As fashion supply chains become more complex and increasingly go offshore, it becomes more difficult to fully realise the cost of a garment and consequently a product line can easily slip from profit to loss. Industry professionals at every level need to understand the reality behind retail prices in order to succeed. This session aimed to demystify garment costing through all stages of production.
The ASBCI’s Garment Costing handbook covers the entire process of garment production as it relates to costing. It starts with sourcing, including choice of location and production partners, before examining the complexities of the added-value supply chain – from fluctuations in fibre and yarn costs to weaving and knitting, dyeing and finishing, interlinings and non-wovens, trimmings and accessories, and packaging. It then goes on to look at finished fabric and materials and explains how the processes followed by a typical clothing factory will impact on garment costs.
The handbook also provides detailed explanation of how labour costs are calculated, including examples of time and work measurements and average monthly minimum wages of workers in the main apparel sourcing locations (accurate as of December 2017). This is followed by a section on overheads – factory, sales, and product testing, etc – and an overview of the costs of the logistics involved in apparel production, from different methods of freight to warehousing and distribution and freight forwarding.
Finally, the handbook covers reprocessing, both planned and unplanned, and summarises the costing process, touching briefly on retailer costs and other financial considerations.
In addition, the booklet provides a useful glossary of costing and accounting terms, sample costing spreadsheets, a helpful introduction to and explanation of work measurement, and some cautionary anecdotes that demonstrate how easily things can go wrong.
‘This handbook contains the collective knowledge of many leaders in the field of garment supply,’ said ASBCI Chairman Alistair Knox. ‘As such it is a source of expert information to support our members and others in the fashion and textiles sector to manage the garment costing process and to understand the impact that changes in the supply chain can have on the cost of clothes.’
The Garment Costing handbook is available to order from the ASBCI - you can find full details and how to order in our publications section