SUMMER PROJECT REPORT

Merchandising Process For Spring 12: Triburg

By: Divya Srivastava MASTER OF FASHION MANAGEMENT Batch (2010-2012)

DEPARTMENT OF FASHION MANAGEMENT STUDIES NATIONAL INSTITUTE OF FASHION TECHNOLOGY PATNA

DECLARATION

I, Divya Srivastava, hereby declare that the Summer Project document submitted to the Triburg, Delhi as part of academic requirements is an original work done by me under the supervision Mrs. Mona Gera(Mentor) Triburg, Delhi.

TRIBURG

Triburg is the leading apparel sourcing company based in India . Triburg is strategically located at the Jebel Ali free trade zone in Dubai,United arab emirates ,triburg apparel buying agents is a single point resource for quality apparel for global markets. With over 20 years of experience serving some of the worlds best known brands, Triburg takes care of your business with total commitment and capacity. From cost-effective sourcing of raw materials to contract manufacturing ,quality assurance ,packing and shipping ,Triburg apparel buying agents takes care of all apparel sourcing needs. Triburg can be counted upon for its reliability,experience,professionalism,superior product quality, fast turnaround, proactive services, competitive pricing,flexibility, HR compliant vendors, ecommerce connectivity. HISTORY:

In 1979, when two young technocrats decided to give a new meaning to Apparel s South Asia, they targeted their entrepreneurial drive at becoming a market leading With their hands-on approach ,a personal commitment to responsibility, meeting c needs proactively and delivering world-class quality on time, that vision became a They grew from strength to strength, picking and training their growing team with basic values. Their motto is the Mission statement which is epitomized in all our 3 offices (Dubai, Sri Lanka & India),and our 22 branch & Liaison offices spread ov the United States. The fact that we have grown to over US$ 225 million in sales and that we have 300 young professional associates, is a proof of our credibility and an assurance that 2 decades have been well invested. Our commitment to business integrity and win-win associations has brought us a galaxy of stars - our Customers, Vendors and Suppliers - whose businesses we have enriched and who are witnesses to our claims. In synch with our industry-leading partners, we remain alert to the constantly changing needs of the market and the customer. Applying international standards to domestic ground realities and finding the winning equation is our forte. We do not rest on our laurels - our company motto is " We are only as good as our last program"

Turnover: in the past eight years its turnover has accelerated from US $ 60 million to US $225 million.

MISSION:
TAKE RESPONSIBILTY , ACT PROFESSIONALY AND DELIVER SATISFACTION ALWAYS.

OBJECTIVE:
To present a total logistics solution to maximize the efficiency, productivity and profitability of the supply chain of our partner customers"

WORK STYLE:
What we do differently - we act, not react

Marketing Teams are customer dedicated

Source the product to customers requirements. Co-ordinate the program from inception to delivery at customer's warehouse. Follow Triburg's Control System (TCS) to track the program, communicate and update customers Work with customers' design teams on products

Production and Quality Teams are Vendor/Product dedicated

Guided by their Leaders who are trained at customers facilities these are highly skilled inspectors with strong manufacturing background. They complement the Marketing team and are YOUR eyes and ears at the factory. They ensure that the product meets specifications and is delivered on time by using Triburg's Control System (TCS) for Pre- production & In-Line controls. Quality control is further enhanced by SPC (Stastical Process Control) to reduce repairs and rejects, thus making production more cost effective. Triburg continuously educates and trains vendors on systems, new technology & methodology.

TRIBURG BELIEVES

Customer success is their success. Deliver world-class quality on time consistently. Add value to the brand. Ensure a win-win outcome for all stakeholders- clients, vendors, associates. Be a responsible, reliable business associate.

ADDITIONAL FUNCTIONS

Dial-In Queries any time Split SKU's Management Reporting Order and Consignment tracking SOP Replenishment Planning Automated Code Generation

ERROR PRVENTION OVER ERROR ELIMINATION

Our operation Our Management Our Additional Services Client control of Products Accurate Forecasting Client control of Services Reduce Shelf life to Increase Profit Reduced volume,increased frequency

OPERATIONS

A one-stop shop offering complete supply-chain solutions Comprehensive Global network and freight partnerships Freight-management, warehousing and inventory management, logistics and fulfillment services. Better management of lead times Complete flexibility and simplified administration. World-class warehouse and fulfillment infrastructure The optimum path to increased sales & profits , reduced costs, improved customer satisfaction

MANAGEMENT: THE BEST IS NOT GOOD ENOUGH

On-Line Management information systems Dedicated staff on call, always Single point of accountability Costs and charging management Flexibility to integrate software Ability to increase manpower on demand Purchase and Sales order management A Strong Health, Safety and Environmental policy A disaster recovery plan

CLIENT CONTROL OF PRODUCTS

Up-to-date access to view SKU's at all times Order tracking until delivery Reduced damages and shortened deliveries, as physical replenishment can be carried out immediately for short or damaged SKU's, completing the original order in time. Timely knowledge of sold/unsold SKU's available to distributor Controlled product distribution Ability to handle returns, or resell returns to other markets Option to change orders instantly upto one hour before physical delivery Accurate tracking of precise quantity delivered, always

EVOLUTION OF TRIBUR

TRIBURGS APPROACH

The work at Triburg is guided by a set of 6 core principles. 1. SPEED TO MARKET Systems, processes and people ensure that products are delivered in the minimum lead time. This has been achieved through the following: Building capacity and expertise in the sample room leading to faster and accurate fit submissions. Streamlining factory and accurate fit submissions. Extending partnership in accommodating design and merchandising changes. Executing trend infusions.

2. PRODUCT INNOVATION AND DESIGN Triburg has an advanced design capability through an in house design studio and crafts centre managed by seven designers and several artisans. Every season, the design team analyses trends and makes specific collection for each customer. This supplements the customers in house design efforts in bringing newness and trend. 3. SEAMLESS FLOW For products to reach stores in short lead times, merchandise has to flow seamlessly across the globe. Whether it is fabric, trims, after treatments or logistic management. The ability to orchestrate supply chain management ensures that customers receive the merchandise on time.

4. COST OPTIMISATION Driving competitive pricing with vendor. Providing cost alternative.

5. TECHNICAL SUPPORT AND QULITY The role of Triburg technical team extends beyond usual tech responsibility including creation of pattern library, CAD management, and monitoring and training factory technical staff. Quality assurance through shop floor excellence including introduction and sustaining of sops , cross-function training, auditors certification and rigid application of AQL system.

6. HR AND SOCIAL COMPLIANCE Working collaboratively with customers standard of engagement and monitoring guidelines. Monitoring level of compliance at facilities. Participation in remediation and verification process.

CUSTOMERS

Ann Taylor 77 kids Pea in the pod American eagle outfitters Gap Converse Calvin Kline Van Heusen Vineyard vines Nordstrom American living Anchor blue Aerie Armani exchange Arrow Bandolino Gymboree

Izod Bonton Polo Ralph Lauren Chaps Brookes brother Destination maternity Christopher and banks DKNY J Crew Gloria Vanderbilt Nanette Lapore Sainsbury Sean john New York And Company Truworths Timberland

TRIBURG CORPORATE OFFICE: DELHI

TCPL(TRIBURG CONSULTANCY PVT LTD.)

TSW(TRIBURG SPORTS WEAR)

AMERICAN EAGLE OUTFITTERS

ADVANTAGES WITH TRIBURG

Trade & Vendor Compliance Team is socially aware believe Social responsibility is the right attitude & good business sense implement the highest standard irrespective of Customer or price ensure compliance by regular, routine and surprise visits. protect our customers' interests at all times.

Management Team is hands-on remain actively involved at all times strategize for our customer's and their ever-changing needs. identify new partners and ventures train, nurture and encourage talent & reward excellence

Additional Advantage offer on line access for selected customers, for up-to-the-minute status on their business, through our web site. offer Store ready goods & Assist in Supply Chain Management offer Quick Response (QR) on core/basic program

PARTNERS

large international vendor base comprises the best factories in their respective regions , with a capacity of over 2.5 million units/month committed to Triburg. On average, Triburg has loyalty/association of over 15 years with our top 50 vendors, who are certified by our existing customers. Vendors are located in the Middle East, India, Srilanka & Africa. This gives us flexiblity of moving programs or the fabric to optimize the cost efficiency, quota advantage or Lead times to customers' advantage

Co-ordinate raw material supply - nominated or sourced from Hong Kong, Taiwan, Korea, Japan, China, India, Italy, Ireland, Belgium, USA, Turkey, Indonesia & Pakistan with equal ease. Our understanding of the unique local requirements for documentation as well as the product quality standards to be applied, ensure trouble-free production and delivery.

INFRASTRUCTURE

Over 125 factories in 15 countries with production capacity of over 2.5 million pieces per month Over 300 experienced QA/Technical Staff, Merchandisers and facilitators Over 22 offices in Asia, the Middle East, Africa, USA. Over 20 years of hands-on industry experience , meeting the demands of the world's best known brands Ultra-modern technology and communication network

PRODUCTS

Lingerie, Softlines, Sweaters, Swimwear, Outerwear, Accessories & madeups All types of Fashion High Fashion, Casual, Semi-formal & Formal All Customer classification Infants, Kidswear, Juniors Missy/Petite/Larger size/Maternity for women Young-men, Regular and special sizes for men Quality Standards Based on customers requirements the Acceptable Quality Vendor's Technical Abilities High Level of sophistication including auto-cutting, state-of-the-art semi-auto sewing, auto under-bed trimming,laundry and finishing equipment.

ASSOCIATES

Over 125 factories vendor base, located in 15 countries A capacity network of over 2.5 million units/month committed to Triburg An average loyalty/association of over 15 years with our top 50 vendors. Most vendors are certified by our existing customers.

COMPETITORS

Li and Fung Impulse

industry mentor details phone ID designation department

TRIBURG LEARNING CENTRE

Over the years, we have acquired vast expertise in design, manufacture and sourcing of fashion. We believe it is our responsibility to share this expertise with the global apparel industry. Triburg delivers value, service, innovation, supply chain, optimisation and strategic partnership.

TRIBURG SUPPLY CHAIN

Global hub, strategically located between east and west. Easy access to 1.4 billion customers in and around the gulf. International road,sea and air networks with regular schedules. Flexibility to move cargo of any quantity via variable, competitive and reliable services. Easy customs and port formalities for smooth and efficient flow. Standard customs formalities followed by most countries Flexibility to follow terms of purchase Order despatch and door delivery within a day in UAE, and upto 6 days to countries within and around the gulf.

TRIBURG OFFICES

Corporate office: Sultanpur Delhi

US office Bangalore office Chennai office

AMERICAN EAGLE OUTFITTERS

Chairman CEO Headquarters Revenue Products Areas Served

: Jay L Schottenstein : James V O Donnell : Pittsburgh, Pennsylvania, United States : 2.99 billion : Apparel, Accessories, Intimates, Personal Care : US, Canada, Puerto Rico, Kuwait, Dubai, Lebanon, Israel, Russia.

No of locations : 929 Stores

Development
When the Silvermans first opened an American Eagle Outfitters store in 1977, they were looking to diversify their menswear business. Stores were set up in shopping malls and a catalog was established. The chain grew for much of the 1980s. In 1989, the owners decided to refocus their business on American Eagle Outfitters, selling their other retail chains. At this time, there were 137 American Eagle Outfitters stores including 37 in the United States. Despite the plans for quick growth after the reorganization, American Eagle Outfitters opened only 16 new stores by 1991 and the company was losing money. At this point, the Schottensteins, who had been 50% owners of the chain since 1980, bought out the founding Silverman family's interest. This change in leadership resulted in American Eagle finding its present niche: casual clothing for men and women selling private label clothes. AE opened the first Canadian store in 2001.

When the company began trading on the NASDAQ stock exchange in the second quarter of 1994, it had 167 stores and a healthy cash flow. With the cash infusion from the IPO, the company opened more than 90 new stores within the next year. Several new executives joined the company in 1995 and '96, leading to another change in the target demography The company now wanted to reach more women and focus on people between the ages of 18 and 32.The strategy worked, and over the next five years, revenues quintupled to $1 billion by 2000. American Eagle claimed 1101 stores across three brands (American Eagle Outfitters, Aerie, and Martin + Osa) in November 2008 and $3 billion in revenues for the most recent fiscal year.

TARGET CUSTOMERS:

American Eagle Outfitters is a leading lifestyle retailer that designs, markets, and sells its own brand of relaxed, versatile clothing for 16- to 34-year-olds, providing highquality merchandise at affordable prices. AE's lifestyle collection includes casual basics like khakis, cargos, and jeans; fashion tops like rugbys, polos, and graphic T's; and functional items like swimwear, outerwear, footwear and accessories.

PRINCIPAL COMPETITORS: The Gap, Inc.; Eddie Bauer, Inc.; Abercrombie & Fitch Co.

MERCHANDISING PROCESS: SPRING 12

Merchandisers are important in the success of any garment retail business. They provide the right products at the right time, enabling a company to match with the tallest market trends and meet the market demand. In the merchandising concept, time management is a gig to manage ones time properly, so he can focus on value adding actions. Todays garment merchandisers have to move with frequent changes in demand and the developing technologies utilised in manufacturing and production. To find out the customer requirements, they regularly visit retail outlets and come up with latest updates from frontline staff. In order to keep an eye on developments in sourcing, site visits are made every week to mainland factories to meet suppliers and study production. In garment merchandising, there is no specific rule, so its important to be able to think on ones own feet. The main procedures of merchandisers are as followed: Understanding sample order: merchandising has to understand the buyers requirements after receiving specification in the sample buyers requirements after receiving specification in the sample order. In many cases, there are modifications pertaining to the specifications in the order to dispatch on time and the right quality. He has to talk with the in-house veterans on the execution problems of sample orders, as the right information is required in the decision making. Managing order route card and production time table: merchandiser has to manage every single production schedule and order route card that helps to follow up the execution in the planned way, it is expected to be acknowledged of the various description like: design no of modules, no of operations, how many processes, ate of dispatch, quantity, output capacity, and deadlines in the schedule. The subordinates are normally assigned to follow up with execution of the plan. Merchandiser plans the activities depending upon the essentials and the non essentials and top priorities are given to the most essential tasks. This is customary that the essential activities are handled personally or with the support of juniors merchandisers/subordinates. In a daily schedule, merchandiser has to carry-out and categorize which is the most significant and urgent task. The activity that has to be focussed with full attention to sweep off non essential activities. Non essential activities are to be corrected by prioritising, to meet the dead lines.

Using route card to reschedule activities: to get updated on the current status on the order, the route cards should be utilised. The latest status can be fed into the computers. In case the buyers ask for the goods prior to the deadlines, then merchandiser has to reorganise the schedule to accomplish task. Submitting preproduction samples: the pre production samples should be provided on time to the concerned buyers. Quality of the samples must be verified. If required the verified samples should be made available to the buyers. Merchandisers should adjust to the required changes demanded by the buyers the execution of bulk orders should be made only after the samples re approved by the buyer. In case of non confirmation, it is better to focus on the concerns of quality. Merchandisers that work on the complete orders have to convey deviations to the production teams so that any amendment can be done to avoid the non- conformities. Soling shortage problems: the merchandiser should know about the dearth of any commodity such as fabric, yarn etc. from the beginning. Actions should be taken immediately to arrange required materials, after discovering the shortage. It is expected thet the merchandisers shoyld verify quality of the goods prior to the execution of the order. If the materials is found unavailable, the superior should be informed about the concern. Communicating with associated people and buyers: It is essential to communicate with buyers regarding the order. It is expected to give some time to the buyers to read the sent message. Merchandiser should to go through the messages received from the buyer and reply on time. In many cases, merchandisers have to provide order status to the buyers. Also merchandisers have to communicate with the people that are in-house, vendors, contractors and job-workers. Only through the right communication can one meet deadline for the concerned orders. Apart from the above mention procedure, merchandiser has to assign subordinates to help him in the order execution and direct the procedures. He has to revise his knowledge from time to time to know current market trends. To record preferences for all the planned activities, use daily or time log systems. The merchandisers should find out exact reasons of times value and keeping it safe, as it is necessary to keep record of time value and keeping safe, as it is going to be shared with concerned buyers. It is certain that merchandising jobs need huge time planning.

CUSTOMER NEED IS THE POINT FROM WHERE THE BUSINESS FOR A BRAND ARISES AND SO DOES THE BUSINESS FOR A BUYING HOUSE.

DEPARTMENTS AND THEIR

To design a range, taking into account the international trends & previous season

To manage the order production, coordinate with factories, getting the trims & fabric approval, ensuring quality standards & ensure timely delivery of goods.

The shipping department becomes active once the shipment is packed & is ready for shipping to the buyer. The shipping team is responsible for arranging the containers, making invoice & getting the shipment cleared through the customs.

The QA Team is responsible for checking the product quality at various stages of production. It performs Initial, Mid & Final Inspection & submits a quality report to the merchandising team. No shipment can be dispatched without a go-ahead by the QA team. The compliance team ensures that the vendors are complying with the requirements set by the buyer & have the necessary certifications.

The process of merchandising starts with the first contact from buyers side asking for options that a buying house can offer with respect to the samples sent/showed to buyers by the buying house before.

The steps that a merchandising process goes through for a specific season are as follows:
Buyers development mail Buyers likes and dislikes Different types of samples Production merchandising process flow Sample approvals Costing of garments Price quotations for buyers Order confirmation and documentation External/ internal communication in merchandising department Receipt of orders from buyers Fit cycle Fabric ordering Audit Trim ordering Swatch Detailed T&A Pre production meeting Pilot run Bulk production Audit Delivery

MERCHANDISING CYCLE

The process through which a whole season