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
- What does FOB mean in clothing manufacturing?
- Free on Board — the factory's price covers the goods up to loading for export; the buyer arranges and pays for freight, insurance and import duty from that point.
- What is MOQ in the fashion industry?
- Minimum Order Quantity — the smallest run, usually per style and colour, that a factory will accept, because fabric is bought and lines are set up in batches regardless of order size.
- What does GSM mean for fabric?
- Grams per square metre — the standard measure of fabric weight. Higher GSM means a heavier, denser fabric; lower GSM means lighter and more drapey.
- What is AQL in quality control?
- Acceptable Quality Limit — a statistical standard, commonly AQL 1.5 or 2.5 for apparel, defining how many defects are tolerated in a sample before an entire shipment is rejected.
- What is the difference between CMT and FOB pricing?
- CMT (Cut, Make, Trim) charges only for factory labour on fabric the buyer supplies. FOB pricing includes the fabric and all materials in the factory's quoted price.
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 Belle Vouz