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

Day 1 Facilitator: Ranjith Raddalgoda (MBA Sri J) Agenda 1. What is Merchandising 2. Role of factory /buying Office/ Retail Merchandising 3. Merchandisers Key Responsibilities 4. Negotiation skills developments 5. Communication Skill development 6. Co-ordination with departments 7. Key performance indicators in merchandising 8. Repot updating: Agenda 1. What is Merchandising 2. Role of factory /buying Office/ Retail Merchandising 3. Merchandisers Key Responsibilities 4. Negotiation skills developments 5. Communication Skill development 6. Co-ordination with departments 7. Key performance indicators in merchandising 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 customer expectations.: 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 customer expectations. 2. Role of factory /buying office/retail Merchandising Design Merchandising - Concept development Buying Office Merchandising Act as a virtual manufacturing agent Development Merchandising Managing activities from design/ initial sample to PP and line sample Procurement Merchandising- Sourcing & Purchasing of RM Operation Merchandising Monitor Order placement, execution up to delivery : 2. Role of factory /buying office/retail Merchandising Design Merchandising Concept development Buying Office Merchandising Act as a virtual manufacturing agent Development Merchandising Managing activities from design/ initial sample to PP and line sample Procurement MerchandisingSourcing & Purchasing of RM Operation Merchandising Monitor Order placement, execution up to delivery 3. Merchandisers Key Responsibilities Overall responsibilities Update Factory Monitoring Information System, with orders, revisions and T&A up dates. Raise P/Os and procuring 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 information to the factory and Customer or Buying Office team. :

3. Merchandisers Key Responsibilities Overall responsibilities Update Factory Monitoring Information System, with orders, revisions and T&A up dates. Raise P/Os and procuring 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 information to the factory and Customer or Buying Office team. 3. Merchandisers Key Responsibilities Specific Jobs Obtain quotations and raise Purchase Orders on time. Notify short shipments/ shipment and sending packing 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 trim is rejected finalizing claims. Monitor fabric/trim issues to Cutting. : 3. Merchandisers Key Responsibilities Specific Jobs Obtain quotations and raise Purchase Orders on time. Notify short shipments/ shipment and sending packing 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 trim is rejected finalizing claims. Monitor fabric/trim issues to Cutting. 3. Merchandisers Key Responsibilities Follow up Follow-up on sampling, getting size break up, getting best YYs, fabric/trim deliverys, accessory transfers to satellite factories, follow up on sub-contract activities like embroidery, getting all the sample approvals, shade bands, thread colour approvals, payment to suppliers, Trim/fabric inspections, ploy bag/ cartoon measurements and final shipments status. : 3. Merchandisers Key Responsibilities Follow up Follow-up on sampling, getting size break up, getting best YYs, fabric/trim deliverys, accessory transfers to satellite factories, follow up on sub-contract activities like embroidery, getting all the sample approvals, shade bands, thread colour approvals, payment to suppliers, Trim/fabric inspections, ploy bag/ cartoon measurements and final shipments status. 3. Merchandisers Key Responsibilities General Rules Reply all emails 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 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-mails 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 constant visiting to production lines where your product is being produced. Take total ownership of the order. 4. Negotiation skills developments How to gain competency? Relevant knowledge- (Technology/ soft skills/ Current global market conditions/ What competitors do differently/ New methodology in process management/ problem solving techniques (Japanese way). Gain skill- Practice/ Internship/ Role model approach/ Communication Skill Right Attitude Change management/ Learn to accept mistakes and constructive criticisms/ Give respect to get respect/ Respect to knowledge/ Learning attitude : 4. Negotiation skills developments How to gain competency? Relevant knowledge- (Technology/ soft skills/ Current global market conditions/ What competitors do differently/ New methodology in process management/ problem solving techniques (Japanese way). Gain skill- Practice/ Internship/ Role model approach/ Communication Skill Right Attitude Change management/ Learn to accept mistakes and constructive criticisms/ Give respect to get respect/ Respect to knowledge/ Learning attitude 5. Communication skill development The Communication Process- is the process of passing information and understanding from one person to another. The communication process involves six basic elements: sender (encoder), message, channel, receiver (decoder), noise, and feedback: 5. Communication skill development The Communication Process- is the process of passing information and understanding from one person to another. The communication process involves six basic elements: sender (encoder), message, channel, receiver (decoder), noise, and feedback Noise 5. Communication skill development Basics of communication In organizational contexts, 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 managerial communication. : 5. Communication skill development Basics of communication In organizational contexts , 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 managerial communication .

5. Communication skill development Basics of communication Nonverbal Communication Nonverbal messages include images, behaviors used to communicate. Images - include photographs, film, charts, tables, graphs, and video. Nonverbal behaviors- include 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 looking away. Gestures should be natural and well timed. Grooming and dress should be appropriate for the situation. Listening requires good eye contact, alert body posture, and the frequent use of verbal and non verbal encouragement. : 5. Communication skill development Basics of communication Nonverbal Communication Nonverbal messages include images , behaviors used to communicate. Images - include photographs, film, charts, tables, graphs, and video. Nonverbal behaviors- include 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 looking away. Gestures should be natural and well timed. Grooming and dress should be appropriate for the situation. Listening requires good eye contact, alert body posture, and the frequent use of verbal and non verbal encouragement. 6. Co-ordination with departments - Progress meetings - Submit relevant information 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 (its only a matter of different thread of same puppet) - Understand that time takes to make a set of people to a team (Foaming/ norming/ confronting/ performing) : 6. Co-ordination with departments - Progress meetings - Submit relevant information 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 (its only a matter of different thread of same puppet) - Understand that time takes to make a set of people to a team (Foaming/ norming/ confronting/ performing) 7. Key performance indicators in merchandising - On Time Delivery (OTD) - On Time 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 changes/ Month - Number one or two with the customer: 7. Key performance indicators in merchandising - On Time Delivery (OTD) On Time 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 changes/ Month - Number one or two with 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) - KPI measurement chart update PP meeting schedules - Customer order summary update: 8. Repot updating - Update the ERP system - T&A update - Order progress meeting update - subcontracting (in or out) plans - Shipment plan (monthly/ Weekly) - KPI measurement chart update - PP meeting schedules - Customer order summary update Slide 16: Generic Information and reports to be provided by Merchandisers Planning 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 Issues 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 affect cut dates/ Productivity 11. Priority on deliveries like colors 12. Information 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 order status/ exceptions to deliveries 18. Style file 19. TOP comments 20. Short/ over shipment approval