This beginner-friendly glossary is designed to demystify key sourcing terms and concepts, making it easier for new entrepreneurs, designers, and start-ups to navigate the world of fashion procurement and supply chain management. 

Make sure to review our SOURCING 101 and SOURCING 102 editorials—the companion guides to our on-site SOURCING at MAGIC educational workshops that will set you up for success when starting your sourcing journey. Whether you're starting a new role or seeking to expand your knowledge, these resources are your go-to for sourcing success.

Register now to attend our upcoming SOURCING at MAGIC Las Vegas event from August 18-20, 2025 and meet some of the leading suppliers and manufacturers from around the world. At our industry leading events, you can attend our free education sessions to learn more about sourcing best practices, trend forecasting, how to drive business growth, as well as learn ways to produce sustainably using accessible fashion technology. It all starts here »

MOQ (Minimum Order Quantity): The smallest quantity of a product that a supplier is willing to produce or sell.

Tech Pack: A document that outlines the design, materials, measurements, and construction details of a garment, used to communicate specifications to manufacturers.

Lead Time: The time it takes from the placement of an order until it is completed and ready for shipment.

Cut and Sew: A term used to describe garments that are made by cutting fabric pieces and sewing them together, as opposed to being made from pre-existing garments or fabric.

PP Sample (Pre-Production Sample): A sample created before mass production to ensure that the final product meets design and quality standards.

FOB (Free on Board): A shipping term indicating that the seller is responsible for delivering goods to a specified port, after which the buyer assumes responsibility.

CMT (Cut, Make, Trim): A manufacturing process where the supplier cuts the fabric, makes the garment, and applies any necessary trims.

Handfeel: The tactile sensation or texture of a fabric when touched.

Sustainable Sourcing: The process of sourcing materials and products in a way that is environmentally and socially responsible.

Fabrication: The process or the way a fabric is made, including the materials used and the techniques employed.

Trims: Additional components used in garment construction, such as buttons, zippers, labels, and elastic.

Deadstock: Unsold fabric or garments that are left over from previous seasons, often sold at a discount.

Greige Goods: Unfinished fabrics that have not been dyed or treated, often used as a raw material in textile manufacturing.

Costing: The process of calculating the total cost of producing a garment, including materials, labor, and overhead.

LDP (Landed Duty Paid): The total cost of a product once it has arrived at the buyer’s doorstep, including production, shipping, taxes, and duties.

Sampling: The process of creating prototypes or initial samples of a product to test design, fit, and quality before mass production.

Vendor Compliance: The adherence of a supplier to a buyer’s standards and requirements, including ethical practices, quality control, and timely delivery.

Nearshoring: The practice of sourcing or manufacturing products closer to the market where they will be sold, often to reduce lead times and transportation costs.

Vertical Integration: When a company controls multiple stages of the production process, from raw materials to finished products.

ODM – Original Design Manufacturer: is a company that designs and produces products, which are then rebranded and sold by another company. The product design is unique to the ODM, and the buyer typically has less control over the design. 

White Label/ Private label manufacturer: The manufacturer produces generic products that can be customized (e.g., with a brand’s logo or packaging) and sold under another company’s name. The product design is not unique, and multiple brands can sell the same product with different branding. 

MOB – Manufacturer Owned Brand: The manufacturer designs, brands, and markets the product under their own name, often aligning with current trends and market demands. However, many MOB exhibitors at SOURCING at MAGIC are also open to offering white or private label services upon request. 

Drop shipping: A fulfillment method where a retailer sells products without holding inventory, with the manufacturer or supplier directly shipping the goods to the end customer on behalf of the retailer.

Duty Free Countries: Refer to nations or regions where goods can be imported without paying customs duties, usually due to free trade agreements or special trade arrangements. Examples of duty-free countries that benefit a USA brand include:

• Mexico and Canada: Through the USMCA (United States-Mexico-Canada Agreement), many fashion goods can be traded duty-free between these countries.
• Australia: The U.S.-Australia Free Trade Agreement allows for duty-free trade on many textile and apparel products.
• Chile: Under the U.S.-Chile Free Trade Agreement, many clothing and footwear items qualify for duty-free import.
• Singapore: The U.S.-Singapore Free Trade Agreement allows for duty-free trade on most products, including textiles and apparel.
• Israel: The U.S.-Israel Free Trade Agreement provides duty-free access for many fashion products.
• Kenya, Ethiopia, Ghana, and South Africa: African Growth and Opportunity Act (AGOA) includes duty-free access for textiles and apparel.
• Panama: U.S.-Panama Trade Promotion Agreement (TPA)

Visit our Country Guide Library to learn about the benefits of sourcing from specific countries and regions.