Introduction: What This Apparel Sourcing Glossary Is and How to Use It
Apparel sourcing terminology defines how buyers, suppliers, and manufacturers communicate cost, quality, lead time, and compliance throughout the production process.
Misunderstanding sourcing terms such as MOQ, FOB, AQL, or tech pack is one of the most common causes of delays, cost overruns, and quality disputes in apparel manufacturing.
This glossary explains the most important apparel sourcing terms every buyer must know, using clear definitions and practical context aligned with how sourcing decisions are made in real production environments.
This guide is designed to be referenced during supplier selection, RFQs, sampling approvals, production follow-ups, and quality inspections.
Apparel Sourcing Terms Explained: Definitions Buyers Use in Real Production
AQL (Acceptable Quality Level)
Definition:
AQL (Acceptable Quality Level) is a statistical quality control standard used to determine the maximum number of defective units allowed in a production batch during inspection.
Why it matters:
AQL determines whether a shipment passes or fails inspection and directly affects shipment release, rework, or rejection.
Where it applies:
Inline inspection, final inspection, shipment approval.
Back-to-Back LC
Definition:
A back-to-back LC is a financial arrangement where a factory uses a buyer’s Letter of Credit to open a secondary Letter of Credit with its fabric or trim suppliers.
Why it matters:
This structure affects production timing and cash flow, particularly in fabric-intensive programs.
Where it applies:
Commercial terms, material procurement, production planning.
Booking Capacity
Definition:
Booking capacity is the formal reservation of factory production lines for a specific order and time window.
Why it matters:
Orders placed without confirmed capacity booking are more likely to face delays during peak seasons.
Where it applies:
Production planning, order confirmation.
Bulk Production
Definition:
Bulk production is the large-scale manufacturing phase that begins after all samples, materials, and approvals are completed.
Why it matters:
Errors during bulk production scale quickly and are costly to correct.
Where it applies:
Manufacturing execution, quality monitoring.
Buyer Nomination
Definition:
Buyer nomination is the process of specifying approved fabric mills, trim suppliers, or service providers that factories must use.
Why it matters:
Nomination improves consistency and compliance but can affect cost and flexibility.
Where it applies:
Material sourcing, compliance management.
CAPA (Corrective and Preventive Action)
Definition:
CAPA is a documented action plan used to correct identified issues and prevent their recurrence following audits or inspections.
Why it matters:
Unclosed CAPAs can block future orders and damage supplier status.
Where it applies:
Compliance audits, quality systems.
CIF (Cost, Insurance, and Freight)
Definition:
CIF is a shipping term where the supplier covers cost, insurance, and freight until the goods reach the destination port.
Why it matters:
CIF simplifies logistics for buyers but reduces cost transparency and control.
Where it applies:
Commercial terms, logistics planning.
Critical Path
Definition:
The critical path is a timeline outlining every required step from design freeze to shipment delivery.
Why it matters:
Delays at early stages of the critical path compound and threaten on-time delivery.
Where it applies:
Planning, lead time management.