Merchandising Activities of ANONTEX Group

Merchandising Activities of ANONTEX Group

Ready-made garments are fast growing export sector in Bangladesh. The overall impact of ready-made garments export is certainly one of the most substantial social and economic developments in present Bangladesh. In order to pretend rapid growth of the country, particularly through industrialization, the government has implemented an open entry policy to attract overseas investment in Bangladesh. As results there are about 2500 export focused on readymade garments exists in Bangladesh. And in the garments sector one of the most important task is merchandising.

Merchandising is one of the important works in garments sector. In every garment merchandiser job is every essential. In this job the employer need to have hard working mind, substantial power, prompt intelligence, great observation, tolerance etc. Without merchandiser no garments can run efficiently.

For every garment buyer is the heart of their business. For this reason buyer satisfaction is most vital for a garment. Buyer means the persons or organizations who buy the products from any organization. In garments sector of Bangladesh buyer means especially foreign buyer who buy products from our garments. And this satisfaction ensuring duty performs by the merchandiser.

The first task of the merchandiser is to bring foreign buyer to buy the product through effective communication. At the time of giving order if buyer satisfied with the help of merchandiser then they will come again. Buyers another condition is delivery the products in right time.

Merchandiser take care this challenge seriously. Because if buyers do not get products in right time then they will not give the order again to that garments. So merchandisers are handling and caring all kinds of work from receiving order to delivering products to buyers and always wants to please them because garments or garments sector’s development depends on buyer’s satisfaction.

About AnonTex Group

AnonTex group Founded in 2004 for 100% Export Mission, AnonTex Group is a multi-unit, multi-interest business group with a comprehensive range of industrial activities, an organization that has founded its progress on value-based commercial practice.

The goal of AnonTex Group is to furnish clients with the best quality, ensure competitive price and excellent customer services and prompt delivery. Each concern in the Group specializes in a particular area, thus empoweringthem to better meet the diverse needs of the industry.

The composite unit of AnonTex group consists of weaving, dyeing, printing & stitching and is capable of producing multi orders, fast and best quality products according to the demand. Extreme care is taken to ensure quality standards at all stages of production and this is possible due to their state of the art production facility. AnonTex group believes in continuous process of expansion and incorporating the updated technological innovations in order to ensure our customers the best possible quality.

AnonTex group has the relationship with following regulatory body:

• BGMEA (Bangladesh Garment Manufacturer and Exporter Association.)
• EPB (Export Promotion Bureau.)
• DCCI (Dhaka Metropolitan Chamber of Commerce and Industries.)
• BTMC (Bangladesh Textile Mills Corporation.)

The Project Detail

Objective of the Report

Broad Objective

• To find out the activities of merchandisers in prospective of the ready-made Garments of Bangladesh.

Specific Objectives

• To know the merchandising activities of AnonTex group.
• To know the overall internal and external environment o AnonTex group.
• Identify the major opportunity and threat of AnonTex group.
• To know buyers satisfaction level of AnonTex group.

Methodology

Source of Information:

1. Primary: The primary information collected through face to face interview and observation.
2. Secondary: The secondary information collected from website, books and some other relevant sources.

Both primary and secondary data sources will be used to generate this report. Primary data sources are observation while working in different desks. The secondary data sources are different published reports, manuals, updates website and different publications of “AnonTex Group.’

Merchandising Activities of AnonTex group

From my analysis I found that, the merchandising process is the communication process of buyers and merchandiser. The fast task is to make an e-mail communication with the foreign buyer. The buyers send a mail with the design requirement to the merchandiser to arrange the sample and costing. Then the prepared sample and costing is forwarded to the buyer through mail. If the sample is accepted then merchandiser goes to the negotiation phrases with the buyer. After settle down the price, the buyer offers contract and order sheet to the AnonTex group and also provide the information regarding delivery time and way. After confirming the order, the buyer opens L/C in their country.

The sample progress and other relevant tasks of AnonTex group are describe below-

• Sample Development according to demand

In merchandising process at first a mail is obtained from the buyer with a sketch, which includes details of the design. With the sketch the buyer send the dimension chart. The buyer also mentions the fabric details, washing directions, trims details etc. in the mail.

If any special type of fabric is demanded by the buyer required is not available in the garment, than they swatch for the merchandiser’s convenience. After receiving the sketch and dimension chart from the buyer, merchandiser advancesthe preparation of the sample according to the buyer’s obligation and sends back it to the buyer.

• Collect L/C document from buyer

When the price negotiation process complete fully and buyer want to give the orderthey have to open a L/C in their banks. Both the parties must be open a LC where several terms and conditions must be mention like name of buyer, negotiable buyer bank,country name, payment system, delivery period, production system, quantity, name of the port address, details about shipping etc. After opening the L/C buyer send this document to merchandiser.

• Transfer Master L/C copy on the name of selected supplier

After receiving the LC the merchandiser also open a LC on his own company. Once the company is confirmed that the supplier has the capability to do the work appropriately then they negotiate the price. When the price is finalized with the supplier the commercial department immediately transfers the master LC copy in the name of supplier.

• Contract sheet

Buyers confirmed the order by sending a signed contract sheet by mail. Buyers sends this type of signed contract sheet when the sample, pricing, delivery,quality, schedule, andtime etc. can satisfy the then.

• Place order to suppliers for production

After receiving the contract sheet from the buyer the merchandiser takes all the ground work for production. If the buyer demands to collect different equipment then the merchandiser negotiate with the supplier. When the enter requirements are complete then the merchandiser of AnonTex group start production according to the sample and other things mention in the contract sheet.

• Monitoring to ensure desire Quality

Ensure the best quality it is highly related to satisfy the buyer. AnonTex group is very popular in this prospective. To ensure the quality of the merchandiser gives the power to the production manager. The Chief and few supervisors control each line and provide instructions. The quality controller supervises the manufacturing process to maintain the quality. Under the QC there is some quality inspector to check the production within each line.

• Packing the manufactured garments

After washing and final checking in the finishing line the ready-made garments are been packed. Some accessories like price ticket, poky bag, hand take, cotton sticker etc. need before packing. Buyer instructions are followed strictly during packing.

• Final Inspection

After completing washing and packing task the product are inspected by the senior quality controller of buying house. This is one of the important tasks for the merchandiser because lots of defective materials are identified in final inspection. At this time all responsibility pressured on merchandiser. If they satisfied after inspection then the product is as ok for shipment.

• Cooperation with the shipping lines

This is the final step of merchandising in delivering the garments. In this step commercial manager assists the merchandiser to maintain liaison with shipping lines. The supplier performs all the purposes of shipment. There are different functions are done by the commercial manager like CNF for shipping,UD collection, etc.

Achievements of AnonTex in exporting goods

AnonTex achieved the ISO Certification 9001:2000 for their quality management system. They have also the “Best Exporter of the Year” award in RMG sector in 2011. They have succeeded to ensure the buyers satisfaction with maintaining durability of its quality productions.

Target Market and Market Share

The company is a 100% export oriented company. Sales are done through buying house. Anontex group has already been established as a strong brand of garments manufacturer amongst the Bangladeshi RMG sector. However at present there is remarkable competition in the market and among this hard-hitting competition the company is acting well. The company has amazing market share in the garments sector.

Quality Assurance

In the export market place supply of quality product is considered to be prime element for successful marketing of the product. It is usually believed that the buyers do not sacrifice quality for achieve low cost advantage. As such, quality of the product must be confirmed to compete in the export market. The sponsors of the company to remain always aware about the quality, design etc. of fabrics. To produce quality fabrics they are obligatory to use proper imported and local raw materials, right -type mechanism and to employ experienced and skilled workforces. The quality control section of the project must be fortified with the required and required quality control equipment so that at every stage of production quality of the product may be ensured; otherwise, it may difficult for the project to penetrate their product successfully in the international market unless quality is maintained properly.

Anontex Group has adopted fourteen quality management principles to gain this optimum level of the quality of the products:

1. Customers focus leadership.
2. Process approach.
3. Involvement of people.
4. System approach to management.
5. Continues improvement.
6. Mutual Beneficial supplier relationships
7. Fact based decision making
8. Mutual Beneficial supplier relationships
9. Regular monitoring
10. Regular update the information
11. Ensure Quality raw materials.
12. Faster process in production system
13. Training for the workers
14. Highly equipped factories.

Throughout its nine years of operation, AnonTex group has honed its Quality Control System, which is comprised of thorough measurable, process and product checks. By remodeling & refining the system unremittingly, they now feature a unique capability of high quality product in quickest possible time.

They have acquired latest technology like computerized quality control & feedback process; and have created a quality consciousness among their workforce.

Their experienced quality control team extends our operation even in sourcing decisions of raw materials, chemicals and accessories or in recommending new technologies.

So from selecting right chemicals for ensuring fiber color tolerance to adopting technologies to give right quality & comfort – we make the efforts to deliver maximum value to our clients.

Export performance of Anontex group

The production Performance of Anontex group is Very much satisfactory. Over the past year the company has achieved its run their business efficiently. They have awarded for the excellence in their export performances. The export performances of Anontex group are improving day after day.

Last Six months export performances of Anontex group is given below

SWOT Analysis of Anontex group

Throughout the time of doing internship report I have tried to figure out the strength , weakness, opportunities and threat of AnonTex group. Those are:

Strength

• Production capacity of Anontex groups in average: 60,000 Pcs. of basic round neck t-shirt / day.15 Ton Dyeing Capacity per day. Almost 100000 sweeter production capacity par days. makes its Production capacity much stronger.
• The company has A-Z of products with its own plant and manufacturer.
• Factory is located near to Dhaka, so it can provide better service to its buyer.
• Automatic rotor spinning of Anontex group ensures high quality of the products, productivity and flexibility with reduced energy requirements.

Weakness

• Most of raw materials are imported from countries like China, Taiwan and Korea. So inventory has preserved very strictly and product costs rises due to problems in the customs and liberating of goods from the port.
• Lack of skill labor is a thoughtful problem. Whenever any instrument gets out of order it has to be fixed by bringing technicians and for this result costs are high.

Opportunity

• Bangladeshi Readymade garments demand has an increasing tend throughout the world. More orders are coming from foreign buyers and so its demand is increasing and so price is also increasing. AnonTex group can adopt the following opportunity
• Most of buyers of AnonTex group are only USA and European country based. So they should need to focus others develop countries as well like China, japan Australia etc. to ensure more profitability.
• Company had bonded warehouse so can take advantage of more export facility and don’t have to pay tax for its important of raw materials

Threats

• The cancelation of GSP facilities become threat for overall garments sector of Bangladesh. AnonTex group also have suffered due to this decision.
• Recently the price of raw materials has increased significantly specially dying,fabrics, etc. this put a negative effect on the cost of production and moreover stock raw materials become difficult, as too much working capital is needed.
• Overall profitability decreases as a whole after the quota system was taken away in 2010.
• Few recent accidents in garments sector like RanaPlaza collapse, Fire in Tasrin and other garments, has made a bad impression in the foreign market of Bangladeshi garments.
• Instable political situation of Bangladesh sometime hamper the production and distribution procedure badly.

Buyer’s Satisfaction justification

During the time of doing internship report in Anontex group I have tried to justified the satisfaction of buyers regarding various aspects relating to merchandising activities of AnonTex group. I have communicated with lot of buyers among them I have recoded the reaction of 10 buyers in the following sectors.

• Satisfaction in Sample of Production
• Satisfaction in Sewing Quality
• Satisfaction in product Packing
• Product Delivery time
• Satisfaction in Fabric Quality
• Collection of payments from buyer in due time.
• Satisfaction in Total merchandising System

From the analysis I have found a hypothetical outcome about the satisfaction level of the buyers of AnonTex group. The result of this analysis is provided below in following findings part.

Findings

Satisfaction in Sample of Product

Production sample is very much important prerequisite for RMG business. It is the preliminary requirement for foreign buyers. Through attractive production sample the company may able to focus their activities on foreign buyers. Here Anontex group have strong production sample capacity. From my observation I found that 50 % buyers liked sample instantly, 40% buyers liked sample with some recommendation and10% buyers demand another sample. Following graphs shows the result.

Satisfaction in Sewing and fabric Quality

Sewing quality of Anontex group is standard. The following chart shows the satisfactory of buyers. Here 50% buyers are highly satisfied, 30% buyers are satisfied and 10% buyers are neutral and 10 % not satisfiedwith the sewing qualityof AnonTex.

Satisfaction in product Packing

Beside sewing quality Anontex group maintain standard packing procedure. Without Proper packing the product cannot reach at the buyer’s hand safely. So buyers are satisfied on packing. Here 30% buyer’s sere strongly agreed, 40% buyers are agreed and 30% buyers are neutral on better packing.

Product Delivery time

Product delivery in due time is very important function of a merchandiser. A buyer satisfaction is highly depends on it. From my observation buyers has not totally satisfied on Anontex group for their product delivery time. As some time they become late in delivering the product. From 10 order, 2 order Anontex deliver before date, 5 order delivered due date but 3 order were late to deliver which create dissatisfaction in buyers mind.

Collection of payments from buyer in due time

The merchandisers of Anontex group are quite capable to collect the payment from the buyer within due date. From my observation I have found that only payment have come before due date, 7 payments come on due date but 2 payments also come after due date.

Summary of the Findings

On the basis of analysis and practical experience of doing internship report period, the following findings are observed:

• The overall merchandising activities are quite efficient and effective.
• The employees are quite capable in their works.
• The export of last 6 month showing increasing trend in export performances.
• Have diversified foreign buyers in different countries.
• Most of the buyers are satisfied with AnonTex in products fabric, sewing and packing quality.
• Few clients have little dissatisfaction regarding product delivery time.
• Merchandisers are quite capable to collect the payment in due time.

Recommendations:

AnonTex group are quite able to ensure brilliancy in their performance but still I think they can improve their performance in following area.

1. They should need to avoid Bureaucracy in Decision Making for ensure faster service.
2. Most of buyers of AnonTex group are only USA and European country based. So they should need to focus others develop countries as well like China, japan Australia etc. to ensure more profitability.
3. Anontex should focus more on employees training.
4. The company needs to develop their survey System so that they can have frequent updates about the markets.
5. Late in product delivery process is a concerning factor for Anontex Group. To solve this problem Production unit should need be increase. So that the lead time can be reduced.
6. The company needs to adopt the modern style and trends. And this can possible only if they can enrich their marketing management sector.
7. The use of modern technology should be given more emphasize. If they use more infrastructures and maintain them properly they can reduce the consumption time and cost also.

As an employee merchandiser’s job is critical and risky. Because buyers satisfaction depends on merchandiser’s working efficiency. If garments deliver the products according to the buyers demand in due time, liable price and their recommended style then the buyers will come again, because they are satisfied with the order. So Merchandiser is the 1st responsible person for this satisfaction of buyers.

Conclusion

The AnonTex group has been taken all kinds of satisfactory work for buyers in all dealings. As a result their number of buyers is increasing in every year. From establishment to till today they are successful and this trend is increasing. Mainly their buyers are from USA, UK, France, Canada, Germany, Italy and Nederland’s. So Anontex group satisfied their customers or buyers by the help of their merchandiser and merchandising work for long run profit. Anontex group main goal is profit maximization in long run. Which they ensued in the past and will ensure in future too if their effective merchandising working trends continue. Almost all things are good in AnonTex group but still I have found few shortcomings during the period of doing internship report of mine. I have tried to give some suggestion for improvement for this. I hope if they focus on the suggestions and try to improve those than they not only improve their organization but also can contribute the overall improvement of RMG sector.