Losses incurred by export house and buying house due to careless behaviour of internal employees and because of shipment delays due to quality issues.
Losses incurred by factories and buying houses are mainly due to two reasons. One is delays in order execution due to factories giving false status of samples and other submissions like PP sample, Initial of bulk, fabric lots, trims, other things which requires buyer’s approval. This finally leads to make the order move to air pp from sea at factory’s cost which leads to loss for factories and buying house both. Secondly, the delay in shipments due to quality issues.
It was found that the delays in export houses majorly happened due to factors like: idle machines and workers, lack of monitoring, negative attitude of workers, misplacement of approved counters, lack of defined structure of sampling department, lack of responsibility, merchants over burdened with work activities, unity of command, lack of control and monitoring.
Due to above stated factors the major problem in this buying house was the delayed shipments due to quality issues which led to the loss to the company. Another big problem faced by industry is due to decrease in business because of delayed shipment which further hampered the company profit by providing CPR- Cost Price Reduction 5% or less to the buyer.
All these issues sum up to be a large amount of loss for the company, which can be controlled by adopting other beneficial and profitable alternatives.
The primary sources include in-depth interview and observation. The secondary sources include apparel magazine and internet.
The major problem was the long pre-production stage which led to delay in shipment, so merchandisers were in need to use a new updated TNA which would inform them about their styles’ activities in the factories. To overcome this problem there is a need to prepare a new format for TNA and preparing and maintaining a TNA calendar to improve performance and finish an order on time.
Second solution can be that they have a centralised software for the complete organisation which have all the updates for all the styles, complete information should be available style wise.
Shipment delays due to quality issues can only be controlled by taking timely measures at different stages which is explained in detail in the later chapters.