Mrachendising
Mrachendising
Mrachendising
Prepared For:
Dr.Muhammad Munir
Cordinator of:
0030-BS-BBA-2018
BBA Department
University of Narow. Submission Date-
22March,2022
Letter of transmital
Dear Sir,
Here I submit my internship report on Merchandising in the Garment Industry Sheikh of Sialkot, which
you have approved and assigned as a mandatory prerequisite. I did my hardest to recreate the original
circumstances of Sheikh of Sialkot as effectively and efficiently as possible. While gathering information
for the report, I learnt a lot and gained significant experience and knowledge. It was a fantastic
opportunity for me to work on this real-life project and apply my academic knowledge from this course
in a practical setting, as well as learn something new. I hope that this project paper met your
expectations; if you have any questions or concerns about these situations, please contact me.
Sincerely,
Tahreen Akhtar
0030-BS-BBA-2018
University of Narowal.
Aknowldgment
I want to convey my gratitude to everyone who was engaged in the production of this report, whether
directly or indirectly. I regret to those whose names I have left out, but their contributions are greatly
valued by me.
First and foremost, I want to express my gratitude to my supervising instructor, Mr. Ali Nouman, Asst.
Professor at the University of Narowal, for his guidance and kind cooperation in the preparation of this
report.
I'd want to take this opportunity to express my gratitude to Mr. Ilyas, Senior Manager, Merchandising,
Sheikh of Sialkot Limited, for serving as my on-the-job supervisor and providing me with timely
information, suggestions, and processes related to my issue.
I also want to thank Mr.Naeem, Senior General Manager, of Sheikh of Sialkot (PVT) Ltd. for being so
cooperative in my work.
I also want to thank MD.Bilal Voice President, Sheikh of Sialkot(PVT) Ltd. for establishing a welcoming
environment and assisting me with project details.
Finally, I'd want to express my gratitude to all of the management and non-management personnel who
assisted me during the project period, as well as the whole personnel of the organisations who
influenced me in some way in preparing my report.
Executive Summary
The internship programme is a requirement for earning a bachelor's degree in business administration.
Classroom discussion alone will not prepare a student to handle a real-world business problem;
consequently, this programme provides an opportunity for students to learn about professional job
situations. For the university and organization's requirements, a report must be written. "Merchandising
Activities in Garment Industries in SOS" is the title of the report.
SOS Apparel & Fashions Limited is the subject of the case." The topic of the report makes the main
objective of the report very obvious. In the SOS Garment Industry, SOS is one of the major groups. This is
an excellent opportunity for me to complete my internship and obtain a permanent position with this
firm. This is a massive factory with all of the necessary equipment. From generating diverse brand
sample clothes to finished garments for export, the production process takes place here. In today's
world, SOS is thriving in the RMG sector, where this division makes a significant contribution. Woven
garments and leather garments account for the majority of the garments sector's annual export
revenue. Ready Made Garments is solely focused on export. RMG exports a wide range of garments.
RMG exports a variety of clothes to other countries. The company manufactures leather jackets, skirts,
pants, shorts, and trouser for men and women in the United States, the United Kingdom, and other
European countries. To make a high-quality clothing, they use high-tech machinery.
They also invest in new equipment to expand their production line. They have a mission and a vision to
maximise profits. Buyers and the garment industry have an excellent relationship. Their key tactic is to
work hard and maintain their dedication. The merchandiser staff is extremely efficient and
knowledgeable in their field
Table of content
Letter of Transmittal
Acknowledgement
Executive Summary
Chapter-1-Introduction
History
Overview of organization
Organization structure
Chapter- 2 -overview of organization
Organizational Organogram
Mission Statement
Vision of the Organization
Human Resource Management
Garments Merchandising
Production process of leather Jackets
Garments trims / accessories
Product
Name of the buyers of Sheikh of Sialkot (PVT) Ltd.
Fabric Supplier of Sheikh of Sialkot (PVT) Ltd.
Trims Supplier of Sheikh of Sialkot (PVT) Ltd.
Business Development Procedure
Activities and responsibilities of Merchandising team to maintain quality
Chapter-6- Conclusion
Appendix-
List Of Abbreviation
References
Chapter-1-
Introduction of industry
After textiles, Pakistan's leather industry, which includes leather products, is the country's second-
largest export earner. Currently, this sector exports over $913 million per year, but it has the ability to
increase this volume of exports by improving quality and diversifying into a wider range of products.
Tannin, leather garments, leather gloves, leather footwear, leather shoe uppers, and leather goods are
among the six sub-sectors of the leather business. Recently, the country has risen to prominence as a
top producer of leather clothing and gloves.
Only a few tanneries produced sole leather at the time of independence, and they did it on a small scale.
Some tanneries were developed in Karachi during the early days of freedom. Some were established in
Lahore and the surrounding areas in the 1950s. More units were installed in different parts of the
country during the 1960s, including Multan, Sahiwal, Kasur, Gujranwala, and Sialkot. These units were
well-equipped with the most up-to-date and cutting-edge technology. In the 1970s, more modern
machines were established, and Pakistan began producing finished leather. The 1980s experienced a
time of increased production quality. In 1990, the leather industry ascended to second place in terms of
foreign exchange earnings, accounting for 10.41% of total earnings.
History
Sheikh of Sialkot started as a partnership concern in 19885 and in 02-07-1990 it convertin Sheikh of
sialkot (pvt) Ltd.The old name of Sheikh of Sialkot is LEATHER AVENUE (PRIVATE) LIMITED by Shares
which is establish in 1985 but registered in 2009 under the company ordinance 1984. And change their
name now is SHEIKH OF SIALKOT (PVT) LTD. It Located 9th KM Addha Daska Road, Sialkot. Pakistan (On
Main highway from Lahore) and covered 15 Acres (653400 Sq.Ft) and principal activity of the
corporation is processing the Leather and manufacturing & export of Quality Leather/ Textile Garments.
The organization has three tiers of management, the board of directors and the key Management
personnel.
Mr. Imjaz Latif; Chief Executive and President of Sheikh of Sialkot. The vital function of production of
Leather Processing and exports is in control of Mr. Ansar Latif. Mr. Bilal Latif deals in Marketing and
purchase.
Sheikh of Sialkot (Pvt.) Ltd is one of the first companies to employ the “Chain System”through the help
of Korean technology. Chain system production allows the completion of the most amount of work in
the least possible time. This allows each employee to focus on only one part of a garment at a specified
time which in turn ensures consistency and maintenance of high quality standards. Our quality of work
and short lead times speak for themselves.
The garment unit is one of the most modern,efficient, and largest in Sialkot, with a total covered area of
about 250,000 sq. ft. SOS presently exports 100% of its output. Han stitched leather jackets, bags, coats,
motorcycle jackets, suits and dresses, shorts, leather trousers, and all types of denim jeans, pants, shirts,
shorts, and jackets are produced in this facility. In addition to trained personnel, there are roughly 600
stitching machines for button-hole, embroidery, and embossing.which production is around 60,000
pieces per month. For the last 3 generations,
Sheikh of Sialkot has continually recognized the importance of workmanship and styling as integrals for
producing high-quality leather products. Working natural material like leather from beginning to end is
an art of its own that we have proudly master.
Tanning Unit:
The tannery covers an area of 100,000 square feet. The company uses Italian and German technology to
process and finish about 4.0 million square feet of hides and sides each year. Fareast Europe, North
America, South America, and Canada account for 30% of overall production.
Garment leather, as well as shoe uppers and upholstery leather, are all available.In kid, goatskin, sheep,
and cow calf leathers for shoes and purses, it is capable of not only following fashion trends but also
innovating on its own.
We have a long way to go, but with Allah's blessings and the joint and concerted efforts of management,
staff, and employees, we hope to achieve our goal of handling leather from all over the world.
Shoe Unit:
In 2006 Sheikh of Sialkot started their own brand “DesiDerio”. Shoe unit has Bangladesh, China, South
Africa, Far East Europe, North America, South America, England, and Canada each receive 30% of total
production. The industry is always up to date on the latest developments, which cover an area of about
100,00 sq. ft. near Shadhra Bhadhra, Daska Road, Sialkot. Each month, it makes roughly 10,000 pairs of
shoes.
taking place, particularly in Europe, in current footwear technology and technical know-how. SOS
makers have recently benefited from the latest styles and patterns developed in Italy and other western
countries, and have evolved new and contemporary footwear patterns utilising their own unique skills.
Mission:
"To be a leading developer, production, and innovation of overall performance of the organisation
leather/textile garments for the complete pleasure of the demanding clients that we serve across the
world, while also enhancing the wealth and well-being of our management and staff."
Vision:
An innovative and rapidly growing company that provides items that meet changing market demands."
Core Values:
The core principles that underpin a company's operations and behaviour are referred to ascorporate. At
SOS, we believe believe our workers are the face of our company to the outside world, thus they must
be technically proficient while also being ethical in their work. Our values include the following.
Business Volume:
Sheikh of Sialkot (Pvt.) Limited incorporated as a Private Limited Company in 1985.Its annual sales in
FY2019 is PKR 1,643621628 and Net income PKR 22,576,316. Its registered office is situated at 9 K.M
Addah, Daska Road, Sialkot. The company comprises its businesses:
Tannery Unit.
Garment and Textile Unit
Shoe Unit (DesiDerio)
The Production of Tannery Unit is around Annually, 4.0 million square feet of skins and sides are
produced.Fareast Europe and North America account for 30% of overall production. South
America and Canada are two countries that share borders.and production of
Garments and Textile is around 60,000 pieces per month in which 100% is exported. Shoe Unit produce
around15,000 pairs of shoe per month. 30% of the total production is exported.
competitors:
It has a lot of competitors in the market
Product Line:
Our Customers:
Organization Structure
Number of Employees:
The total number of employees in Sheikh of Sialkot (Pvt.) Ltd. Are approximately 2,000.
Main Offices
Head quarter/registered Address Sheikh of Sialkot situated in Sialkot.
Departments:
Objective:
Function:
To supply human resources that will assist in running the company's operations in an efficient manner,
as well as to look after the company's employees' benefits and interests so that they could become
more effective for the company.
Finance Department:
Objective:
The Finance Department's major goal is to secure funding for the company's operations from a
variety of sources, monitor and supervise finance-related activities, and review and manage the
company's records.
Purchase Department:
Objective:
Purchase departments assist companies in maintaining their financial health by purchasing items
and services that satisfy operational needs while also giving the best value. By overseeing supply
chain operations and freeing department heads of dangerous chores like negotiating contracts
with vendors, purchase departments keep system working properly.
To create manufacture orders, suggest work orders, and suggest purchase orders, the
production and project or programme examines existing demand, expected demand, and
inventory requirements.
Export Department:
Function:
Marketing and promotion of the company's products on a global scale ( social media,
ecommerce website, mailing lists, foreign business directories, communicate with foreign
chamber of commerce)
Take part at trade shows
Respond to international queries and followed up with clients.
Proceed to send administrative documentation (such as an invoice, bill of lading, and
certificate of origin) to importer of company goods.
Orders and shipments are communicated with overseas buyers.
Send price quotes and (Performa Invoices)
Visit foreign customers and establish good business relations
Study market trends and customers preferences. Communicate with company engineering
and design department on future trends in foreign markets.
As Sheikh of Sialkot (Pvt.) Limited is amongst the largest organizations of Pakistan and it
has to pay much attention on its structure. SOS is following the Centralized system, each
and every work is done by Head office. The sites offices cannot take any decision, all the
decision are taken by head office. As in this Hierarchy, it is shown that there is a proper
system of hierarchy. At each and every level there are officers and performing their
duties according to a complete format. There is a proper hierarchy system and everyone
is following this. So it’s a good point, but there must be Decentralized system to some
extent. As in this hierarchy, the chief Executive is at top, Directors then managers and
then other officers are performing their actions.
Chapter-2-overview of organization
Organizational Organogram
Chapter-3
When an export order is given to a merchandiser, he/ she has to schedule the following function to
execute the export order in time
Our top priority is to provide high-quality leather jackets that are flawless, natural-
fitting, and stylish. Before arriving at the customer's doorstep, each order passes
through several production departments.of our customer.It is important for our
customers to know how this is all done, what type of hide we use, how we make,
process and ship leather jackets around the world
1. SELECTION OF LEATHER:
All of our jackets are crafted with obsessive attention to detail and sorted accordingly. Our jackets are
100% hand-made by experts at our warehouse and use lambskin hides as a primary resource for
creating leather jackets. It is one of the softest, natural and skin-friendly selections utilized today for
creating comfortable leather products. We also use cowhide for creating rugs and other product.
2. TANNING:
Our experts use fast tanning and proper cleaning solutions to ensure the hide is usable for jacket
production. Different methods and equipments are utilized for this purpose to remove impurities, hairs,
fat, and proteins that grows bacteria.
4. DESIGNING OF JACKET:
Creating a design, cutting, stitching, adding lining, and attaching fancy elements are all part of the
general production of a leather jacket. We have experienced designers who know how to use garment
equipment and machinery to manufacture the exact jacket for the size, variation, and colour requested.
1) Cutting and Sewing:
The idea is to design a jacket which you can wear with pride for a long time without the stitching coming
undone. Experts at the warehouse gather the pieces of leather required for the jacket's outer and inside
patterns. After collecting all of the pieces, each one is cut out and sewn together for the sleeves, front,
and back.
2) Jacket Pattern:
For us, a very well jacket is essential. Different aspects of designs, appropriate technological tools, and
techniques are employed based on the style desired by the customer to achieve the greatest outcomes.
3) Lining Attachment:
Because the inside makes the jackets more comfortable, we use only the smoothest and most skin-
friendly viscose for it. As an end, the jacket warms up and feels more natural against the skin.
5. QUALITY CHECK:
We do a variety of tests to ensure that the product will meet your expectations for a long time. Our
inspection team performs checks to ensure that quality is maintained.
Once everything is in order, our crew gives the jacket one last glance before sending it to the packing
department to ensure it meets the requirements. To avoid freight damage, we cover all of our goods in
customised leather jacket bags for improved stability.
7. DELIVERY:
Our primary courier services are DHL and FedEx, widely known for fast and secure shipment. After
handing the parcel to the courier, you will receive a code to track status of your order.
Garment trims means item used in making garments complete except the basic fabric. There are lots of
item used as trims to make a finish garments.A list of few important trims are given below-
Modes
Sewing thread
InterlininBu
Button
Label
Zipper
Lining shoulder fad
Elastic
Polybag
Hanger
Guru tape
Scotch paper
Tissue paper
Plastic pin
Collar inserCo
Collar bone
Tag pin
Neck board
Back boarQu
Trim quality is important; sometimes a buyer has a preferred trim supplier for a particular
design order, and a merchandiser may need to get approval for some trims before confirming
their use in the finished garment. Otherwise, the goods may be rejected by the customer. The
most crucial factors for a Merchandiser are —
Communication.
Production Scheduling Continuation
A smart Merchandiser's responsibilities include managing orders through four phases.
1. Buyers/Sourcing for Future Orders
2. A New Era
3. Order Confirmation
4. The Order of Things
Sheikh of Sialkotmainly create Top and Bottom leather garments for Men, Women, Dominate
these markets in high quality:
LPP
Snow Queen
Zara
Jennyfer
MANGO
KARL
Columbia
Kaye
FrFrankoni
8. Junaid(Teffeta supplier)
The quantity of fabric or interlining (if needed) used per garment is referred to as consumption.
We may compute how much total fabric is needed for the specified bulk manufacturing after we have
the consumption in yards (unit).
• Buyer approval and sample control- A sample is prepared after the price is approved and place orders,
and it is normally M sized in all colour combinations of the projected order. The buyer met including its
customer and recorded their responses on number of orders per colour, size, and other factors before
placing an order with their vendor. Catalogue buyers are primarily used in sales samples.
• Potential material procurement, as well as fabric, trims, and other accessories approved in a timely
manner- Trims card preparation It is vital that the customer confirms all elements that will make up the
finished product before garment production begins. Some purchasers will demand that all trims be
reviewed, while others will simply want clearance of significant trim components.
· Lab dips and other approvals- So here are some examples of items which may require review:
2. Production fabric, which is usually utilized in a large enough size to accommodate full pattern
representation.
Buttons, lace, zippers, interlinings, shoulder padding, elastics, and hangers are all examples of this.
During this step, you may be needed to provide documents such as combustibility documents and so on.
• Order materials ahead of time and establish a follow-up chart to guarantee that materials arrive on
time before initiating bulk production (example: Bureau Varitas).
• Order follow-up:
Ensure on time Product Shipment with help of quality control and audit department:
A feature-length documentary Master L/C is a well-organized payment security instrument that provides
high-quality payment security to both the seller and the buyer in a business transaction. If the seller
meets all of the letter of credit's terms, he will be paid for his goods. The order will not be confirmed
unless M L/C is opened. As a result, it has a higher value in the export and import market than other
documents.
M L/C Check list items and those items must be included in this L/C.
Production files are being prepared in preparation for the commencement of production.
Approval Sample
Order form
Assortment of measurement sheets
Quantity of fabric
List of items to bring
Dimensions of a carton
Sending pre-production samples that have been accepted by the buyer, as well as the
production file and pattern, to the factory's in charge.
Collect the buyer's authorised sample, production file, and approved pattern.
A meeting with the production manager is set up by the merchandiser.
Give a clear picture of the approved sample, production file, and pattern.
After that, give these products to PM.
Booking to forwarder
Following the final inspection, the merchandiser got a packing list from the packing department, which
included the list of cartons, the number of pieces of clothes in each carton, the weight of the carton, the
number of pieces of garments to be delivered, and so on. Make a booking with a marine or air forwarder
using this information.
Export Documentation
The following documentation should be submitted to the customs authority of a station by an exporter:
5. UD/Up
• Release of funds We submit the invoice, bill of landing, and other necessary papers to the buyer's
designated bank for payment release.
My Experience of Merchandiser
My work experience/internship activities at Sheikh of Sialkot (PVT) Ltd provided me with a wealth of
information. Because I work as a Junior Merchandiser with Sheikh of Sialkot Limited, I have had the
opportunity to learn a lot. During that period, I performed many merchandising-related tasks in the
company, including the following:
Daily activities
• Scanning documents
• Photographing samples
• Communication via mail
Weekly routines
I learned a lot and worked in the Finance & Accounts Department in addition to seeing the full
Merchandising Process.
Internal Challenges
The lace and button problems is a challenge that every style has to deal with, whether it's in the sample
phase or in the development phase. The matching of the lace button was practically impossible to meet
the buyer's expectations because the lace is a fancy item that needed to be sourced more and more due
to shrinkage, which was expensive, and the sample was hanging for additional procedure owing to its
unavailability.
Other Challenges
During my time there, one of the biggest issues I encountered was that a few people in charge of a
certain area were not always willing to cooperate with interns. Another issue was that Sheikh of Sialkot
Limited failed to offer me with any formal briefing or workshop, making it extremely difficult for me to
comprehend the work.
To sum up, Sheikh of Sialkot Limited assisted me greatly in learning about Merchandising operations as
well as necessary documentation in a straightforward manner. I gained practical information about
where a merchandiser works, what his key tasks are, what processes are followed, and how to follow up
on the actions from this Garments.
The Strengths, Weaknesses, Opportunities, and Threats (SWOT) of a firm are evaluated in a SWOT
analysis. Internal value-creating variables like as assets, talents, and resources are examples of strengths
and weaknesses. External variables such as Opportunities and Threats create circumstances that a firm
cannot control.
The SWOT analysis of Sheikh of Sialkot Limited is given below –
Strengths
1. Own Land: Sheikh of Sialkot Limited's factories are located on its own land.
2. Effective Manpower: Industries have a lot of skilled, knowledgeable, and productive workers. They are
doing everything possible to ensure on-time delivery and the export of high-quality clothing.
4. Innovative product lines: Product lines are creating one-of-a-kind and innovative garments, which is a
positive sign for the industry.
5. Proper Management: Sheikh of Sialkot Limited employees efficiently manage all paper work,
supervise production from start to finish, and assist in the shipment of goods in accordance with buyer
requirements.
Weaknesses
1. Post-purchase behaviour: Employees do not obtain actual post-purchase behaviour of buyers after
the products have been shipped, which is a major red flag for the industry.
2. Worker shortage: Because the industry is small and the number of employees is limited, it can be
difficult to produce all of the goods on time, and the workload of the workers can increase dramatically
if there is a large shipment.
4. Awful salary structure: Because the sector is still struggling, the salary structure isn't great.
Opportunities
1. Covering the UK and US markets: Recently, some foreign countries have expressed strong interest in
entering into an agreement with Sheikh of Sialkot Limited, which is very encouraging. Covering a larger
market region in the EU and the US will aid the industry's rapid growth.
2. Business diversification: Sheikh of Sialkot Limited can diversify their operations by establishing yarn,
woven, and sweater factories. It will assist them in reducing the risk.
3. Hiring dynamic and recent graduates: SOS has the ability to hire dynamic, young, and recent
graduates who can produce creative ideas and lead to increased profits.
4. Participating in Trade Shows: SOS can participate in various trade and textile fairs to gain public
attention and new ideas about today's business.
Threats
1. Lack of a spinning plant: The majority of well-established garment industries get their own spinning
plants. As a result, they are able to sell their goods at a lower price, although Sheikh of Sialkot Limited
lacks a spinning plant. As a result, their production costs are expensive.
2. Smart move by competitors: Competitive industries are constantly providing innovative and substitute
products, posing a significant threat to this industry.
3. Trade barriers: For growing industries like Sheikh of Sialkot Limited, increased barriers to trade and
quota system withdrawals are major threats.
4. Political unrest: The current political unrest is one of the biggest threats to SOS. Strikes,
procrastination, and other factors are severely impeding the production process.
Chapter -5
One of the best leather and textile groups in SOS is Sheikh of Sialkot (PVT) Ltd. It has a stellar reputation
for excellence on the global market. In general, I have focused on Sheikh of Sialkot Limited's financial
and merchandising activities. I believe the following areas should be upgraded immediately in order to
obtain the intended results:
1. This company's supply chain or procurement department is weak, causing merchandisers to procure
all of the garments' raw materials, putting them under more pressure to complete the shipment on time
and, on occasion, over the shipment date.
2. The operation's planning department should be strong, and knowledge should be guided. Productivity
is low in this area due to a lack of authority over output. For enhanced productivity, it should be
increased.
3. The quality control system should be remodelled because all international buyers place a premium on
quality.
4. The quality of the workplace environment should be improved. The pay scale is quite low, and it
needs to be improved because the company will lose prospective employees as a result of their policies.
5. Power distribution should be well-managed, and there should be clear communication among
workers and management.
6. Merchandisers must develop long-term relationships with key parties such as buyers, buying houses,
and suppliers, rather than short-term relationships.
7. Because the industry is struggling, the annual growth rate should be measured frequently using the
growth share matrix, BCG (Boston Consulting Group approach) to determine whether the business is
operating effectively or not.
8. For increased output, consulting with garment experts on strategic planning will be beneficial.
9. SOS should assess their position in relation to the production process and competitors' positions in
order to take corrective action in order to compete and stay in business.
10. SOS can create their own design section, from which they can create new and distinctive marketing
products. In order to achieve the best outcomes, they can find a professional fashion designer in SOS or
overseas.
Chapter -6 -Conclusion
Due to the global financial crises of 2009, the RMG sector is predicted to grow. As China struggles to
produce low-cost textile and footwear owing to rising labour prices, many foreign investors are
migrating to Sheikh of Sialkot Limited to take advantage of the low labour costs, which is a positive
indication for the company. Merchandising management is a massive and complicated job.The study's
findings reveal that Sheikh of Sialkot Limited needs to take a number of efforts to strengthen their
merchandising strategy in order to become successful. This is a vast field that has yet to be fully
explored. Merchandisers are the most precious and valuable resources for the organization's
advancement, according to the survey. Many factors have a role in the creation of these precious
resources. So, in order to effectively boost an organization's production, good Merchandising
management is required.