PROCEDURE OF PURCHASING RAW MATERIALS, WASH, EMBELLISHMENTS

*, O-.ecti e/ Sc(/e#

Mer/PR-03 Effecti e !"te# NO$ 0%, &00% Re i'i() # 0* P"+e# 1/5

To stipulate how to purchase fabric/ accessories, embellishments to ensure the purchasing performance can meet the factorys demands and meet buyers requirements on quality Fabric/ accessories, embellishments & washing of all kinds of garments esponsibilities! "erchandising #ept, $arehouse section, "aterial #ept% & &uality 'ssurance #ept 2. Terminology & definition: ( ') ! 'ccounts #ept% ( '#"*+ &,-,T." ! 'dimistration & ,ystem #ept% ( )/" ! )ommercial #ept% ( )0T ! )utting #ept% ( 1 % ! 1uman esource 2 'dmin #ept% ( "'% ! "aintenace #ept% ( "'T ! "aterial #ept% ( ". % ! "erchandising #ept% ( , % ! ,ample oom ( )'# % ! )omputer 'd #esign ( 34 % ! 3laning #ept% ( 3 #% ! 3roduction #ept% ( 3'% ! 3acking section% ( &'% ! &uality 'ssurance #ept% ( $1 % ! $arehouse section% ( $, % ! $ork study #ept% ( F) ! Financial )ontroller ( #* % ! #irector ( 'ccs ! 'ccessories ( *$#s ! *n warehouse dates ( ,ub(con ! ,ub( contractors ( #ocs ! #ocuments ( 3/ ! 3urchase /rder ( ,) ! ,pecial )ustomer eport ( F ) /3#3/3) ! Tech pack ( 3#" 56/", ,3.),7 ! Tech pack ( 6/"s ! 6ill of materials ( 6uy sheet ! /rders 6y ,i8es 5 +ike7 ( )" ! )hange "emo 5 0pdate any re9ised 3/ 7 ( 3%* ! 3roforma *n9oice ( )%*+: ! )ommercial *n9oice ( 3/4 ! 3acking 4ist ( 6/4 ! 6ill of 4ading ( /%, ! /rder ,ummary 3, Re'/()'i-i0itie' 1 "2t3(rit4# "erchandisers 'sistant "erchandising "anager "erchandising "anager

PROCEDURE OF PURCHASING RAW MATERIALS, WASH, EMBELLISHMENTS

Mer/PR-03 Effecti e !"te# NO$ 0%, &00% Re i'i() # 0* P"+e# ;/5

5, C()te)t Ste/ *# ,pecifying raw materials 5fabric/ accs 7 to purchase & embellishments to issue contracts "er% staff will base on some of the below documentations to prepare for purchasing! 3%/s, )ontract, 6/"s ,) 5 ,pecial customer report7, 3#3 specs 3ages, Floor ready compliance pages 6uy sheet 5/6,7, /rder detail sheet% )osting sheets% )onsumption of fabric/accs in yardages and consumption of accs in piece form )onsumption of elastic threads and threads of all kinds% ,tock lists issued from $1 ,ection% Ste/ &# )hoosing and e9aluating ,uppliers, sub(contractors For any fabric/ accs suppliers & embellishments sub(contractors who are designated by buyers, the "er% staff must follow the buyers designation without e9aluation or assessment on the suppliers/ sub(contractors, then continue at step <% For any fabric/ accs suppliers & embellishments sub(contractors who are not designated by the buyers, the "er staff themsel9es will choose and e9aluate the suppliers/ sub(contractors 5 see the procedure! "er/3 (=; 7, then there will be one of the situations, as bellows! +/! Fail to meet the buyers requirements, keep on choosing and e9aluating other suppliers/ sub(contractors% -.,! "eet the buyers requirements, continue at step <% Ste/ 3! "aking 3urchase /rder sheets a7 egarding raw materials 5 fabric/ accs 7 !

'fter finishing the 1st step, the "er% staff will make >3urchase /rder? sheets by inputting data or figures into . 3 program, then the program can automatically calculate quantity of fabric/ accs needed to purchase% 6 ". /3/(Fab/3 (=</F=< , ". /3/('cc/3 (=</F=@ 7 b7 egarding embellishments 5 embroidery, printing, washing, A7 The "er% staff does not need to input data of embellishments into . 3 program or make 3urchase order sheets, they only issue processing contracts of authori8ed signatures to the sub(contractors% The contracts are normally made in :ietnamese & .nglish copies% The contracts will be controlled by 'ccounts dept%

PROCEDURE OF PURCHASING RAW MATERIALS, WASH, EMBELLISHMENTS

Mer/PR-03 Effecti e !"te# NO$ 0%, &00% Re i'i() # 0* P"+e# </5

Ste/ 5# ,ubmitting the 3urchase /rder sheets or/and the processing contracts The 'sst% "er% "anager will confirm on the 3urchase /rders or/ and the processing contracts, then the "er staff submits those to the )hief Financial /fficer or #irector for their appro9al% 6 ". /3/(Fab/3 (=</F(=< , ". /3/('cc/3 (=</F(=@ 7 Ste/ 7# 3urchasing a7 4ocally purchased raw materials 5fab/ accs 7 and embellishments ! The "er staff will issue the 3urchase /rder sheets 53%/7 to the suppliers on face to face with them or he/she can issue 3%/ by faB or 9ia e(mails% For the processing contracts on the embellishments, the "er% ,taff can hand the contracts o9er to the sub(contractors % 6 ". /3/(Fab/3 (=</F(=< , ". /3/('cc/3 (=</F(=@ 7 b7 *mported raw materials 5 fab/ accs 7 The "er staff will send emails regarding the 3urchase /rder sheets to o9ersea suppliers% The "er staff will settle payment based on the suppliers requests% The payment will be made under 4/) or T/T before shipment which should be controlled by both 'ccounts and )ommercial #ept% 'fter being ad9ised on the payment, the o9ersea suppliers start their raw materials mass production% Ste/ 8# #eli9ery a7 For local suppliers ! The "er staff will ad9ise the $1 incharge on *$#s of fab/ accs and hand the 3urchase /rder sheets o9er to him/ her% The >Coods deli9ery notes?, > ed *n9oices? will be sent to the $1 incharge at the same time with the raw materials deli9ered to the warehouse for checking & payment% b7 For o9ersea suppliers ! The suppliers will ad9ise the "er #ept% on deli9ery dates and shipping docs 5 6/4, 3%*s, )%*+: and 3/4 7 9ia e(mails% The "er staff, after checking & completing docs, will send all these docs to )om% #ept% for custom clearance of imported raw materials, at the same time forwards all those docs to the $1 incharge for checking, inputing & records% *n the case the suppliers can accept for T/T payment after shipment, the "er staff will send all deli9ery docs to warehouse dept% for issuing good recei9e notes and then 'ccounts dept% will arrange payment within 15days after recei9ing original shipping docs% Ste/ 9# )hecking the raw materials in warehouse

PROCEDURE OF PURCHASING RAW MATERIALS, WASH, EMBELLISHMENTS

Mer/PR-03 Effecti e !"te# NO$ 0%, &00% Re i'i() # 0* P"+e# @/5

( $1 staff will check the actual quantity of fabric/ accs come in warehouse 6 ". /3/(Fab/3 (=</F(=< , ". /3/('cc/3 (=</F(=@ 7 ( &' staff will check the quality of fabric/ accs ( #uring checking time, if the actual quantity in warehouse is less than the quantity mentioned on the Coods deli9ery notes, 3/4s or/and if there is any shortage and defecti9eness of fab/ accs, $1 & &' staff ha9e to inform "er #ept% immediately so that the "er can ad9ise the suppliers for problem sol9ing on time, there will be =; sol9ing ways as belows ! a7 The suppliers ha9e to replace fab/ accs for the defecti9e ones or deli9er more fab/ accs if they are shorted deli9ery to be same as quantity in the 3%// contracts% b7 *f the actual fab/ accs quantity are shorted, defecti9e which do not remarkably effect on bulk production while the shortage or defects of the raw materials can be temporably replaced/ added from stock for bulk, then the "er staff, at this time, should ad9ise the suppliers and send debit notes to them% The 9alue on the debit notes will be deducted for neBt orders% DDD For embellishments! embroidery, printing & washing! &' #ept% has to follow the appro9ed strike offs or appro9ed 33 samples and ad9ise the "er #ept% on the defects, then the "er staff will work with the sub(contractors to sol9e the problems% Ste/ :# 1anding documents o9er to the 'ccounts #ept% for payment The $1 incharge or $1 staff will hand all documents 5 ed *n9oices, 3urchase /rder sheets, Coods deli9ery notes 7 o9er to the 'ccounts #ept% for payment & records% This step is only used for T/T payment after deli9ery% 6 ". /3/(Fab/3 (=</F(=< , ". /3/('cc/3 (=</F(=@ 7 Ste/ %# e(e9aluating on the suppliers/ the sub(contractors ,ee the procedure "er/ 3 (=; % Ste/ *0# ,a9ing and keeping documents for records 7, Rec(r! 1 F(r;# Fabric 3urchase /rder 5 ". /3%/(F'6/3 (=</F(=< 7 'ccessories 3urchase /rder 5 ". /3%/('))/3 (=</F(=@ 7 :+( *,/ E==1! ;=== )ompanys regulations/ policies #ocs/ Form Time to sa9e $here to sa9e esponsibility ( "er/3/(Fab/3r(=</F( =< +o limit .rp programme ". & *T #ept% ( "er/3/('cc/3r(=</F( =@ ( ( ( (

PROCEDURE OF PURCHASING RAW MATERIALS, WASH, EMBELLISHMENTS

( 3*, )%*+:, 3/4, 6/4 ( ( ( ( ( ( ( 3%// )ontracts ,) 3) /3#3/ F ) 3#" 56/", ,3.), 7 /rder summary 6uy sheets 1ard copies 1 year +o limit +o limit +o limit +o limit +o limit +o limit 1 2 ; years .mails, public ser9er 3ublic ser9er 3ublic ser9er 3ublic ser9er 3ublic ser9er 3ublic ser9er 3ublic ser9er ". ". ". ". ". ". ". ".

Mer/PR-03 Effecti e !"te# NO$ 0%, &00% Re i'i() # 0* P"+e# 5/5

#ept% #ept% #ept% #ept% #ept% #ept% #ept% #ept%

3repared

e9iewed

'ppro9al

+ame! 3osition! #ate!

+ame! 'shoka 3osition! "erchandising "anager #ate!

+ame!M"!3"<" At"/"tt2 3osition! Ceneral #irector #ate!