Lessons · Lesson 4 of 6
- 01 · The garment is finished after it is sewn
- 02 · Specifying a measurement that does not exist yet
- 03 · Grading through a laundry, and the size set after wash
- 04 · Cloth or recipe: buying the same look twice
- 05 · The laundry's minimums, and the plan they rewrite
- 06 · Defects that are the product, and the ones that are not
Cloth or recipe: buying the same look twice
Price a cheaper denim against the harder wash it forces, and book cloth against a recipe nobody has approved yet.
Lesson 4 of 6 · 24 min
The situation
2 April, Ulvan's costing office. Two quotations for the same construction, both 11.5 oz comfort-stretch, both delivered to Corlu:
- Terkos, ring-spun warp, rope-dyed: USD 4.05 a metre.
- A second mill, open-end warp, slasher-dyed: USD 3.28 a metre.
Ring-spun yarn is twisted the slow way and has an uneven surface. Open-end yarn is made faster and comes out flat and regular. Rope dyeing runs the warp through indigo as thick ropes, so the dye stays near the surface and leaves a white core. Slasher dyeing runs it as a flat sheet, and the colour sits more evenly.
Seventy-seven cents a metre, on an order of nineteen thousand metres. In most categories that is a straightforward saving and the conversation lasts four minutes.
What makes denim different
In almost every other category the fabric decision and the finishing decision are independent. You cannot buy a better hand on a knitted top by dyeing it longer. You cannot make a poplin shirt look like a better poplin in the finishing line. The two lines of the cost sheet do not talk to each other.
On denim they are substitutes for the same visual outcome. The look Tarnwick sealed on 6 May is a contrast — pale where the garment stands proud, dark where it does not — and there are two ways to buy it. You can buy it at the mill, in a ring-spun yarn with an irregular surface and deep rope dyeing that leaves a white core to expose. Or you can buy it at the laundry, by abrading a flat open-end yarn long enough and hard enough to force the same contrast out of less. Course 2.4 explains why the yarn behaves that way. What matters here is that the two are exchangeable, so neither line of the cost sheet can be quoted alone.
That is the category rule. A denim quotation that prices cloth without naming the recipe it assumes, or prices a wash without naming the cloth it was trialled on, has not priced anything.
The two routes, on one jean
Sarband trialled the cheaper cloth and reported what it would take to reach the sealed standard. The short recipe does not get there. The recipe that does adds a stone step, a light bleach and the neutralisation that follows it.
| Route 1, dearer cloth | Route 2, cheaper cloth | |
|---|---|---|
| Cloth | Ring-spun, rope-dyed, USD 4.05 a metre | Open-end, slasher-dyed, USD 3.28 a metre |
| Consumption | 1.482 m | 1.531 m |
| Cloth cost | USD 6.00 | USD 5.02 |
| Recipe | Desize, short enzyme, rinse, soften | Desize, enzyme and stone, rinse, bleach, neutralise, rinse, soften |
| Minutes in the machine | 55 | 135 |
| Wash charged | USD 1.32 | USD 2.71 |
| Reject rate at the laundry | 0.9 percent | 2.4 percent |
Desizing washes out the starch put on the warp to survive weaving. Two things in that table are worth stopping on before the money.
The consumption is not the same. The harsher recipe shrinks the cloth more, the pattern is cut bigger to compensate, and the marker grows with it. So the cheaper cloth is also used in greater quantity — 1.531 m against 1.482 m. The saving of USD 0.77 a metre is worth USD 0.98 a pair, not USD 1.14.
The minutes are the laundry's calendar. At 240 pairs a load, this order is 53 loads. Route 1 holds a machine for 48.58 hours. Route 2 holds it for 119.25. That is 70.67 machine-hours you have to buy from a company whose order book you do not control, and it is invisible on a cost sheet.
Carried to a margin
Everything except cloth and wash is the same on both routes: trims USD 1.72, CMT USD 3.05, finishing and packing USD 0.38, freight to the laundry and back USD 0.07, factory overhead and margin USD 2.20. That is USD 7.42.
| Route 1 | Route 2 | |
|---|---|---|
| Everything but cloth and wash | USD 7.42 | USD 7.42 |
| Cloth | USD 6.00 | USD 5.02 |
| Wash | USD 1.32 | USD 2.71 |
| Made cost | USD 14.74 | USD 15.15 |
| Reject loss per shippable pair | USD 0.13 | USD 0.37 |
| Total cost per shippable pair | USD 14.87 | USD 15.52 |
| Margin per pair | USD 2.53 | USD 1.88 |
| Margin as a share of FOB | 14.5 percent | 10.8 percent |
The cheaper cloth costs USD 0.65 a pair, or USD 8,190.00 on the order. The saving was real and it was never available, because it was a saving on one line of a pair of lines that move together.
The reject line is the one people leave out, and on denim it is never small. A pair scrapped at the laundry has already absorbed its cloth, its trims, its cutting, its sewing and its wash. It is the most expensive unit of loss in the order. Route 2 runs a bleach step. Bleach is fast, cheap and unforgiving, and 2.4 percent against 0.9 percent is what that costs.
And the route that costs more is also the riskier one
Two more things follow the harsher recipe, and neither shows on the cost sheet.
Strength. The bleach takes warp tensile strength from 412 N unwashed to 296 N, against Tarnwick's floor of 280 N. That is 16 newtons of headroom on a test whose result moves with the neutralisation, the storage temperature and the laboratory's grip method. How to read that floor properly is course 3.6's third lesson. The point here is that route 2 spends the headroom route 1 leaves intact.
Time. Seventy hours of extra machine time in a shared laundry is not seventy hours of delay. But it is seventy hours you have to find in somebody else's calendar, and lesson 5 shows what happens when you cannot.
The booking nobody can make correctly
Now the second half. This one is specific to product that is finished after it is made.
Ulvan booked cloth on 2 April: 12,600 pairs at a trial consumption of 1.462 m, plus four percent for ends and cutting loss, rounded up to the mill's put-up — 19,200 m. Correct practice, done on the right day, because a rope-dyed lot has a lead time and the cut plan needed it.
The wash standard was sealed on 6 May. The corrected pattern arrived on 8 July. It consumes 1.482 m, so the order needs 19,420.1 m.
The booking is 220.1 m short. It was short from the moment it was made, because it was made against a pattern that did not exist yet.
| Option | Cost | What else it does |
|---|---|---|
| Re-order the shortfall | Refused — the minimum for a rope-dyed lot is 1,500 m | |
| Buy the minimum | USD 6,075.00 | 1,280 m of dead stock in a shade nobody else ordered |
| Buy the minimum and use it | USD 6,075.00 | A second dye lot, so two groups of shade inside one order |
| Have over-booked 400 m on 2 April | USD 1,620.00 | Carried as a named line on the cost sheet |
The right answer was available in April and costs a quarter of the wrong one. On a garment-washed product you are booking cloth against a shrinkage figure that is not approved yet. So book against the harshest recipe still under discussion, not the trial one, and put the over-book on the cost sheet as a line with a number. Then it is a decision somebody made, priced at USD 1,620.00, instead of a shortfall somebody discovers.
Check yourselfA mill offers the same construction at USD 0.77 a metre less. Before you take it, what do you ask the laundry?Show the answer
What recipe reaches the sealed standard on that cloth, and what it costs. On denim, contrast is bought either at the mill or at the laundry, so a cheaper yarn is a promise to buy the difference back in machine minutes. Ask for four things: the recipe, the minutes in the machine, the reject rate that recipe carries, and the shrinkage it produces — because a harsher recipe grows the pattern and you will use more of the cheaper cloth. On this order those four turned a USD 0.77 saving into a USD 0.65 loss per pair, and added seventy machine-hours to a laundry you share with other brands. If the laundry cannot answer, that is your answer.
Check yourselfYou must book a rope-dyed lot in April and the wash standard will not be sealed until May. How much do you book?Show the answer
Against the harshest recipe still on the table, not the trial. Consumption on a washed garment depends on the pattern, and the pattern depends on a shrinkage figure the recipe has not produced yet. So a booking made on the trial figure is a booking made on the most optimistic case available. Work out the metres at the heaviest recipe under discussion, book that, and write the difference on the cost sheet as a named over-book with its cost. Here that was 400 m and USD 1,620.00, against a mill minimum of 1,500 m and USD 6,075.00 if you get it wrong — and the wrong version also hands you a second dye lot, which spends a shade band you needed for something else.