For the past three decades, as a ready-made garment manufacturer in Bangladesh Posh Garments Ltd have learnt that skillset and modern machinery alone are not enough to gain advantages over other competitors. Competitive advantage, efficiency and experience allows us to stay operational even at the most difficult times, but the key amongst all the positive features is adaptability. Adaptability is what navigates sustaining from the next quarter to a full year then from a full year to a decade and so on. Posh Garment’s adaptability allows it to adjust to new conditions and be versatile in utilizing their existing capacity to the fullest.
One of the strategic elements that we have decided to pursue is Quick Response Orders. Quick Response Orders known as QR Orders have been around for years, but there has not been a more vital period for retailers who are trying to step up and overtake the competition after the end of lengthy lockdowns especially in Europe. It’s essential for them to fill their shelves with newer designs and lure in customers with ready stock of all available sizes. They are looking for instant supplies from veteran manufacturers such as Posh Garments Ltd that is part of the ready-made garments sector in Bangladesh. QR is a strategy that retailers seek to improve inventory management and profitability margins. Suppliers combine a number of tactics with us to develop efficiency and provide speedy inventory flows to their buyers.
Our latest QR order was sent out at the end of September to a retailer in Europe. The respective order of 86,000 pieces was a single style Ladies Blouse with five different colors and made of 100% Viscose fabric. Both the fabric and garment were manufactured and exported within the very short span of 40 days. The finished goods were subsequently shipped out by air freight immediately. Viscose which was used for the Ladies Blouse is a lightweight material with a soft feel and smooth finish. For this specific order, the fabric was manufactured and supplied by a local fabric supplier in Bangladesh in a record 14 days. Posh Garments Ltd then cut, stitched and developed the complete design for 86,000 pieces in only 21 days. It was then sent off to our delighted buyer in Europe through air freight ready to be placed in stores for their customers.
Posh Garments Ltd loves to accept challenges and find newer and more cost-effective solutions for its buyers. QR orders not only require the utmost amount of attention and meaningful communication but also maximum efficiency and experience from the manufacturer. Every aspect of the order must be scrutinized and dealt with extreme care. Quality control and flawless development is imperative, but it is also important to reduce any time-lag between factory production and logistics to ensure smooth and timely delivery. We possess the capacity, technical capability and enviable track-record of supplying ready-made garments according to our strict commitment. We also guarantee that Posh Garments Ltd can successfully undertake and deliver a significant number of QR orders from Europe and all over the world.
In a recent workshop organized by BGMEA in partnership with UNDP, Global Reporting Initiative (GRI) and SR Asia to brief garment factories on how to align their activities with Sustainable Development Goals (SDG); our honorable director Mr. Wasim Zakariah shared some valuable insight from his personal experience at Posh Garments Ltd regarding exports during this extremely difficult pandemic period.
Under these circumstances, what are the various changes that you had to bring in terms of business approach, production procedures and operational aspects to remain viable?
Wasim Zakariah: With the pandemic in the backdrop, we all now have to be very vigilant, responsive, proactive and think out of the box. We have to deal with getting orders with shorter lead times, import raw material from alternate sources, transform to lean manufacturing, do small size orders with quick changeover in the production line and all the while try maintaining a high level of efficiency as well.
Any changes you may have witnessed in terms of buyers’ sourcing strategies and practices?
Wasim Zakariah: The changes I’m witnessing are like buyers are keeping the order quantity per style to a minimum and placing orders with shorter lead time at a very low price; payment terms and conditions are renegotiated and suppliers are being asked to reduce the price of their materials.
Given the situation, we are trying to cut costs and increase efficiency to breakeven, or in some cases, trying to make profit if we can. We now also have to respond to buyers’ queries and make decisions faster, accept changes that are demanded, and adapt to new ways of working for sample development, material sourcing and all necessary pre-production activities prior to starting garments production.
Any paradigm shift from the buyers’ end that you foresee, keeping in consideration the contingencies that are in hand?
Wasim Zakariah: I feel, going forward, buyers will be more cautious in terms of sourcing garments. They will remain watchful for any further outbreak of the COVID-19 virus which can seriously disrupt the supply chain or accumulate a large inventory.
Besides, any abnormalities, say unusual weather or sudden change of Government policies, may have an adverse effect on sales as well. Buyers are not only placing orders with shorter lead time, but also restricting the order quantity to a level where they sell out with zero-stock in inventory; if sales are good, they are placing repeat orders.