CMT and FPP are the two models for pricing garment manufacturing. CMT (Cut, Make, Trim) means you supply the fabric, the factory provides labour only. FPP (Full Package Production) means the factory sources everything: fabric, trims, packaging. You provide the design and pay one per-unit price.
At Greige, the garment sourcing platform connecting independent fashion brands with vetted Indian factories, we work in FPP-equivalent terms for almost every DTC brand we onboard. The reason is the subject of this article.
Key takeaway before you read further: If you're placing a small order or you're an early-stage brand, CMT is almost certainly the wrong model. The economics don't work in your favour at small scale. Here's why.
CMT: what it means in practice
CMT stands for Cut, Make and Trim. The three stages of garment manufacturing the factory is responsible for:
- Cut: Laying the fabric and cutting pattern pieces
- Make: Sewing the garment (joining pieces, attaching collar, cuffs, fasteners)
- Trim: Thread trimming, pressing, finishing and attaching labels
Under a CMT arrangement, you supply the fabric to the factory. The factory quotes you a per-unit labour cost only. That labour rate is lower than a full-package price because it excludes everything except the sewing room, but the rate varies widely by garment complexity, factory and order size. The detail is in the CMT pricing guide.
What CMT excludes, and this is where brands underestimate complexity:
- Fabric (you source it, pay for it, ship it to the factory)
- Trims (buttons, zips, labels, often also your responsibility)
- Any fabric-related MOQ overrun (mills sell in rolls; if you need less than the mill minimum, you absorb the difference)
FPP: what it means in practice
FPP stands for Full Package Production. The factory handles everything from fabric sourcing to finished and packed garment. You provide:
- A tech pack (technical specification document with measurements, construction, materials and colourway)
- Your approved trim and label standards
- Payment on purchase order confirmation
The factory quotes you a per-unit FOB price that includes fabric, CMT, trims and packaging. You don't touch the fabric procurement side.
Most Indian factories quoting DTC international brands operate in FPP-equivalent terms, even if they use the term "FOB quote." When a Tirupur factory gives you an FOB price on a hoodie, that price already includes fabric, CMT, drawcord, eyelets and packaging, that's FPP.
The decision: which model is right for your stage
If you're an early-stage brand or ordering small runs per style: Use FPP.
The hidden costs of CMT at small volumes kill the apparent price advantage:
-
Fabric MOQ mismatch. Mills sell jersey and fleece by the roll, and the roll minimum is usually far above what a small run consumes. If your order needs less fabric than the mill minimum, you're either paying for the surplus or finding a factory that already holds stock. Most small brands can't absorb the surplus.
-
Fabric financing. Under CMT, you buy the fabric before it reaches the factory. You're funding that inventory from your own cash flow, often weeks before you see finished product.
-
Fabric logistics. Shipping fabric to the factory adds time and a separate freight cost. If the fabric doesn't arrive on time, your production slot moves.
-
Fabric risk. If the production run fails (wrong specs, quality issues), you own the fabric. Under FPP, the factory owns the fabric risk for the portion they source.
At larger volumes with an established fabric relationship, a specific mill you use across multiple styles, with existing inventory, CMT can make sense. You get lower unit costs and better control over material consistency. At small scale, the overhead erases the saving.
What Greige uses
Greige operates in FPP terms: we coordinate full production including fabric and trims sourcing, tech pack management, sampling and production oversight. The Greige fee applies to the production value (fabric + CMT + trims + QC), not to freight or duties. The full landed cost calculation is in the garment costing sheet.
FAQ
What is the difference between CMT and FPP in garment manufacturing? CMT (Cut, Make, Trim) means you supply the fabric and the factory provides labour only. FPP (Full Package Production) means the factory sources fabric and trims and delivers finished garments at a single per-unit FOB price. CMT gives more control over fabric quality at scale. FPP is simpler and lower-risk for brands ordering small runs.
Which is cheaper, CMT or FPP? CMT has a lower per-unit quote because it excludes fabric. But the total cost of CMT at small volumes, fabric MOQ surplus, logistics, financing, often exceeds the apparent saving. At large volumes with an established fabric supplier, CMT can reduce total cost. At small runs, FPP is almost always the lower total cost option.
Do Indian factories offer CMT pricing? Yes, but most Indian factories quoting international DTC brands operate in FPP-equivalent terms by default. When a Tirupur factory gives you an FOB price, it typically includes fabric, CMT and trims. True CMT pricing (where you supply fabric) is more common at higher volumes or when the brand has a specific fabric supplier they're bringing to the factory.
What does FPP stand for in garment manufacturing? FPP stands for Full Package Production. The factory takes full responsibility for fabric sourcing, manufacturing (CMT), trims procurement, and packing. The buyer supplies the design specification (tech pack) and receives finished garments at an agreed FOB price. Also called "full package" or "full service" manufacturing.
When should a brand switch from FPP to CMT? When you have established relationships with specific fabric mills, are ordering consistently larger runs per style, and want tighter control over material specifications across multiple factory partners. At that scale, the fabric savings and consistency benefits of CMT justify the sourcing overhead. At smaller volumes, the operational complexity isn't worth it.