Purchase Department in a Garment Company

Functioning of the Department

The purchasing department is similar to the sourcing department but the main difference is that the sourcing department works for sourcing the fabrics alone while the purchasing department works for sourcing the accessories and trims. However, the working procedure is the same. The working is as follows.

The merchandisers give the tech pack and the BOM (Bill Of Materials) for a particular style to the purchasing department and the concerned person will start the further process and for costing purposes the in-house price is given like, the cost involved in the production and also the price involved for a unit involved with respect to the complete procedure involved for its production. In the process of doing the in-house price , suppose the cost of 100 pieces of button is Rs.32 then a Taxes of 2% + 14% of exercise duty + 10% of per unit price is added as the transportation charges and this all together makes the in-house price (a hidden margin of 5% is also taken into consideration).

This breakup is given to the merchandiser by the purchasing department for the costing purpose, the cost sheet is made by the merchandiser s and the order is confirmed by the buyer based on the cost sheet given by the merchandiser.

After the order is being confirmed by the buyer the merchandiser will sit with the other concerned departments and then the exact quantity required and the breakup of the trims and accessories with respect to colour, size, M OQ, etc., will be given by the merchandiser to the purchasing department in the form of a sheet which is generally followed in the industry for all the orders irrespective of the buyer.

Once the purchasing department receives this format, then the PO is sent to the concerned department for accessories and trims. Once the first shot of the raw materials is sent by the supplier then the lab dips are done and are approved by the buyer.

After receiving the goods from the supplier they a rechecked for the quantity and also checked according to the inspection criteria specified by the buyer and replaced if any of them are not meeting this criterion. This department also keeps track of all the quantities received in-house timely. The goods are generally received in breakups as suggested by the merchandiser according to the requirements stated by the planning and the production department and this breakup will have specified date and quantity and if this breakup is not being mentioned then the order is being placed with the supplier several times for small quantities and PO’s have to be sent all the time so, in order to overcome this a breakups are being is given.

Then the purchasing department has to follow up with the supplier for deliveries as and when the merchandiser asks for the new set of the materials for that particular style and then the department also has to maintain the receipts and also they have to maintain the documents of the inspections that are being carried out for those materials.