CMT Stands for Cut, Make and Trims
CMT is a costing procedure of garment making and a how to deal with suppliers. It includes fabric cutting cost, garment sewing cost and garment finishing cost. The garment manufacturers that mainly work in the model of CMT is called as CMT manufacturers or a CMT factory.
Some apparel buyers /brands prefer working with CMT factories instead working FOB orders. By doing CMT model, brands can control fabric purchase and fabric quality. They can control the raw material quality and save money is purchasing common material in bulk for their different designs.
Another benefits of CMT order is buyer can get open costing of how factories reach to the CMT amount per garment.
Another way to quote pricing to buyer is FOB. In FOB business suppliers used add various hidden cost to increase price. Now-a-days all buyers become smart and they how to reach final cost of the garment making. So they do open costing. They ask for CMT instead of total price.
Buyer aware about fabric price, and other trim's price. And maximum profit margin is fix for the supplier.In garment processing, factory needs to invest in fabrics. Secondly getting direct order from buyers is difficult for small factories. So, they some times factories do job work. In such cases only CMT is charged from buyers.
Also See: Garment Costing (CMT) Work Sheet