Necessary Documents for Merchandising Work

Tech pack:  A Tech pack is informative sheet which provides all the specifications of the requirements of any product. It contains all the details of any specific style of the garment. It helps in producing accurate samples, which improves turnaround time and simplifies communication during all stages of manufacturing and quality control. The merchandisers are thus able to go ahead and ensure that the required material as per the tech-pack is available with to the factory, in the right quantities at the right time.

Components of tech pack:

  • Design of the product or Flat Sketch
  • Style number
  • Colour specification
  • Fabric details
  • Stitching and Construction details
  • Print details
  • Embroidery details
  • Washing details
  • Trim details
  • Point of measurement (POM)
  •  Size chart and grade rule
  • Label details
  • Testing method details
  • Folding and packaging details
  • Fit history
  • Sample evaluation comments
  •  Necessary comments related to the products

Purchase Order (PO): A buyer generated document that authorizes a purchase transaction. When accepted by the seller, it becomes a contract binding on both parties. A purchase order is a commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services the seller will provide to the buyer. Sending a purchase order to a supplier constitutes a legal offer to buy products or services. Acceptance of a purchase order by a seller usually forms a contract between the buyer and seller, so no contract exists until the purchase order is accepted. It is used to control the purchasing of products and services from external supplier.

Information contained in a PO is given below:

  • Order No.
  • Date of Order
  • Product Name
  • Product No.
  • Item description
  • Season
  • End User Group (i.e. Men’s, Ladies, Kids, Infant, Toddler etc)
  • Type of fabric (Jersey, Interlock, Pique etc)
  • Total Order qty # Total color & color wise qty
  • Unit Price
  • Time of delivery
  • Supplier Name
  • Payment terms

Bill of Materials (BOM): A bill of materials (BOM) is a list of the raw materials, sub-components, parts and the quantities of each needed to manufacture an end product.

Information contained in a bill of materials (BOM) is given below:

  • Order Number (No.)
  • Date of Order
  • Product Name
  • Product Number (No.)
  • Item description
  • Season
  • End User Group (i.e. Men’s, Ladies, Kids, Infant, Toddler etc)
  • Fabric Composition (i.e. 80% Cotton 20% Polyester Jersey) # Construction of Yarn (i.e. 40/1) # Weight of Fabric (i.e. 180gsm)
  • Types of trims & accessories
  • Code of trims & accessories (if any) etc.

Sales Contract: It is an agreement between the buyer and the seller stipulating every details of the transaction. It is a legally binding document. It is therefore advisable to seek legal advice before signing the contract.

Information contained in a sales contract is given below:

  • Name & address of the consignee
  • Name & address of the consignee’s bank
  • Item description
  • order Number
  • Order Qty
  • Unit price
  • Total Value
  • Last Shipment date
  • Tolerance (+/- qty)
  • Mode of Shipment (FOB/ CIF etc)
  • Insurance
  • Expiry of Contract (i.e. after 30 days of shipment)
  • Payment terms [TT payment 20 days after shipment with 2% (buying commission) discount value]
  • Name of supplier’s bank
  • Bank account no.
  • Signature of both buyer and seller

Pro forma Invoice (PI): An estimated invoice sent by a seller to a buyer in advance of a shipment or delivery of goods. It notes the kind and quantity of goods, their value, and other important information such as weight and transportation charges. Pro forma invoices are commonly used as preliminary invoices with a quotation, or for customs purposes in importation.

In order to create a pro forma invoice, you need to know:

  1. The product(s) shipped and its value, weight and cubic dimensions of the shipment.
  2. By what means the equipment is going to be shipped.
  3. Packing method
  4. Where the equipment will be landed.

Information contained in a PI is given below:

  • Type of goods
  • Quality of goods
  • Unit Value
  • Total Value
  • Payment Terms (after how many days supplier will get payment)
  • Shipment Date
  • Expiry of Contract/ Offer Validity etc.

Commercial Invoice: A commercial invoice is a document used in foreign trade. It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders.

Information contained in a Commercial Invoice is given below:

  • Parties involved in shipping transaction
  • Goods being transported
  • Code of goods if any
  • Buyer name
  • Date
  • Sales terms
  • Total amount
  • Total Quality
  • Unit Value
  • Currency of Payment
  • Means Of Transport
  • Insurance fees etc.

Bill of Lading (BL) only for sea Shipment-

A document issued by a carrier, or its agent, to the shipper as a contract of carriage of goods. It is also a receipt for cargo accepted for transportation, and must be presented for taking delivery at the destination.

Information contained in a Bill of Lading (BL) is given below:

  • Name of shipper/exporter
  • Consignee/ Receiver name, address and telephone number in the destination country
  • The name of the vessel on which the goods have been placed
  • Their intended destination
  • Description of the goods that are being shipped
  • Weight and the other shipping details
  • The date of departure & arrival
  • Freight rate and amount \ Signature of shipping agent/company

Airway Bill (AWB): A document that accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked is known as AWB. The air waybill has multiple copies so that each party involved in the shipment can document it.

  • The bill contains the shipper’s name and address,
  • consignee’s name and address
  • origin airport code destination airport code, declared shipment value for customs
  • number of pieces
  • gross weight
  • A description of the goods and any special instructions (e.g, “Perishable”).

letter of Guarantee ( LG ): Letter of guarantee ( LG ) is a type of contract issued by a bank on behalf of , customer who has entered a contract to purchase goods from a supplier and promises to meet any financial obligations to the supplier in the event of default . It often helps firms conduct business with parties they would never normally get the chance to deal with . Many suppliers will often choose to do business with customers that have a letter of guarantee because it eliminates the risk that they will not receive the appropriate payment for the goods that they are selling .

Packing list: The packing list ( P/L ) is an inventory of the incoming cargo required for customs clearance and accompanying the commercial invoice and the transport documents.

It generally includes the following :

  • In the exporter , the importer and the transport company
  • Date of issue
  • Number of the freight invoice 4 type of packaging (carton , box , bag , etc.)
  • Number of packages
  • Content of each package (description of the goods and number of items per package)
  • Marks and Numbers
  • Net weight , gross weight and measurement of the packages

Inspection Certificate (IC): Many foreign firms require this document for protection in quality and conformity disputes with the shipper . The document , typically in the form affidavit from either the shipper or an independent inspection firm , es the quality , quantity and conformity of the goods to the purchase certifies the quality , quantity an order.

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