Introduction to Merchandising (Apparel Industry)- Day 1 Facilitator: Ranjith Rad dalgoda (MBA Sri J): Introduction to Merchandising (Apparel

Industry)- Day 1 Fac ilitator: Ranjith Raddalgoda (MBA Sri J) Agenda 1. What is Merchandising 2. Role of factory /buying Office/ Retail Mercha ndising 3. Merchandiser s Key Responsibilities 4. Negotiation skills developments 5. Communication Skill development 6. Co-ordination with departments 7. Key perf ormance indicators in merchandising 8. Repot updating: Agenda 1. What is Merchan dising 2. Role of factory /buying Office/ Retail Merchandising 3. Merchandiser s K ey Responsibilities 4. Negotiation skills developments 5. Communication Skill de velopment 6. Co-ordination with departments 7. Key performance indicators in mer chandising 8. Repot updating 1. What is Merchandising Merchandising is a function that is created to perform a set of sequential activities that follow through from design concept to order placement to execution to delivery of merchandise to the satisfaction of custome r expectations.: 1. What is Merchandising Merchandising is a function that is cr eated to perform a set of sequential activities that follow through from design concept to order placement to execution to delivery of merchandise to the satisf action of customer expectations. 2. Role of factory /buying office/retail Merchandising Design Merchandising - Co ncept development Buying Office Merchandising Act as a virtual manufacturing age nt Development Merchandising Managing activities from design/ initial sample to PP and line sample Procurement Merchandising- Sourcing & Purchasing of RM Operat ion Merchandising Monitor Order placement, execution up to delivery : 2. Role of factory /buying office/retail Merchandising Design Merchandising - Concept deve lopment Buying Office Merchandising Act as a virtual manufacturing agent Develop ment Merchandising Managing activities from design/ initial sample to PP and lin e sample Procurement Merchandising- Sourcing & Purchasing of RM Operation Mercha ndising Monitor Order placement, execution up to delivery 3. Merchandiser s Key Responsibilities Overall responsibilities Update Factory M onitoring Information System, with orders, revisions and T&A up dates. Raise P/O s and procuring all goods for the T&A cut dates (OTT Date) Making sure that the n on material items as samples are done on time for the cut date Provide the neces sary information to the factory and Customer or Buying Office team. : 3. Mercha ndiser s Key Responsibilities Overall responsibilities Update Factory Monitoring I nformation System, with orders, revisions and T&A up dates. Raise P/O s and procur ing all goods for the T&A cut dates (OTT Date) Making sure that the non material items as samples are done on time for the cut date Provide the necessary inform ation to the factory and Customer or Buying Office team. 3. Merchandisers Key Responsibilities Specific Jobs Obtain quotations and ra ise Purchase Orders on time. Notify short shipments/ shipment and sending packin g list/export reports to customers. Making trim cards. Signing any sub-contract agreements Eg. Sewing or items such as embroidery/ Printing/ Sequence attaching, Etc. Arranging inspections with external buyers If any merchandise, Fabric or t rim is rejected finalizing claims. Monitor fabric/trim issues to Cutting. : 3. Merchandisers Key Responsibilities Specific Jobs Obtain quotations and raise Pur chase Orders on time. Notify short shipments/ shipment and sending packing list/ export reports to customers. Making trim cards. Signing any sub-contract agreeme nts Eg . Sewing or items such as embroidery/ Printing/ Sequence attaching, Etc. Arranging inspections with external buyers If any merchandise, Fabric or trim is rejected finalizing claims. Monitor fabric/trim issues to Cutting. 3. Merchandisers Key Responsibilities Follow up Follow-up on sampling, gett ing size break up, getting best YY s, fabric/trim delivery s, accessory transfers to satellite factories, follow up on sub-contract activities like embroidery, gett ing all the sample approvals, shade bands, thread colour approvals, payment to s

uppliers, Trim/fabric inspections, ploy bag/ cartoon measurements and final ship ments status. : 3. Merchandisers Key Responsibilities Follow up Follow-up on sa mpling, getting size break up, getting best YY s, fabric/trim delivery s, accessory transfers to satellite factories, follow up on sub-contract activities like embr oidery, getting all the sample approvals, shade bands, thread colour approvals, payment to suppliers, Trim/fabric inspections, ploy bag/ cartoon measurements an d final shipments status. 3. Merchandisers Key Responsibilities General Rules Reply all e-mails within 2 4 hours. Recap with customer or buying office merchandising teams, by conducting weekly TNA meetings. Updating and highlighting any matters beyond your control to your superiors. Should know exact status of the order details & costing. Keep close look on the product as well as the production teams, by constant visiting to production lines where your product is being produced. Take total ownership of the order.: 3. Merchandisers Key Responsibilities General Rules Reply all e-m ails within 24 hours. Recap with customer or buying office merchandising teams, by conducting weekly TNA meetings. Updating and highlighting any matters beyond your control to your superiors. Should know exact status of the order details & costing. Keep close look on the product as well as the production teams, by cons tant visiting to production lines where your product is being produced. Take tot al ownership of the order. 4. Negotiation skills developments How to gain competency? Relevant knowledge- ( Technology/ soft skills/ Current global market conditions/ What competitors do d ifferently/ New methodology in process management/ problem solving techniques (J apanese way). Gain skill- Practice/ Internship/ Role model approach/ Communicati on Skill Right Attitude Change management/ Learn to accept mistakes and construc tive criticisms/ Give respect to get respect/ Respect to knowledge/ Learning att itude : 4. Negotiation skills developments How to gain competency? Relevant know ledge- (Technology/ soft skills/ Current global market conditions/ What competit ors do differently/ New methodology in process management/ problem solving techn iques (Japanese way). Gain skill- Practice/ Internship/ Role model approach/ Com munication Skill Right Attitude Change management/ Learn to accept mistakes and constructive criticisms/ Give respect to get respect/ Respect to knowledge/ Lear ning attitude 5. Communication skill development The Communication Process- is the process of passing information and understanding from one person to another. The communicat ion process involves six basic elements: sender (encoder), message, channel, rec eiver (decoder), noise, and feedback: 5. Communication skill development The Com munication Process- is the process of passing information and understanding from one person to another. The communication process involves six basic elements: s ender (encoder), message, channel, receiver (decoder), noise, and feedback Noise 5. Communication skill development Basics of communication In organizational con texts, messages typically have a definite objective: - to motivate - to inform to teach - to persuade - to entertain - to inspire This definite purpose is in fact, one of the principal differences between casual conversation and manageria l communication. : 5. Communication skill development Basics of communication In organizational contexts , messages typically have a definite objective: - to mo tivate - to inform - to teach - to persuade - to entertain - to inspire This def inite purpose is in fact, one of the principal differences between casual conver sation and managerial communication . 5. Communication skill development Basics of communication Nonverbal Communicati on Nonverbal messages include images, behaviors used to communicate. Images - in clude photographs, film, charts, tables, graphs, and video. Nonverbal behaviorsinclude actions, body language, and active listening. Actions and body language include eye contact, gestures, facial expressions, posture, and appearance. The effective communicator maintains eye contact for four to five seconds before lo

oking away. Gestures should be natural and well timed. Grooming and dress should be appropriate for the situation. Listening requires good eye contact, alert bo dy posture, and the frequent use of verbal and non verbal encouragement. : 5. Co mmunication skill development Basics of communication Nonverbal Communication No nverbal messages include images , behaviors used to communicate. Images - includ e photographs, film, charts, tables, graphs, and video. Nonverbal behaviors- inc lude actions, body language, and active listening. Actions and body language inc lude eye contact, gestures, facial expressions, posture, and appearance. The eff ective communicator maintains eye contact for four to five seconds before lookin g away. Gestures should be natural and well timed. Grooming and dress should be appropriate for the situation. Listening requires good eye contact, alert body p osture, and the frequent use of verbal and non verbal encouragement. 6. Co-ordination with departments - Progress meetings - Submit relevant informat ion on time - Proactive driven follow-up charts - Less Emails internally and be in contact with cross functional teams - understanding that all are running for a common goal (it s only a matter of different thread of same puppet) - Understand that time takes to make a set of people to a team (Foaming/ norming/ confrontin g/ performing) : 6. Co-ordination with departments - Progress meetings - Submit relevant information on time - Proactive driven follow-up charts - Less Emails i nternally and be in contact with cross functional teams - understanding that all are running for a common goal (it s only a matter of different thread of same pup pet) - Understand that time takes to make a set of people to a team (Foaming/ no rming/ confronting/ performing) 7. Key performance indicators in merchandising - On Time Delivery (OTD) - On Tim e Tracking (OTT) - Sample hit rate (CT 1) - Order management Cycle time - Cut : Ship - Order: Ship - Order Inquiry Response Time - PCD hit rate - Budgeted EPM Budgeted loading SAH/ month - Budgeted sales SAH/ Month - Budgeted style change s/ Month - Number one or two with the customer: 7. Key performance indicators in merchandising - On Time Delivery (OTD) - On Time Tracking (OTT) - Sample hit ra te (CT 1) - Order management Cycle time - Cut : Ship - Order: Ship - Order Inqui ry Response Time - PCD hit rate - Budgeted EPM - Budgeted loading SAH/ month - B udgeted sales SAH/ Month - Budgeted style changes/ Month - Number one or two wit h the customer 8. Repot updating - Update the ERP system - T&A update - Order progress meeting update - subcontracting (in or out) plans - Shipment plan (monthly/ Weekly) - KP I measurement chart update - PP meeting schedules - Customer order summary updat e: 8. Repot updating - Update the ERP system - T&A update - Order progress meeti ng update - subcontracting (in or out) plans - Shipment plan (monthly/ Weekly) KPI measurement chart update - PP meeting schedules - Customer order summary up date Slide 16: Generic Information and reports to be provided by Merchandisers Planni ng Stores Cutting Production Finishing Finance Sampling Customer 1. Order sheet / Customer PO 2. Cutting trim card 3. Trim card 4. Trim Issue notes 5. Fabric Is sues notes 6. Bill of Quantity 7. Fussing Standard report 8. Details on special operations 9. Fabric/Trim in-house date /Possible cut date 10. Changers that aff ect cut dates/ Productivity 11. Priority on deliveries like colors 12. Informati on on sample making date 13. Provide sampling package 14. Approved cost sheet 15 . Thread consumption 16. Possible Write-off on completed styles 17. Queries on o rder status/ exceptions to deliveries 18. Style file 19. TOP comments 20. Short/ over shipment approval