Sportswear Manufacturing Glossary: 45 Terms You Should Know
Maybe you’re starting your first performance apparel brand, or perhaps you're adding sportswear to your brand's lineup. Either way, you'll need to know a slew of industry jargon to stay on top of the process.
If the ins and outs of apparel manufacturing aren't your expertise, you can quickly get overwhelmed with hundreds of acronyms and industry jargon.
The following manufacturing terms will ease your transition into the world of sportswear, activewear, athleisure, or any type of apparel launch for that matter. For a more robust explanation of each term, and where it fits into the supply chain, keep reading after the table below.
We've structured the terms around the full supply chain, this will help reinforce which stage in development you might hear each term. Additionally, Sport Casuals supports clients under an agile E2E supply chain methodology, which leads us to the first two terms on the list.
45 Key Terms To Know In An Agile E2E Supply Chain
1. Agile Supply Chain
Consumer and client demand is growing all the time, and one of the ways you can meet it is through an agile supply chain.
This refers to the flexibility, speed, and aptitude that an organization has across its supply chain and the ability to be as responsive to changing customer preferences and market demands.
Various benefits come along with an agile supply chain, such as:
Reduced inventory levels and costs
Increased customer satisfaction rates
Enhanced flexibility and scalability
Greater transparency throughout the supply chain
An agile supply chain gets its fluidity by working in small, customizable batches, whereas a lean supply chain achieves low cost through high volume in static categories.
2. E2E (End-to-End) Supply Chain
E2E is an end-to-end supply chain methodology that integrates all parts of the process, from design and product development to delivery and post-purchase customer service. It's a holistic approach that considers the entire journey a product takes, rather than focusing on isolated areas.
An E2E perspective helps brands avoid silos and enables them to make decisions that are best for the product, rather than just one stage of the supply chain.
E2E is also known as a "closed-loop" or "circular" supply chain, as it takes into account the entire product life cycle.
While an E2E supply chain can be long, complex, and looped, in its simplest form, it consists of five main stages:
Design
Merchandising
Sourcing
Production
Logistics
These five stages of the supply chain will guide the rest of this glossary.
Stage 1: Design
Design is a big term with many components - it can include broader brand development items like identity and logos, but can also focus just on product design.
If a brand already has some clout and history, then the design stage will start with a concept or idea for a product. Once the idea is fleshed out, several activities begin around product design.
3. Product Design
Product design is the process of creating a new product, system, or service. It's also a term you'll hear a lot in sports apparel and footwear as it encompasses both industrial (more relevant to footwear) and fashion design.
A grossly simplified view of the product design process begins with an idea, which is then translated into a technical drawing or 3D model. Once the initial design is complete, prototypes are created to test the product. After any necessary changes are made, the product is ready for mass production.
4. Fabrications
This is the process of taking raw materials and turning them into fabrics or other textile products. Woven and knitted are the two primary types of fabrications.
In the design stage, fabrication is all about choosing the right materials for the product. The type of fabrication will also affect things like minimum order quantities (MOQs), as some methods are more labor-intensive than others.
5. Treatments
Treatments refer to any processes that are done to textiles after they've been fabricated. This can include printing, dyeing, and coating. Treatments are important because they can add value to the fabric and change its properties.
For example, a water-repellent treatment can make the fabric more durable and improve its performance - this is a common application for outerwear, and is commonly referred to as DWR.
But treatments don't have to bond to the outer layers of fabrics, some can be constructed near the center of fabric threads.
Treatments like bamboo charcoal do just that - the nanoparticles of bamboo charcoal adhere to below the surface of a fabric and can adsorb odors, wick away moisture, and provide anti-static properties.
In the design stage, treatments will be an important part of determining the level of technology you want to incorporate in your finished athletic apparel.
6. Silhouettes
A silhouette is the general shape and outline of a garment. It's often used to describe the overall style of a particular piece, like "boxy silhouette" or "relaxed silhouette."
In the design stage, silhouettes are one of the first things that are considered. The type of sport, activity, or event will dictate the silhouette of the garment.
For example, a figure skating dress will have a very different silhouette than a hockey jersey.
And even within each sport, there are often different silhouettes for different events or purposes. A triathlon suit, for instance, will be designed with a more aerodynamic silhouette than a casual running shirt.
7. Garment Fit and Spec
The garment fit is how the garment is cut and sewn together, and the spec is a document that outlines all the measurements and construction details of the garment.
In the design stage, both fit and spec are essential for ensuring that the garment will be comfortable and functional. The spec will also be used by patternmakers and factories to create the garment.
Several different types of fits are commonly used in athletic apparel, and should definitely become part of your vocabulary:
Standard Fit: this is the most common type of fit and is neither too tight nor too loose.
Athletic Fit: this is a more tailored fit that is designed to contour the body.
Compression Fit: this is a tight fit that is often used for base layers and compression garments.
Loose Fit: this is a relaxed fit that is often used for outerwear or casual apparel.
8. Collateral and Packaging
Collateral is any type of printed material that is used to promote or sell a product. It can include things like hangtags, labels, and care instructions.
While it's not the most glamorous part of the design process, labels are incredibly important for the polish of an apparel brand. And components like eco-friendly labels are a surging trend that is helping brands stand out even more.
Packaging is what the product is packaged in when it's sold. This can be anything from a simple poly bag to a more elaborate box or display. Just like labels, eco-friendly packaging is of increasing importance to a consumer's purchase decision.
In the design stage, collateral and packaging should be considered as part of the overall branding strategy. The style of the packaging should reflect the brand's aesthetic, and the collateral should be designed to sell the product.
When it comes to apparel, sustainability in general is on every consumer's mind these days. You'll see it mentioned several times throughout this article. It's not just limited to labels and packaging - it covers the entire supply chain.
If this is your entry point into sportswear, activewear, athleisure apparel, or any subcategory, you'll find the Sport Casuals "Guide to Sustainable Activewear" invaluable.
9. Trim Package
The trim package is a collection of all the small details that finish off a garment. It can include things like zippers, buttons, snaps, and drawcords. Although physically small, trim sends clear messages to consumers' subconscious.
A proper trim package can ooze quality, and a subpar trim package can completely dismantle the value of a garment.
In the design stage, the trim package should be considered carefully. The trims should be functional and in line with the overall aesthetic of the garment.
For example, a sporty garment might have exposed zippers and contrast stitching, while a more refined garment might have hidden zippers and tonal stitching.
10. New Product Development
In terms of the order, this one probably belongs just under product design. Regardless, new product development (NPD) is such an important part of the process that it warrants its own section.
NPD is the process of taking a product from concept to reality. It includes everything from market research to sourcing to production.
In the sportswear industry, NPD happens at breakneck speeds. Brands are constantly trying to one-up each other with the newest, coolest product.
The key to successful NPD is understanding your target market. What do they want? What do they need? What will they actually buy?
If you can answer these questions, you're well on your way to developing a successful product.
Again, this is heavy on consumer research and insights; ultimately this is what makes or breaks a new brand or product. Getting clear and accurate direction from your sportswear supply chain partner is critical.
Stage 2: Merchandising
The second stage of the apparel design process is merchandising. In this stage, the product is brought to life with pricing, assortments, and sales plans. The purpose of merchandising is to make sure the product is profitable and will sell well.
To do this, merchandisers must have a good understanding of the target market and what they're looking for. They also need to be aware of trends in sportswear and activewear, general apparel, and topical influences outside of the category - and certainly what's selling well.
Once the target market and product are established, merchandisers will develop assortments, and that's where the stage really starts to take off.
11. Assortment Planning
Assortment planning is the process of determining what products will be offered for sale and in what quantities.
There are a few factors that go into this decision:
Target Market
Product Mix
Sales History
Market Trends
In the merchandising stage, assortment planning is all about making sure the right product is in the right place at the right time. Some refer to this as contextual relevance. It's also important to consider things like seasonality and timing.
Assortment planning is a complex process, and it's one of the most important aspects of merchandising. Done well, it can result in increased sales and profits. If done poorly, you'll be stuck with excess inventory and markdowns.
12. Category Planning
Category planning is a subset of assortment planning. It's the process of determining which product categories will be offered for sale and in what quantities. The goal of category planning is to make sure the right products are being offered in the right categories.
This might seem like a no-brainer, but you'd be surprised how often products are miscategorized. It's important to consider things like seasonality, target market, and price point when determining which product categories to offer.
13. Replenishment Planning
Replenishment planning is the process of making sure products are in stock and available for sale. Seemingly simple, but the reality of replenishment planning is that it's an incredibly difficult task.
There are a few factors that go into replenishment planning:
Sales History
Lead Times
Product Mix
Customer Demands
Seasonality
Forecasting
As it relates to the merchandising stage, this is a fluid process. It's constantly changing and evolving, and it's never perfect. The goal is to get as close to perfect as possible.
14. Merch Boards
A merch board is a physical or digital representation of the assortment plan. It includes all of the SKUs that will be offered for sale in a given season. Merch boards are used by retailers to communicate the assortments to their vendors.
They're also used by designers and product developers as a reference when creating new products.
The purpose of merch boards is to ensure that everyone is on the same page and that everyone knows what's being offered for sale, a critical element of merchandising sportswear.
15. Garment Sizing Analysis
The garment sizing analysis is a process of determining the right size for each SKU. This includes things like body measurements, pattern grading, and fit models.
Since the merchandising stage is all about selling profitable sportswear, getting sizing wrong can lead to low sales and high returns. The garment sizing analysis is an important part of the merchandising process, and it's something that should be given careful consideration.
It's important to get the sizing right because it can have a big impact on sales. If the sizes are too small, you'll miss out on potential sales. If the sizes are too big, you'll end up with returns and exchanges.
16. Brand or Product Extensions
A brand or product extension is the process of creating new products that are related to existing products. This might include things like new colors, new styles, or new sizes.
The goal of brand or product extensions is to keep customers interested and engaged with the product. It's also a way to generate additional revenue without having to create entirely new products.
In the merchandising stage, extensions are plotted seasons in advance, where a roadmap outlines how each comes to life. This allows for the proper planning and execution of the extension.
Brand and product extensions are common in the sportswear industry. For example, a running shoe company might release a new colorway for an existing shoe. Or an activewear brand focused on yoga apparel might release a new style of leggings.
17. Bill of Materials (BOM)
A bill of materials is a list of all the materials, components, and parts that are required to create a product. In the context of merchandising sportswear, a bill of materials is used to communicate the necessary ingredients for each SKU to the supplier.
The bill of materials includes things like fabric, trims, and labels. It's important to get the bill of materials right because it can impact the quality of the final product.
A bill of materials is created for each SKU in the merchandising stage. This ensures that everyone involved in the process (i.e. designers, developers, and suppliers) knows what's needed to bring the product to life.
18. Child Item and Parent Item
On a bill of materials, you may sometimes see a child item. This doesn’t refer to sports apparel for children, but rather, occurs when one item branches off another item in a BOM. On the flip side of that is the parent item. This is the main item of the multi-item relationship.
In the merchandising phase, it’s important to keep track of these relationships as they can impact the quality and cost of the final product.
A great example of this would be if a pair of running shorts have multiple colorways. The different colorways would be the child items, and the running shorts itself would be the parent item.
19. Change Order
A change order is a document that's used to make changes to an existing purchase order. Related to the merchandising stage of sportswear, a change order might be used to add or remove SKUs from an order.
Change orders are common in any vertical of apparel because the merchandising process is constantly evolving. Things like last-minute design changes or unexpected material shortages can necessitate a change order.
While change orders can be disruptive, they're often necessary to ensure that the final product meets the standards of the brand. And that's one of the reasons that following an agile process is so important; it affords the flexibility to operate this way without heavy losses.
Stage 3: Sourcing
Sourcing is a big and complex beast in the supply chain world. There are two main components to sourcing sportswear and all apparel for that matter.
The first is to obtain a raw material that acts as the building block for garment production. For instance, you're looking to create an activewear line made from bamboo. You want to only use bamboo that is certified for responsible harvesting, to make sure you meet the demand of your environmentally aware consumer.
The second is to obtain finished materials, which garment manufacturing will then cut and sew into a finished good. This might take the form of acquiring fabrics like Seawool, Nuyarn, SeaCell, or any other trending eco-friendly fabric, in a finished state. You don't want to have to worry about the fabric being certified, that's the supplier's job, you'll simply want the certified credentials of the fabric.
With consumers increasingly wanting to know the absolute origin of their apparel, we're seeing continued growth in brands needing to be more active in sourcing at the raw material stage, which is more complex but also gives more control over what goes into your garments.
20. Fibers, Threads, Fabrics, Garments
This is a big one, but since they are all components of sourcing, it's important to understand the difference between them.
Fiber: The smallest unit of textile that can be spun into thread. Examples of fibers used in sportswear include cotton, polyester, and spandex. Fibers will be talked about as natural, synthetic, and semi-synthetic - due to their more sustainable roots, natural fibers have high marketing sway.
Natural Fibers: Derived from plant, animal, or mineral sources. Examples include cotton, wool, and linen.
Synthetic Fibers: Produced by humans through chemical processes. Polyester is the most common synthetic fiber used in sportswear. It comes with amazing performance qualities for sportswear but is also an incredibly harmful material for the planet. Consumers are looking for eco-friendly alternatives to polyester, which is where you might see recycled polyester mentioned.
Semi-Synthetic Fibers: A hybrid of natural and synthetic fibers. Rayon is the most common semi-synthetic fiber. It's made from cellulose, which can be sourced from wood pulp or other plant sources.
Threads/Yarns: A continuous length of twisted fibers used for sewing, knitting or weaving. In the context of sportswear, it's important to differentiate between types of thread-like polyester, nylon, and cotton.
Fabrics: Material made from interlacing threads. When sourcing fabric for sportswear, you'll often hear about different weaves like knit, woven, or non-woven.
Garments: The result of sourcing materials and putting them together through the manufacturing process.
21. Spinning
Spinning is the process of making thread or yarn from fibers. This can be done through two methods: wet spinning and dry spinning.
Wet Spinning: The fiber is dissolved in a chemical solution and then forced through a small hole, called a spinneret. As the solution exits the spinneret, it hardens and forms the filament.
Dry Spinning: The fiber is melted and then forced through a spinneret. As the molten fiber exits the spinneret, it hardens and forms the filament. Once the filament has been formed, it is drawn out (stretched) to align the fibers and make them stronger. After that, it is wound onto a spool.
While you may not necessarily need to go to the extent of understanding the finer details of spinning, the general importance of the spinning process is of environmental concern.
The wet-spinning process uses more chemicals and water, making it more harmful to the environment. Since 58% of consumer care about the materials and processes that go into making their clothes, the spinning method becomes increasingly important.
22. Woven Fabrics
Woven fabrics are made by interlacing two sets of yarns at right angles to each other. The lengthwise yarns are called the warp and the crosswise yarns are called the weft.
There are three types of woven fabrics: plain, twill, and satin.
Plain: The simplest weave. The warp and weft yarns are interlaced in a parallel manner.
Twill: A more complex weave. The warp and weft yarns are interlaced diagonally, creating a distinct pattern on the fabric's surface.
Satin: The most complex weave. The warp yarns float over multiple weft yarns, resulting in a smooth fabric surface.
Woven fabrics are often used in sportswear because they are strong and durable. However, they are also less breathable than knit fabrics, which can be a downside when it comes to activewear.
23. Knitted Fabrics
Knitted fabrics are made by interlocking loops of yarn. There are two types of knitting: weft knitting and warp knitting.
Weft Knitting: The most common type of knitting. In weft knitting, the yarn is fed from a cone (or bobbin) through the needles in a continuous motion, creating a series of interlocking loops.
Warp Knitting: In warp knitting, the yarn is fed from a beam (or WARP beam) through the needles in a continuous motion, creating a series of interlocking loops.
Knitted fabrics are often used in sportswear because they are stretchy and breathable. However, they are also less durable than woven fabrics, which can be a downside when it comes to activewear.
24. Dyeing, Printing, Finishing
Dyeing, printing, and finishing are important processes in the manufacture of sportswear. They help to give the fabric its desired properties and appearance.
Dyeing: The process of adding color to the fabric. Several types of dyes can be used, including natural dyes, synthetic dyes, and vat dyes.
Printing: The process of adding a pattern or design to the fabric. This can be done using various methods, such as screen printing, digital printing, and heat transfer printing.
Finishing: The process of adding certain properties to the fabric, such as moisture-wicking or anti-bacterial properties. This can be done using various methods, such as coating, laminating, and calendering (smoothing.)
All three options have the potential to improve the eco-friendliness of your garment production:
Eco-Dyeing: You could explore natural dyeing methods that are better for the environment and also give unique colors to your garments.
Eco-Printing: You could explore digital printing methods that use less water and chemicals.
Eco-Finishing: You could explore finishing methods that are free of harmful chemicals.
25. Block Pattern/Grading
The block pattern is the foundation for all other patterns in a collection. It's a basic, two-dimensional representation of the garment that includes all of the necessary information for construction.
Grading is the process of creating different sizes from a single block pattern. This is done by making small, incremental changes to the dimensions of the pattern.
Block pattern and grading are important considerations in sportswear design because the garments must be able to accommodate a wide range of body types. It is also important to consider the different ways that the garment will be worn and used during activities.
For example, a sports bra will need to be designed differently than a t-shirt because it will need to provide support and coverage differently.
Stage 4: Production
The production stage is the typical point that most people think of when they think of "manufacturing." This is where the garments are made. And this is where the majority of environmental changes used to be focused on the apparel industry.
Now that the consumer is looking for sustainable sportswear that runs the entire supply chain, having a sustainable production phase is table stakes.
During production, the garment manufacturing stage, the fabrics, trim, and other materials are cut and sewn together to create the finished product.
There are several things to consider when choosing a production partner:
Their location in relation to your market and your other suppliers.
Their ability to meet your minimum order quantities.
Their production capacity and lead times.
Their facilities, equipment, and workforce.
Their compliance with labor laws and environmental regulations.
Their experience and expertise in manufacturing your type of product.
Their pricing.
Once you've selected a production partner, you'll need to provide them with your patterns, specifications, and other instructions. They'll then create a prototype of the garment for you to approve. Once the prototype is approved, they will begin mass production.
That's a top-level summary of what you can expect, the following includes several keywords that you'll need to know.
26. Good Manufacturing Process (GMP)
The good manufacturing process is a set of guidelines that manufacturers must follow in order to produce safe, high-quality products. GMP covers a wide variety of processes in apparel manufacturing.
For example, manufacturers must control the environment in their factories to prevent contamination. They must also have quality control procedures in place to ensure that the products meet the required standards.
The goal of GMP is to lessen the risks associated with production. After all, any form of production does carry with it some risks, even athletic apparel manufacturing.
27. Downtime
Every manufacturing facility will have downtime, which refers to the periods that the machine, line, or group of machines (also known as cells) are offline.
Downtime is usually intentional, but outside forces can cause unintentional downtime. During COVID-19, there were planned energy blackouts to compensate for power shortages, which caused downtimes for sportswear manufacturers.
In unplanned instances, a power outage with no backup power generator can lead to possibly hours or days of downtime.
28. Global Factory Matrix
A global factory matrix is a tool used by apparel brands and retailers to map out their production. It allows them to see where their products are being made and what suppliers they're using.
The matrix also shows the types of products that are being produced at each facility. For you, the brand manager or owner of an athletic apparel brand, this information can be used to make decisions about where to source products and how to diversify your production.
29. Sustainable Manufacturing
Sustainable manufacturing is the creation of products using processes that minimize negative environmental impact while maximizing social and economic benefits. In other words, it's eco-friendly manufacturing.
From using solar power to provide energy to textile mills to only using recycled polyester, there's a large influx of activewear brands leading the charge in sustainable manufacturing, and having wild success as a result.
30. Tech Packs
A technical package, also called a tech pack, is a document that contains all the information a factory needs to know to manufacture your product. The tech pack includes everything from sketches and illustrations to measurements and materials used in your sportswear collection.
It's basically a detailed blueprint of your garment. Tech packs are essential for ensuring that your products are manufactured to your specifications.
They're also essential for communicating with your factories. Without a tech pack, it would be very difficult to produce a high-quality product that meets your standards.
31. Compliance
Compliance refers to the act of following laws, rules, and regulations. In apparel manufacturing, compliance covers a wide range of topics, from labor laws to environmental regulations.
Brands and manufacturers need to be aware of the compliance landscape to avoid any penalties or legal action.
For example, many apparel brands have been fined in recent years for using unauthorized factories, perpetuating inhumane working conditions, or partnering with factories that have a profound negative impact on the environment.
In some cases, these factories were located in countries with lax labor laws. As a result, the brands were found to violate labor laws in their own countries.
As an apparel brand owner or manager, you can hire independent inspections of factories and request certifications from the manufacturers to make sure they comply.
32. Proto Samples
Proto samples (prototypes) are the first samples of your product that are made using the actual materials and construction methods that will be used in production.
They're different from fit samples, which are made using similar materials but with different construction methods. Proto samples are essential for making sure that your products meet your quality standards and that the manufacturing process is on track.
33. Salesman Samples
Salesman samples are materials that are furnished without charge or at a nominal charge for advertising, promotion, or demonstrating a product. They're sales and marketing material, but just in the form of clothes.
They help your sales force hit the road and get retail buys, giving customers the ability to touch and feel the apparel, and your sales team the ability to learn firsthand about your sportswear.
Salesman samples consist of small quantities of your assortment, and will arrive far in advance of your actual product samples and will be used to secure orders.
34. Cut and Sew
Although subtle in writing, cut and sew is a profoundly different approach to other contemporary apparel manufacturing.
Cut and sew is a manufacturing process in which raw fabric is cut to shape and then sewn together to create a garment. It's different from knitwear, which is made on looms, and wovens, which are made of interlocking yarns.
In cut and sew, the fabrics arrive at the factory in rolls, and are then cut to size and sewn together. This process requires more manpower and is generally more expensive than other methods, but it allows for greater control over the final product.
It also allows for more intricate designs, as the fabric can be cut into any shape or pattern.
35. Checking
Checking is the process of inspecting garments for defects. It's a critical step in quality control, and it needs to be done at every stage of production, from raw materials to final products.
There are two types of checking: visual checking and functional checking:
Visual Checking: You guessed it, visual checking is done by looking at the garment to identify any defects.
Functional Checking: Functional checking goes a step further than visual checking, and includes testing the garment to see if it meets all the required specifications.
For example, functional checking might include testing the stretch of a fabric or the waterproofing of a jacket. Without proper checking, you can end up with defective sportswear, leading to a high return rate.
36. Fussing
Fussing is when a garment doesn't meet the required specifications and needs to be reworked. It can be caused by several things, including poor fabric quality, incorrect construction, or damage during transport.
Fussing is costly, as it requires additional labor and materials.
To avoid fussing, it's important to have a robust quality control system in place, including regular checking and inspection of garments. When seeking a supplier, ask about their quality control procedures to make sure they're up to par.
37. Pressing
Pressing is the process of using heat and pressure to smooth out wrinkles or creases in the fabric.
It's typically done after the garment has been cut and sewn, but can also be done before or during construction. Pressing directly affects the look, feel, and fit of the garment, so it's important to get it right, as it may be the final touch to a garment before it's packaged.
There are two types of pressing: dry pressing and wet pressing:
Dry Pressing: Dry pressing is done with an iron or steamer, and doesn't use any water. It's typically used for delicate fabrics or when you want to avoid shrinking the fabric.
Wet Pressing: Wet pressing is done with water and iron, and can be used on most types of fabrics. It's a more aggressive form of pressing and can cause shrinking, so your manufacturer will test the fabric first before widely rolling it out.
Stage 5: Logistics
Logistics are the final stage in the end-to-end supply chain, and they're critical to getting your products to market on time and in good condition. This is the final journey of moving your products from the factory to your customer's hands.
There are many moving pieces in logistics, and it can be a complex and costly operation. But with careful planning and execution, you can ensure a smooth and efficient process.
It's also another area that consumers are wanting answers from apparel brands, sportswear included, on how they can make their logistics more sustainable.
The "last mile" isn't the only substage of logistics that consumers want their brands to step up on. They're also wanting more transparency on the overall process, from start to finish.
While logistics could fill an entire library as a glossary, the following are several important terms and acronyms that you'll hear in due time.
38. Incoterms
Incoterms are a set of rules that determine who is responsible for what during the transportation of goods. They help to avoid misunderstandings between buyers and sellers by spelling out which party is responsible for each stage of the journey.
Think of it as who pays for what, and who owns the risk if something happens to your soft goods in transit.
There are 11 total Incoterms, but these are the most common ones you'll see in sportswear:
EXW (Ex Works): The simplest Incoterm, this one means that the buyer is responsible for everything from picking up the goods at the factory to clearing customs.
FOB (Freight on Board): FOB means that the seller handles the cost of shipping the goods to the port, and the buyer is responsible for everything else - more on this in a minute.
CFR (Cost and Freight): CFR means that the seller pays the cost of shipping the goods to the port, but the buyer is responsible for clearing customs.
CIF (Cost, Insurance, and Freight): CIF is similar to CFR, but the seller also covers the cost of insurance.
DDP (Delivered Duty Paid): DDP is when the seller handles the entire shipping process and pays for all duties and customs charges. The buyer just has to receive the goods. More on this one next.
39. FOB, LDP/DDP
Each acronym is a quick way to determine your total costs and ultimately how much you'll need to charge for your products. While FOB and DDP were mentioned above, because they are so common, it's important to add more flesh to each.
FOB (Freight on Board): This model accounts for the cost to manufacture the product and get to the port for shipping. The buyer would then handle the ocean freight, inland freight, duties, insurance, and customs on their own.
LDP (Landed Duty Paid)/DDP (Delivered Duty Paid): The manufacturer or supplier includes all the costs of manufacturing the product and shipping it to your doors. Port, ocean freight, inland freight, duties, and insurance are all included in this option.
FOB is the most common form since most companies don't want to assume any risk in the transportation of goods, but you can ask your supplier to quote LDP/DDP if that's an option they offer.
40. Freight Forwarding
Freight forwarding is the process of organizing the transportation of goods from one point to another. A freight forwarder is a company that specializes in arranging and managing the logistics of shipping goods on behalf of its clients.
They'll typically handle everything from booking cargo space on ships to preparing the customs documentation.
Because logistics at this scale are so complicated, the majority of sportswear brands, especially startups to mid-size brands, will utilize freight forwarders to see their products are delivered accurately and on time.
41. Pre-Packs
Pre-packs are shipments of products that have been broken down into smaller, more manageable quantities.
They're typically used for two reasons:
To make the products easier to handle during the packing and unpacking process
To minimize shipping costs by filling up as much space in each container as possible
Since shipping containers are often measured in cubic meters (CBM), it's more efficient to send a full load of products even if that means breaking down the shipment into multiple pre-packs.
Pre-packing is a common practice in the sportswear industry, and it's something you should discuss with your supplier before placing an order.
42. Cross Dock
Cross dock is a type of warehousing where goods are unloaded from an inbound shipping container or truck and loaded directly onto outbound vehicles with little to no storage in between.
For example, let's say you own a sportswear brand focused on ultra-marathon runners, and you sell your apparel at a retailer like Fleet Feet.
When your products arrive at port, they'll be unloaded and loaded directly onto Fleet Feet's truck. There's no need to store the products in a warehouse since they're going straight to the retailer.
This eliminates the need for storage space and helps you get your products to market faster. It's also a more efficient way to ship goods since they don't have to be moved and stored multiple times.
Cross docking is commonly used in the sportswear industry since many products are seasonal and need to be shipped out quickly.
43. Bill of Lading (BoL)
The bill of lading is a document that lists the details of a shipment, including the products being shipped, the weight and dimensions of each product, the origin and destination of the shipment, and the name of the carrier.
It's a contract between the shipper and the carrier that outlines who is responsible for each aspect of the shipment.
The bill of lading is an important document because it's often used as proof of delivery. It's also a legal document that can be used in the event of a dispute.
If you're shipping goods by sea, you'll need to prepare a bill of lading. If you're using a freight forwarder, they'll typically handle this for you.
44. Certificate of Origin
The certificate of origin is a document that indicates where a product was manufactured.
It's often used to determine if a product qualifies for certain trade agreements, like the North American Free Trade Agreement (NAFTA).
If you're shipping goods to another country, you may need to prepare a certificate of origin. If you're using a freight forwarder, they'll typically handle this for you.
45. EDI (Electronic Data Interchange)
EDI stands for electronic data interchange. It's a system that allows businesses to exchange documents electronically. EDI is commonly used in the sportswear industry to exchange purchase orders, invoices, and shipping documents.
It's a more efficient way to do business since it eliminates the need for paper documents. It also reduces the risk of human error.
And That's Just 45 of the Countless Terms Out There
These 45 production terms are a great starting point for anyone jumping into the performance apparel space, but as you can tell, navigating the apparel supply chain can be complex.
That's why you need a partner with decades of experience, and a roster of global sports and performance apparel clients.
If you're looking at starting a performance apparel brand or expanding your brand into apparel, we're happy to walk you through the complexities of production and shipping or handle it for you.
We handle the entire supply chain - from brand development and design to merchandising, sourcing, production, and logistics.
That means finding the right factories, negotiating prices, and handling all the logistics of getting the highest quality sportswear made and shipped.
And that's just scraping the surface of what we can do, if you have questions or want to learn more, let's talk.