Fabric Reconciliation Procedure for Garment Factories

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Fabric reconciliation is a process that is used to do fabric analysis. I mean how the total purchased fabric is used by a factory. What percentage of the fabric is actually used to make garments, what percentage of the purchased fabric is left after shipment as dead stock, and how much fabric is lost as wastage.

Fabric usage analysis is important because it cost 50-85% of total garment cost. You can plan for saving fabric in future orders based on the current fabric usage analysis.

Image courtesy: smestory.com
Normally, fabric reconciliation process is carried out by fabric store or audit department. A fabric reconciliation report narmally includes following analysis
  • Percentage of fabric used in garments out of total fabrics purchased
  • Percentage of fabric consumed in sampling and R&D
  • Percentage of excess fabric (dead stock) after shipment
  • Fabric waste percentage and lost during process
  • Cost of the dead stock fabrics and waste fabric

This analysis also help factory to stop unnecessary use of fabric and make each concerned department responsible for accounting of fabrics usage.


How to Make Fabric Reconciliation Report?

There may be various scenario of fabric status like having stock of fabric and using stock fabric for current order, same fabric is used for multiple orders. In the article, I will show you fabric reconciliation process against an order and I assume that factory had purchase fresh fabric for the order. Calculation of fabric usage in various processes and balance fabric returned to fabric store.

Track following information against each order. Most of the information will be available in fabric store and cutting department.

  1. Fabric purchased for the order. (In case you use stock fabric for an order, add those fabric purchased fabric). 

  2. Fabric issued for sample development and R&D

  3. Fabric issued to cutting department (based on estimated consumption)

  4. Fabric consumed by cutting department for order (based on actual production average)

  5. Fabric issued for alteration and part change (From fabric store or use cutting end bits)

  6. End bits and cutting wastage

  7. Fabric returned to fabric store from cutting department after shipment

  8. Physical accounting of the fabric stock in fabric store

You can collect above information by yourself. Or ask department HODs to provide data required data. To have quick fabric reconciliation you need to set standard operating procedure for this analysis. A standard procedure may be as following -
  • Fabric store is responsible to keeping record of fabric issue/receiving against order no.
  • Recording of fabric usage data at each stage by concerned departments
  • Submitting filled forms to the concerned person with required information after shipping the order
  • Fabric reconciliation to be carried out for each order by responsible department 

Example of reconciliation process: 

I have made an example sheet for fabric reconciliation. See the below table. Calculations are shown inside the table. You can prepare your own data collection and fabric analysis sheet based this example.

Fabric reconciliation sheet

The above example is given for woven fabric.Same thing can be done for knits fabrics also. You need to change the unit of measure from meters to Kgs. Based on the above data a brief analysis is done on the four parameters. The percentage figures are not showing any real factory data, it is used only for an example of fabric analysis process.

Analysis parameters
In meters
Percentage
Fabric used in cutting for the order
1153
86.1%
Fabric used in sampling/R&D
10
0.7%
Dead stock
130
9.7%
Fabric wasted/lost during process
46
3.4%


Fabric analysis chart

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Online Clothing Study: Fabric Reconciliation Procedure for Garment Factories
Fabric Reconciliation Procedure for Garment Factories
Fabric reconciliation procedure.
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