This glossary is written for apparel operators, not students. The goal is not to define terms in isolation but to connect each term to the workflow it lives in: which team uses it, which system holds it, which decision it informs. Use the section structure to find related concepts together rather than alphabetically.
For deeper coverage of any topic, follow the inline links. The terms are intentionally biased toward operational vocabulary (production, sourcing, inventory, wholesale, retail) rather than design history or trend forecasting.
Design and product development
Tech pack. A technical document specifying a garment in enough detail for a factory to produce it correctly. Includes flat sketches, points of measure across the size range, materials and trims, construction details, and approval tracking. The tech pack is the contract between the brand and the factory about what the product is. See Garment Spec Sheets for Apparel Brands for the section-by-section breakdown.
Spec sheet. The technical specifications portion of a tech pack. Sometimes used interchangeably with tech pack; the precise distinction is that the tech pack is the broader brief and the spec sheet is the technical core.
Flat sketch. A line-art drawing of a garment showing front, back, and detail views. Used in the tech pack to communicate construction intent to the factory.
Bill of materials (BOM). The structured list of every material and trim used in producing one unit, with quantity, supplier reference, and cost per line item. The BOM rolls up to a per-unit material cost.
Points of measure (POM). The defined measurement points on a garment (chest, waist, length, sleeve length, shoulder, etc.) with descriptions of where each measurement is taken. Inconsistent POM definitions between the brand and factory produce sample-to-bulk variance.
Grading. The process of scaling a base-size pattern to produce the full size range with appropriate proportional adjustments. Grading rules specify how each measurement changes from size to size.
Sample. A physical prototype produced by the factory for the brand to evaluate. The sample sequence typically runs first sample → fit sample → pre-production sample → production sample, with each iteration narrowing toward the final spec.
Approval. The brand’s sign-off on a sample or specification before production proceeds. Approvals are tracked in PLM with version control so the factory works against the latest approved version, not a stale one.
Materials and construction
Fabric. The textile material that forms the body of the garment. Specified in the BOM by composition (e.g., “100% organic cotton, 180 gsm”), supplier, color, and consumption per unit.
GSM. Grams per square meter. The standard fabric weight measurement. Lighter (60 to 120 gsm) for fine knits and dress fabrics; mid-weight (120 to 250 gsm) for shirting and casual wear; heavier (250 to 400+ gsm) for outerwear and denim.
Lining. Inner fabric layer used in structured garments. Adds weight and cost; specified in the BOM.
Interlining. A fabric layer between the outer shell and lining that provides structure (often used in collars, cuffs, lapels). Different from lining; both may appear in the same garment.
Yardage. The amount of fabric required to produce one unit of the garment. Critical for BOM cost calculation.
Marker. The pattern layout used by the factory to maximize fabric utilization during cutting. Tighter markers reduce material waste and lower per-unit cost.
CMT (Cut, Make, Trim). The factory labor cost of cutting fabric to pattern, sewing the pieces, and adding finishing trims. Quoted per unit by the factory.
FOB price. Free on board. The factory price loaded onto the ship at origin port. FOB = (BOM + CMT + factory margin).
Stitch type. The category of stitch (single needle, double needle, overlock, coverstitch) used for a specific seam. Specified in the tech pack per seam.
SPI. Stitches per inch. The density of stitching, specified per seam type. Higher SPI is generally more durable and looks more premium.
Seam allowance. The fabric distance between the stitch line and the raw edge. Specified in the tech pack per seam.
Thread. Sewing thread by composition (polyester, cotton, blended), weight, and color. Specified in the BOM.
Production and sourcing
Factory. The garment manufacturer. Apparel brands typically work with multiple factories across countries, with category specialization (one factory for woven shirts, another for knit tops, another for outerwear).
Production order. The PO from the brand to the factory committing a quantity of a specific style at agreed price and lead time. Typically issued after sample approval.
Lead time. The duration from PO commit to finished units arriving at the brand’s warehouse. For apparel imports, lead time runs 8 to 16 weeks for standard categories, longer for fabric-development-required pieces.
MOQ. Minimum order quantity. The smallest unit count the factory accepts per PO, often per color or per style. Higher MOQ means larger commitments but better unit cost.
Sourcing. The function of identifying, qualifying, and managing factory and material supplier relationships. Sourcing teams negotiate price, lead time, payment terms, and quality.
Inspection. The quality control checkpoint, typically performed at the factory before shipment. First-sample inspection, in-line inspection, and final inspection are the standard checkpoints.
Reject rate. The percentage of units rejected at inspection. High reject rates produce reorder pressure and delivery delays.
Make-to-stock (MTS). Production strategy where the brand produces ahead of forecast demand, holding finished inventory. See Make to Order vs Make to Stock for Apparel Brands for the operating-model implications.
Make-to-order (MTO). Production strategy where production runs against confirmed customer orders. Capital efficient but with longer customer-facing lead times.
Inventory and warehouse
SKU. Stock keeping unit. The unique identifier for each variant of a product (Style + Color + Size). Apparel SKUs proliferate quickly: a single style with 5 colors and 6 sizes = 30 SKUs.
Variant. A specific combination of size and color of a parent product. Apparel SKUs are typically variants under a parent style.
On hand. Physical inventory currently at the warehouse or 3PL.
On order. Inventory committed via PO but not yet received. Subtracts from open-to-buy budget.
Allocated. Inventory reserved for specific orders or customers but not yet shipped. Reduces available-to-sell.
Available to sell (ATS). On hand minus allocated. The quantity actually available to commit to new orders.
Cycle count. A periodic, partial inventory count rotated through the warehouse on a schedule rather than counting everything at once. See Stock Taking for Apparel Brands.
Physical inventory. A full count of all SKUs at all locations, typically performed annually. The result resets the system inventory record.
ABC analysis. Segmenting SKUs by velocity or value into A (top 10 to 20 percent), B (next 30 percent), and C (bottom 50 to 60 percent). Cycle count cadence is calibrated by class.
WAC (weighted average cost). Inventory valuation method that recalculates a SKU’s unit cost as a weighted average of all receipts. See Weighted Average Cost (WAC) for Apparel Inventory Valuation.
FIFO. First in, first out. Inventory valuation method that assigns the cost of oldest receipts first to outbound shipments.
Landed cost. Total cost to get a unit to your warehouse: FOB + freight + duty + inbound handling. Typically 15 to 30 percent above FOB for apparel imports.
Negative inventory. A system condition where the recorded count falls below zero, which is physically impossible. Indicates the system processed reduction events faster than addition events. See Negative Inventory in Apparel.
3PL. Third-party logistics provider. An external warehouse and fulfillment partner that holds inventory and ships orders on behalf of the brand.
WMS. Warehouse management system. Software that handles receiving, putaway, picking, packing, shipping, and returns inside a warehouse.
Orders and channels
DTC. Direct-to-consumer. The brand selling directly to end customers, typically via a Shopify or BigCommerce DTC site.
Wholesale. Selling through retailer partners. The retailer is the customer; the end consumer buys from the retailer’s stores or site.
Marketplace. A third-party platform where the brand sells alongside other sellers (Amazon, Walmart, ASOS, JOOR, etc.).
B2B portal. A wholesale ordering portal where retailer buyers can browse the brand’s line, place orders, and track shipments. Often runs as a feature of the apparel operating platform.
EDI. Electronic Data Interchange. The standardized protocol for retailer-vendor communication: EDI 850 (PO), EDI 855 (PO acknowledgement), EDI 856 (ASN), EDI 810 (invoice), EDI 820 (payment).
ASN. Advanced shipping notice (EDI 856). The structured message the brand sends the retailer before a wholesale shipment arrives. See Advanced Shipping Notice (ASN 856) for Apparel Wholesale.
SSCC. Serial Shipping Container Code. The 18-digit identifier on the GS1-128 label of each wholesale carton.
GS1-128. The barcode standard for shipping carton labels in retailer-compliant wholesale.
Prepack. A pre-assorted carton containing a defined size run (e.g., 1 small, 2 medium, 2 large, 1 extra-large). Used in wholesale to deliver size-appropriate quantities per door.
Drop ship. A fulfillment model where the brand ships directly to the retailer’s customer rather than to the retailer’s distribution center.
Chargeback. A retailer deduction from your invoice for non-compliance (late shipment, missing ASN, packaging non-compliance, MAP violation). Major retailers chargeback automatically; brands process chargebacks as credit notes.
Credit note. A financial document reducing what the buyer owes. Issued for short shipments, returns, retailer chargebacks, or pricing disputes. See Credit Notes for Apparel Brands.
MAP. Minimum advertised price. The lowest price retailers are contractually allowed to advertise the product at. Violations produce chargebacks.
Finance, reporting, and operations
Open-to-buy (OTB). The budget available for new PO commitments over a defined period. Formula: planned sales + planned ending inventory + planned markdowns - beginning inventory - inventory on order. See Open-to-Buy (OTB) for Apparel Brands.
Gross margin. (Revenue - COGS) / Revenue, expressed as a percentage. For apparel brands $5M to $100M, retail gross margin typically runs 65 to 75 percent; wholesale gross margin runs 40 to 50 percent.
Net margin. Gross margin minus operating costs (rent, salaries, marketing, fulfillment, returns processing). Apparel brands typically run 5 to 15 percent net.
COGS. Cost of goods sold. The direct cost of producing or acquiring the units sold during the period.
Markdown. A planned price reduction to move inventory. Typically applied to slow-moving or end-of-season SKUs. Reduces realized margin.
Sell-through rate. Units sold as a percentage of units received. Higher sell-through is operationally healthier.
Inventory turnover. Annual COGS divided by average inventory at cost. Higher turnover means inventory cycles faster, less capital tied up. Apparel brands typically run 3 to 6 turns per year; sub-3 indicates inventory drag.
Sell-in. Wholesale shipments to retailers. Distinct from sell-through (what retailers actually sell to end consumers).
Sell-out. Same as sell-through. The units actually purchased by end consumers.
Buyer. The merchandising team member responsible for committing POs against the OTB budget.
Allocator. The team member responsible for splitting received inventory across channels and locations.
Reorder. The decision to commit additional production of an SKU based on observed sell-through.
Replenishment. Ongoing reorder for core SKUs that sell continuously rather than seasonally.
Drop. A timed product launch event, typically DTC-focused. Used for limited-edition or hype-driven product introductions.
How this glossary connects to operating systems
Each term lives in a workflow inside the operating record. Tech packs and BOMs live in PLM. Production orders and CMT pricing live in production. SKUs and on-hand counts live in inventory. EDI and ASN live in the wholesale workflow. WAC, COGS, and gross margin live in reporting and finance.
Apparel brands operating with these workflows in one connected operating record see consistent terminology across teams. Brands operating on stacks of separate systems often discover that “available to sell” means different things in DTC vs wholesale, “on hand” differs between WMS and ERP, and “sell-through” calculates differently in each system. The glossary’s value depends on the operating record’s consistency.
For deeper coverage of any term in operational context, follow the linked guides above. To see how these workflows connect inside a single apparel operating platform, book a tailored demo.