Wholesale Selling Terms Apparel Manufacturing Management

Apparel Wholesale Selling Terminology

These are wholesale selling terms that I studied in this FIDM class:

MFTG

2680

WHOLESALE SELLING

The class was instructed by, and these terms provided by: Mark Colonomos  Professor, Lecturer, Counselor Greater Los Angeles Area  Higher Education Current Lecturer and Counselor at SCORE.LA. Vice-President at SCORE, Los Angeles Instructor at FIDM Past DIRECTOR at Volunteers of America Education Fashion Institute of Design & Merchandising New York University

Wholesale Selling Terminology  Carla Buchanan
Accounts receivable financing	same as factoring, but without the insurance and guarantees
Bar Code	a series of lines usually in a vertical formate that distinguishes the product
Branded	a manufacturer label, or name, that has customer identification, usually through advertising or reputation
Buyers Matrix	a list of vendors that have been approved or authorized to do business with the retailer
Bill of Lading	a record in multiple copies of numbers of cartons, weight, and details of shipment
CAD	a software program for computer assisted designs that enable the manufacturer to display and make changes for the customer pre-samples
Care and Content label	every garment must have content and washing instructions
Charge backs	deductions taken by the retailers for various reasons, as in shortages, late shipments, violations, advertising, discounts, or allowances
Closeouts	merchandise offered at a discount price
C.O.D.	cash on demand upon delivery of goods, no exceptions
Confirmation number	usually refers to the order number that confirms that the purchase is in the retailers system
Consolidator	a shipping point or trucking firm that receives merchandise and sorts it in order to be delivered to different regions of the country, sometimes by other trucking firms
Converter	A firm that takes unfinished goods and processes them as in dyeing, bleaching or printing
Consignment	goods stocked by retailer by not paid for until they are sold
Co-op advertising	contributions made by the seller towards the advertising of their product
Dating	extra time give to the retailer to pay for goods as in + 30 days to +60 days
Delivery date	the date by which the merchandise must be shipped to avoid cancellation
Distribution/breakout	usually refers to a buyers allotment of where and how to ship the goods
EDI	electronic data input: computer generated orders, box labels, shipping manifests and instructions supplied by the retailer to the manufacturer
Extensions	additional time given to the manufacturer to ship the merchandise
8/10 EOM	standard terms used by most retailers giving them an 8% discount if they pay by the 10th of the month on goods that are shipped before the 20th of the previous month
Factor	a bank or finance company that usually guarantees or insures the payment to you by the retailer and allows you to borrow money against the invoice you have submitted before it is paid
FOB	defined as freight on board and refers to what location the shipment is being generated from
Four Way	a rack with 4 extensions usually cascading in a downward motion used for maximum visibility
Gray market goods	merchandise not exactly legal as an unauthorized import, usually sold at a discount or as is
Gross markup or margins	the percentage of profit the department must make to satisfy their buying plan
Hang tags	logo driven tags that can include information about the product
Intellectual property	designs, inventions or literary work that have been patented, copyrighted, or trademarked
Invoice	the bill for goods shipped
Jobber	term used for a person who buys finished goods, either closeouts or regular price, and them resells them
Key item	this refers to the lead or main product/garment in the group and is usually the largest buy
Keystone	the process of doubling the cost to achieve retail price, cost $10, sell for $20
Knock off	term used in describing a product that is copied from another manufacturer’s line
Line sheets	a descriptive and informative presentation on paper that describes your product
Markdown allowance	deductions given to the retailer to cover their gross margin
Market week	a period in every season when most buyers come in for presentations by their offices and to purchase the next seasons goods
Merchandise mart	usually an office building local to the area where manufacturers have showrooms and offices, making it convenient for buyers to shop their lines
Net	The price the retailer pays after all the discounts are takes
Open to buy	the amount of funds allocated to the buyer for her department usually calculated by season
Pallet	a wooden base with openings for a fork lift truck that is used for handling large lads at a time
Pilferage	merchandise that is either lost or stolen
Pre-pack	an assortment of merchandise packed in certain quantities of sizes and colors
Pre-tickets	price tickets that are attached to the merchandise with all the pertinent information for the customer usually including the SKU
Private label	a process where the store’s own label is sewn into your merchandise
Production samples	product taken off the production line for pre-approval prior to shipping
Pro number	a sequence of numbers given to the shipper by the trucker used to track the merchandise, also know as the tracking number
Quota	a limit set on the quantity of product that can be imported to the United States
Rep	usually a sales company or individual, that represents numerous lines on a commission basis
Returns	merchandise sent back to the manufacturer that is either damaged, or refused shipment
RN number	a federally mandated series of numbers that must be included in the garment, used to identify the company of origin
ROG	payment referred to as being due at receipt of goods
Rounder	goods that are displayed and hung on a circular rack
Seconds	merchandise with slight flaws sold at lower prices
Seeing day	usually a day and time that a buyer has open hours to see vendors
Sell through	the number of weeks it would take to sell all of the product from start to finish
Shipping manifest	paperwork that is included with the shipment detailing its contents
Size breakdown	a preset range of sizes established by the manufacturer to insure maximum efficiency as to not waste fabric and take into consideration the needs of the retail customer
Size run	refers to a complete assortment of all sizes in the range
SKU	a bar code used in retail to identify the merchandise in detail
Specs	a comprehensive layout of all of the measurements in a garment
Story boards	a presentation usually laid out on large boards encompassing groups and ideas together
T-stand	merchandise displayed on a rack resembling a T, a high profile, visual presentation
Table goods	usually refers to product displayed on a table as opposed to hanging on a display racks
Trade shows	a convention of sorts set up by different categories where companies can display their merchandise and have access to hundreds of buyers
Turn time	the time needed for a company to manufacture their product from start to finish
Vendor number	a series of identification numbers assigned to the manufacture by the retailer
Vertical manufacturer	a company that manufactures the entire product in house or without the use of contractors

Apparel Manufacturing Merchandising Calendar Activities-Tasks-Timing/Relationship/Department Responsible by Carla Buchanan

Apparel Manufacturing  Merchandising Calendar  Activities-Tasks-Timing/Relationship/Department Responsible by Carla Buchanan
Activity	Task	Timing Relationships	Department Responsible
Establish Key Dates	Department heads work as a team to establish key dates, such as start dates and ship dates. Other important dates, directed by management, will be established at this time.	Timing for key dates are determined by merchandise arrival times, trade show dates, and holidays.  All departments confer and relate to each other regarding key dates. This takes one day to complete.	All
Review Last Season’s Best Sellers	Department heads work as a team to establish last seasons best sellers. This information will be used to bring back those styles and/or to create new styles similar to the best sellers.	All departments confer and relate to each other regarding reviewing last season’s best sellers. This task is done after key dates are established and before the market research for line direction is done. This takes three weeks to complete, but market research is going on at the same time.	All
Market Research Line Direction	Merchandising and Design department heads work as a team to gather market research, for trends and target market, etc. They also plan the style assortment for the line at this time.	Merchandising and Design  confer and relate to each other regarding market research and line development. The merchandising department will gather and present marketing results and the design department will respond by creating a line. This takes three weeks to complete, but reviewing the best sellers  is going on at the same time	Merchandising and Design
Shop Major Retail and Fabric Markets	Merchandising and Design department heads work as a team to shop major retail and fabric markets. The team will be analyzing new trends, seeing what is available, talking to store employees to determine what customers are buying. At this time, discussions and decisions will be made on fabrics, trims and merchandising directions.	Merchandising and Design department heads work as a team to shop major retail and fabric markets after the line assortment has been planned and  before fabric yardage is ordered. This takes two weeks.	Merchandising and Design
Order prototype yardage	Merchandising and Design department heads work as a team to order prototype fabric that will be used to make the first samples.	Merchandising and Design department heads work as a team to order prototype fabric that will be used to make the first samples, after they have shopped the retail and fabric markets and before the yardage is tested. This takes one week to order. Delivery depends on where the fabric is sourced from.	Merchandising and Design
Test Prototype yardage	Merchandising and Design department heads work as a team to test prototype yardage. This is done to determine if the fabric is liking to suit the purpose of making the styles for the line. Fabric will be washed, stretched, and tested for shrinkage.	Merchandising and Design department heads work as a team to test prototype yardage after the yardage arrives at their office while the concept boards are being created. This takes up to three weeks.	Merchandising and Design
Plan Concept Boards	Merchandising and Design department heads work as a team to plan concept boards. At this time, considering the proposed fabric, styles, and line, the concept of this line is recorded on a concept board to be used while this line is being developed.	Merchandising and Design department heads work as a team to plan concept boards while the prototype fabric is tested and before the line is adopted. It takes three weeks.	Merchandising and Design
Line Adoption	Merchandising and Design department heads work as a team to adopt the line. Considering the fabric that is chosen, the styles and the assortment, the departments adopt the line that will be featured that season.	Merchandising and Design department heads work as a team to adopt the line after the concept boards are planned and before the advertising concepts are finalized. This takes three weeks.	Merchandising and Design
Establish Advertising Concepts	Merchandising and Design department heads work as a team to establish advertising concepts. At this time, an advertising may, or may not, be called in to see the new line and develop a plan. The company may have an in house advertising department.	Merchandising and Design department heads work as a team to establish advertising concepts after the line is adopted and before the initial fabric selection. This takes two weeks.	Merchandising and Design
Initial Fabric Selection	Merchandising and Design department heads work as a team to department heads work as a team select the fabric. Using the information from the fabric testing, and taking into consideration the mood board and the advertising plans, the departments select the fabric that will be used in the line.	Merchandising and Design department heads work as a team to department heads work as a team select the fabric after the advertising concepts have been determined and before the colors are finalized. This takes two weeks.	Merchandising and Design
Finalize Colors	Merchandising and Design department heads work as a team to finalize the colors for the line. Taking in consideration the mood, advertising, fabric selection and availability, the departments finalize the colors for the line.	Merchandising and Design department heads work as a team to finalize the colors for the line while  the initial fabric selection takes place and before the fabrics and trims are ordered. This takes two weeks.	Merchandising and Design
Order fabric and trims sample cuts	Merchandising and Design department heads work as a team to order the fabric and trims needed to produce the first samples.	Merchandising and Design department heads work as a team to order the fabric and trims needed to produce the first samples while the colors are finalized and before the style development is finalized.This takes two weeks and, depending on where the goods are ordered from, the time varies for delivery.	Merchandising and Design
Style Development	Merchandising and Design department heads work as a team to put the finishing touches on the style, and develop the styles into garments.	Merchandising and Design department heads work as a team to put the finishing touches on the style, and develop the styles into garments after fabric is ordered for the samples and before the spec sheets and engineering occur. This takes four weeks.	Merchandising and Design
Spec Sheets and Engineering Evaluations	Merchandising, Spec and Design department heads work as a team to produce the spec  sheets and engineering evaluations on each style in the line. The garments are measured and the construction is planned.	Merchandising, Spec and Design department heads work as a team to produce the spec  sheets and engineering evaluations on each style in the line after the styles are developed and before pre-costing. This takes two weeks.	Merchandising, Spec and Design
Pre-costing	Merchandising, Costing,  and Design department heads work as a team to pre-cost the garments in the line. At this time, adjustments can be made in the styling to respond to the costing.	Merchandising, Costing and Design department heads work as a team to pre-cost the garments in the line after the spec sheets and engineering evaluations are completed and before the final line adoption. This takes three weeks.	Merchandising, Costing and Design
Final Line Adoption	Merchandising, Management  and Design department heads work as a team to finalize  the line. Management approves the final line.	Merchandising, Management and Design department heads work as a team to finalize  the line after pre-costing and before advance breakdown to manufacturing. This takes one week.	Merchandising, Management and Design
Advance Breakdown to Manufacturing.	The Production department now breaks down the production details, and instructions , for each garment in the line.	The Production department performs the advance breakdown to manufacturing after the final line adoption and before the advertising agency review. This takes two weeks.	Production
Advertising Agency Review	Merchandising, Advertising, Sales, and Design department heads work as a team to present the line to the advertising agency to review and plan for advertising  the line.	Merchandising, Advertising, Sales, and Design department heads work as a team to present the line to the advertising agency to review and plan for advertising  the line after the advance breakdown to manufacturing and before the complete advertising garments plan is put into action. This takes one week.	Merchandising, Advertising, Sales, and Design
Complete advertising garments	Merchandising, Advertising, Sales, and Design department heads work as a team to complete the advertising plans for the garments. Many times the plan begins at this time.	Merchandising, Advertising, Sales, and Design department heads work as a team to complete the advertising plans for the garments after the advertising agency review and before the complete final costing.This takes two weeks.	Merchandising, Advertising, Sales, and Design
Complete Final Costing	Merchandising, Production, Costing and Design department heads work as a team to complete final costing for each garment in the line. Sometimes adjustments are made at this time.	Merchandising, Production, Costing and Design department heads work as a team to complete final costing for each garment in the line during the time the advertising is complete  and before the sales plan is  complete.This takes three weeks.	Merchandising, Production, Costing and Design
Sales Plan	Merchandising and Sales department heads work as a team to complete a sales plan. Stores and markets are targeted for sales.	Merchandising and Sales department heads work as a team to complete a sales plan after the complete final costing and before the samples are shipped to the sales reps. This takes one week, and it sales can start to ship after some of the plan is put into place.	Merchandising and Sales
Samples are Shipped to the Sales Reps	Sample Room and Shipping department heads work as a team to ship the samples to the sales reps in preparation for selling the line to the buyers.	Sample Room and Shipping department heads work as a team to ship the samples to the sales reps in preparation for selling the line to the buyers during, or, after the sales plan is finalized and before the merchandising sales meeting. This takes three weeks.	Sample Room and Shipping
Merchandising Sales Meeting	Merchandising and Sales departments meet and discuss sales strategies and progress.	Merchandising and Sales departments meet and discuss sales strategies and progress after the samples are shipped to sales reps and before the review of top accounts. This takes one week.	Merchandising and Sales
Review with Top Accounts/Prospects	Merchandising and Sales departments present the line to top accounts and top prospects.	Merchandising and Sales departments present the line to top accounts and top prospects after the merchandising sales meeting and before the initial sales forecast. This takes two weeks.	Merchandising and Sales
Initial Sales Forecast	Merchandising and Sales departments determine the initial sales forecast based on past sales, meeting with top accounts, and meeting with sales reps.	Merchandising and Sales departments determine the initial sales forecast based on past sales, meeting with top accounts, and meeting with sales reps after the review with top accounts and before, or during, establishing the manufacturing schedule. This takes one week.	Merchandising and Sales
Establishing the Manufacturing Schedule	Production department will establish the manufacturing schedule according to the sales forecast and the key dates.	Production department will establish the manufacturing schedule according to the sales forecast and the key dates after, or during, the initial sales forecast and before finalizing the advertising schedule. This takes two weeks.	Production
Finalize Advertising Schedule	Merchandising department will finalize the advertising schedule and make any adjustments based on the sales forecast and the manufacturing schedule.	Merchandising department will finalize the advertising schedule and make any adjustments based on the sales forecast and the manufacturing schedule after, or during, the manufacturing schedule has been established and before the line review. This takes one week.	Merchandising
Line Review	Merchandising and Sales departments will  look at the sales figures and determine which styles will go into production. Some may not have enough orders and will be dropped from the line.	Merchandising and Sales departments will  look at the sales figures and determine which styles will go into production after, or during,  the advertising schedule is finalized and before the garments are marked and graded. This takes one week.	Merchandising and Sales
Grade Production Markers	Marking and Grading departments  will mark and grade the garments that are to go into production.	Marking and Grading departments  will mark and grade the garments that are to go into production after the line review and before the production fabric is ordered. This takes one week.	Marking and Grading
Order Production Fabric	Production and Sourcing departments  will order the fabric for production, based on the sales projections.	Production and Sourcing departments  will order the fabric for production, based on the sales projections after the garments are graded and marked, and, before, or during, ordering  the trims and sundries. This takes three weeks.	Production and Sourcing
Order Trims and Sundries	Production and Sourcing departments  will order the trims and sundries for the garments, based on sales projections.	Production and Sourcing departments  will order the trims and sundries for the garments, based on sales projections after, or during,  the fabric is ordered and before the garments are sent for cutting and sewing. This takes three weeks.	Production and Sourcing
Cut and Sew Production Plant Loading	Production department will send the garments out for cut and sew, and load them for distribution.	Production department will send the garments out for cut and sew, and load them for distribution after the trims are ordered and before the sales forecast is adjusted. This takes five weeks.	Production
Sales Forecast Adjustment	Sales department will analyze sales and determine if production will continue as planned, and, if any additional production is needed.	Sales department will analyze sales and determine if production will continue as planned, and, if any additional production is needed after cut,sew and production loading and before ordering additional fabric. This takes one week.	Sales
Order Additional Fabric	Sales and Sourcing  departments will determine if needed, and order if necessary, additional fabric.	Sales and Sourcing  departments will determine if needed, and order if necessary, additional fabric after the sales forecast adjustment. This takes one week.	Sales and Sourcing

Ten Essential Items that FIDM students need to survive and thrive, FIDM tips

For future apparel manufactures, who are studying at FIDM, here is a list that I made of 10 essential things that The Fashion Institute of Design and Merchandising students need to survive and thrive at FIDM. Great  FIDM tips for success.

Ten Essential Items that The Fashion Institute of Design and Merchandising, FIDM, students need to survive and thrive

By Carla Buchanan, FIDM student, Apparel Manufacturing Management, Professional Designation

1. A Long Reach Stapler: A long reach stapler is a must. Buy a sturdy one. This is used to staple large projects. It is also used to staple fabric on presentation boards. Staples secure the fabric and prevents disappointment often associated with using glue on presentation boards. The stapler saves a lot of time as well.
2. FIDM bags: You will need all types and sizes of FIDM bags, available at the student store. A rolling bag is recommended, however, the FIDM rolling bag has a lot of issues. The hinges break and it does not roll very well.
3. ID holder: You are required to carry your ID at all times on campus. Your ID will get you on the elevator and into computer labs. Expect to lose your ID at least once while you are at FIDM, it seems like everyone does. There is a small charge for replacement. Your ID holder will help prevent loss. 
4. Hole Adjustable Punch, 1-25 sheets: This is a life saver. Make sure your hole punch can handle up to 25 pages. These are available in the library, but you will need one at home.
5. Lunch Cooler: This sounds nerdy, but FIDM does not have meal service. They only provide vending machines, and, sometimes a sandwich delivery service. You only have 15 minutes in between classes so you need to be prepared, or, you will find yourself eating expensive junk food from the machines. Microwaves are available, but there is always a line on some campuses.
6. Label Maker: You will have many projects that need labels. By using your label maker your projects will look like A projects. Label each of your notebooks, BEFORE your quarter starts, with your name, class, teacher and room number. You will not need to keep checking your schedule for the information if you label your notebooks. Also, very important, label your jump drives with your cell phone number. It seems like everyone lost at least one valuable jump drive during their time at FIDM.
7. Three Ring Binders: Get these before each quarter for each class. Also, KEEP them, with the work in it, when you are finished with a class. Don't reuse them. Never throw any work away while you are at FIDM. You will refer back to it and you will need it for your portfolio. 
8. Coffee Bean gift card: There is a Coffee Bean near the LA campus. 
9. Jump drives: Buy one for each class before the quarter starts. Label them with your phone number, before the quarter starts. Transfer the data to your computer as a back up. Jump drives are not meant for long term storage.
10. Dividers: Buy these, before the quarter starts, for each class. Buy at least five more sets per quarter. These make your presentations, and reports, look like A presentations and reports. Label them with your label maker, not by hand.