What does FOB mean in clothing manufacturing?

FOB stands for Free on Board, and it's one of the most common — and most commonly misunderstood — shipping terms in apparel sourcing. Under an FOB agreement, the factory's quoted price covers everything up to the point the goods are loaded onto the export vessel or aircraft; from that moment forward, the buyer arranges and pays for freight, marine insurance, and import duty at the destination. It's a middle-ground term: less all-in than CIF, where the factory also covers freight and insurance to the destination port, and considerably less than DDP, where the manufacturer handles the entire journey including duty and inland delivery to your door. Buyers who manage their own freight forwarder relationships often prefer FOB specifically because it gives them control over shipping costs and carrier choice rather than accepting whatever rate is bundled into the factory's price.

What is MOQ in the fashion industry?

MOQ stands for Minimum Order Quantity — the smallest production run, usually specified per style and colour, that a factory is willing to accept. The reason it exists isn't arbitrary gatekeeping: fabric gets bought by the roll, dye lots get set up per colour, and cutting lines get configured before a single garment is sewn, and those setup costs are identical whether you order 200 pieces or 2,000. A factory sized for efficient bulk production loses money running well below its MOQ, which is why the number tends to sit around 300 to 500 pieces per style and colour at most export-grade manufacturers. Brands that need to start smaller usually look for a manufacturer specifically built around low-MOQ production rather than trying to negotiate a standard factory down to an uneconomical run size.

What does GSM mean for fabric?

GSM stands for grams per square metre, and it's the industry-standard way of measuring fabric weight regardless of fibre content or construction. A higher GSM number means a heavier, denser fabric — think a substantial 320gsm hoodie fleece — while a lower GSM means something lighter and more drapey, like a 140gsm summer jersey tee. GSM matters beyond just feel: it directly affects cost, since heavier fabric means more yarn consumption per garment, and it affects durability and how a garment holds its shape over repeated washes. When you're specifying a tech pack, giving a GSM range rather than a vague description like "medium weight" is what actually lets a factory quote and source the right fabric on the first try, instead of guessing and hoping the hand-feel matches what you had in mind.

What is AQL in quality control?

AQL stands for Acceptable Quality Limit, and it's the statistical sampling standard that decides whether an entire shipment passes or fails final inspection. Rather than checking every single garment in an order — which isn't practical at commercial volumes — an inspector examines a statistically representative sample, and AQL defines exactly how many defects in that sample are tolerable before the whole lot gets rejected. Apparel commonly uses AQL 1.5 or 2.5, with the tighter 1.5 standard typically reserved for higher-value or more scrutinised programmes and 2.5 as the more common general commercial tolerance. The specific level should be agreed with your manufacturer before production starts, not discovered at the inspection stage, since it directly shapes how strict quality control needs to be throughout the run, not just at the very end.

What is the difference between CMT and FOB pricing?

The difference comes down to who's sourcing the fabric. CMT — Cut, Make, Trim — is a pricing model where the buyer supplies the fabric and trims directly, and the factory is paid only for the labour: cutting, sewing and finishing. It's the model of choice for brands with their own established fabric sourcing relationships who want to control material quality and cost independently. FOB pricing works differently — the factory's quoted price bundles in the fabric and all materials alongside the labour, so the buyer is paying one all-in per-unit price without needing separate fabric sourcing of their own. CMT generally gives more control and can be cheaper if you already have strong fabric relationships; FOB is simpler to manage if you'd rather one supplier handle both material sourcing and construction under a single quote.

Apparel manufacturing glossary: the terms buyers actually need

Manufacturing tools laid out: tape measure, fabric swatch, thread and scissors

Every quote, tech pack and production update in this industry leans on shorthand that nobody explains the first time you hear it. This glossary collects the terms that actually show up in day-to-day sourcing — grouped by where you'll meet them — so you can read a quotation or a QC report and know exactly what it's telling you.

Costing & shipping terms

Term	Meaning
FOB (Free on Board)	The factory's price covers goods up to loading onto the export vessel or aircraft; the buyer arranges and pays for freight, insurance and import duty from there.
CIF (Cost, Insurance & Freight)	The factory's price includes freight and insurance to the destination port; the buyer still handles import duty and inland delivery from there.
DDP (Delivered Duty Paid)	The manufacturer handles everything — freight, insurance, import duty and inland delivery — to your door. The highest price per unit, but the least for you to manage.
CMT (Cut, Make, Trim)	A pricing model where the buyer supplies fabric and trims and the factory is paid only for cutting, sewing and finishing labour — common for brands with their own fabric sourcing.
FOB price	Not to be confused with the Incoterm — often used loosely to mean the full per-unit manufacturing price, fabric and labour included, before freight.
Ex-works (EXW)	The buyer collects goods directly from the factory gate and arranges all transport, export clearance and duty from that point — the least the factory handles of any term here.

Production & sourcing terms

Term	Meaning
MOQ (Minimum Order Quantity)	The smallest quantity, usually per style and colour, that a factory will accept for a production run.
Lead time	The time from confirmed order (or from fabric booking) to shipment-ready goods — usually quoted separately from sampling time.
Critical path	The scheduled sequence of milestones — fabric booking, sampling, PP approval, cutting, bulk, inspection, shipment — used to track whether an order is on time.
Tech pack	The complete technical specification for a garment: measurements, construction detail, materials, trims and artwork, used to brief a factory.
Lab dip	A small fabric swatch dyed to test a colour match against a buyer's reference before committing to bulk dyeing.
Strike-off	A small printed or embroidered sample used to approve a graphic or logo placement before bulk production.
Fit sample	A sample made specifically to check garment fit and proportions on a body or form, usually before pattern grading is finalised.
PP sample (Pre-Production sample)	The final reference sample, made in the actual bulk fabric and construction, that bulk production is measured against.
Size set	A full set of samples across the size range, used to confirm that grading between sizes is consistent.
Nominated fabric/trim	Material a brand requires the factory to source from a specific, pre-approved mill or supplier, usually for consistency or compliance reasons.
Greige fabric	Unfinished fabric straight off the loom or knitting machine, before dyeing, printing or finishing treatments.
Dye lot	A single batch of fabric or yarn dyed together to the same shade — colour can vary slightly between lots, which is why reorders sometimes don't match exactly.

Quality & inspection terms

Term	Meaning
AQL (Acceptable Quality Limit)	A statistical sampling standard (commonly AQL 1.5 or 2.5 for apparel) defining how many defects in a sample of a shipment are acceptable before the whole lot is rejected.
Inline inspection	Quality checks performed while a garment is still on the production line, catching problems before an entire run is affected.
Mid-line inspection	A checkpoint partway through a production run, used to confirm consistency once volume production is underway.
Final inspection	The last quality check, typically against AQL standards, performed on finished, packed goods before shipment.
Third-party inspection	An independent inspection company, rather than the buyer or factory, verifying quality — often required by brands who can't inspect in person.
CAPA (Corrective Action Plan)	A factory's documented plan to fix issues raised in a compliance audit, with deadlines and follow-up verification.

Materials terms

Term	Meaning
GSM (Grams per Square Metre)	The standard measure of fabric weight — higher GSM means a heavier, denser fabric.
Gauge (GG)	For knitwear, the number of needles per inch on the knitting machine — lower gauge means a thicker, chunkier knit; higher gauge means finer.
Ring-spun yarn	Cotton yarn spun with a traditional twisting process that produces a stronger, softer, more even yarn than cheaper open-end spinning.
Compact yarn	Ring-spun yarn processed further to reduce stray fibres, giving an even smoother, more premium hand-feel — common in higher-end tees.
Mercerised cotton	Cotton treated with a caustic soda process that increases lustre, strength and dye uptake — common on higher-quality knit polos.
OEKO-TEX Standard 100	A certification confirming a textile has been tested for harmful substances at every stage of production, down to the component level.

“None of these terms are complicated once explained — the confusion only exists because most people meet them for the first time in the middle of a live negotiation.”

Frequently asked questions

Sources

1.Collective Studio — manufacturing glossary tool for clothing brands

Our sister company Collective Studio also maintains a standalone glossary tool if you want a quick lookup on the go. Come across a term in one of our quotes that isn't here? Ask us directly — we'd rather explain it than have you guess.

Written by

Homaira Jashim

Director, Belle Vouz Ltd

Homaira leads client partnerships at Belle Vouz, working with emerging and established brands on flexibility, transparency and sustainable production — from first enquiry through repeat season.

More about the team

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