Fabric Sourcing Procedure in Garments Industry

Sourcing the right fabric can be sometimes a tough challenge faced by apparel manufacturers. Out of the total cost of manufacturing a garment piece, the cost of fabric can contribute between 50 and 65 per cent. Furthermore, even a minor oversight in selecting the right fabric and right manufacturer may spoil the entire apparel programme. Interestingly, though the fabric constitutes the main part of a garment, many of the apparel merchandisers have a very limited knowledge about fabric. They consider fabric as another component of raw material like buttons, care labels, and hang tags or packing materials. Unfortunately, describing a fabric in terms of specification to fulfill its end use is much more complicated than communicating the requirement of any other component of a garment and many apparel merchandisers do not have the necessary knowledge or training to order the right fabric from the right manufacturer at the right price. To be on the safer side, they simply ask various suppliers to bid for their lowest price and finally select the one who offers the lowest price or the most favorable term.

Consequently we often see the adverse effects of poor fabric sourcing strategy every day in the apparel industry. Garment air shipment cost is prohibitive and applied as penalty only when the apparel manufacturer fails to deliver the consignments beyond acceptable delays. The cost of air-freight is so high that air shipment of a single consignment of garments may wipe off the profit of a few months for the garment manufacturer. A study revealed that more than 80% of all garment air shipment is caused due to poor fabric sourcing management.

Fortunately, such critical errors can be avoided when sourcing woven fabric for manufacturing garments and the procedure is easier than we think about it. When discussing with the garment buyer, do not just talk about the target price he or she is giving us. Ask about the fabric in more detail. This is not only about the counts, construction and weight of the fabric but about some important and critical points. Here are certain things to keep in mind to ensure a trouble free fabric sourcing.

So it is crucial to sourcing the right Fabric on time. Fabric sourcing can change the whole scenario and total cost of the garments.

Finished Fabric Sourcing Procedure (white or dyed):

While a factory directly source finished fabric from mills they usually follow below procedures

Research for fabric suppliers: Fabric sourcing department research for available suppliers and shortlist some of them to work with for their fabrics.

Send fabric specification: Factory sends fabric sample or fabric specifications such as count and construction, GSM, weave structure and fabric width to the supplier.

Price negotiation and payment terms: Fabric sourcing department requests for the best price quote from fabric supplier and negotiate for the best price. Negotiation is also done for delivery lead time. Once cost negotiation is done, factory confirm supplier for lap-dip development.

Lap-dip approval: Fabric supplier develops sample for multiple shades as per required colors and send to factory for approval of most appropriate shade. Factory merchant sends those lap-dips to buyers or buying agents for approval.

Raising fabric demand note: Factory merchants calculate average fabric consumption and raise fabric demand note for the complete order. Fabric demand note is approved by authorized person and handed over to sourcing department for further processing.

Raise PO for bulk order: Factory sends purchase order (PO) to the fabric supplier. In some cases supplier ask for advanced payment (part of total invoice).

Received fabric delivery: Fabric supplier sends fabric to the factory fabric store in roll or than form.

Quality and quantity checking: Once fabrics are received, factory checks for quantity and quality of the fabric whether those are as per requirement. Quality means fabric properties such as shrinkage, dimensional stability, fabric weaving and processing defects etc. In case there is variation factory intimate fabric supplier and send back for reprocessing if required. Or raise a debit note if fabric quality is poor than the quality ordered at the time of contract.

Fabric approval for bulk production: Fabrics passed in quality inspection and testing are stored for bulk cutting. For some apparel buyers finished fabric lots need to be approved from buyers.

Payment is sent to the fabric supplier: Factory releases final payment for the fabric supplier once fabric is found ok.

Greige Fabric Sourcing Procedure:

To save money in processing (wet processing) medium and large size garment manufacturers (export houses) source greige fabric from mills or power looms instead of finished fabric. They process greige fabric by their own. So, there is small variation in fabric sourcing procedure than the procedure explained above.

From development of fabric supplier to price negotiation are same as the above. Factory sources greige fabric instead of finished fabric. So, prior to use fabric for garment production, fabrics are processed. Fabric sourcing department sends gerige fabrics to dyeing mills for wet processing (scouring, bleaching, dyeing or printing). Lap-dip approval is done in prior to bulk dyeing. Once lap-dip is approved by buyer, factory confirm for bulk dyeing. Finished fabrics are in-housed follow rests of the procedures as explained above.

 Yarn Dyed Fabric Sourcing Procedure:

There is slight variation in sourcing procedures when garment factory sources yarn dyed fabrics. Instead of lap-dip factory develops bit loom for fabric design (weave of checks or stripes). Colors of the dyed yarns are approved in fabric. Rests of the procedures is same as the above.

Knitted Fabric Sourcing Procedure:

Like above knitted fabrics are also sourced as finished fabric (dyed or yarn dyed). Small variation found in knitted fabric like some factories source greige yarns instead gerige fabric and get knitting done by their own. Rests of the processes are similar to the above.