

31

TOTAL

*AW09: PT-wks 7 to 11; CT wks 9 to 11

DEEP BUYS PERFORMANCE

MC

STYLE NO

ARTICLE

TOTAL
STOCK

TOTAL
SOLD

ACTUAL
AWS

TARGET
AWS

T-SHIRTS

RT-595, 599/-

Butterfly allover print empire line top

2100

198

96

80

T-SHIRTS

RT-205, 699/-

Burntout long open front top

7563

1494

344

288

T-SHIRTS

RT-586, 499/-

Single dyed cotton viscose tee

2341

810

142

89

BLOUSES

RW-593, 699/-

Ramie collar shirt with self fabric belt

2434

488

116

93

BLOUSES

Core Tunic, 999/-

Twill tunic with canvas belt

3559

1621

291

136

BOTTOMS

RB-540, 899/-

Slim ribstop cargo

2774

1087

212

106

RB-800A, 1299/-

Cargo with turnup option & canvas

belt

2695

1425

248

103

BOTTOMS

Core Cargo, 1099/-

Poplin cargo with lace belt

1889

464

88

72

T-SHIRTS

RT-601, 399/-

Entry price point flock print tee

4930

656

111

188

BLOUSES

RT-200, 499/-

Tee with chest print & stud detailing

1790

131

25

68

BLOUSES

RW-644, 399/-

Entry price point dented dobby shirt

6089

401

111

232

BLOUSES

RW-645, 799/-

Shiffly long top with ruching at sides

4799

445

81

183

BOTTOMS

Review of current seasons

sales and budget planning
This review often takes the form of presentation
to the buying team and the design department
team if the company has one with samples of
garments from the range which was in stores
last season and analysed.
QC department may contribute to the meeting
by commenting on any technical problems
which may explain low sales figure, for instance
colour or fit in production differing from the
catalogue photograph of the garment.

Review of current seasons

sales and budget planning
After sales review meeting Buyer is armed with knowledge
of which styles the customer currently likes and dislikes
and a framework of successes to build upon for the new
season.
So a rough idea of a new range plan can start to be
pencilled in.
This whole exercise is further gets the flavour of current
trends, PESTEL influence and affected by Next seasons
forecasting.
They may also be learn from other buyers sales figures, so
if a new fabric or colour has been trialled in another
product area the buyer can decide whether or not to run it
too.

Review of current seasons

sales and budget planning
Analyse the reason of poor sales of any style.
This whole exercise involves both buyers and
retail merchandisers
Merchandisers usually plan budgets in
conjunction with buyers.
Framework of the budget is largely based on the
last seasons performance as well as any
anticipated developments( category wise also)
The role of merchandiser in budget planning- a
tentative range plan will develop by planning the
number of styles per retail selling price.

Directional Shopping and

Comparative Shopping

Range Planning and

Selection

Critical Paths for product

development , production
and delivery

The Stepping Stones in

Critical Path

Lab dips/strike off/deskloom approval

Sample fabric approval
Trim approval
Fit sample approval
Other samples approval
Bulk fabric and trim approval
Bulk production starts
shipment

Order
Management
..Session 4