CMT vs FOB vs Full-Package: Choosing the Right Production Model

Apparel factories sell their work under three main models. CMT (Cut, Make, Trim): you supply the fabric and trims, the factory supplies the labour. FOB: the factory sources fabric to your specification, makes the garment and delivers it to the port. Full-package (FPP/OEM): the factory handles everything from fabric development to branded, shipment-ready product. The model you choose decides your price structure, your workload and - crucially - who carries the risk when something goes wrong.

CMT: you own the materials, they own the stitching

Under CMT the factory quotes a making charge per piece and nothing else. It suits brands with their own fabric supply chain - vertically integrated retailers, or companies with a fabric agent and technical team.

• Pros: lowest factory charge; total control over fabric quality and cost; fabric relationships stay yours.
• Cons: you buy, pay for and freight the fabric; you carry the wastage and shortfall risk; a fabric delay is your delay; every coordination failure between mill and factory lands on your desk.
• Watch: liability. If garments fail because the fabric shrinks or bleeds, that is your fabric - the factory's responsibility ends at the stitching.

FOB: the factory sources, you approve

Under FOB (named for the Free On Board shipping term), the factory buys fabric and trims against your approved specification, produces the garment and delivers it cleared for export at the port. One price covers materials, making and local logistics.

• Pros: one accountable party for the finished garment; the factory's fabric buying power works for you; no material logistics on your side.
• Cons: less direct control over mill selection unless you specify it; fabric cost is inside the price, so demand transparency on composition and GSM to compare quotes fairly.

Full-package (FPP/OEM): design in, branded product out

Full-package extends FOB backwards into development - pattern making, grading, sampling, lab dips - and forwards into branding: woven labels, hang tags, care labels, polybags and retail-ready packing. You bring the design and the brand; everything else happens under one roof. This is the model most private label programmes run on, and for good reason: it is the shortest path from idea to sellable stock for a team without production infrastructure.

• Pros: single point of accountability from spec to shipment; development expertise included; minimal internal overhead required.
• Cons: unit price reads higher than CMT on paper (it includes everything); switching suppliers means re-establishing development history - keep copies of your tech packs and patterns.

Which model fits your stage

• Launching a brand, no production team: full-package. The making charge you would save under CMT is dwarfed by the cost of one fabric mistake.
• Scaling brand with approved specs and stable styles: FOB. You keep one accountable partner while your volumes earn better fabric pricing.
• Vertically resourced business with fabric supply and QA staff: CMT, where your existing supply chain is a genuine advantage.

Whatever the model, the commercial mechanics - deposits, MOQs and stage-by-stage lead times - work the same way, and a written specification protects both sides equally.

Frequently asked questions

What does CMT mean?

Cut, Make, Trim - the factory cuts fabric you supply, sews and finishes the garment. You own fabric sourcing and its risks; the factory sells labour and expertise.

Which model is cheapest?

CMT has the lowest factory charge but loads fabric buying, freight and wastage risk onto you. Fully loaded, full-package is usually as cheap or cheaper for brands without their own fabric supply chain.

Can I switch models later?

Yes - a common path is full-package at launch, then moving high-volume styles to FOB or CMT terms once you have fabric relationships and a technical team.

Mesh Apparel runs full-package and FOB programmes for garment and glove brands, and takes on CMT work where the fabric supply is genuinely established. If you are weighing the models for a new line, tell us your product and volumes and we will quote the options side by side.