Costing and Consumption in Apparel

Costing and Consumption in Apparel

Jeevan S. Kadam
B.Sc in Textile Engineering
Shivaji University, Kolhapur.
Merchandiser (Costing)
Perlei Textiles Pvt. Ltd.,
Tiruppur, India.
Email: jeevankadam16@gmail.com

Merchandising Costing:

Garment costing is the important issue for an export order execution. For this reason every renowned apparel organization has won, costing department, which help the merchandising department as usual. Therefore merchandising people are only limited from sample development up to production shipment. Now I am going to discuss about merchandising costing and consumption, according to my job experience in this sector.

Export Order Costing and Consumption Process:

Very first I was working in a costing department for learning the basic things about knit fabric and knit fabric consumption. Consumption is the base of merchandising so as far as my interest I was worked in costing department only to learn the consumption and basic knit fabric. For merchandising consumption is necessary to solve the supplier problems and consumption planning to save maximum fabric. This is the only reason behind mentioned as in resume like merchandising (costing). In garments industry costing department is divided into two ways.  There are-

1. Buyer Costing
2. Fabric Consumption.
   

   Garments Costing by the help of CAD

1. Buyer Costing :

• Technical page receive from buyer.
• Carefully read the tech pack.
• Analysis the buyer requirement about fabric quality, fabric GSM, etc.
• According to GSM selection of yarn count.
• Current price of particular yarn count.
• Knitting cost.
• Dyeing cost.
• Particular Finishing cost according to buyer requirement.
• Compacting cost (for knitting fabric only).
• Washing cost if CPD is there.
• Heat setting cost if Lycra is there.
• Processing weight loss.
• Printing weight loss.

2. Fabric Consumption:

According to buyer measurement chart

Ex.    Total body length from HSP = 50 cm

                Allowance                            = 6 cm

                                                =50+6 = 56 cm

    56 cm is the total body length from HSP

 Consumption calculation- 2 x Diameter x GSM x body length
                                                4000

Accessories cost depends upon on buyer requirement.

• Printing cost.
• CMT rate.(cut,make,trim)
• Additional trims cost
• Embroidery cost.
• Overhead percentage.
• Profit percentage
• At last divide it by current Dollar rate (In EURO depends upon buyer)

As I mentioned above costing department is decentralize so I know the all kinds of fabric consumption, all kinds of accessories consumption. And merchandising follow-up with outside supplier and solve the consumption related issues. Correlate with the casting department for consumption issues due to fabric Diameter and GSM as well as arrange the shortage fabric due to more consumption because of fabric Diameter and GSM.