15 Garment Costing Terms Used in Apparel Industry

Introduction:

Garments costing is very important in garments merchandising. Garment merchandisers done this job by negotiating with the buyer. During garments costing, there are a lot of garments costing terms have come in consideration which are mentioned in this article.

Garments Costing Terms

Garments Costing Terminology Used in Garment Export Import Business:

Different terms related to garments costing are mentioned in the following:

1. Yarn cost,
2. Process cost,
3. Buyer negotiation,
4. Quality,
5. Quantity,
6. CMT,
7. Over head cost,
8. Shortage in process,
9. Buyer specification about the definite product,
10. Process of shipment (Sea or Air),
11. Currency,
12. FOB,
13. CIF,
14. Commission (%) for the middle man,
15. Profit (%) for factory or buying house.

All the above points have discussed in the below:

1. Yarn cost:

Yarn cost is an important mater in garments costing. Accurate yarn cost helps to earn maximum profit from a garment export order.

2. Process cost:

Process cost means the total amount of processing (cutting, sewing, finishing etc.) cost needed to make a garment. Costing of garments varies depending on the process needed to make garment.

3. Buyer negotiation:

Buyer negotiation or buyer handling is very important in readymade garments sector. As a garment merchandiser you should explain your total discussion to the buyer in all possible ways by keeping those matters in your way. Buyer will automatically choose from your proposed options.

4. Quality:

Quality is the ultimate point of a garments product. Garments buyers are now invested a lot of money to satisfy the customers by providing them right quality products.

5. Quantity:

Garment costing varies depending on the quantity of garments.

6. CMT:

CMT means “Cut make and trims”. In this circumstance, garments manufacturer quotes the buyer a proposed price which covers making cost, trimmings and accessories cot of a garment. Here, all the other required materials sent by the buyer to the manufacturer.

7. Over head cost:

Overhead cost means the cost of each operator required to make a garment. Over head cost has a significance impact in garments costing.

8. Shortage in process:

If garments made by avoiding unnecessary processes then it will be very effective for garments costing.

9. Buyer specification about the definite product:

Buyer specification about the definite garments means direction about garments making, print, embroidery, wash etc. which is contained by garments specification sheet.

10. Process of shipment (Sea or Air):

Shipment of products can be done by using sea freight or air freight which is totally depends on the buyers. Shipping condition affects on garments costing.

11. Currency:

Currency is an important matter in garments manufacturing sector.

12. FOB:

FOB means “free on board”. In this case, exporter quotes the garment buyer a price that includes all costs up to and including delivery of goods aboard an overseas vessel. Here, exporter quote the price by adding fabric cost, accessories cost, CM (cost of making), overhead cost, commission, C&F commission and transportation cost from factory to port.

13. CIF:

CIF means “Cost, insurance and freight”. In this case exporter quotes the buyer a price that covers FOB cost, insurance cost and freight cost. As a result, CIF cost is higher than C&F cost.

14. Commission (%) for the middle man:

If garment factory collects the order from a garment buying house or buying agent then he must have to pay them commission percentage for the order.

15. Profit (%) for factory or buying house:

During garments costing, garment merchandiser added profit (%) here for the factory or buying house with all the others cost.

List of Sewing Machine Used in Apparel Industry

Introduction:

Sewing machine plays an important role in ready made garments sector. Different sewing machines are used for different purposes. There are a lot of sewing machines used in garments manufacturing industry, which are mentioned in this article.

Sewing Machine Used by the Operator in Apparel Industry

Types of Sewing Machine Used in Apparel Industry:

According to the operating system, there are two types of sewing machines are available in the ready made garments sector. Those are-

1. Manually operated sewing machine,
2. Electrically operated sewing machine.

All the above machine types have explained in the below:

1. Manually operated sewing machine:

The machine where sewing is done by using physical power is termed as manually operated sewing machine. These types of sewing machines are vastly used in tailoring and domestic purpose of sewing fabrics. This machine types are not used in apparel manufacturing industries due to the less garments production.

2. Electrically operated sewing machine:

The machine where sewing is done by using electrical power is known as electrically operated sewing machine. This types of machines are widely used in garment manufacturing industries due to the higher apparel production. These sewing machines also termed as industrial sewing m/c.

List of Sewing Machine Used in Garment Industry:

1. Double chain stitch machine (four needle short……),
2. Double chain stitch machine (four needle elastic inserting machine),
3. Double chain stitch m/c (double needle with reverse feed),
4. Fed of the arm (Double chain stitch m/c with three needles),
5. Interlock machine (twine needle, 5- thread over lock machine),
6. Lock stitch machine (single needle with variable top feed with automatic thread trimmer),
7. Lock stitch m/c (single needle with automatic thread trimmer),
8. Lock stitch m/c (single needle sewing machine),
9. Lock stitch machine (two needle with split needle bar sewing),
10. Lock stitch m/c (twin needle feed),
11. Lock stitch sewing m/c (one needle with vertical trimmer wiper and reverse feed),
12. Lap seaming m/c (for back tape attaching),
13. Linking machine,
14. Over lock machine (twine needle four threaded machine),
15. Over lock machine (one needle, 3-thread),
16. Zigzag sewing machine (one needle),
17. Top and bottom cover stitch flat bed machine (three needle),
18. Three needle covering machine, five thread flat bed top and bottom covering m/c,
19. Button hole m/c (for woven fabric),
20. Button sewing machine,
21. Bar tack m/c with automatic thread trimmer,
22. Button hole sewing m/c (for knitted fabric),
23. Button covering stitch belt loop making m/c (kansai m/c),
24. Bias tape cutting machine,
25. Label sewing machine.

Process Flow Chart of Garments Merchandising

Garments Merchandising

In garments sector, merchandising is an important department which negotiates marketing and production department at the same time. To make smooth the merchandising activities every merchandiser has to follow a process flow chart by which anyone can do his/her work very smartly. The process flow chart for apparel / garments merchandising are presented in the below.

Garments merchandising process

Process Flow Chart of Apparel or Garments Merchandising:

Order received from the Buyer with details
↓
Sample Development
↓
Price negotiation with the Buyer
↓
Confirmation of order and receive the order sheet
↓
Make buyer requirement sample (Fit, Proto etc) for approval
↓
Make requisition for bulk fabric
↓
Make requisition for accessories
↓
Swatch board making and approval
↓
Raw material collection and also receive it in factory
↓
Check and also listing
↓
Make P.P (pre production Sample) with all actual
↓
Pre-production meeting
↓
Start bulk production
↓
Collect daily production and quality report
↓
Make online inspection by strong quality team
↓
Sample sent to third party testing centre
↓
Make final inspection for bulk production
↓
Shipment
↓
Send all documents to the Buyer
↓
Receive payment from Bank

All the processes of garments merchandising are now discussed with the details in the following table:

SL No.	Subject	Job
01	Order received from the Buyer with details	The very first work of a merchandiser is to collect order from the buyer with the details information (Art work, technical sheet).
02	Sample Development	Sample should be developed by following buyers instruction
03	Price negotiation with the Buyer	In the mean time, Price should be negotiated with the Buyer.
04	Confirmation of order and receive the order sheet	Here price have to fix and collect order sheet from the Buyer.
05	Make Buyer requirement sample (Fit, Proto etc) for approval	Should be prepared proto or fit sample for Buyer’s approval.
06	Make requisition for bulk fabric	In the mean time, make fabric requisition for bulk production.
07	Make requisition for accessories	Make a requisition for the required accessories of that order.
08	Swatch board making and approval	Should prepare swatch board of required accessories for the Buyer’s approval.
09	Raw material collection and also receive it in factory	All the requisite raw materials have to collect and receive in factory at right time.
10	Check and also listing	Check all the in-hosed material with requisite sheet.
11	Make P.P (pre-production Sample) with all actual	By following Buyers instruction make a P.P sample with all actual.
12	Pre production meeting	Before going into the production, have to arrange pre production meeting for smooth production.
13	Start bulk production	Finally you have to go into bulk production.
14	Collect daily production and quality report	Regular production and quality report should be collected here in regular basis.
15	Make online inspection by strong quality team	During bulk production, have to make online inspection by strong quality team.
16	Sample sent to third party testing centre	For making a strong approval about the quality of the product, have to send sample in third party testing centre.
17	Make final inspection for bulk production	After completing bulk production, make a final inspection for the order.
18	Shipment	After making final inspection of the product, all the garments should send to the Buyer.
19	Send all documents to the Buyer	All the documents about the order should send to the buyer after sending the full order quantity for receiving payment.
20	Receive payment from Bank	Finally receive the payment from the Bank.