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Merchandising
Sourcing, costing, T&A, buyer-seller
Textile merchandising: the interface between factory and buyer. Sourcing, costing, time-and-action, compliance, and the day-to-day management of production orders from PO to shipment.
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Frequently asked questions
What is a T&A calendar?
Time and Action calendar. A production schedule that shows every milestone from buyer PO to shipment: order confirmation, PI approval, lab dips, fabric production, trims in-house, cutting, sewing, finishing, QC, packing, ship. Each milestone has a date and an owner.
What is a Proforma Invoice (PI)?
A preliminary invoice sent by the factory to the buyer before production starts. Specifies product, quantity, unit price, total value, payment terms, delivery time, validity. Becomes the basis for the buyer's LC or deposit.
What is an LC?
Letter of Credit. A bank instrument guaranteeing the seller will be paid upon presentation of shipping documents. Reduces risk for both buyer and seller in international trade. Governed by UCP 600.
What is CMT cost?
Cut-Make-Trim. The factory cost to convert fabric into a finished garment. Includes cutting, sewing, trim, finishing. Excludes fabric and overhead. CMT varies by region (Bangladesh: $0.80-1.20 per T-shirt; Vietnam: $1.20-1.80; Italy: $40-100 for a jacket).
What is the difference between FOB and CIF?
FOB (Free On Board): seller delivers to ship, buyer takes responsibility from there. CIF (Cost Insurance Freight): seller pays for shipping and insurance to destination port. FOB is buyer-favorable; CIF is seller-favorable.
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