INDUSTRIAL OVERVIEW AND COMPANY BACKGROUND
Industrial Overview
The garment industry in Vietnam, with its rich history, has undergone significant growth in recent years This vital sector not only supplies clothing for the population but also generates numerous job opportunities, contributing substantially to the economy Additionally, it plays a crucial role in foreign currency earnings through exports and enhances the state budget's revenue.
The Textile and Garment industry is a vital sector for Vietnam's economy, consistently ranking among the top exporters In 2013, Vietnam's garment and textile products reached over 180 countries, generating an export turnover of USD 17.9 billion, which accounted for 10.5% of the nation's GDP, second only to petroleum.
According to VITAS statistics in 2014, the percentage of exporting garment by CMT is still around 85%, FOB is only 13% and only 2% is exported by ODM.
CMT (Cut-Make-Trim) is a straightforward textile export method that offers minimal added value In this approach, the buyer supplies all inputs, including trims, transportation, and design specifications, while manufacturers focus solely on cutting, sewing, and finishing the products Companies utilizing CMT primarily need the capability to produce and a basic understanding of design to create product samples Ultimately, the finished goods are collected and distributed by the buyers.
OEM/FOB (Original Equipment Manufacturing/Free on Board) refers to the process of purchasing raw materials and selling finished products In FOB orders, companies are accountable for importing raw materials and fulfilling production requirements This method involves actively sourcing input materials for product creation There are two types of FOB: FOB Level 1, where materials are purchased from a supplier designated by the customer, and FOB Level 2, where the company is responsible for sourcing the materials independently.
Original Design Manufacturing (ODM) encompasses the entire process of product creation, from design to production, including fabric sourcing, trimming, cutting, sewing, finishing, packing, and transportation This method showcases the vendor's advanced design capabilities, significantly enhancing the product's value ODM companies develop complete designs and products, which they sell to buyers, often major global brand owners.
Vietnam's garment industry has become a focal point for foreign investment due to its robust production capabilities, ample labor resources, and low labor costs, all supported by government development initiatives This influx of investment is enhancing production efficiency and increasing product value, as highlighted by statistics from the General Department of Customs.
In 2017, Vietnam's garment industry exports reached $28.84 billion, reflecting an impressive 11% growth compared to the same period in 2016, which saw a growth rate of only 5.2% The sector also experienced a 10% increase in foreign investment, primarily from the US, EU, Japan, and South Korea, significantly contributing to the country's trade balance Furthermore, a notable trend has emerged, with production orders shifting from China to Vietnam due to its more competitive labor costs.
The Vietnam Textile and Apparel Association (VITAS) highlights that the value chain of the textile and apparel industry is characterized by a strong integration among raw material suppliers, domestic manufacturers, intermediaries, and international customers.
Figure 1: Value chain of Vietnam’s textile and apparel industry
Company Background
MORE UK LTD is a well-established intermediary in the fashion industry, boasting over 15 years of experience in providing ethically produced, design-led ladies' wear With a skilled team and a diverse range of high-quality, trend-driven fabrics, MORE UK excels in creating garments such as blouses, trousers, jackets, coats, and dresses, with a particular strength in blouse production The company operates globally, with offices in Leeds, London, Vietnam, and China, ensuring exceptional customer service and competitive pricing Since opening its Representative Office in Ho Chi Minh City in 2014, which employs 15 staff and 5 quality control experts, MORE UK has focused on trade promotion and market research Its primary export markets include the UK, Australia, South Korea, and the USA, with the UK being the largest market.
In the range of this paper, we only analysis the situation in Representative Office in Ho Chi Minh City, Viet Nam
PROBLEM JUSTIFICATION
Problem finding process
The representative office focuses on conducting market research and promoting trade within Vietnam's textile and garment industry Partnering directly with its parent company in the UK, MORE UK Rep Office actively seeks factories and suppliers for garment processing operations, facilitating the export of garments under the outsourcing factory's name.
Currently, VC stands out as a leading outsourcing factory, specializing in the production of blouses and trousers for the UK market With years of collaborative experience, VC consistently provides competitive CMT pricing while ensuring high-quality products that meet customer satisfaction.
The author observed that the emergence of additional factories (HUY HUNG, CONG PHAT, PHU KHANG) to supplement the main factory (VC) has become necessary to meet production deadlines, accounting for 35% to 55% of orders An analysis of order data from Q1 2017 to Q2 2018, along with interviews with key personnel such as merchandisers, planning employees, and pattern makers, revealed that rising costs, including increased CMT prices and transportation expenses for materials to the supplementary factories, are significant contributing factors to the issue.
Company’s Symptoms
The discovery of unexpected supplementary factories has resulted in increased expenses, particularly affecting CMT prices The failure of the VC factory to meet deadlines necessitated the search for alternative factories, leading to higher CMT prices and additional costs that have impacted order profitability since early 2017 Detailed symptoms of these changes are illustrated in the tables below.
The amount of order in main factory (VC)
The amount of order which transferred to supplementary factory
Table 1: The amount of orders which transferred to supplementary factory
In table 1, it shows the amount of orders which transferred to supplementary factory
Due to the VC factory's inability to produce garments by the deadline, MORE (UK) has decided to transfer all raw materials to a replacement factory As shown in Table 1, there is a significant percentage of orders that need to be shipped to other processing facilities, particularly during the fourth quarter of 2017 and the first quarter of 2018.
During the peak season for the apparel industry, the volume of garment exports to the UK and Australia is significantly high, resulting in full-capacity orders at VC However, various objective and subjective factors, detailed in the situation analysis, have hindered the ability to process many orders in the VC factory Consequently, numerous UK clients are seeking supplementary factories with greater production capacity and clearer production plans to fulfill their orders.
Finding a supplementary factory often leads to increased costs, as the CMT (Cut, Make, Trim) price at the new facility is typically higher than at the original VC factory Additionally, operating expenses rise due to transportation costs for moving fabric from the VC to the new factory, as well as import and export fees associated with goods at the new location Furthermore, the expense of producing pre-production samples also escalates, as each factory must create its own PP samples to ensure proper bulk production methods.
In the limit of this article, the author only mention to the average CMT Price for each blouse and trouser with MILLERS customer for instance
CMT Price in VC factory $1.5 $2.2
CMT Price in supplementary factory $1.7 $2.5
Table 2: The CMT Price in VC factory and supplementary factory
The transportation costs for moving goods by truck to the replacement plant vary based on the distance between the plants and the quantity of fabrics and materials involved For bulk orders, the expense of deploying 2-3 trucks significantly increases The accounting department has compiled data, which is summarized in the table below.
The amount of order which transferred to supplementary factory (HUY HUNG, CONG
Table 3: The transferring expense to supplementary factories
In addition, the cost of making PP samples is doubling, depending on the requirements of customers, such as customer MILLERS, PP samples will be 3 pieces, a size 10 and 2 size
14 When VC factory receives orders from MORE UK, after receiving the bulk fabric for the production, the factory will sew 3 PP samples to know how to process the garment and apply for production Depending on the type of blouse or trouser, the cost of these styles will increase with its complexity.
Problem Identification
Following a thorough symptom analysis, it was determined that the rise in CMT prices and management expenses stems from the "unexpected supplementary factories" issue To gain deeper insights and identify potential problems, the author interviewed Ms Kim Dung, a Merchandiser directly involved with the VC factory, uncovering new findings In conclusion, multiple factors contribute to the "unexpected supplementary factory" phenomenon in the context of MORE UK.
The process of obtaining sample approval can be quite time-consuming, as highlighted by Ms Dung, who notes that delays in customer approvals for fabrics and trims from suppliers can hinder order control and lead to late deliveries to the factory In the apparel industry, every detail—such as main fabrics, buttons, zippers, eyelets, linings, and labels—must be approved by customers After receiving purchasing orders and technical packs, MORE UK must identify suitable suppliers based on price and product quality, which necessitates suppliers providing trim samples This back-and-forth can take several days, further complicating the approval process for customers.
Delivery times for DHL, FedEx, or UPS from the Australian and UK branches typically take several days Additionally, due to time zone differences, MILLERS customers only respond on Tuesdays and Thursdays, which can lead to delays in approvals, sometimes resulting in a full week lost just to get a button approved Once the customer gives approval, the bulk order will be imported to the factory in Vietnam.
Occasionally, MILLERS customers request changes to product details, such as altering information on price ticket labels This issue arises despite MORE UK having already placed and applied all label orders to the finished garments Consequently, when changes occur, it requires additional time and resources for MORE UK to reorder and produce new price tags from scratch This situation not only delays production timelines but also strains the main factory's capacity, necessitating support from supplementary factories to meet order demands.
The limited production capacity of the factory poses challenges after finalizing contracts with CMT, as MORE UK collaborates with primary suppliers to import fabrics and trims from China or locally.
VC Factory is set to begin production under a contract that requires timely shipment of garments to the customer by the specified date However, the factory failed to initiate cutting and sewing activities before the deadline, resulting in an inability to fulfill orders The fabric was not prepared for cutting, which contributed to the lack of garments available for shipment Despite receiving numerous orders simultaneously, the factory's limited capacity hindered their ability to manage all orders with the same deadline effectively.
Due to the predominance of medium and low-cost customers in the UK market, MORE UK strategically partners with factories that provide the most competitive CMT pricing without compromising on quality, including VC factory Since early 2017, the majority of MORE UK’s orders, particularly for blouses and trousers, have been processed through contracts with VC factory.
Ms Dung highlighted that MILLERS customers primarily order blouses and trousers The competitive FOB pricing they offer allows us to place orders with the VC factory, where the CMT costs are also low This combination of affordable pricing and the ability to meet design and customer requirements is essential for selecting a factory.
Insufficient coordination in the ordering process of fabrics and trims can significantly hinder production timelines The varying lead times—60-70 days for fabric and only 10-15 days for trims like buttons and zippers—create challenges for merchandisers in managing material imports This discrepancy often results in delays, as the delivery of all materials to the factory can take a month, preventing timely production Additionally, quality issues with trims can exacerbate these delays, as defective products disrupt the synchronization of cutting, making, and sewing processes To mitigate these challenges, merchandisers must effectively monitor lead times and ensure that all materials arrive at the factory simultaneously, enabling a seamless start to production.
- Lacking of person who in charge of controlling sample room: At present,
MORE UK relies solely on technical controls for sample management, lacking specific sample prioritization, which leaves the sample room uncertain about which samples to prioritize Additionally, the quality of samples is not closely monitored, leading to multiple revisions of many samples to meet customer standards This inefficiency prolongs the production process, causing the factory to struggle to meet deadlines.
The lack of clarity in the roles of merchandisers and planning staff has resulted in significant internal issues within the organization Both departments often overlap in their responsibilities, leading to confusion and duplication of efforts, particularly when multiple team members engage with the same supplier for identical orders This situation is exacerbated by a high workload and pressure from numerous customers, which places the merchandiser team under constant stress Additionally, the demands of working with the VC factory further hinder the effectiveness of the merchandiser department, emphasizing the need for a more defined management system and clearer work assignments to enhance operational efficiency.
MORE UK has identified that the current production capacity at VC will not meet the timeline for garment exports As a result, the Chief Representative has decided to seek additional factories, including Phu Khang, Huy Hung, and Cong Phat, to ensure timely fulfillment of export requirements.
The cost of CMT is expected to surpass that of VC, leading to increased expenses related to fabric and trims transportation from VC to the supplementary factory, as well as import and export costs, including customs fees This rise in expenses significantly impacts the management costs for MORE UK’s office in Vietnam and adversely affects the overall profitability of MORE UK.
On average, an order with MORE UK takes approximately 3 to 3.5 months from the initial purchasing order to the hangover date MORE UK guarantees delivery time and product quality, provided there are no factory changes However, if the production planning cannot be completed, fabrics and trims may need to be transferred to another factory, which could compromise product quality and increase risks for MORE UK, especially if the supplementary factory struggles to meet the accelerated timeline for complex orders.
The whole picture will be demonstrated as Initial Cause - Effect Map below:
Time consuming for approval samples Changing order detail information
Low capacity of factory for production
Insufficient ordering fabric and trims process
Materials have not been at the factory at the same time
Lacking of person who in charge of controlling sample room
Lacking of merchandiser’s role clarity
Merchandiser and planning staff have a similar job ORGANIZATION
Figure 2: Initial Cause – Effect Map
MORE UK is experiencing a surge in orders from MILLERS customers, prompting the search for new supplementary factories due to the inability of VC to meet demand for various objective and subjective reasons This situation has led to increased CMT and additional expenses stemming from the unexpected need for supplementary factories In the following section, the author will conduct a literature review to establish a theoretical framework related to the symptom of "unexpected supplementary factories." Additionally, data gathered from in-depth interviews with planning staff will help identify the core problem.
ALTERNATIVE SOLUTIONS
Cause validation
The core issue facing MORE UK is attributed to the emergence of unexpected supplementary factories To uncover the underlying causes of ineffective operational management, the author opted for interviews as the primary research method Through these interviews, valuable insights into the operational challenges were gathered.
Ms Dung and Ms Nhu, two skilled merchandisers at MORE UK, along with Ms Thao from Human Resources, possess a profound understanding of the company's work environment and its challenges They are well-acquainted with the underlying causes of the issues faced within the organization.
Effective leadership is crucial for guiding employees towards achieving organizational goals, as highlighted by Fiaz et al Leadership is consistently recognized as a key factor in organizational success and gaining a competitive edge, according to Bass Successful operations management hinges not only on efficient processes but also on the ability to lead and engage people in the pursuit of shared objectives As noted by Yukl & Van Fleet, leadership encompasses the influence on task objectives, strategies, group dynamics, and the overall organizational culture.
Affiliative leadership fosters emotional connections among team members, promoting a sense of belonging within the organization This leadership approach excels in managing stressful situations, yet relying solely on praise and encouragement may result in a lack of direction and hinder productivity.
At MORE UK, the Chef at the representative office faces challenges stemming from insufficient decision-making skills and a lack of strong partnerships The leadership's leniency and frequent changes hinder the selection of reliable factories and suppliers, leading to employee dependency on external partners Ms Kim concurs with this assessment.
Our boss maintains a strong relationship with the Director of MORE UK, which facilitates easy communication with the VC owner If the VC owner agrees to our CMT price, we will proceed with orders, even if their production capacity is limited However, there is a concern that MORE UK could opt for another factory that offers the same CMT price but has better production capabilities While our boss fosters a family-style management approach and is generally effective, the lack of clear policies means that decisions are often made based on experience rather than established guidelines.
A job description is a detailed written document that outlines the essential duties, responsibilities, required qualifications, and reporting relationships associated with a specific position, as noted by Schneider & Bowen.
Job descriptions play a crucial role in enhancing employee performance by providing clear guidance for both managers and employees in their daily tasks If your organization lacks defined job descriptions, it's essential to discuss with your executive team how implementing them can foster better communication and increase overall productivity Recognizing employees for their contributions, especially when they exceed their job responsibilities, is vital for maintaining motivation and engagement within the workforce.
At MORE UK, the lack of clear job assignments and descriptions often leads to confusion among merchandisers and planning staff, resulting in overlapping responsibilities This ambiguity causes team members to forget whether tasks have been completed and to shift blame onto one another Mr Vinh, a pattern maker, highlights these challenges, emphasizing the need for clearer role definitions to enhance accountability and efficiency within the team.
The lack of a designated person to manage samples at MORE UK often leads to confusion and delays, particularly when a specific style is requested by management but cannot be located This ambiguity raises questions about accountability, as it remains unclear whether the responsibility lies with the quality controller, merchandisers, or other team members Additionally, the absence of a clear organizational structure contributes to uncertainty regarding who requires information, who is responsible for completing tasks, and who oversees those tasks, further complicating operations.
Training is a systematic process designed to enhance employees' skills, knowledge, and competencies, enabling them to perform effectively in their roles Effective training and development programs focus on improving employee performance, which in turn allows organizations to optimize their human resources and gain a competitive advantage.
Workplace training is crucial for maintaining a safe and productive environment Ignoring the significance of training can lead to unsafe conditions, employee dissatisfaction, reduced productivity, and a higher turnover rate Prioritizing employee training fosters a positive workplace culture and enhances overall company performance.
At MORE UK, employee training focuses on experiential learning rather than structured knowledge development, with problem-solving relying heavily on individual experience and situational discussions with the Chief of the Office Representative New hires receive minimal guidance from predecessors, typically lasting only 1-2 days, after which they must navigate challenges independently The author, working as a merchandiser, draws on a background in economics to inform their understanding of the apparel industry.
34 industry is absolutely nothing, the author had no chance to take any training courses at the company, instead of
Self-studying from old employees to have knowledge and experience in the garment industry This made employees spend a lot of time when they started working at MORE UK
To enhance productivity, companies must implement effective planning and scheduling in production This intricate process involves coordinating various activities to ensure that materials, equipment, and human resources are available at the right time and place Proper planning enables organizations to set clear goals and timelines, leading to significant increases in employee productivity and reliability Consequently, this approach results in faster product throughput and reduced costs.
In an interview with Ms Nhu, a merchandiser at MORE (UK), it was revealed that the company lacks an efficient system for scheduling and planning purchasing orders Currently, the merchandiser controls the purchasing orders, but the limited focus on tracking all customer orders makes it difficult to prioritize which orders require immediate attention for optimal factory arrangement Additionally, there are no weekly meetings among merchandisers to coordinate production schedules for all orders, leading to potential conflicts when two orders from different customers have overlapping deadlines This reactive approach can result in urgent production assignments that may compromise the quality of the final products.
Proposed solutions
The author identifies key issues affecting workplace efficiency, including inadequate job descriptions, insufficient training, poor planning, and language and cultural barriers To address these challenges, the author dismisses the "Affiliative leadership style" as a viable solution, citing its subjective nature rooted in human personality Instead, the author employs theoretical frameworks and gathers insights through interviews and surveys with MORE UK employees to propose one or two effective alternative solutions for each identified cause.
Therefore, this is the solution map for the author to prepare for an action plan later.
Each merchandiser will take responsible for one step in the
S1 Not having a job description ordering process, applying for all customers S2.1 Writing Job Descriptions
Creating an official integrated process planning and scheduling S2 Poor scheduling and planning
Each merchandiser is responsible for managing one or two customers throughout the entire process, from receiving purchase orders to exporting goods However, there is a notable lack of on-the-job training (S3) that needs to be addressed.
S4 Language and Culture Barriers Diversity Training
A job description is a detailed document that outlines the tasks performed by a worker, the methods used to complete those tasks, and the working conditions associated with the role This information is essential for creating a job specification, which enumerates the necessary knowledge and skills required for satisfactory job performance Typically, job descriptions include sections on job identification, a summary of the position, and a comprehensive list of responsibilities and duties.
Authority of incumbent, Standards of performance, working conditions and job specification.
A clear job description is essential for employees to comprehend their responsibilities and expectations It aids companies in the hiring process, performance evaluations, and potential employee terminations.
In MORE (UK), the absence of job descriptions for various positions leads to confusion regarding accountability when issues arise To address this, it is essential to establish clear job descriptions for all key roles, including merchandisers, pattern makers, QA/QC personnel, planning staff, and admin/human resource staff Clearly defining responsibilities will help prevent overlapping duties, particularly between merchandisers and planning staff, whose roles are often similar.
3.2.2 Solution 2: Creating an official integrated process planning and scheduling The nature of apparel industry complicates the production planning and scheduling process Bowers MR 17 “ The main difficulty of planning and scheduling efforts is the need to process an overwhelming amount of information” that require the employees have an official integrated process planning and scheduling According to Mok PY
To meet the challenges of short lead times and frequent small orders, apparel manufacturers are focused on enhancing their processes to ensure timely delivery of finished products at minimal production costs As a result, effective planning and scheduling have become increasingly crucial in modern apparel manufacturing.
To have a better understand how to make goods in the apparel industry, the author describes the basic process in MORE UK for getting a completed order to go through
39 a process On average, it takes from 3.5 to 4 months from receiving the purchasing order from customer to meeting the hangover date
- Planning staff will work with customer and receive the official purchasing order from customers
- Merchandiser will place the order of main fabric in China
- Merchandiser will place the order of trims: button, labels, lining, zippers, that depends on the quotation, MORE UK will choose China suppliers or local suppliers for trims
- Merchandiser will work with the forwarder to transfer all fabric from China and distribute to nominated factories.
- At the same time, the technical manager will send the request to sample room to make fit sample, PP sample for customer approval before make the bulk in factory
- Pattern maker will send the tech pack to factory, which is the documents that the factory will be base on to make the bulk
- Merchandiser will contact to local suppliers to transfer all trims to factories
- Merchandiser and QA will follow up the orders, check the specifications and quality for ensuring meeting the hangover date
At MORE UK, the fundamental process involves applying to follow an order However, unexpected supplementary factory issues have arisen, leading to increased costs for the company To address this challenge, the author suggests two potential solutions.
Solution 2.1: Each employee in the merchandiser team will take responsible for one step in the ordering process, applying for all customers
At present, MORE UK has 8 customers (PEACOCKS, MILLERS, DOROTHY PERKINS, CROSSROAD, KATIES, BOYES, YOURS) There are 6 merchandisers,
2 planning staffs, QA / QC and the pattern makers are not directly related to planning and scheduling, so the author only refers to the merchandiser department.
The chief representative should designate a skilled merchandiser to serve as the merchandiser manager, ensuring that all issues are reported directly to this manager rather than the Chief Representative Each member of the merchandiser team will be assigned a specific responsibility within the ordering process, applicable to all customers.
Planning staff 1 + 2 Each planning staff will take responsibility to work with 4 customers, receiving requests from customers and sending the requests to the merchandiser
Merchandiser 1 Responsible for developing and placing the fabrics in China and contacting to the forwarder for transferring the fabric to the nominated factory
Merchandiser 2 + 3 Responsible for developing samples and placing the trims (labels, zippers, buttons, ) and transferring to the factory Merchandiser 4+ 5 Responsible for following up the orders produced at the factory along with the QC to meet the hangover date of the shipment Merchandiser
General management, ensuring all orders of customers are timely
Table 4: Proposed solution assigns the tasks for employee in Solution 2.1
Solution 2.2: Each employee in the merchandiser team will take responsible to follow up one or two customer in whole process, from receiving purchasing orders to exporting the goods
Each merchandiser is responsible for managing one or two customers throughout the entire process, depending on the order size For smaller orders, a merchandiser will handle two customers, while larger customers, such as MILLERS, will receive dedicated attention from one merchandiser Currently, MORE UK implements this approach, with the merchandiser overseeing all aspects from receiving purchase orders from the planning team to placing fabrics and trims, as well as liaising with the factory and monitoring production progress.
To enhance effectiveness, it is crucial for planning staff to collaborate with customers to negotiate a more suitable hangover date Additionally, merchandisers should ensure that all shipment information is communicated to the factory at least two weeks prior to the designated hangover date This proposal is further clarified through a comparative analysis.
Hangover date Purchasing order is placed before customers approve the bulk of fabric
=> the ability to develop fabrics and waiting for customers approval is time consuming, because the bulk of fabric is produced usually takes 45 to 60 days for a style
Purchasing order should be placed after customers approval
To ensure timely delivery, it is essential to send the factory the docket that specifies the customer's exact hangover date If the factory is unable to meet the shipment deadline, MORE UK will request an extension from the customer; failure to secure approval may result in penalties.
Sending to the factory the docket with the hangover date is sooner 2 weeks than actual date
Table 5: Proposed solution assigns the tasks for employee in Solution 2.2
Appendix 2 includes a purchase order (PO) for style WSTP13245M, received by MORE UK from the MILLERS customer, along with a docket sent by the merchandiser to the factory based on this order The official PO from MILLERS specifies the actual hangover date.
23/08/2018, however on the docket sent to the factories, the hangover date is
On September 8, 2018, pressure was applied to the factory and merchandiser to ensure timely shipment If MORE UK and the factory adhere to the schedule, the shipment date remains set for September 8, 2018 Meanwhile, the planning staff is addressing new customer requests.
Alternative sets of solutions
From the analysis above, there are two set of solution are recommended:
Each employee in the merchandiser team will take responsible for one step in the ordering process, applying for all customers Set 1
On-the-Job Training Diversity training
Each employee in the merchandiser team will take responsible to follow up one or two customer in whole process, from receiving purchasing orders to exporting the goods
On-the-Job Training Diversity training
To find out what is the best solution, the author conduct a survey
- The method: Qualitative research by questionnaire survey
- Size of sample: 12 employees (6 merchandisers, 2 planning staffs, 3 pattern makers, 1 human resource staff)
- The purpose: Asking employee about sets of solutions, which one is more suitable with company situation
Based on the conducting data and analyzes by qualitative research, the author have the result
To sum up the result
+ S1: 100% agree the company should write job description for each position
+ S2.1: 37.5% (3/8 employee were interviewed) agreed that each employee in the merchandiser team will take responsible for one step in the ordering process, applying for all customers
In a recent survey, 62.5% of the merchandiser team employees (5 out of 8 interviewed) affirmed their commitment to managing customer relationships throughout the entire process, from receiving purchase orders to exporting goods.
For S2.1 and S2.2, since the departments directly involved in planning and scheduling is merchandisers and planning staffs, therefore, the other employee did not conduct the survey.
+ S3: 75% (9/12 employee) agreed that the company should apply On-the-Job training method
+ S4: 16.66% (2/12 employee) agreed that the company should have training programs such as learning English at centers and training with the FAIR program
However the size of the company is too small and the staff does not have enough time to attend these courses, so this solution is eliminated.
Based on the survey results, the author recommends a solution that includes writing detailed job descriptions and assigning each member of the merchandiser team to oversee one or two customers throughout the entire process, from receiving purchase orders to exporting goods Additionally, implementing on-the-job training will support the development of an effective action plan.
Action plan
The action plan for writing job descriptions in the merchandising team assigns each employee the responsibility of managing one or two customers throughout the entire process, from receiving purchase orders to exporting goods Additionally, on-the-job training will be provided to ensure effective execution of these responsibilities.
+ Build a Critical Path – an official ordering planning process, a completed and effective process
+ Help related departments including merchandiser, QA/QC, pattern maker plan to perform their work in a reasonable and timely way.
+ Minimize delays in ordering and transferring orders to supplementary factories to speed up production
+ Reduce costs to the maximum in the production of orders
The author outlines an action plan for Solutions 1 and 3, detailing specific activities, timelines, and estimated costs In contrast, Solution 2.2 does not include a specific cost, as it is currently implemented by MORE UK with the MILLERS customer By suggesting additional negotiation strategies for engaging with customers and factories, the author aims to enhance the planning and scheduling process, making it more effective for all MORE operations.
UK customers in the future.
3.4.2.1 Solution 1: Writing the job description
+ Define to write job description for positions: merchandiser, pattern maker, planing staff, QA/QC
+ The human resource department will send email to have a meeting the experienced staff of the relevant departments to ask for experience as well as requirements to
49 become an employee, the information included: job identification, job summary, responsibilities and duties, Authority of incumbent, Standards of performance,
The human resource department will draft performance standards, working conditions, and job specifications to create detailed official job descriptions for each position.
+ After completed the Job description, human resource will evaluate with related departments and apply it in new labor contracts and use it when recruite new employee
The estimated cost of creating a job description is determined by the working hours of human resource staff involved in the process With an average monthly salary of 15,000,000 VND for HR professionals with over three years of experience, the daily expense for their time dedicated to this task is approximately 680,000 VND.
Description Working Day Estimated Cost Timeline
1 Define to write job description for positions
2 Organise meetings with experienced employee to ask job analysis
3 Observe and write draft standards of performance, working conditions
30 days 20,400,000 VND From Jan to Feb
4 Write a official job description 45 days 30,600,000 VND From Mar to
5 Evaluate and apply it in new labor contracts and use it when recruite new employee
45 days 30,600,000 VND From May to
Table 7: Timeline and estimated cost for Solution 1
3.4.2.2 Solution 2.2: Each employee in the merchandiser team will take responsible to follow up one or two customer in whole process, from receiving purchasing orders to exporting the goods
To build an effective timeline, the author gives an example of a typical
WSTP13049M, Docket 0097M to show the timeline from receiving the PO from the customer until the factory shipped to the customer.
The SKU 00148922 (WSTP13049M) has a hangover date of December 13, 2018, with a quantity of 4,155 pieces MILLER's customer agreed to issue the official purchase order following the approval of the lap dip on September 17, 2018, which is also the date of the customer's purchase order.
The timeline for a bulk fabric will be as shown in the table below
Artwork Lap dip Bulk sample Bulk fabric
Develop base on customer requirement
15 days since the lap dip approved
5 days since the bulk sample approved
Table 8: Timeline for a bulk fabric
To streamline fabric production and reduce lead times, planning staff must negotiate the hangover date immediately after lap dip approval, effectively excluding 45 days typically needed for artwork approval This adjustment allows for a more realistic production timeline, shortening the lead time for fabric from 65-70 days to just 20-25 days Consequently, this approach alleviates pressure on UK operations during the production planning phase, ensuring timely garment completion and export.
The purchasing order for style number WSTP13049M indicates that the HOT PINK lap dip was approved on September 17, 2018, with the bulk fabric approval following on October 5, 2018, resulting in a total of 18 days—shorter than the anticipated 20-25 days Subsequently, the fabric was scheduled for import to Vietnam, with an estimated arrival date of October 22, 2018, before being transferred to the factory.
Figure 6: The process of fabric development and importing process
To acquire bulk neck ring trim, the merchandiser simply needs to place a purchasing order with the supplier using the code MORSG3213 This process mirrors fabric development, ensuring a streamlined approach to obtaining necessary trims for production.
Sample Lap dip Bulk sample Bulk trims
Develop base on customer requirement
7-10 days 5 days since the lap dip approved.
Table 9: Timeline for a bulk trim
This trim, produced in Vietnam, undergoes a lap dip approval before bulk production, which is set at a trim size of 16/10 The lead time for trims is relatively short, typically ranging from 10 to 15 days for bulk trims to be ready at the factory and on the production line The timeline is influenced by the factory's production capacity and the fabric import process to Vietnam.
Figure 7: The process of developing neck ring trims and importing trim
As the development of fabrics and materials progresses, the merchandiser will create docket 0087M and forward it to the factory Although the actual hangover date is set for December 13, 2018, the docket will indicate a hangover date of November 29, 2018, which is two weeks earlier than the customer's request This proactive approach aims to alleviate production pressure on the factory and minimize the risk of late delivery.
Figure 8: The actual hangover date and the docket hangover date
To ensure adherence to the production schedule, all fabric and trims must be delivered to the factory at least two months prior to the deadline for production This timeline allows the factory sufficient time to produce high-quality garments However, for docket order 0087M, the fabric arrived late, remaining in the factory until October 22, which disrupted the production timeline.
Four days behind schedule, the QA/QC team must ensure thorough quality control and molding of the product The author believes this order will not be delayed or require relocation to a supplementary factory, as the docket was sent to the factory two weeks prior to the deadline This proactive approach minimizes the risk of lateness, allowing the factory ample time for production.
The author's proposed solution facilitates a negotiation process where the customer approves the official purchase order (PO) upon the approval of the lap dip Sending the docket to the factory with a hangover date of less than two weeks is both reasonable and practical This approach allows for a standard production time of just 2.5 months, effectively minimizing risks and costs for MORE UK.
3.4.2.3 Solution 3: On-the job Training
To do the action plan for On-the –job Training solution, the author propose the plan and the estimated cost to conduct the plan
+ First, human resource will assign the experience employee who will be in charge of teaching for new employee in each position
+ Second, human resource will prepare related documents for this position for example company manual, templates, the right to access to MORE UK server
+ Third, the experience employee will spend time for teaching and trainning new employee
+ Finally, following up by gradually decreasing supervision, correcting errors and evaluate the training program
The estimated cost for training new employees mirrors that of Solution 1, factoring in the hours experienced staff dedicate to training and the administrative expenses associated with printing company manuals and templates.
Based on the average salary of a merchandiser, pattern maker, planning staff with over
5 years of working experience is 23,400,000 VND per month, the average daily cost for the experienced employee spend their time to training in stead of working is around 1,100,000 VND
1 Assign the experience employee who will be in charge of teaching for new employee in each position
2 Prepare related documents for training:
20 days 22,000,000 VND From Jan to
3 Teaching and training 60 days 66,00,000 VND From Mar to
4 Evaluate the training program 10 days 11,000,000VND In June 2019
Table 10: Timeline and estimated cost for Solution 3
To enhance operational efficiency, MORE UK plans to implement a structured solution involving the creation of detailed job descriptions for its merchandiser team Each team member will be assigned responsibility for managing one or two customers throughout the entire process, from receiving purchase orders to exporting goods This initiative requires an estimated investment of 206,660,000 VND and is expected to be executed over a six-month period in 2019, aimed at establishing a more effective system.
The survey questions were contributed for choosing sets of solution
Appendix 1: The survey questions were contributed for choosing sets of solution
1 Would you like to introduce about yourself?
2 What is your position in MORE UK?
3 Can you tell me something about your job?
1 Is it necessary of writing a job description in your position? (Merchandiser, Pattern maker, Planning staff, QA/QC)
2 Is it necessary to apply On- the -Job Training in MORE UK?
3 Is it necessary to apply Diversity Training in MORE UK?
1 Between Solution S2.1 and S2.2, which solution that you think it will be more suitable to MORE UK situation?
2 Why do you think it will be better than the other?
Interview
Interviewer: Chào chị, em là Anh Thư, hiện em đang thực hiện luận văn tốt nghiệp Em hy vọng chị có thể cung cấp một số thông tin về tình hình thực tế của Văn phòng đại diện More UK tại thành phố Hồ Chí Minh Những thông tin chị cung cấp sẽ được bảo mật và phục vụ cho mục đích nghiên cứu của em.
Chị vui lòng cung cấp cho em những thông tin cơ bản như tên, vị trí và mô tả công việc hiện tại của chị được không?
Interviewee: Mình tên Dung, mình làm Merchandiser ở công ty này được ba năm rồi Interviewer: Xin lỗi chị vị trí Merchansider (Mer) là như thế nào ạ?
Interviewee: Là theo dõi đơn hàng nha em
Interviewer: Công việc theo dõi đơn hàng là như thế nào chị có thể miêu tả chi tiết giúp em được không?
Theo dõi đơn hàng là quá trình nhận đơn từ khách hàng, sau đó tiến hành đặt vải và các nguyên phụ liệu cần thiết Mục tiêu là đảm bảo rằng nhà máy nhận đủ nguyên phụ liệu để sản xuất áo theo yêu cầu của đơn hàng.
Interviewer: Vậy hiện tại những khách hàng chị dung đang theo dõi là những nhãn hàng nào?
Interviewee: Khách hàng Factory Shop, Boyes, Top Shop, Dorothy Perkins, Millers.
Interviewer: Hiện tại thì cho em hỏi là bên công ty mình có nhà máy không hay mình chỉ nhận gia công
Interviewee: Hiện tại bên công ty mình thì không có nhà máy chỉ là VPDD tại Việt
Nam rồi sau đó mang hàng đó xuống cho các nhà máy gia công lại cho văn phòng mình
Interviewer: Những nhà máy đó là bên công ty mình làm hợp đồng gia công đúng không chị?
Hiện tại, khách hàng của chúng tôi chủ yếu tập trung vào các mặt hàng cụ thể Công ty thường sản xuất những sản phẩm nào, thưa chị?
Công ty chúng tôi chuyên sản xuất các loại áo Blouser và áo Blouser dành cho phụ nữ, cùng với các mẫu quần cho phụ nữ lớn tuổi tại Vương quốc Anh Chúng tôi cũng cung cấp áo jacket, jumpsuit, đầm và nhiều sản phẩm khác, chủ yếu tập trung vào hàng hóa dành cho nữ giới.
Chị Dung cho biết quy trình làm gia công với nhà máy bắt đầu từ việc nhận đơn hàng từ khách hàng Sau đó, chị tiến hành chuyển nguyên phụ liệu vải vóc về nhà máy Quy trình này bao gồm việc kiểm tra chất lượng nguyên liệu, lên kế hoạch sản xuất và theo dõi đơn hàng để đảm bảo tiến độ và chất lượng sản phẩm Chị cũng chia sẻ về những vấn đề có thể gặp phải trong quá trình làm việc với nhà máy và cách giải quyết để duy trì hiệu quả công việc.
Hiện tại, mình đang nhận đơn hàng từ khách hàng thông qua VPDD More tại Việt Nam, công ty mẹ ở UK Sau khi nhận đơn hàng, mình sẽ chuyển tiếp cho các Mer để tiếp tục xử lý Khi nhận được đơn hàng từ VPDD More UK, mình sẽ bắt đầu làm việc với các nhà máy, gửi báo giá CMPT hoặc CMT để tìm ra nhà máy có giá cả và chất lượng tốt nhất Với kinh nghiệm của mình, mình sẽ biết nhà máy nào quen thuộc và đáng tin cậy, từ đó gửi đơn hàng cho các nhà máy A, B, C, D, E, F để nhận báo giá từ họ.
A gửi cho mình áo đó giá 1$ , nhà máy B là 1.2$, nhà máy C báo 0.9$
Sau khi nhận báo giá từ các nhà máy, mình sẽ lựa chọn nhà máy phù hợp và gửi nguyên phụ liệu cùng thông tin đơn hàng Mình sẽ đặt lịch cho họ sắp xếp vào chuyền sản xuất, ví dụ như đặt đơn hàng cho tháng 11 hoặc 12, để họ có thể lập kế hoạch cho VPDD MORE UK Mình sẽ thông báo số lượng sản xuất cần thiết, chẳng hạn như 1000 sản phẩm, để nhà máy có thời gian chuẩn bị Sau khi hoàn tất thông tin đơn hàng, mình sẽ tiến hành chuẩn bị vải vóc, NLP và mẫu rập cho quá trình sản xuất.
Interviewer: Hiện tại thì nhà máy nào bên VPDD mình thường sử dụng nhất Bên
More thì dựa vào đơn giá hay mặt hàng để chọn nhà máy vậy chị?
Khi chọn nhà máy, yếu tố đầu tiên cần xem xét là giá cả, nhưng cũng phải tùy thuộc vào từng mặt hàng cụ thể Nếu nhà máy chưa từng sản xuất áo Jacket, dù giá có rẻ đến đâu, tôi cũng không dám giao sản phẩm đó cho họ.
Hiện tại, More đang hợp tác chủ yếu với nhà máy VC, nơi chuyên sản xuất các loại hàng như Blouser, Trouser và đầm Nếu có đơn hàng liên quan đến những sản phẩm này, chúng tôi sẽ ưu tiên gửi xuống nhà máy VC trước.
Trong quá trình làm việc với nhà máy VC, có một số vấn đề phát sinh mà tôi gặp phải Những khó khăn này chủ yếu liên quan đến quy trình sản xuất và giao tiếp giữa các bộ phận Tôi hy vọng có thể chia sẻ chi tiết hơn về những thách thức này để cải thiện sự hợp tác trong tương lai.
Mọi nhà máy đều gặp phải những khó khăn nhất định trong quá trình sản xuất Một trong những vấn đề thường gặp là khi gửi đơn hàng, có thể xảy ra tình trạng nguyên phụ liệu hoặc vải không được cung cấp kịp thời Ví dụ, nếu đơn hàng dự kiến xuất vào ngày 30/8 nhưng nguyên phụ liệu chỉ được nhận vào ngày 20 hoặc 10/7, nhà máy sẽ không thể sắp xếp sản xuất kịp thời để đáp ứng yêu cầu xuất hàng của khách hàng.
Để đảm bảo tiến độ sản xuất, thường thì tôi sẽ chuẩn bị đầy đủ nguyên liệu, vải vóc và rập trong khoảng thời gian từ 30 đến 45 ngày trước khi gửi đến nhà máy Nếu gửi trễ, kế hoạch sản xuất sẽ bị ảnh hưởng, dẫn đến việc hàng hóa không kịp xuất và ngày giao hàng sẽ bị chậm trễ.
Vấn đề quan trọng đối với More UK là việc chuẩn bị đầy đủ nguyên phụ liệu vải vóc đúng hạn, nếu không sẽ dẫn đến tình trạng vỡ chuyền và chậm trễ trong việc giao hàng Trung bình, thời gian để đặt nguyên phụ liệu thường mất một khoảng thời gian nhất định, điều này cần được chú ý để đảm bảo tiến độ sản xuất.
Thời gian sản xuất vải và nguyên phụ liệu thường khác nhau, với vải mất từ 45-60 ngày, trong khi nguyên phụ liệu như nút, vải lót và dây kéo chỉ mất từ 10-15 ngày Quá trình này còn bao gồm việc gửi mẫu cho khách hàng duyệt, do đó tốn khá nhiều thời gian.
Interviewer: Ngoài ra thì còn có vấn đề nào nữa không chị ?
Interviewee: Ngoài ra, khi chị làm việc với VC, chị thấy VC bị rớt nhiều đơn hàng và phải chuyển qua nhà máy khác.
Interviewer: Chị có thể mô tả rõ vì sao lại có trường hợp chuyển sang nhà máy khác không ạ?
Related template which using in MORE UK operating procedure
1 The costing sheet of docket 0061M
2 The purchasing order from MILLES of style number WSTP13245M
3 The purchasing order from MILLES of style number WSTP13049M
4 The purchasing order from MORE UK to fabric supplier
5 The purchasing order from MORE UK to trim supplier