Merchandising Costing and Fabric Consumption in Clothing Industry: A Complete Guide

By | April 15, 2017

Merchandising Costing and Fabric Consumption in the Clothing Industry: A Complete Guide

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 an 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 merchandising costing and consumption, according to my job experience in this sector.

Export Order Costing and Consumption Process:

Very first, I worked 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 merchandise,g consumption is necessary to solve the supplier problems and consumption planning to save maximum fabric. This is the only reason behind the mentioned as in resume like merchandising (costing). In the garment industry costing department is divided into two ways.  There are-

  1. Buyer Costing
  2. Fabric Consumption.

    Garments Costing by the help of CAD

    Garments Costing by the help of CAD

1. Buyer Costing :

  • Technical page received from buyer.
  • Carefully read the tech pack.
  • Analysis the buyer requirements 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 the 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

Fabric Consumption

Fabric Consumption

Accessories cost depends upon on buyer requirements.

  • 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 decentralized 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.

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