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AppendicesGLOSSARYUSEFUL CONTACTSSUMMARIES OF OTHER USEFUL REPORTSAPPENDIX 1 GLOSSARY OF TERMS Appendices Glossary78 Glossary APPENDIX 1 GLOSSARY OF TERMS This glossary contains a list of terminology and jargon commonly used in the clothing and textile sectors. It is intended for guidance only and definitive explanations, particularly those relating to Customs and Excise and finance, should be checked with reference to specific situations. A booklet containing these and other terms is available to designers and manufacturers from DTS Logistics Plc on telephone 0208 341 5068. ACCREDITATION To be officially recognised by a company to meet their standards. ACCREDITOR / Another word for Applicant / Opener / Accreditor of Letter of Credit (L/C). ACCOUNTEE ADVISING BANK Bank which advises exporter of the Letter of Credit (L/C) [may be same as Corresponding Bank]. ALLOCATION To sort garments into packs, either solid size, solid colours or ratio packs. APPLICANT Person who applies to open a Letter of Credit (L/C) [the importer] and who is arranging to pay the exporter by this method. A.Q.L. Acceptable Quality Level. Internationally recognised statistical standard of quality control. ARTICULATED Or artic. Vehicle with the front of the VEHICLE trailer connected and locked into a tractor unit - trailer length formally 40 ft. [12 metres] now 46 ft. [13.6 metres]. ASSORTED Developing a range of goods according to product attributes such as price, brand, size and colour, MANAGEMENT which can then be applied to different store grades. AUTOFRAME General term covering automatic garment flat knitting machines. AVAL Guarantee of payment added to a Bill of Exchange by a bank [the Bill is “avalised”]. AVERAGE Is defined in the context of Cargo insurance as “loss or damage”. BAR CODING A code made up of alternating black and white stripes of varying thickness and combinations. This code is machine-readable. BAR LOCKING The tying of hanging garments into sets [normally 5 or 10] by means of a plastic tie. B.D.C.1[M] Bulk distribution carton, as used by many mail order and retail companies. [M]=metre size as opposed to imperial. B.D.C.2[M] Smaller version of above. [M]=metre size as opposed to imperial. B/E Bill of Exchange: an unconditional order in writing addressed by one person to another, signed by the drawer, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future date a sum certain in money to or to order of a specified person or to bearer [eg. a cheque is a B/E drawn on a bank, payable at sight]. For details refer to ICC Publication UCR 322. BENEFICIARY In the context of Letters of Credit (L/C), person who will receive payment [the exporter]. 79 APPENDIX 1 GLOSSARY OF TERMS 80 B.H.T. FREE A type of plastic bag which does not contain any chemicals which cause “yellowing” of fabric. BIFA British International Freight Association. B.S.I. British Standard Institute. The national standards organisation which sets out guidelines for company quality managements systems. [formerly B.S. 5750 now ISO 9002]. BONDED GOODS Goods stored under the jurisdiction of HM Customs and Excise pending payment of import duties/VAT or until goods are exported. BONDED WAREHOUSE Customs-approved warehouse for storing goods liable for import duties/VAT, or otherwise not in free circulation. BOTTOM SEALING To seal bottom of garment bag by use of heat-sealing machine or low tack tape. BUTTON STAND Distance between centre of button and finished edge of garment. The under lap. BUTTONHOLE STAND Distance between centre front and finished edge of garment. The overlap. CAD Cash against documents or computer aided design. CAF Currency adjustment factor. Freight surcharge/discount to cover variations in exchange rates. CARGO INSURANCE Insurance covering goods in transit by all transport modes. CARNET International customs document issued by Chamber of Commerce. Allows import/export of product without need to raise bonds or pay duty to complete customs clearance. CASCADE Global supply chains include operations close to the source of supply [upstream] DOWNSTREAM / and conversely the operations are described as downstream as the goods near their destination. UPSTREAM CASE OF NEED Party nominated by the drawer of a Bill Of Exchange [B/E] to whom the overseas banker refers in the event of a bill being dishonoured. CATEGORY Organisation of business into multi-functional teams around customer oriented categories. MANAGEMENT CERTIFICATES In the context of insurance when floating, open or stock throughput policies covering many movements are in existence, an insurance certificate is issued for each movement as proof of the insurance cover. CERTIFICATE OF Written certificate signed to prove garments have been inspected by trained quality controllers, INSPECTION information included on form: style number, supplier, quantity, garment exclaimed dates and a signature. CERTIFICATE OF Issued when goods are exported as proof of shipment abroad for VAT purposes. SHIPMENT CERTIFIED SHIPPER A Department of Transport / Rail freight approved originator of rail freight transport able to self seal for security and safety purposes. C.I.F. Carriage, Insurance and Freight. C.I.M. Conventional Internationale des Marchandises par Chemin de Fer [1961]. Regulations governing international rail movements. APPENDIX 1 GLOSSARY OF TERMS 81 C.I.P. Carriage and Insurance Paid. CIRCULAR KNIT Tubular fabric produced on a variety of automatic circular machines for “cut and sewn” knitted garments as opposed to fashioned knitwear. C.M.T. Cut, Make and Trim. The cost of making up a garment excluding the cost of fabric. C/N Case of Need: person to be referred to if a Bill of Exchange [B/E] is dishonoured. CO-MANAGED System where the retailer and supplier are jointly responsible for setting and maintaining INVENTORY [CMI] inventory levels. COMMUNITY GOODS Goods, which are entirely obtained or produced, in the Customs territory of the EU Member States. COMPENSATING Products made from [or replacements for] the goods you have exported for processing. PRODUCTS COMPOSITION LABEL Also called care label. Label comprising of the following information, [items 1&2 required by law] to show on garments: 1) size 2) fibre content 3) wash/care instructions 4) special instructions 5) supplier code 6) style number CONFIRMED In the context of payment terms type of Letter of Credit (L/C) confirmed by a bank in the beneficiary’s (exporters) country. COURSES The vertical rows in a knitted garment or fabric (centre front warp on woven fabrics). CROSS-DOCKING Process where goods delivered at a distribution centre are received, sorted and despatched without being put away into warehouse racking. CROWS FEET Puckering around “changes” on fully-fashioned garments. More of a problem on fine gauges particularly at top of welt. D.A.N. Delivery Advice Note. Distribution centres’ own paperwork for receipt of merchandise from carrier. DISTRIBUTION The process of moving the people, resources and services to where they are needed or will be used. Distribution involves transporting and storage. DISTRIBUTION The concept of viewing business processes of sales forecasting, purchasing, manufacturing, LOGISTICS storage, shipping and receiving as a single system. D.P.P. Direct Product Profitability. A detailed costing exercise attributing all direct and indirect costs to a produce to ascertain its true price. DROP LOOPING To attach a second (or more) garment to an existing hanger by means of a plastic loop. DRY HANGING To unbox and hang garments without the use of steam. DRY PROCESSING Term used to describe all types of pre-retailing that does not involve steam e.g. bagging, kimballing. APPENDIX 1 GLOSSARY OF TERMS 82 EDGESTITCH Stitching 1.6mm from edge of garment section. EDI Electronic Data Interchange. Automated product/order information transfer between retailers and their suppliers. EFFICIENT A practice for supply chain and business improvement with the focus on improving all aspects CONSUMER of meeting customer demand with better response. Not to be confused with electronic cash RESPONSE (ECR) register. ELECTRONIC FUNDS Process of making payments electronically; offers potential to reduce payment times and risk TRANSFER (EFT) of errors. EPOS Electronic Point of Sale. ERP Enterprise Resource Planning. ESL European Sales Listing. Document required in respect of VAT for Intra-EU trade. EU European Union, formerly the European Community (EC) which developed from the European Economic Community (EEC) and originally the European Coal and Steel Community (ECSC). There were originally 6 member states which has currently grown to 15 full members. There are also various associated countries enjoying preferential status of which Turkey is a significant garment source. EUR 1 A document completed by consignor declaring the origin of garments. FASHION BOX A die-cut box usually to take one garment folded. Common in the mail order industry. FASHIONED Part of garment shaped by knitting rather than cutting (usually shoulder/armhole). FAULT CARDS Card ticket attached to garments showing faults/written information of faults found within a garment. FELE a) To join two pieces of fabric with edges folded together so that they are enclosed. b) To sew edges down with overcastting stitch made by hand. FINDINGS FINISH Linings, zippers, buttons, threads, snaps etc. a) Any method of completing raw edges of seams, hems or facings. b) To apply appropriate finish to raw edges of seams, hems or facings. FLATKNIT Garment, or fabric piece, produced on a frame. FLAT PACKED Garment folded and individually bagged in bulk distribution cartons. FLOATING POLICY A single insurance policy open for a particular value and gradually reduced by the value of each consignment. FLOOR READY Practice of delivering merchandise to stores prepared to that it can go straight to shelf or rail MERCHANDISE (FRM) — ie. price tagging and store hanger complete. 83 APPENDIX 1 GLOSSARY OF TERMS F.O.B. Free On Board. FORMER The individual pressing of garments on a body shaped steamer doll. FOURTH PARTY A supply chain operation that takes a bird’s eye broad view of the entire supply chain using LOGISTICS (4PL) information technology, to enhance and optimise the movement of goods through the various processes in the supply chain. It is usually a non-asset operation just using third party contracts. FREE CIRCULATION Goods imported from outside the EC are free in circulation within an EU country when all the import formalities have been complied with and all import duties payable have been paid and have not been fully or partly refunded. Goods originating in the community are also in free circulation. FREEPORT Ports / Areas in which goods are exempt from Customs control. Currently 6 in UK and numerous FREEZONE worldwide. F.T.A. The Freight Transport Association. FULLY FASHIONED Garment shaped totally by knitting rather than cutting. GAUGE Term to describe: 1) The thickness of plastic (e.g. retail bag normally around 50 gauge). 2) The number of courses per inch (hand frames) or per 1.5 inches (auto frames) on machine knitted garments. The most common hand frame gauges are 12 (fine knits), 5 and 7 (medium), 3 (chunky) and 1.5 (imitation heavy hand knits) and the most common auto frames range from 9 to 21 gauge. G.I.T. Goods In Transit. GLAZING Marks caused by pressing G.O.H. Garments On Hangers. GRAINLINE Lengthways grain, parallel to selvedge. G.R.N. Goods Receipt Note. Paperwork completed by consignee. GROSS WEIGHT The total weight of: 1) the vehicle plus goods and fuel. 2) the garments including presentation packaging and transit packing. G.V.W. Gross Vehicle Weight. Total vehicle weight, including any passengers, fuel and goods carried. HANDFRAME Hand operated knitting frame producing “hand framed” garment. HANDKNIT Garment knitted on handheld needles. HEMLINE Line on which hem is finished. H.G.V. Heavy Goods Vehicle. A vehicle with a gross weight of over 7.5 tonnes. HOFFMAN A flat steam press used for pressing individual garments such as trousers etc. APPENDIX 1 GLOSSARY OF TERMS ICC International Chamber of Commerce. INSURABLE The policy holders must have an insurable interest in the goods i.e. for cargo insurance they INTEREST must benefit from the safe arrival of the goods or be prejudiced by their loss. INSURANCE RISKS Covers physical loss or ALL damage, valuation, customers contract price for pre-sold garments, replacement costs of fabric/garments not sold; INTARSIA Patterned knitwear made from discontinuous different coloured yarns. Also the machine that produces it. INTERLINING Laying of fabric applied to wrong side of lining for warmth/strength. IRREVOCABLE Type of Letter of Credit (L/C) which cannot be cancelled without the consent of both parties. I.T. Information Technology. JACQUARD Patterned knitwear made from continuous different coloured yarns. Also the machine (operated by punched cards) which produces it. JIGGER Button sewn on inside of double-breasted coat. It usually has a long shank. JUST-IN-TIME (JIT) Practice of delivering materials and trimming to manufacturing plant frequently, at the time required; therefore, stocks at the manufacturing plant are kept low. KIMBALL A tag attached to a garment, which can carry the price, size colour and bar code. LAID Terms used to describe boxed garments. L/C Letter of Credit: a conditional guarantee of payment by a bank to a named beneficiary. LINKING Alternative term for looping. LOGISTICS Logistics is defined as a business-planning framework for the management of material, service, information and capital work flows. It includes the increasingly complex information, communication and control systems required in today’s business environment. LOGISTICS Planning, procurement, transportation, supply and maintenance. FUNCTIONS LOGISTICS The process of evaluating requirements, ensuring adequate logistic support of these requirements PLANNING and identifying any limiting factors in logistics support. LOOPING The method of attaching two pieces of fashioned knitwear (e.g. stolling to body, sleeve to body) by matching and threading the loops using a linking machine or “looper”. LOT NO A number issued by the customer to identify a specific garment. 84 85 APPENDIX 1 GLOSSARY OF TERMS MERCHANDISING Planning and controlling the flow of goods through seasons, at both central and store level. MODEM Device for transmitting or receiving data via telephone lines. M.R.N. Merchandise receipt note. Paperwork made out by warehouse on receipt of goods. MULTI-DROP When one vehicle is used to deliver to more than one destination. e.g. shop runs. NON-CONFORMANCE A report made out when ISO 9002 (BS 5750) procedures are not adhered to. NOTCH a) Small slit cut into seam allowances of garment to indicate match points and fold lines and to locate darts, tucks or pleats. b) Indentation where collar joint lapel. OCT Overseas Countries and Territories. These mainly comprise the ex-colonial territories of other EU States. ONS Office for National Statistics. (UK). OPEN A/C Open Account: Simplest method of settlement normally used in domestic trading. OPENER In the context of Letter of Credit (L/C) another word for applicant. OPENING / ISSUING Bank which establishes Letter of Credit (L/C) on behalf of applicant. BANK OPENLAY Single layer of fabric. The fabric is opened out to its full width. OUT-SOURCING Contracting out operations previously undertaken within the business to an outside contractor, i.e. warehousing and transport. OVERLOCKING Finishing process applied to raw edges of fabric to avoid fraying away. Overlap of thread. PASSING Quality control checking of goods by staff who although trained are not garment technologists. PE BAGS Bags made from polyethylene, a plastic with a softer feel, used by most major fashion retailers and some mail order companies. PICK & PACK To pick garments from stock for the same retail store and pack either into a box or set bag and label. PLACKET Any finished opening in a garment. PLC Public Limited Company. A company limited by shares or guarantee, with a minimum issued capital of £50,000. It is not necessary for such a company to have its shares listed on the stock exchange. P.O.D. Proof of Delivery. Delivery document showing consignee’s signature for goods received. PP BAGS Bags made from polypropylene, a plastic which has a “crinkle” feel to it and is used by many mail order companies notably GUS. PRE-RETAIL Processing work carried out on stock prior to delivery to store to speed up time to shelf. APPENDIX 1 GLOSSARY OF TERMS 86 PRIMARY The movement of goods from supplier to retail distribution centre (DC). DISTRIBUTION PROCESSING The working of goods, including assembling them or fitting them to other goods, the processing or the repair of goods. PROTEST Legal procedure for dishonoured Bill of Exchange. PUCKERING Flaw caused due to tight tension of stitching. Q.A. Quality Assurance. In house systems to ensure that standards of merchandise/service are adhered to. Q.C. Quality Control. Checks on standard of merchandise at various stages of production/distribution or on final receipt by client. QUICK RESPONSE A system for supply chain and business improvement with the focus on improving all aspects (QR) of meeting customer demand with better response. RAW EDGE Unfinished edge of garment section. REVOCABLE Type of Letter of Credit (L/C) which can be cancelled by applicant. R.O.S. Replenishment Of Sales. R.T.W. Ready to Wear SCHEDULING System which allows for duty/VAT to be paid as and when part consignments are released into free circulation (of Bonded goods). Valuable cash flow tool ideally suited to bulk garment trade. SEAL A security device (normally numbered) to prove that a vehicle has remained closed during transportation. SEAM ALLOWANCE Width of fabric between stitching line and cutting line. SEAMLINE Stitching line SHIPPER The original source of instruction to move goods, eg. a manufacturer. SHROUD Individual plastic garment cover to protect garment while in transit or storage. Approx 50 gauge. SIGHT One method of fixing the time allowed for payment under a Bill of Exchange e.g. payable at 30 days sight (of 30 days from date of drawing of bill). SIZE CUBE Plastic cube fitted to hanger neck to denote size of garment. SIZE Chart of measurements for each size / area on garment. Listed in sizes, graded SPECIFICATION e.g. 8, 10, 12 / area-bust, waist, hips. Checking chart to ensure each size measured to correct CHART customer sizing. SIZE STICKER Adhesive label attached to hanger to denote size of garment. APPENDIX 1 GLOSSARY OF TERMS S.K.U. Stock-Keeping Unit. SLA Service Level Agreement. SELVEDGE Finished edges on woven fabric, along length ways grain SPECIFIC In the context of Customs: 1) Duty which is “non-value” based. Occasionally seen in the garment trade related to weight and usually combined with “ad valorem” on a “whichever greater” basis. 2) Quota which is based on weight rather than more usual method of number of garments. STOLLING Knitted edge attached to the front opening of a knitted jacket or cardigan. SUBROGATION This allows the insurance company to take action against liable carriers in the name of the insured immediately the claim has been paid. SUPPLY CHAIN The supply chain encompasses all activities involved in the planning, manufacture and distribution of goods from the point of origin to the end user. SWATCH A sample of cloth cut from a roll. SWING TICKETS Card ticket attached to garments showing information regarding garment. TAILOR’S CHALK Soft limestone used for drawing/ marking cloth. TERM Number of days allowed for payment under a Bill of Exchange. THIRD COUNTRY Any country that is outside the Customs territory of the European Community. TOPSTITCH Stitching from the right side of garment. TRIM Cut away excess fabric. TUNNEL PRESS Automatic unit for pressing hanging garments by means of steam. VACPAC The process of moisture extraction and condensing of cubic volume to avoid in transit creasing and saving of freight charges. VAS Value Added Services. An addition to the produce that enhances the value to the customer either by service or presentation. VAT Value Added Tax. Tax based on the value of goods administered by Customs, not the Inland Revenue. VENT Faced or lined slash for ease such as sleeve placket or centre back vent in a skirt. 87 88 WALES The horizontal rows in a knitted garment or fabric (of weft on woven fabrics). WARDROBE BOX A large carton with integral bar to carry hanging garments. WARP Thread woven vertically in fabric. WEFT Thread woven horizontally in fabric. WELT Tensioned edge at bottom of fashioned garment usually ribbed. WMS Warehouse Management Systems. An IT system that will track merchandise from receipt through its various stages throughout the warehouse prior to despatch allowing monitoring and performance reviews to be obtained. YIELDS Number of garments which can be made from a standard quantity of fabric (e.g. per square metre), trims etc. ZERO RATING VAT charged at 0% as opposed to “exempt”. APPENDIX 1 GLOSSARY OF TERMS
