Textile Learning Details

Buyer Procedures of Order Initiation Part Two:

Buyer Procedures of Order Initiation Part Two: Writing the mail, the company profile is attached with the mail and sent to the new buyer serving various issues regarding the company.


The company profile of Ovi Tex Ltd. will be given in the last portion of this report i.e. this report will be concluded by inserting the company profile lastly.


It is not mandatory to draft and represent the letters in the same way to seek a buyer as a whole. Here provided letter is the general procedure to attract a buyer who is not familiar with this company.


If the buyer is inclined to know more about this company, s/he generally replies. In the reply, he may ask for several documents regarding the company.


The main documents the buyer may seek are:


       The last audit was conducted in the company.

       The date of the audit,

       The result of the audit,

       Latest personnel overview,

       Child labor practice,

       Certificate of incorporation,

       Certificate of commencement,

       BGMEA membership number,

       Trade license,

       Existing garments production,

       List of the Fabric and Accessories suppliers,

       Specialized in garments making viz. The top part or Bottom part,

       Most marketing arenas,

       Last year turn over,

       Business dimension,

       Factory location and scope,

       Mode of transport,

       Production lead time,

       L/C sight (duration of L/C time),

       Production capacity,

       Machine list,

       Utility support (such as electricity, gas, water, etc).


After submitting the documents that the buyer wants, he may provide us with some corrective action in his prescribed form to fill up accordingly. He may also instruct us to actualize some special task regarding the overall company at any issue (legal issue). Here it should be confirmed that different buyer specifies different specification.


When the corrective action is adopted and the buyer’s specialized sheet is filled up, it is then sent to the buyer and if again some correction is required; should be materialized properly.


In this position the buyer can initiate two procedures:

•        Physical visit,

•        Documentary clarification.


Physical Visit:

The buyer may physically visit the factory or can send his/her nominated person to visit the factory to take a general overview and to ensure the actual position along with the sent documents.


For example, Dress Barn Inc, a new buyer through the Buying house “Norwest” is willing to conduct an audit before giving “Ovi Tex Ltd.” Initial order. After persistent & chronological communication with the buyer/buying house, “Ovi tex Ltd” has been asked to read the below documents for physical audit/visit:


Social checklist for audit:

A)      Wages:

1) Salary sheet

            2) Attendance registers/ Timecard/ Payslip

3) Personal File

4) Service Book

5) Notice file


B)      Certificates:

1)      Trade License

2)      Bond License

3)      Fire License

4)      Certificate of Incorporation

5)      ERC/ IRC

6)      Factory license

7)      Building approval

8)      Floor Diagram

9)      TIN

10)    Membership Certificate

11)    Boiler Certificate

12)    Competency Certificate of Boiler Operator

13)    Environment Certificate

14)    Drinking water test report

15)    Wastewater lab test report

16)    Group Insurance


C)      Registers:

1)      Leave register(C/L,S/L,E/L,M/L,F/L)

2)      Earn leave payment register

3)      Maternity benefit register

4)      Fire Drill register

5)      Emergency preparedness

6)      Accident and Injury register

7)      Broken needle register (Tag gun, sewing, hand, knitting, linking)

8)      Blade register (buttonhole, cutting blade, band knife)

9)      Management Policy


D)      List:

1)      List of workers' attendance

2)      List of festival holidays

3)      List of firefighters

4)      List of First aid team

5)      List of Toilets

6)      Number of Firefighting equipment

7)      Number of First aid box


E) Training Register:

     1) Welfare officer/ welfare committee

     2) Health and safety officer/ committee

     3) Grievance Procedure

     4) Training record


Compliance issues for the various spaces of the factory as:

•        Compliance in the floor,

•        Finishing section,

•        Spot removing area,

•        Cutting Section,

•        Boiler room,

•        Generator Room:

•        Bonded warehouse,

•        Dining Area,

•        Medical Room,

•        Daycare center,


So for adopting the new buyer (Norwest/Dress Barn Inc.), the documents and the factory should be ready to face the audit to avail the new business opportunity.


Documentary clarifications:

In this position, the buyer may check the documents attached to the company’s mails served during the initial communicating period. The simple clarification is to justify the audit reports of the various auditors conducted to the factory for various legal issues. The justification may also be conducted in the labor policy, service policy, working period, holiday practice, the migration of the workers as well as officers, medical service, appointment procedures, all machinery and equipment list used by the company, etc.


The machine list of Ovi Tex Ltd. is given on the following page.

Various Machines List: If anyone is needed please message us.


Various world-renowned audit firms:

Buyer especially stresses to seek the various audit reports of the world-renowned audit concerns by which the company is audited for having the opportunity of various buyers’ order.  Now a day the buyers of the world-renowned brand chose and believe that manpower is the main fuel of every production and quality assurance so they want to proceed with the concerns that practice the legal issue on a priority basis.

Generally, the below-mentioned audit firms are worldwide chosen by the garments buyers:

•        ITS,

•        GSV,

•        BSCI,

•        SGS,

•        Contempo Corporation,

•        BV etc.


Generally, the buyers’ orders may be divided into:

FOB basis,

CM basis.


FOB Basis Order:

The elaboration of FOB is freight on board i.e. when the buyer wants to conduct the business with the factory in the terms that all the fabric and accessories will be provided by the manufacturer according to the buyer’s specification also all the expenses related to the garment will be borne by the manufacturer. That means the buyer will pay the amount covering all costs and profit.


The manufacturer will collect all the garments-related items at his (manufacturer) own cost and produce the garments along with the expenses will be born up to the freight on board as shipment. In this case, the manufacturer makes the costing of the garments obviously in favor of him (manufacturer) for the purpose of seeking the possible profit from the order.

Ovi Tex Ltd. Practices More The FOB Basis Order.