Chapter 1

Introduction

1
1.1) Origin of the report:

RMG (Ready Made Garments) is very important and helpful for our Bangladesh.
Bangladesh has emerged as a key player in RMG (Ready Made Garment)
sector since 1978. Textiles and clothing account for about 85% of total export
earnings of Bangladesh. Out of which, 75% comes from the apparel sector
which covers the major products of knit and woven shirts, blouses, trousers,
skirts, shorts, jackets, sweaters, sports wears and many more casual and fashion
items. The sector currently employs approximately 1.5+ million workers, mostly
females from underprivileged social classes. I have completed this report on the
basis of all the department of RMG sector such as Merchandising Department,
Commercial Department, Production Department, Supply Chain Department,
Human Resource Department, Compliance Department, MIS Department, and
relevant organization like BGMEA, BKMEA, Export Promotion Buru, Yarn
suppliers, Chittagong Port, Insurance Company, Shipping Company. So by
completing this report I get overall idea about RMG sector, so its carry more value
than any books.

This internship report is prepared on “Sunman Group Of Companies. This is the

largest among locally invested garments. Moreover, it is the second largest among all
garments in Bangladesh. Sunman Group Of Companies is a 100% export oriented
garments manufacturing industry. It has started commercial production in 1994. It‟s a
private limited company and it is a “C” category company that means there are 100%
local investors. The Garments manufacturing companies Sunman Group Of
Companies contribute to GDP (Gross Domestic product) in the Bangladesh. So, all
concerned as well as the government of Bangladesh is Sunman Group Of Companies
conscious about this sector.

2
1.2) Objective of the Study:
The main objective of the report is to learn about the activities of merchandising
department in Sunman Group of Companies. Academic knowledge is not perfect,
practical knowledge is essential with it.

This internship report has been prepared for fulfilling the following specific objective:

 To achieve new idea about knit garments

manufacturing process.
 Concept develops about spinning, knitting.

 Getting idea about shipping procedure.

 To identify merchandising & total production system.

 To study the present market composition for the Bangladeshi garment

product about Market diversification.

 To find the current scenario of backward supply chain status of Sunman Group.

1.3) Scope of the Study:

As a student of Marketing, it is very much necessary for me to know about the
national and international management. I have been assigned in Sunman Group of
Companies. I have worked in the factory and head office thus paved me the way to
get myself familiarized with the official and factory environment in a garments
industry for the first time.

Scope means how many uses for completing this report space. The scopes are given
bellow-

 Factory
 Buying House
 Some of our senior brothers can help us
 I can collect Discussion
 Internet
 Information various books

3
1.4) Methodology of the Study:
Every research program should follow some basic form of procedures. To complete
this report at first I try to acquire a clear theoretical knowledge on garments industry. I
study various books of different writers regarding the topic. This type of study helps
me to acquire knowledge on an overview of garments industry. However mainly this
report is written on the basis of experience gathered during the period of Internship. I
carefully observed the various activities of different department, especially
merchandising activities of Sunman Group of Companies. A qualitative research is
used to conduct this study.

In order to make the report more meaningful and presentable two sources of data and
information have been used widely. Both primary and secondary data have been used
to prepare the report.

Primary data:

 To collect information what I am seeing in practical in My Internship

Program.
 To collect information what I did in practical what was done by me for
my practical knowledge. .
 Observe the environment behavior, fact, action, record, and present
condition of the program.

 Direct experiment and group discussion.

 Have conversation with my supervisor and regular employee of the

Sunman Group of Companies.

 Formal query to Senior Merchandiser, Sample Section Supervisor, Floor

Manger.

 Personal interview through face to face.

4
Secondary data:
I have get data from the following way:

 Sunman Group of Companies profile

 Annual report
 Export volume report
 Related books and articles on garments on industry
 BGMEA
 Browsing internet

1.5) Limitations of the Study:

Limitation refers the obstacles I have to face for completing this report and what I
could not cover for this limitation.

 Due to high employee turnover rate and lack of good reporting practices in the
factory, problems with collecting data have been faced.

 Lack of organizing chain of command

 Merchandiser doesn‟t have enough time to give the information elaborately.

 Short time visit in different work stations

 I may have to suffer for lack of supply chain management.

 Time constraint

 Lack of instruction book, and any change. They are following traditional
business.

5
 Chapter 2
Overview Of
Sunman Group of
Companies

6
2.1) Introduction:

Sunman Group Of Companies is a reputed and largest garment manufacturing

company. From the beginning it is been maintaining high quality and ensuring full
satisfaction of buyers. The main reason of this success is qualified manpower.

Sunman Group Of Companies is the totally 100% export oriented company. Sunman
Group Of Companies has that quality that is differentiate it from other company:
brand image, timely delivery & shipment, fashionable products, ensure lead time,
branded product, using latest technology. I hope the financial performance of Sunman
Group Of Companies is increasing day by day

2.2) History of the company:

Sunman Group established in the year 1983 primarily being Garment manufacturers is
a well diversified Group of Companies in Bangladesh. We are engaged in Textiles.
Deep Sea Trawling, Accessories & Packaging, General & Life Insurance, Aviation,
Lease Financing, Pharmaceutical, Paper manufacturing and Telecommunication in the
name and style, Banglalion Communication Ltd. (WIMAX). Recently taking up the
projects on Dockyard and ship building on the other side of river Karnafully. We have
over 40 Industries/Companies in Bangladesh and offshore manufacturing facilities in
Cambodia, Mauritius and Madagascar. The vision and goal of our owner and the
employer Major (Retd) Abdul Mannan the Chairman of the Group is generating more
and more employment for the people of Bangladesh. He firmly believes that it is one
of the best social contributions that one can make. The history of Sunman Group is a
history of Growth and diversification with very strong presence in RMG sector. Our
ultimate aim is to bring in social benefit by playing dominant role in economic
development of the country. Towards achieving its objective through growth and
diversification, the SUNMAN GROUP is a ever expanding horizon. 30000 employees
while the implementation of ongoing projects will create additional job facilities for
another 10000 workforce thereby making SUNMAN GROUP one of the pioneers in
job creation.

7
Side by side with expansion & diversification, we remain committed to workers
welfare that in fact is the pillars of our success. The Market goodwill & Customer
satisfaction as could be earned by the Group reflects clearly the worker‟s devotion &
determination to make Sunman a leading group in the country. While deeply
appreciating each of the workers contribution in our growth & success, our Group
Chairman like to enunciate our cardinal policy in building a Sunman Family
combining all workers & employees of the Group for their greater welfare. In this
connection mention may be made about other ongoing schemes covering education,
poverty alleviation & various other activities as being financed and managed by the
group following the principle of corporate social responsibility directly benefiting the
poor & common village population of the society.

Before the establishment of Sunman Group of Companies, the company was engaged
in the manufacture of casual wear since 1984.

8
2.3) Company Information:

Name of the Company : Sunman Group of Companies.

Chairman : Major (Retd) Abdul Mannan

Managing Director : Mr. Lutfe M. Ayub

Established : 1983

Manpower : 30000

Company Address:

Head Office: Dhaka Office:

CDA Annex Building, 2nd Floor, Silver Tower, (16th, 18th Floor)

Chittagong, Bangladesh. 52, Gulshan Avenue, Circle-1,

Phone: +88031611033/4 Dhaka-1212, Bangladesh.

Fax: +88031610352 Tel: +88028816072, 8816639

E-mail: info@sunman.net E-mail: sunmandhaka@gtlbd.net

admin@sunman.net Fax: +88028816313

anwar.hrd@sunman.net

9
2.4) Organization Structure of Sunman Group:

Organizational chart bearing vital importance for a company, often represented by

a schematic diagram. The organizational chart of Sunman Group is given below:

Organization Structure of Sunman Group of Companies

10
2.5) List of the Division:
GARMENTS DIVISION

1. Alfa Textiles Ltd. 11. Peninsula Garments Ltd.

2. Quasem Saewhan Co. Ltd
12. Golden Heights Ltd.
3. Sunflower Garments Ltd.
4. Sunman Apparel Ltd. 13. Hong Kong Denim (pvt.) Ltd.
5. Yakub Garments Ltd.
14. United Dresses Ltd.
6. Delta Fashions Ind. Ltd.
7. Eastern Fashions Ltd. Sweater Factories (Noakhali):
8. Glory Industries Ltd.
15. Ishaqpur Sweater Ind. Ltd.
9. Pioneer Dresses Ltd.
10. Golden Horizon Ltd. 16. Ishaqpur Sweater Ind. Ltd. Unit-1

17. Ishaqpur Sweater Ind. Ltd. Unit-2

NON GARMENTS DIVISION

1. Sunman Spinning Mills 6. Sunpack Ind. Ltd.

Limited.
7. Sunball Ind. Ltd.
2. Sunman Textiles Ltd.
8. South Asian Airlines Ltd.
3. Sunman Knit Fabrics
9. Deep Sea Trawling Co. Ltd.
Limited

4. Sunman Button & Allied

Chemicals Ind. Ltd.

5. National Beverage
Industries Ltd.

11
 OTHER INDUSTRES & ESTABLISHMENT

1. Sunman Pharmaceuticals 4. Glory Properties Ltd.

Ltd.
5. Sunflower Life Insurance Company
2. Dhaka CNG Ltd.
Ltd.
3. Bangladesh Industrial
Finance Ltd. 6. Capital Papers Ltd.

OVERSEAS INVESTMENT

1. Ocean Garments Hong Kong Operation: USA Operation:

Ltd.
3. Five Continent 5. Merrill& Forbex
2. Fashion Textile
Credit Ltd. Inc.
Madagascar
4. Ocean Garments 6. Tees Mart Inc.
(FATEXMA),
(HKG) Ltd. 7. Rupali Exchange
Madagascar
Inc.

2.6) Objectives of the company:

 Ensure 100% security.
 Ensure 100% on-time delivery.
 Ensure 100% efficiency of resources.
 Ensure 100% transparency in all activities.
 Ensure 100% honesty, discipline and punctuality.
 Best use of potentiality of garments industries of Bangladesh
 Give opening to the new jobs.
 Maintaining at least 80% efficiency.
 Ensure 100% quality right from the commencement to the finish of
production.

12
2.7) Mission of the company:
 Operating facilities that are environment friendly and safe for employees and
communities as a whole.
 We up holds the integrity of all individuals, working in the industry by
providing all legal facilities including occupational health care and work place
safely.
 Continuous improvement of efficiency by introducing latest technology and
technical expert.
 Presenting the best value through effective cost management.
 Research of market trend and ultimate consumer‟s fashion demand.
 Satisfy the buyers by providing quality service on mutual trust and respect.

Sunman Group of Companies has been able to achieve the trust of many reputed
buyers of the worked like GAP, H&M, C&A, TOMTAILOT, CHARLES VOGEL
AND J. C PENNY etc. Sunman Group of Companies never compromise with the
quality and standards and we are committed to further improvement to continue the
growth trend providing advanced technology.

2.8) Vision of the Company:

 Maintain cordial relations with all stakeholders, namely- customers or buyers,
suppliers and employees
 Fight against dishonesty, fraud and corruption as and when it occurs.
 Recognize the contribution of each individual and assist others to make
meaningful contribution.
 Equal rights for all and no discrimination in any field,
 Always ensure maximum utilization of resources,
 Ensure health and safety of workers and encourage an environment conducive
for work.

The vision of the company, which is also its motto- “RESPECT FOR
INDIVIDUAL”, has been set up at the very entrance of the building. Boards
bearing these words are placed on the walls of each floor. The officials informed us
that all the employees right from the top-level to the junior most position is treated
with respect and dignity for his/her work.

13
2.9) Major Buyer of Sunman Group:

The major buyers of Sunman Group of Companies are listed in the given below:

COUNTRY NAME OF THE PERCENTAGE

COMPANY

1) USA GAP 36.00%

2) Europe C&A 36.00%

3) Europe HNM 21.11%

4) Europe Charles Vogel 5.07%

5) Others Lee wrangler & 1.82%

Others

Table: Major buyers of Sunman Group of Companies

These famous brands are all customers of Sunman Group of Companies because of
the following reasons:

1. High product quality assurance.

2. Excellent correspondence during production.
3. Timely finishing and delivery.
4. Cost-effective labor.

14
2.10) Product of Sunman Group:
Sunman Group of Companies is a 100% export-oriented manufacturer of branded
fashion jeans and casual wear. It has various products for various genders and age
groups. Some of the products for men and women are shown below:

 Long pant  Short pant

 Three quarter length trousers  Long skirt

 Short skirt  Jacket

 Denim dress  Joggers

 Kids pant  Ladies overall

2.11) Machinery details of Sunman Group:

A) Sewing:
All the sewing machines are UBT programmable machine, beside that we have
following special machines:

 VI. BE. Mac automatic feed of the arm.

 Automatic pocket welt machine from German Durkopp Adler.
 Programmable pattern sewer.
 Programmable pattern taker.
 VI. BE. Mac automatic pocket hem.
 VI. BE. Mac automatic loop attach.
 VI. BE. Mac automatic J stitch.
 Automatic Button holder.
 VI. BE. Mac automatic waist band attach.
 VI. BE. Mac automatic pocket setter.
 VI. BE. Mac automatic pocket eraser etc.

15
B) Dry process:
 Horizontal landscaping machine.
 Vertical handscraping machine.
 Automatic laser blasting.
 Sand blasting.
 Tacking machine.
 PP spray booth.
 Curing oven.
 Wrinkle machine.
 Blowout machine.
 Grinding machine.
 Color spray booth.

C) Wet process:
 Tonello computerized front load washing machine.
 Automated side load washing machine with direct heating system.
 Tonello new generation computerized front load dying machine with built in
color kitchen
 Trevineta computerized stream dryers.
 Trevineta computerized gas dryers.
 Extractor.

2.12) Design Studio & Working Process:

Design Studio:

To provide design and product development support from fiber to garments to

leading retailers and brands using integrated manufacturing resources, powerful
CAD tools, technology collaboration with major suppliers (like CIBA, DuPont
etc.) and interface with fashion forward customers, rapidly develop and bring
trendy, innovative differentiated products to our strategic partners every season.
The Design Studio works to produce entire collections with Indicted including
women‟s and men‟s clothing, woven and knit tops, casual and denim bottoms
and jackets. They have now introduced a catalogue which will highlight our concept
of complete new looks, products and fabric swatches and we will be sending one of
these to all our key customers almost every eight weeks.

16
Resources employed to fulfill the
mission:

 25 highly qualified designers who travel the world visiting fairs,

interfacing with the designers of fashion forward customers and competitive
buying from well known fashion outlets.
 150 people working in sewing room dedicated to design team.

 Dedicated yarn dyeing, warping and washing facilities for

design team.

 Cooperman advanced German networked CAD system.

17
Work Process:

Sunman Group of Companies. This is the largest among locally invested garments.
Moreover, it is the second largest among all garments in Bangladesh. Sunman Group
Of Companies is a 100% export oriented garments manufacturing industry. It has
started commercial production in 1994. It‟s a private limited company and it is a “C”
category company that means there are 100% local investors. The Garments
manufacturing companies Sunman Group Of Companies contribute to GDP (Gross
Domestic product) in the Bangladesh. So, all concerned as well as the government of
Bangladesh is Sunman Group of Companies conscious about this sector.

It is a vertically integrated company, which means that a garment is made from

scratch here, which has factories for all the steps - spinning, dyeing, weaving,
knitting, finishing, washing, printing, embroidery etc. which is such a great
opportunity for us, because most vertically integrated textiles mills do not exist in
the western world, due to labor costs, which is the biggest reason textiles is
booming here in Bangladesh.

Laborers earn around 6000-8000 Taka a month, which is around $ 80-100 per month
for working 10 hours a day for around 50cents. We might question the morality of
sweatshops but when you see beggars on the street and skinny stick people that sell
fruits and vegetables, you understand that working in a factory is a very viable
option in the most densely populated city in the world. That enables the company to
hire 30000 workers that work in 10 hour shifts (and the factories operate 24 hours).
In addition to the low labor costs, the Bangladeshi government has huge support for
the textiles industry and makes it easy for them, which attracts a lot of foreign
money. Sunman Group of Companies have been able to achieve the trust of many

18
reputed buyers of the worked like GAP, H&M, C&A, Tomtailot, Charles Vogel, JC
Penny & Lee Wrangler & Others etc.

China is still the world's leading garment manufacturing country, (and Bangladesh
the second) but many high up guys in suits told that Bangladesh has a chance
to beat the Chinese because China is slowly rising labor costs. And of course
USA and Europe is the biggest buyer.

19
 Photo: Here we have see some People Sewing.

The impressive part of the visit was that, apart from the final garment assembly,
the process was highly automated and high-tech. The factories generally had
very few people working in them, since only one or two people had to work
with each machine to make sure the fabric fed through smoothly.

Garment assembly is another story because it is huge line production process.

And, people just want that he/she can see it in the finishing line. Each lady (and
the few men) sat at their machine and did one task, again and again. There was a
pocket lady, who only did pockets and also Collar Lady who finishes the collar.
Lots of people with minute jobs could not begin to be identified. But none ever
did see an entire shirt – just bits and pieces, with each person focused on their
one particular step in the assembly process. On the plus side, the room was well
lit and well ventilated, and the workers get free room and board.

In the photos, the process is well described. Those distressed jeans that sell for
a small fortune are also made at there. This is a matter of astonish that these are
“hand-distressed” – using grinders and other household tools. People would have
thought the process and here it is discovered that that worn-in look comes from, well,
spray-paint.

20
Photo: In the picture some worker using grinders and other household tools.

Photo: In the picture a worker using spray-paint.

Photo: Final Product.

21
2.13) Facilities:

Provident fund: Every permanent employee should be a member of the fund. Eight
percent of the salary is cut and saved in this fund every month and the company to
that fund contributes the same amount. There is a trustee board to operate this fund
and the amount saved in this fund is repayable to the employee.

Festival bonus: SUNMAN GROUP OF COMPANIES. Provide two Eid bonuses

amounting tk. same as the salary to employees and workers every year.

Medical services: Free medical services are offered to each employee

Leave encashment: If any employee does not enjoy the earned leaves allocated for
him, he is allowed to en-cash the leave day into the cash, which is payable yearly
basis.

Company leaves rules:

 Festival Leave
 Casual Leave
 Medical/Sick Leave
 Earned Leave

22
2.14) Code of conduct of Sunman Group of
Companies:

 Principle: Sunman Group of Companies abides by the principles that

decisions on hiring, salary, benefits, advancement, termination or retirement
are based solely on the availability of and individual to do the jobs.

 Forced labor: Sunman Group of Companies does not use force labor in any
from Prison, indentured, bonded or otherwise.

 Child labor: Sunman Group of Companies does not employ any person
below the age 18.

 Compensation: Sunman Group of Companies Provides each employee at

least minimum wage or higher and provided each employee a clear, written
accounting for every pay period.

 Benefits: Sunman Group of Companies Provides each employee all legally

mandated benefits. These include meal subsidies, transportation or
transportation subsidies. Others cash allowances, health care, pregnancy or
sick leave, vacation, religious holiday, leave and contributions for provident
fund.

 Hours or Work/overtime: Sunman Group of Companies Complies with

legally mandated work hour‟s uses overtime only when each employee fully
compensated according to local law and on a regularly scheduled basis
provides one day off in seven and requires no more than 60 hours of work per
week.

 Management of Environment, Safety and Health: Sunman Group of

Companies has written health safety guidelines, has a factory safety
committee provides personal protective equipment free of charge and
mandates its use and complies with all applicable local environmental, safety
& health regulations.

 Respect & Dignity: Every employee shall be treated with respect and dignity.
No employee shall be subject to any physical, sexual, psychosocial or verbal
harassments or abuse. Written disciplinary procedures shall be applied fairly
among all workers.

23
2.15) General information:

General information on factory time-table, leaves, holidays,

wages and others

Daily general working hour 8 hour

Weekly general working hour 48 hours

Leisure Along with launch time

Daily over time 2 hours (if needed)

Weekly holiday 1 day (Friday)

Festival holiday in a year 12 days with full wages

Casual leave in a year 10 days with full wages

Sick leave in a year 14 days with half of the wages

Earned leave in a year 17 days with full wages

Maternity leave 112 days with basic wages

LWP 10 days with full amount of

allowance

Minimum wages 2100/- monthly

Maximum wages 10000/- monthly

Average wages 3550/- monthly

Mode of payment of regular Monthly (following Christian

workers era)

Wages of daily laborer Tk. 100/- per day excluding

Over time.

Mode of payment of daily laborer On daily basis.

General pay-day Within 7th of the following

month.

24
 Chapter 3
Merchandising
Department of
Sunman Group of
Companies

25
3.1) History of RMG:
The ready-made garment (RMG) industry of Bangladesh started in the late1970s and
became a prominent player in the economy within a short period of time. The industry
has contributed to export earnings, foreign exchange earnings, employment creation,
poverty alleviation and the empowerment of women. The export-quota system and the
availability of cheap labor are the two main reasons behind the success of the
industry. In the 1980s, the RMG industry of Bangladesh was concentrated mainly in
manufacturing and exporting woven products. Since the early 1990s, the knit section
of the industry has started to expand. Shirts, T-shirts, trousers, sweaters and jackets
are the main products manufactured and exported by the industry. Bangladesh exports
its RMG products mainly to the United States of America and the European Union.
These two destinations account for more than a 90% share of the country‟s total
earnings from garment exports. The country has achieved some product
diversification in both the United States and the European Union. Recently, the
country has achieved some level of product upgrading in the European Union, but not
to significant extent in the United States. Bangladesh is less competitive compared
with China or India in the United States and it is somewhat competitive in the
European Union. The phase-out of the export-quota system from the beginning of
2005 has raised the competitiveness issue of the Bangladesh RMG industry as a top
priority topic. The most important task for the industry is to reduce the lead time of
garment manufacturing. The improvement of deep-level competitiveness through a
reduction in total “production and distribution” time will improve surface-level
competitiveness by reducing lead time. Such a strategy is important for long-term
stable development of the industry, but its implementation will take time. In contrast,
the establishment of a central or common bonded warehouse will improve surface-
level competitiveness by reducing lead time, but deep-level competitiveness will not
be improved and long-term industry development will be delayed. Therefore, granting
permission to establish in the private sector such warehouses with special incentives,
such as the duty-free import of raw materials usable in the export-oriented garment
industry for reducing the lead time in garment manufacturing is a critical issue for
Bangladesh. Second, Bangladesh needs to improve the factory working environment
and various social issues related to the RMG industry. International buyers are very
particular about compliance with codes of conduct. Third, issues related to product
and market diversification as well as upgrading products needs to be addressed with
special care.

26
Moreover, the Government of Bangladesh needs to strengthen its support. The
development of the port and other physical infrastructure, the smooth supply of
utilities, a corruption-free business environment and political stability are some
priority concerns for the Government to consider in its efforts to attract international
buyers and investors.

27
3.2) Contribution of RMG:
It was recorded that in FY 1983-1984 RMG sector contributed only 3.89% (RMG export value
was 31.57m USD and total export value was 811.00mUSD) of total export of Bangladesh. But
it changes phenomenally in last three decades. In FY 2012-2013 RMG contributed 79.63%
(RMG export value was 21515.73m USD and total export value was 27018.26m USD). In the
month of July’13 to Apr’14, it contributed more than 80% of total export value. So In fiscal
year 2013-2014 hopefully it will contribute more than 80% of total export of Bangladesh.

Exports of Major Products in FY 2012-13

Source: Export Promotion Bureau.

Source: Export Promotion Bureau.

28
3.3) Comparative Statistics of Bangladesh
Apparel:

Comparative Statistics of Bangladesh Apparel

TOTAL EXPORT OF
EXPORT OF RMG % OF RMG’S TO
YEAR BANGLADESH
(IN MILLION US$) TOTAL EXPORT
(IN MILLION US$)
1983-84 31.57 811.00 3.89
1984-85 116.2 934.43 12.44
1985-86 131.48 819.21 16.05
1986-87 298.67 1076.61 27.74
1987-88 433.92 1231.2 35.24
1988-89 471.09 1291.56 36.47
1989-90 624.16 1923.70 32.45
1990-91 866.82 1717.55 50.47
1991-92 1182.57 1993.90 59.31
1992-93 1445.02 2382.89 60.64
1993-94 1555.79 2533.90 61.40
1994-95 2228.35 3472.56 64.17
1995-96 2547.13 3882.42 65.61
1996-97 3001.25 4418.28 67.93
1997-98 3781.94 5161.20 73.28
1998-99 4019.98 5312.86 75.67
1999-00 4349.41 5752.20 75.61
2000-01 4859.83 6467.30 75.14
2001-02 4583.75 5986.09 76.57
2002-03 4912.09 6548.44 75.01
2003-04 5686.09 7602.99 74.79
2004-05 6417.67 8654.52 74.15
2005-06 7900.80 10526.16 75.06
2006-07 9211.23 12177.86 75.64
2007-08 10699.80 14110.80 75.83
2008-09 12347.77 15565.19 79.33
2009-10 12496.72 16204.65 77.12
2010-11 17914.46 22924.38 78.15
2011-12 19089.69 24287.66 78.60
2012-13 21515.73 27027.36 79.61
2013-14 24491.88 30186.62 81.13

Source: Export Promotion Bureau

29
3.4) Merchandising Department:
RMG sector of Bangladesh is gaining ground in the world market at breakneck speed,
but still not flourished at the fullest extent. Although the resources are available
abundant with a powerful foundation of fabric and spanning sector to support. The
key factors behind this are low technological development, lower output, cut throat
competition, high raw material cost, inadequate infrastructure, traditional
productivity, unfavorable regularity policies, and globalization in fact. However, there
a fair list of the producers, suppliers, and exporters that are fully acknowledge with
regularity policies and formalities, international marketing policies and procedures.
The only concern is in executing their productivity initiatives, and meeting with order
deadlines.

Garments merchandising means the work to buy raw material and accessories to
produce garments (Merchandise) against a particular work order of garment and have
to export these under the same work order within time schedule, maintaining required
quality level of buyer.

The Merchandising is the important activities, term and section of a garment that is
not possible to run and deliver successfully. The term “merchandising” is well known
to the persons specially involved in garments trade. The term merchandising has been
derived from the term merchandise. Merchandise means good that are bought & sold.

3.4.1) Merchandising:
Merchandising is a business on marketing activities responsible for ensuring a
products description both quality and quantity. Merchandising means total
responsibility of a Merchandiser.

3.4.2) Merchandiser:
Duty of merchandiser describes himself like this-

 A man who collects order from customer sourcing raw materials production
on time with quality and maintains lead time.

 Garments merchandising means buying raw materials & accessories,

producing garments, maintaining required quality level and exporting the
garments within scheduled time.

30
If anybody has to be designated as Merchandiser then the word itself demands some
qualities from that individual, now let us see what all are the hidden meanings there in the
word.

“MERCHANDISER”

 M- Should have good Managerial capacity.

 E- Efficient in both English written and spoken.
 R- Having high sense of Responsibility.
 C- Always keep Commitment.
 H- Leads honest life.
 A- Attitude should always be positive in resolving any problem.
 N- Never does any argue with buyers and seniors.
 D- Fully devoted to his service.
 I- Always well Informed about his all orders.
 S- Sincere in office and daily works.
 E- Enthusiastic in nature.
 R- Regular in e-mail correspondence

3.4.3) Most importance things for a Merchandiser:

 Communication.

 Planning

 Production Follow Up

3.4.4) Responsibilities of a smart Merchandiser:

Responsibilities of a smart Merchandiser are handling order at four stages. They are
given below:

 Sourcing for future orders/Buyers

 New Order

 Confirmed Order

 Running Order

31
3.5) Data flow Diagram of Merchandising:

In our internship period, for better experience we work on with a true project.

Buyer Name : H&M (Sweden)

Style No : 584410-7667

Production Type : Boy’s T-shirts

Fabric : Single Jersey

GSM : 170-180

Order Quantity : 10000 PCS

Product color : White, Red, Yellow & Grey

Size : M size, Chest-37¾-39½, Waist- 33-34½

Delivery Date : 15th March, 2015

32
Here the total process will be described in two phases. The phase show by chart, will
just describe the process.

3.6) First Phase of Merchandising:

The following are the first phase of activities of the merchandiser which they perform
for achieving Sunman Group goal. They are:

 Deal with target buyer

 Receiving the design packet
 Preparing Consumption Sheet
 Price quotation from supplier
 Preparing costing sheet
 Sending price quotation to buyer
 Sample making
 Approving the sample
 Accepting the order
 Sourcing raw material and accessories
 PI submitting to commercial
 Follow-up materials

33
3.6.1) Deal with target buyer:
Every merchandiser has to communicate with their Identified buyers. They communicate
with old and new buyers. Old buyers are easy to handle than new buyers. On the other
hand, new buyers have to be shown the details of factory. They have to be known about
company. Merchandiser has to communicate with the respective buyer via mail, telephone
or courier service provider. The merchandiser has to communicate time to time with the
buyer. They should maintain a good relation with the target buyer. They have to negotiate
the price.

 Buyer Selection
 Know about the nature of buyer
 First E-mail to the buyer
 Collect audit pass report from buyer
 Offer to buyer for visit the company
 Company arrange a meeting with buyer for
business
 Sampling stage
 Price negotiation
 Price conforms and order place from buyer

34
3.6.2) Receiving the Design Packet:
After confirming order, the merchandiser has been sent a technical packet by
buyer. In the design packet various types of information is included. Such as body
measurement, type of stitch, place of stitch, fabric details, requirement of design, types of
label, packing system are included. After receiving design packet the merchandiser has to
review the packet. The merchandiser has to send it to the P&D department to comment
whether it is possible to produce. It should be sent to the relative department to comment
whether it is possible or not to produce. If the capacity is lower than the requirement, the
departments should know to the merchandiser. If all the information related with the
design packet is the possible to do, merchandiser negotiates with the buyer about cost, time
of shipment and to open L\C.

 Properly dyeing
 Use combed yarn
 Good Pattern making
 Sewing perfectly
 Use quality full Accessories
 Use quality full packing elements
 Re-check measurement & quality
 Send sample with forwarding letter & measurement
sheet

35
3.6.3) Preparing Consumption sheet:

After completing the reviewing design packet the merchandiser suggest P&D to make
consumption of fabrics and accessories.

They give this in GSM. Then merchandiser Convert it to Kg or dozen. The P&D make
consumption sheet of accessories, zippers, threads, tags, labels, hangers, cartons, printing
and embroidery cost.

After considering all things related with the order the consumption sheet is made. For
measuring cost, the consumption sheet is made.

3.6.4) Price quotation from supplier:

For making garments item many accessories are required. In the Sunman Group the
accessories has to collect many accessories from supplier. Sometimes buyer requires
supplier‟s price quotation. Many buyers has requirement to nominated supplier.

In this purpose, the merchandiser has to communicate with that required supplier. Then the
required suppliers give the price quotation for accessories. After gaining price quotation
merchandiser sent this to the buyers.

 Arrange a meeting
 Show the price to buyer
 Arguments about price with buyer
 Make win situation
 Fixed price
 Place a new order
 Ending the negotiation by dinner

36
3.6.5) Preparing costing sheet:

After collecting consumption sheet from the P&D and price quotation from supplier,
merchandiser has to prepare a costing sheet. This document is a very confidential for the
merchandisers and basically this sheet is made by senior merchandiser of marketing
department. In this costing sheet they measure all the materials and labor cost in some
measurement unit. They have to also add contribution margin according to the company
profit rate.

Particulars Light colors Medium colors Dark colors

34's combed Tk.140.00 Tk.140.00 Tk.140.00
yarn
Fabric cost per Tk.39.06 Tk.41.13 Tk.45.27
garment
Cost of Trims Tk.0.85 Tk.0.85 Tk.0.85
CMT Charges Tk.11.00 Tk.11.00 Tk.11.00
Cost of Tk.1.35 Tk.1.35 Tk.1.35
accessories
Rejection of Tk.1.50 Tk.1.50 Tk.1.50
garments
(commonly 3%)
Cost of Garment Tk.52.76 Tk.54.83 Tk.58.97
Local Transport Tk.1.00 Tk.1.00 Tk.1.00
Profit@15% Tk.7.90 Tk.8.20 Tk.8.90
approves.
Commission/ pc Tk.2.00 Tk.2.00 Tk.2.00
Price of Tk.63.66 Tk.66.03 Tk.70.87
Garment
Table: The freight charges for the Men's Basic T-shirt

3.6.6) Sending price quotation to buyer:

When Merchandiser prepare costing sheet, he send that to the buyer. Buyer may agree
to that price or not. If he disagree to that price, merchandiser revise the price
quotation or the merchandiser inform him for unable to decrease the price quotation.
In Many times merchandiser communicate with supplier to decrease the price. If he
inform to the merchandiser for unable to decrease price, the merchandiser inform to
the respective buyer.

37
3.6.7) Sample making:

After accepting the price quotation by the buyer, the merchandiser goes for sample
making. For making sample, the merchandiser gives details to the P&D. They collect
thread and make fabric by knitting dept. After making fabric it goes to the dyeing depts.
In the dyeing dept. there are five samples making machine. After completing dyeing
function it goes to the printing department. In the printing dept. there are available
machine for sample. Then it goes to the sewing dept. for cutting and sewing. After
completing sewing, the sample goes for finishing purpose and after inspecting the
quality it is packaged.

For making the required material and terms are

1.Shell 10.Fuse 19.Elastic

2.Thread 11.Non Fuse 20.PriceTag
3.Button 12.Name 21.Poly Bag
4.Eyelet 13.Labels 22.Hanger
5.Zipper 14.Care 23.PlasticPin
6.Buckle 15.Label 24.Sticker
7.Interlining 16.Country 25.Box
8.Pocketing 17.Size Label 26.Carton, Etc.
9.Woven 18.Twill tape

38
3.6.8) Approving the sample:

After packaging, the merchandiser sends this to the buyer via Courier service such as
FedEx or DHL. By inspecting the sample, buyer will approve the sample or will inform
about defects. Then he will inform to send another sample and take approval from the
buyer.

 Send sales sample to buyer with good packing

 Buyer check fabric quality
 Garments design (Print, Embroidery)
 Wash quality
 Measurement maintenance
 Overall finishing quality
 Approve Sample

3.6.9) Accepting the order:

During the correction and approval period of sample the merchandisers have to check
either the cost of the garment is increasing or not, if it increases then they bargain with the
buyers to increase the price or with the supplier to decrease the price of accessories.
Mostly at the sample correction period the cost increases and the merchandiser solve this
by negotiating both buyer and suppliers to go for production. After negotiating, they reach
at a suitable price both acceptable for buyer, supplier and company. The merchandiser
consults with the planning department to measure the productivity .They calculate
productivity by using the measurement of quantity to make, lead time, labor hour,
production line.

After measurement of productivity, they fix the lead time to produce the garments in time
and before shipment date they would able to do so. After finishing all the above activities,
if everything satisfies both buyers and suppliers, Sunman Group formally accept the order
and take preparation to start production. Then buyer send export L/C.

39
3.6.10) Sourcing raw material and accessories:

After getting L/C, they collect the required raw materials and accessories from supplier by
using BB L/C. Sometimes they take approval from buyer for those accessories. After
approval from the buyer, the merchandiser asks the suppliers for thread and accessories
booking. They are given the details of thread and accessories.

3.6.11) Procedures of Import (PI) submitting to the

commercial:

Procedures of import included with date, name of company, material details, quantity, unit
price, total price and authorized signature. Procedures of import are sending by supplier to
the Sunman Group merchandiser to confirm the booking details. The procedures of import
are given to the commercial department after reviewing by merchandiser. They open Back
to Back L/C.

The working procedures of import section explain below.

 Export L/C (letter of Credit):

At first Import section collect Export L/C, which done against contract. Against this
L/C Company open import L/C for Fabric & Accessories suppliers. Suppliers may
local or foreign.

 Lien Application:
Commercial department through Export L/C to the bank and drop application for lien.
Lien Export L/C used for import Fabric & Accessories against Export.

 Lien Certificate:
After application bank given approval of lien and a certificate against export L/C
that‟s known as Lien Certificate.

 Contract Amendment:
If there is any change in the contract on behalf of buyers demand then contract
amendment was held.

 Back to Back L/C:

Against main export L/C import section Back to Back L/C.

40
  Letter Of Credit:
In this stage import section open Import L/C for assurance of payment to supplier.

 Back to Back L/C Amendment:

If in the contract of supplier increase value or there any change of value then back to
back L/C amendment was done.

 Amendment submission copy:

An amendment submission copy has to submit to the manager of the bank including
all documents of changes.

 Confirmation of Amendment:
Then bank provide a letter of confirmation of amendment.

 Sales Contract:
Sales contract is another type of contract with buyer and seller. Generally it held with
local known buyer and supplier.

 Bill of Exchange:
Suppliers submit a bill of exchange with Delivery Challan and Material Receiving Report
(MRR). After acceptance of Bill of Exchange Supplier collect it submits it to issuer bank
and collect payment of supplied materials.

3.6.12) Follow-up materials:

The supplier may delay in sending the materials. The merchandiser sends reminder e-
mail to the supplier for sending materials in time. Without confirming the materials in
store production will not be started. If the supply of materials is delayed, the shipment
will be delayed. So this is the most important responsibility for the merchandiser to
follow up material.

41
3.7) Second Phase of merchandising:

Planning
After getting materials the production process is started. In the Sunman Group after
collecting thread they start knitting to make fabric. When fabric making is finished,
the fabrics are taken for dyeing. After completing dyeing function the fabrics are
taken for printing. When complete the printing activity, the fabrics are taken to cut.
After cutting those are taken to sewing. After completing sewing function, finishing,
folding, packaging, inspecting function is done approximately.

Knitting

Knitting is a method by which thread or yarn is used to create a cloth. Knitted fabric
consists of a number of consecutive rows of loops, called stitches. As each row
progresses, a new loop is pulled through an existing loop. The active stitches are held
on a needle until another loop can be passed through them. This process eventually
results in a fabric, often used for blankets or garments. Knitting may be done by hand
or by machine. There exist numerous styles and methods of hand knitting. Different
types of yarns and needles may be used to achieve a plethora of knitted materials;
these tools give the final piece a different color, texture, weight, and/or integrity.
Other factors that affect the end result include the needle's shape, thickness and
malleability, as well as the yarn's fiber type, texture and twist.

Dyeing
Dyeing is the process of adding color to textile products like fibers, yarns, and fabrics.
Dyeing is normally done in a special solution containing dyes and particular chemical
material. After dyeing, dye molecules have uncut chemical bond with fiber molecules.
The temperature and time controlling are two key factors in dyeing. There are mainly
two classes of dye. They are:

 Natural
 Man-made

42
Printing

Whatever clothes we wear is full of attractive with prints. The printing is done is
fabric form or in garments. When fabric comes out from mills, power loom or others
means it is generally grey in color. To make fabric and cloths attractive and valuable
dyeing and printing are done on fabric surface. Different printing methods has been
given here

 Automatic Flat Screen Printing

 Rotary Screen Printing

 Engraved roller Printing

 Heat transfer Printing

Cutting
Fabric cutting is done by following 3 ways:

1) Completely manual method: This type of fabric cutting is not available in

garments industry. But this type of cutting is performed for tailoring purpose, where
single fabrics are cut. It is completely a manual method of fabric cutting.

2) Manually operated powered knife method: In this method cutting operation is

done by using knife. Here knife is placed in the head of cutting machine. It is the most
used methods in apparel industry for cutting fabrics.

3) Computerized methods: In modern age, the use of computerized methods become

popular for perform the cutting operation. Here, all programs are loaded to the
computer and it performs the entire activities which are loaded.

Sewing
Sewing department is the heart of a manufacturing unit. Cut components are
assembled in sewing department in assembly line. List of sub-processes those are
done in sewing department includes.

 Making garment parts

 Sewing full garment
 Making garment accessories like dories, tabs, cords etc.
 Checking of stitched garments
 Alteration work of defective garments

43
Finishing
In Finishing department garments are nicely pressed and packed into poly bags. A
finishing department has following sub-processes.

 Washing of garment (Some factories may have separate washing department)

 Buttoning and button holing
 Thread trimming
 Checking of washed / unwashed garments
 Stain removing
 Ironing or Pressing
 Final checking of garments after ironing
 Mending / repair work
 Tagging
 Folding and packing

Packaging
Packaging is the technology of enclosing or protecting products for distribution,
storage, sale, and use. Packaging also refers to the process of design, evaluation, and
production of packages. Packaging can be described as a coordinated system of
preparing goods for transport, warehousing, logistics, sale, and end use. Packaging
contains, protects, preserves, transports, informs, and sells. In many countries it is
fully integrated into government, business, and institutional, industrial, and personal
use.

Inspection
To confirm the quality of the final product, manufacturers do inspection of the
garment in every stages of garment making. To eliminate biased decision buyers like
to have „Third Party inspection‟ of goods (garments) at manufacturer's facility. So,
when a factory takes service from an outside organization especially for garment
quality and process inspection is known as inspection service. There is large number
of companies who provide such services to the RMG industry. They charge for their
services.

44
Export

Export means shipping the goods and services out of the port of a country. The seller
of such goods and services is referred to as an "exporter" and is based in the country
of export whereas the overseas based buyer is referred to as an "importer". In
International Trade, "exports" refers to selling goods and services produced in the
home country to other markets. Export of commercial quantities of goods normally
requires involvement of the customs authorities in both the country of export and the
country of import. The advent of small trades over the internet such as through
Amazon and eBay has largely bypassed the involvement of Customs in many
countries because of the low individual values of these trades. Nonetheless, these
small exports are still subject to legal restrictions applied by the country of export. An
export's counterpart is an import.

3.8) Merchandising activities on Product

development:

Product development is another important responsibility for RMG merchandisers.

Before go to bulk production various stage of sampling has to pass in order to develop
a product for end user.

 Sequence of Sampling.

 Counter sample/Style sample/Salesmen sample.

 Fitting sample/ Size set sample.

 Pre-Production.

 Pre-Shipment Sample.

 Shipping Sample.

 Photo/ Advertisement/ Catalog Sample.

45
3.9) Merchandising activities on Quality control:

The main objective of quality control is to ensure that goods are produced to the first
customer (Direct Order) and hopefully to the second customer (Recorder/Alter order/
new order) as well. If both customers can be satisfied then the manufacturer products
are more likely to continue to be in demand. Satisfactory quality can only be ensured
through (from the manufacturer pint of view)

 Feed back of field experience

 Knowing the customers‟ needs.
 Designing to meet them
 Faultless construction- manufacture.
 Certified performance and safety.
 Clear instruction manuals.
 Suitable packing.
 Prompt delivery.
.

Satisfaction quality can be ensured from the customer from the customer‟s point of
view by providing:

 Right Product.

 Right Quality.

 Right Time.

 Undamaged Condition.

46
3.10) Merchandising activities on goods delivery
to buyer’s destination:

Booking to forwarder After making final inspection merchandiser received packing

list from packing section which contain the list of carton, how many pieces garments
in the carton, weight of the carton, number of pieces of garment to be shipped etc.
Refer to this information merchandiser make booking to sea or air forwarder. Export
Documentation the documents which to be submitted by a C&F agent for export: An
exporter should have to submit the following documents to the customs authority of a
station:

1. Shipping bill of entry.

2. Export L/C.

3. Packing List.

4. Commercial Invoice.

5. UD/UP.

6. VBF-9A. From to be supplied by the C&F agent.

7. Export Permission form (EXP).

47
3.10.1) Bill of Lading (B/L):
It is document issued by an eerie (railroad, steamship, or trucking Company) which
serves as a receipt for the goods to be delivered to a designed person or to his order.

B/L describes the conditions under which the goods are accepted by the career and
details

 The quantity of the goods.

 Name of vessel

 Identified marks and numbers

 Destination

3.10.2) Invoice:
Below point are including in the invoice:

 Name and address of the buyers and the seller.

 The Date and term of the sale.

 A description of the goods.

 The price of the goods.

 The mode of transportation.

3.10.3) Payment release:

After prepared invoice, bill of landing and other required documentation we send it to
buyer‟s nominated bank for payment release this is all about the job of Merchandisers
where I have worked out for three months.

48
 Chapter 4
Export Performance
&
SWOT Analysis Of
Sunman Group of
Companies

49
4.1) Export Performance of Sunman Group:
As an exporting company general trend of export variables:

Year 2011 2012 2013

Export of goods (In .000 Dozen) 60.62 66.63 74.66

Export Value (In .000 dozen) 2323 2684 2995

Profit 505 677 865

4.2) Export of Goods:

Export the product from Sunman Group 3 years:

Year Export of goods (In .000 Growth from last year

Dozen)

2011 60.62 20%

2012 66.63 11%

2013 74.66 15%

Analysis:

The organization has earned operating export of goods 74660 dozen during the year 2013 as
against target of 75000 dozen. Achievement is 99% with 15% growth rate over 2012. The
organization faced so many constraints during 2012.However; its achievement in export
goods is highly satisfactory .From the above data and flow chart we can see that the trend of
export goods of the organization is gradually increasing with a remarkable growth which
represents high profitability and stability of the company.

50
4.3) Export Value in US Dollar:

EXPORT VALUE OF from Sunman Group last 3 years in USD:

Year Export of goods(in .000 Growth from last year

Dozen)

2011 2,123 9.23

2012 2,584 17.84

2013 2995 15.31

The organization has earned operating export value $2995000 during the year 2013 as against
target of $3000000. Achievement is 99% with 15.31% growth rate over 2012. The
organization faced so many constraints during 2011.However; its achievement in export value
is highly satisfactory .From the above data and Flow chart we can see that the trend of export
value of the factory is gradually increasing with a remarkable growth which represents high
profitability and stability of the company.

4.4) Investment of Sunman Group:

Investment of Sunman Group last 3 years in BDT:

Year Investment (in .000 USD) Growth from last year

2011 1700 13.42%

2012 1916 13.10%

2013 2288 11.37%

The organization has increasing the investment value $22, 88,000 during the year 2013 as
against target of $2300000. Achievement is 99% with 11.37% growth rate over 2012. The
organization faced so many constraints during 2012. However, its achievement of investment
is highly satisfactory .Form the above data and flow chart we can see that the investment of
the factory is gradually increasing with a remarkable growth which stability of the company.

51
4.5) Operating Profit:
Operating profit earned trends in Sunman Group last 3 years:

Year Profit in .000 USD(20% of Growth from last year

export value)

2011 405 9.46%

2012 477 17.78%

2013 550 15.30%

The organization has earned operating profit of export $550000 during the year a2013 as
against target of $500000; Achievement is 110% with 15% growth rate over 2012. The
factory faced so many constraints during 2012. However, its achievement in operating profit
is highly satisfactory. From the above data and flow chart we can see that the trend of
operating profit of the organization is gradually increasing with a remarkable growth which
represents high profitability and stability of the company

4.6) Strength of Sunman Group:

 They have a management information system by which the departments and
employees are connect with each other and they have a data ware house by
which they can share their resources easily.
 Sunman Group is certified under ISO 9001-2000 and so it meets the
requirement of international standard and has a value in the mind of concern
people.
 Sunman Group using advance technology like they have modern machinery
by which the quality of product produced is very high.
 Sunman Group is one of the pioneer textiles in the Bangladesh. So it got the
position in the mind of its customer. Sunman Group has a better position in
the mind of its customers.
 They are providing better pay to their employees and also bonus to them
which motivate the workforce and they are doing well at work setting.
 They have own power generation plant and Sunman Group is the pioneer in
the private organization who start the power generation.
 Sunman Group has a greater security system. There are different hidden
security cameras which capture the all moments.

52
4.7) Weakness of Sunman Group:
 The advertising and promotional cost of the Sunman Group is very low it can
take advantage for more turnouts.

 Most of the raw materials from abroad, this is the cause of high price, which
are affected the production cost.

 The production cost is high because of not properly utilization of its resources.

 Some facilities that other providing to their employees like Transport and
medical fee etc Sunman Group is not providing to their employees because
of which the productivity of the employees decrease.

4.8) Opportunity of Sunman Group:

 If the cost of different matters which is not utilizing properly is controlled by
the Sunman Group management they can produce more in a few costs. It has
to develop a further systematic process for controlling and managing
resources.

 They can take advantages by hiring more skilled people and they should hire
young, fresh and energetic staff for their betterment.

 Sunman Group has the chance to create his own market by showing the
quality of the products and working condition of the factory.

 Increasing efficiency in product design and quality because of international

competition.

53
4.9) Threats of Sunman Group:

 Changing demand pattern of buyers need.

 Unavailability of low priced substitute raw materials.

 Technology is developing day by day. So, technology is changing rapidly.

 Government policies are changing day to day so it is a threat for the Sunman
Group to survive in such a changeable situation.

 Because of the economic instability the Sunman Group affected a lot.

Dumping system which is rising on daily basis in the world can create many
problems for the company and any uncertainty in the world like 9/11 may
affect also the overall export.

54
 Chapter 5
Findings,
Recommendations &
Conclusion

55
5.1) Findings:
Although Sunman Group is doing their business profitably and expanding rapidly
but still some internal and external factors create the following problems and
hindrance the merchandising sourcing procedure:

 Lack of skills and efficiency of marketing executives, trainees & officials in

respect of buyer communications, interactions and performing merchandising
jobs.

 Shortage of indigenous cargo and vessel causes problems in operating the

business smoothly.

 Frequent raise in freight by shipping companies increase the cost of operation

in this sector.

 Government rules regarding export and import creates problem.

 Immense competition from the other garment manufacturer.

 Too much dependency on imported raw materials from abroad which increase
the cost, waste of time and thus increase time for production and increase cost
of production too.

 Communication gap between the management stuffs can stretch the process as
for their bit ignorance an approval could have been sent for several times and
organization can face a big loss.

 The fabric of Sunman Group is tinsel which is an imported fabric and for this
it takes generally 45 days for development to production. Generally it takes 25
days. They have 14 days to shipment but the fabric needs more than this to be
ready. So, this is a huge tension for supplier to maintain the quality and
workmanship with this constrained time for shipment.

 Price margin is fixed from buyer. So, supplier should have a bull‟s eye
forecast to maintain the price margin given by buyer. If they can‟t go with it
then, the order can be cancelled.

 Unrest of country‟s political and business condition is a reason of losing the

confidence of buyer to continue the business with Bangladeshi supplier.

56
5.2) Recommendations:

Though Sunman Group is one of the leading garments manufacturers in Bangladesh,

there are a number of suggestions for the development of Sunman Group marketing
and sales performance. It is expected that, the level of customer satisfaction of the
company would be increased only if the management takes into consideration and
materialize the following suggestion:

 As Sunman Group is integrated company they must think about expanding

their facilities, people‟s skill development and must seek new place of
sourcing.

 Increase of indigenous cargo and vessel can operate the business smoothly.

 Continuous customer contact and monitoring is essential.

 The salary structure must be modified to attract professional people.

 Benchmarking of capabilities would be helpful for handling competition.

 Sunman Group must be more cautious about pricing of the product. The price
must be competitive.

 Communication with government in respect of different matters must be done

time to time.

 Management must take effective decision about new buyer attraction to

increase volume of business.

 Government must work as facilitator in respect of both promotion and

regulation of garments industry in Bangladesh.

 Competition must be handled technically and must search for new market
segment.

57
5.3) Conclusion:

Sunman Group is one of the leading companies in Bangladesh. The system, the
management style, the policies & decentralized decision making environment is really
remarkable. This report is basically an attempt to identify the areas which need to be
improved.

In this era of technology, the “Information” is the key to success in the business. This
means that the successful businessman will be who will have the right information at
the right time. This comment leads to the conclusion that the Information Sharing
Process should really be improved.

The overall analysis is indicating that the company‟s progress has mainly attained
through dedication of employees. The effectiveness of its management, their
willingness to take advantage of opportunities and face challenges of changing
economic picture, this all contributes to the very much improved and sound position
of company. This is really appreciable for the devotion and hard work of all the
employees of the company.

Finally, I would like to say that this internship at Sunman Group of Companies has
increased my practical knowledge of Business Administration and made my BBA
education more complete and practical. I should again thank Sunman Group of
Companies for providing me the chance to undergo internship program at the factory
office and without any hesitation. I have to admit that it was a delightful experience.

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 Bibliography

Books & Articles:

 Basic Knowledge of Merchandising - M. A.

Razzak
 Merchandising: Theory, Practice & Principles –
Grace I. Kunz

Web References:

 http://www.sunmangroup.com
 http://www.google.com
 http://www.wikipedia.org/
 http://www.onlineclothingstudy.com
 http://textilefashionstudy.com
 http://sewing.about.com

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