CMT and FOB: The Short Definitions
CMT stands for cut, make, trim. In a CMT arrangement the factory is paid for labour and capacity: it cuts the fabric, sews the garments and attaches the trims. The brand (or its sourcing team) is responsible for buying and delivering the fabric, trims, labels and often the pattern to the factory.
FOB, in this context, is commonly used to mean full package production, sometimes written “full package” or “FPP”. The factory sources the fabric and trims, develops samples, produces the garment, packs it and prices the order up to the point of loading at the port. Because that price is quoted “FOB” (free on board), the whole manufacturing model has picked up the same name.
The shorthand matters because the two models shift different amounts of work, cost and risk between you and the factory. Neither is better in the abstract; each fits a different kind of brand.
How CMT Production Works
With CMT, you hold the supply chain. You choose and buy the fabric, arrange for it to reach the factory, supply the trims and labels, and provide a pattern or tech pack. The factory cuts and sews to your specification and you pay a conversion price per garment. Because you control the materials, you can often reuse a trusted fabric across seasons and switch factories without changing the fabric supplier.
That control comes with responsibility. You must manage fabric lead times, shipping, wastage allowances and quality of incoming materials. If the fabric arrives late or short, production stops, and the delay is yours to resolve. CMT suits experienced brands with a dependable sourcing team, an established fabric supplier, and enough volume to buy fabric efficiently.
How Full Package (FOB) Production Works
With full package, the factory takes the brief and does the sourcing. It proposes fabrics, buys trims, develops samples for approval, manages production and delivers a finished, packed garment ready to ship. You pay one all-in price per garment, so quoting, planning and accountability sit largely in one place.
For brands without a dedicated sourcing team, this is a significant advantage: one point of contact, one invoice and one party responsible when something goes wrong. The trade-offs are less visibility of the individual cost components and less control of the exact fabric mill. A good full-package partner will be transparent about both, and will show you fabric options and test results rather than simply naming a price.
CMT vs FOB: Side-by-Side Comparison
| Factor | CMT (cut, make, trim) | FOB (full package) |
|---|---|---|
| Who sources fabric and trims | You | The factory |
| Who carries fabric risk | You (late, short or faulty fabric) | The factory, within the agreed spec |
| Typical MOQ | Lower on labour, but you still buy fabric in mill minimums | Set by the factory; low-MOQ partners can start at a few hundred pieces |
| Lead time | Depends on your fabric delivery | Factory manages the whole timeline |
| Cost transparency | High: you see every material cost | Lower: one all-in price per garment |
| Control over materials | Full | Shared, via approved options |
| Best for | Established brands with sourcing teams | Startups and growing brands wanting one accountable partner |
Do Not Confuse FOB Production with the FOB Incoterm
This is where many first-time buyers get tripped up. “FOB” is also an Incoterm, a standard trade term published by the International Chamber of Commerce that sets out who pays for what, and who bears risk, at each stage of shipping. Under FOB, the seller delivers the goods onto the vessel at the named port of shipment, and from that point the buyer bears the cost and risk of carriage.
In day-to-day sourcing, a quote “FOB Chattogram” therefore usually carries two meanings at once: the factory is working on a full-package basis, and the price includes everything up to loading at the port, with freight, import duty and UK clearance still to come. Always ask the factory to confirm which Incoterm applies, and what it includes. The ICC publishes the Incoterms rules, and our guide to importing clothing from Bangladesh to the UK explains how FOB, CIF and DDP differ for a UK buyer.
Hidden Costs and Risks in Each Model
In CMT, watch for fabric wastage (the factory needs extra fabric for cutting waste, usually a percentage you must agree), shipping the fabric to the factory, delays from late deliveries, and disputes over whether a fault is down to the fabric or the sewing. These are manageable with a strong sourcing process, but they do not appear on the CMT price.
In full package, watch for fabric substitutions without approval, unclear specifications that let the factory quietly downgrade a trim, and prices that look attractive until freight, duty and testing are added. A reliable partner will lock down specifications in a tech pack and share a clear cost breakdown so you can compare like with like.
A Worked Example: The Same Hoodie, Two Ways
Imagine a brand ordering 500 heavyweight hoodies. Under CMT, the brand buys roughly 500 × 0.9 metres of fleece plus rib, drawcords, labels and polybags, ships them to the factory, and pays a conversion fee for cutting and sewing. The brand must add a wastage allowance, pay inbound freight on the materials, and cover any delay if the fabric arrives late. The CMT line on the quote looks low, but the true cost is the sum of every line the brand pays elsewhere.
Under full package, the factory quotes one price per hoodie that already includes fabric, rib, trims, labels, packaging and its own wastage. The brand sees fewer line items, but the unit price is easier to compare against a competitor's quote and the factory owns the fabric risk. The figures here are only an illustration of structure, not real pricing, but the principle is the one that matters: compare the full cost of getting a finished, packed garment to the port, not the cheapest single line.
What to Agree Before You Sign Either Way
- A written specification covering fabric composition and weight, trims, labels, stitching and packing, ideally in a tech pack.
- Approval milestones: proto, fit sample, pre-production sample and the quality standard that applies to the bulk run, such as AQL inspection.
- Substitution rules: no change of fabric, trims or sub-contractor without written approval.
- Payment and delivery terms: deposit, balance, Incoterm and the date by which goods must be ready.
- Ownership of patterns and development work, so you can move production later without starting again.
Which Model Should You Choose?
- You are a new brand with no sourcing experience: full package. One partner, one price and fewer ways for the project to stall.
- You have a trusted fabric mill and a sourcing team: CMT can reduce cost and keep fabric consistent across factories.
- You need low minimums: full package with a low-MOQ manufacturer, because a factory that holds fabric stock can often accept smaller orders than you could buy as raw fabric alone.
- You are scaling a proven bestseller: a hybrid is common — fabric you buy in volume, cut and sewn by a CMT partner, with the original factory still handling new development.
It is also worth knowing where related terms fit. OEM (original equipment manufacturer) generally means the factory makes to your design; ODM (original design manufacturer) means the factory supplies the design too. Both usually operate as full package, and both overlap heavily with private label and white label models.
Hybrid and Transitional Set-Ups
Few brands stay on one model forever. A common path is to begin with full package while the range is small and the learning curve steep, then move a proven bestseller to a CMT arrangement once volumes justify buying fabric directly. Another is to run both at once: new styles are developed full package so the factory carries the sourcing effort, while core repeat items run on CMT using fabric you have already approved and tested. The key is to keep your documentation portable. If your specification, pattern and approved fabric references live in your own files rather than in the factory's head, switching model or factory later becomes a planning exercise rather than a restart.
It is also sensible to review the model each season. A brand that outgrew full package last year may find that a strong, transparent partner still offers better value once the cost of managing fabric suppliers, inbound freight and its own staff time is counted honestly.
How Ruhrose Works
Ruhrose works primarily on a full-package basis: we help you develop the product, source suitable fabric and trims, sample, produce and ship from Bangladesh, with UK buyer support throughout. That gives growing brands one accountable partner and, through our low minimums from 500 pieces per style and colour, a way to test before committing to scale. To see how it would apply to your range, read about how we work or start a product enquiry.