Fabric and Labour Sourcing

Choosing the Best Fabrications, Findings and Trims

An important part of the duties of a buyer/product development manager is to evaluate the best
sources for fabric, findings, trim and labour. In some organizations, there are large teams of people
whose jobs revolve sole around these activities. In smaller companies with a limited budget and fewer
product development team members, this often becomes the job of the buyer or head merchandiser.
Research, prior experience, interviews and travelling to mills and factories in key parts of the
world can each be a part of the process of identifying the right sources for your program. It is crucial to
consider all of the important factors in the journey of your product from raw materials to your selling floor.
In order to guarantee a satisfied customer, the merchandiser must understand and be certain of
excellence in the following:
- Raw materials are readily available and of the type that will work best for your garments
- Fabric mills are conveniently located to the sewing factories, or that ease of transportation from
mill to factory is assured
- Selected sewing factory has the production capability and the expertise to be able to make your
order in a timely manner
- Quality control is built into each step of the production cycle
- Quota is available and duty rates understood and factored into the equation. Duty rates will be
addressed when we complete cost sheets.

Quota
Buyers must be up-to-date on issues involving quotas. Quota restrictions have long been a much
debated issue around the world, and the buyer must stay current on the most recent government
regulations applicable to the General Agreement on Tariffs and Trade (GATT), the World Trade
Organization (WTO), the North American Free Trade Agreement (NAFTA), and the Caribbean Basin
Initiative (CBI). As quotas on some categories of merchandise are lifted, the impact on the buyers ability
to import goods can be greatly impacted.

Denim Fabric Imports Example

Lets consider a denim jean private-label program you are product developing for a department
store. Three areas of the world we will discuss for sourcing your fabric, trims and labour include 1)
Mexico/Caribbean, 2) China/Far East, and 3) Turkey/Eastern Europe. Although there are certainly
differences between prices and manufacturing conditions in, for example, Mexico versus the Caribbean
basin, there are enough similarities to the regions that we can group them for the purposes of our study.
Table A) lists some advantages to each of the three world areas for sourcing of your fabrics,
trimmings and final jean products. Table B) indicates approximate costs for fabric and labour in the three
selected world areas.

Table A) Sourcing Options

Consideration Mexico/Caribbean Turkey/E. Europe China/Far East
Fabric Limited local Few regional Prices low due to
availability. Trade Laws producers, but good government subsidies.
dictate source and use quality cotton locally Quality varies. Local
grown. Tight pricing availability of cotton
disciplines result in fabrics and mills for
higher costs. finishing.
Trim Limited local Basic trims available Easy access to
availability. Importing locally. Others must be components. Quality
components can delay imported. and duplication of
production.
 selections must be
closely monitored.
Labour Labour prices fluctuate Skilled work force, but Nearly unlimited
due to local wage limited in numbers. workforce.
controls. Higher Labour prices higher Government support of
turnover of workers can than other 2 choices. industry. Low prices.
impact learned skills. Moderating skilled
workers.
Trade Agreements Favourable to trade Good trade High demand for
with the United States relationships with the exports can result in
and Canada. US and Canada. limits on availability.
Some countries (i.e.
Bulgaria) have no
quota limitations.
Transportation Boats can get to the Boats to the Most boats take
United States/Canada US/Canada take approximately 1 month
in as few as 3 days. approximately 18 to 24 and are subject to
days. many delays.

Table B) Fabric and Labour Cost Comparison Table

Components Mexico/Caribbean Turkey/E. Europe China/Far East
Denim fabric of 100% $2.25 $2.75 $2.00
cotton basic 14 oz.
cloth cost per linear
yard
Added price for lighter +.25 +.30 +.20
weight fashion denim
(approx. 12 oz.)
Labour per piece 1.75 2.00 1.50
mens jeans
Labour per piece 1.75 2.00 1.50
womens jeans
Labour per piece 1.75 2.00 1.50
juniors jeans
Labour per piece 1.50 1.75 1.25
childrens jeans

Your Step-By-Step Plan (for reference only)

After researching, you would be ready to choose the denim fabric(s), findings, trim and areas of
the world where you will source these components, as well as secure manufacturing space.
Step 1
Review design and concept boards from your presentation to ensure that you are comfortable
with styling, theme, colour story and fabric direction.
Step 2
Review target customer profile, competitive situation and plans for other branded and non-
branded denim programs within your own store assortment to assess your needs for this private-label
program. Determine retail price points and planned gross margins for the collection.
Step 3
Using Tables A) and B) as a starting point, research and compare prices and pros/cons of
sourcing in the three world areas. Make your selections and justify your choices in writing. Begin to
make a list of cost prices for fabric, finishes, findings and trim. This information would be used when
completing your cost sheet(s).
Step 4
 Complete a fabric detail sheet (see example provided as an attachment and inserted in next
page, and instructions for completion below). If you have several styles of jeans that will be made of the
same fabric, you will need to only complete one fabric detail sheet for all styles. However, if you will offer
more than one fabric in a particular style, you must put each fabric on a separate fabric detail sheet. If
you will offer a print, it must be shown on a separate fabric detail sheet. The same applies to a yarn-dyed
pattern such as a stripe.

Completing the Fabric Detail Sheet (for reference only)

1) Assign a fabric identification number to each new fabric that will be used in the collection.
Develop your own system for numbering and be consistent with the selected format for all fabric
identification numbers.
2) Indicate the season for which the fabric will be used.
3) Give the fibre content in percentages.
4) Identify the weight of the fabric.
5) Write a brief description of the fabric.
6) Fabric width is usually 58/60 for denim fabrics, but you should indicate the width of the fabric
that you intend to you.
7) Show the cost per yard for your chosen fabric. Remember to add in extra costs for special
finishes, printing, etc.
8) In the middle of the form is room to past in a swatch of the fabric. Just below that, show colour
standards for the colours in your solid fabric, or the colours that will be found in your print. For
standards, it is best to use a colour system such as Pantone or Scotdic, but you may also use
paint chips or other similar means to show the colours that you have selected for each fabric.
9) At the bottom of the form, on the first line, describe any special finish that the fabric will have.
10) Next give the washing instructions (most customers want their jeans to be machine
washable). Check jeans in catalogs and local stores for representative washing instructions or
obtain washing instructions from the denim supplier. Consider also the care instructions for any
trims on your garments.
11) The last section is for any miscellaneous information that does not have another space on the
fabric detail sheet.
Note: Typically the buyer would also be required to understand the construction of the denim
cloth and would include this information on the fabric detail sheet. For example, one commonly used
construction is 72 x 42, which is an indication of the number of picks and wales in a fabric. Further
details, such as the size of the yarns, would also be required information. All this information could be
added to the miscellaneous line if you have access to that information.