The Association of Suppliers to the British Clothing Industry (ASBCI) has published a technical handbook that seeks to explain the complex process of garment costing.
The 136-page book, designed for industry professionals at every level, outlines the various factors that affect the cost of a garment through all the different stages of production in a step-by-step explanation from sourcing raw materials and production processes to labour costs and logistics.
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“As the fashion supply chain has become more complex, a thorough understanding of garment costing has become increasingly important,” ASBCI says. “However, the moving of production offshore means it is more difficult for buyers, merchandisers, and managers to fully appreciate all the various factors that contribute to the cost of a garment. And without that understanding it is all too easy for a product line to slip from profit to loss.”
The handbook also provides a 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.
There are also sections on reprocessing, both planned and unplanned, and summarises the costing process, touching briefly on retailer costs and other financial considerations. A glossary of costing and accounting terms, and a sample costing spreadsheet are also included.
The book, published by the ASBCI Technical Committee, is available to order directly through the trade association.
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