Evaluating Fabric Waste Management: A Case Study at Shahi Exports Pvt. Ltd

Nisarga Chandrashekar, Post Graduate Academic Scholar, Department of Fashion Management Studies, National Institute of Fashion Technology, Ministry of Textiles, Govt of India, Daman Campus.

Dr Vidhu Sekhar P, Assistant Professor, Department of Fashion Management Studies, National Institute of Fashion Technology, Ministry of Textiles, Govt of India, Daman Campus.

Abstract 

Shahi Exports Private Limited, India’s largest ready-made garment exporter, began in 1974 with just 25 machines in Faridabad. It expanded operations to Bangalore in 1988 and now operates 65 advanced manufacturing facilities across 9 states with over 100,000 employees— 75% of them from Karnataka. This graduation research project at Shahi Exports Pvt Ltd., VTP Unit-07, Bangalore, focused on analysing fabric reconciliation and leftover fabric to identify causes of wastage and implement better controls. Since fabric is the most significant cost component in garment manufacturing, efficient usage directly impacts profitability. The study evaluated marker usage, cut order planning, fabric roll distribution, and shrinkage to reduce waste and optimize fabric consumption. Major causes of leftover fabric included excess vendor supply and inaccurate CAD marker bookings due to width and shrinkage variations. Recommendations include consistent allowances during fabric booking and better communication from the Sampling department, using data from past styles to guide future orders. The internship also involved minor projects and documented significant learning outcomes. Ultimately, the project emphasized the importance of efficient fabric management in reducing production costs and improving profitability.

Introduction 

The change seen in global conditions is rapid, generally in an industry focus is given on profit margin and improved productivity. In garment manufacturing, it is usual that few fabrics and trims are leftovers after shipment. The manufacturer usually orders excessive raw material to meet the orders. However, factories must have check points to control this issue. There is no ready-made solution that can reduce leftover percentage overnight. Each order is not unique. To improve the growth of garment firms in a positive direction, it is important to ensure the proper utilization of each resource of firms. In many garment manufacturing firms, the growth mainly depends on minimization of garment waste to achieve maximum benefits by proper utilization of raw materials like fabrics and trims. A leftover normally comes from excess materials in the bulk.

Literature Review 

Fabric reconciliation is increasingly recognized in academic and industrial literature as a critical operational process in apparel manufacturing. It involves systematic tracking of fabric from procurement to consumption, with the goal of minimizing waste, reducing costs, and ensuring sustainable practices. Existing literature emphasizes its importance in improving inventory accuracy, enhancing traceability, and supporting ethical sourcing.

Bheda, R. (2002) This paper explores fabric efficiency in the context of productivity measurement. It notes that accurate material tracking, including fabric reconciliation, is key to boosting manufacturing efficiency and cost control. The study emphasizes structured data collection and real-time tracking for identifying losses and wastage. Choudhary, A. K., et al., (2012). This research identifies fabric wastage as a major contributor to production inefficiencies. It recommends fabric reconciliation strategies such as waste categorization, quantification, and reuse to improve sustainability and reduce environmental burden. Nayak, R. K., & Padhye, R. (2015) examines technological interventions like automated spreading, cutting, and AI-based defect detection. It finds that these advancements directly enhance the accuracy of fabric reconciliation and lower the rate of unrecorded wastage.

Kumar, S., & Dhingra, A. K. (2013) study highlights lean tools like value stream mapping and just-in-time (JIT), which rely heavily on accurate fabric tracking. Fabric reconciliation is presented as an enabler for lean inventory and waste reduction. Yin, R., & Zhao, L. (2022) investigates RFID’s role in improving transparency in supply chains. RFID-enabled fabric tracking allows accurate reconciliation of issued, consumed, and leftover fabric, reducing errors and improving traceability.

Arora, C., & Saini, S. (2019) explains how ERP systems centralize inventory control and facilitate fabric reconciliation. It concludes that ERP integration improves interdepartmental communication, thereby reducing manual errors and duplication. Vidhate, R. (2021) focuses on how sustainable practices, including remnant reuse and reconciliation, help reduce material waste. It stresses that understanding fabric movement through reconciliation contributes to responsible sourcing.

 Das, A., & Parmar, M. (2020) evaluates how digital marker-making through CAD systems supports better fabric usage. Marker efficiency plays a key role in reconciliation by minimizing consumption variation. Sharma, K., & Bhardwaj, S. (2022) explores digital traceability, focusing on blockchain and RFID. It finds that these technologies improve data accuracy and transparency, which are essential for effective fabric reconciliation in export manufacturing.

Objectives

• To analyse the fabric reconciliation and leftover fabric in order to determine the reason and scope of the leftover
• To get a complete understanding of merchandising.
• To understand the importance of time management, to complete the order in time

. • To know the importance of coordination between various departments in order to get the work done.

Methodology

The report includes information from both primary and secondary sources of data. Since, the project is made based on learning and understanding obtained from the observation of daily activities at shahi exports, therefore the project is an observatory in nature.

Data collection method

The data regarding fabric leftover evaluation based on nature and usage are collected by working and analysing process for 14 weeks at shahi exports. The secondary data is collected to explore more about the company, secondary sources are used. The secondary data was collected from the websites of shahi exports Pvt. Ltd and books and some of the information is gathered from research articles and other sources too.

Scope of study 

The project will help to understand how fabric leftover evaluation and what are the reasons for leftover and export house functions. This project contains roles of merchandiser in an export house and what are the processes involved. Compared to the other materials used in the production of clothing, the fabric accounts for over half of the total cost. Making effective use of fabric can save a significant amount of money and effort. Thus, the goal of this study is to determine the status of fabric consumption, examine any deviations, and suggest ways to further reduce the amount of avoidable waste (especially the leftovers).

Data Analysis & Interpretation 

Fabric saving plays a crucial role in improving the cost-efficiency of garment production. The idea is simple: by reducing fabric consumption, manufacturers can save significant amounts of money over time. Fabric saving can be defined as the reduction in the total cost incurred when purchasing fabric for a given order, which directly relates to improving fabric utilization. Fabric utilization is measured by how much of the fabric laid out for cutting is actually used in the garment patterns. While 100% utilization is an ideal scenario, it's not always practical. The primary challenge is to identify the causes that reduce fabric utilization and find ways to improve it.

Descriptions for Soft shell Jackets in Outerwear Category

The style "M Mt. Village FS Softshell" (Style No. 9961) for men's outerwear includes four different fits.

• XM9961
• XO9961
• XS9961
• XT9961

Size wise Breakdown for 9961

Fabrics used for the construction

The following are the different fabrics used for the construction of M Mt. Village FS Softshell Jacket having style XM9961

Fabric colours of style XM9961 in different time as per buy to buy includes:

Fabric colours used in style XM9961

However, for the analysis of the 11–20 buy, only Black, Collegiate Navy, and Mosstone were considered.

Wastage consideration for fabric booking and production

Percentage wastage consideration for WM9961

In the final fabric yardage calculation, a merchandiser typically adds an extra yard when determining the required quantity for fabric booking.

Fabric ordered qty for shell 1 of style XM9961 in 11 -20 buy

Order quantity for shell 1

Fabric Consumption for shell 1

Fabric consumption

Fabric booking quantity for shell 1

For the three selected colourways, the total order quantity, broken down by fit, and fabric consumption was calculated. Based on the weighted marker consumption per fit, fabric required was determined by considering BOM consumption and wastage percentages. The vendor-supplied fabric quantity marginally exceeded the ordered amounts, resulting in the following figures:

 Analysing 11-20 buy shell 1 fabric

The total leftover fabric, calculated as the difference between supplied and consumed quantities, is Black: 129 mts , Collegiate Navy: 161 mts, Mosstone: 77 mts, Total leftover: 367 mts

In the production of a particular garment style, a major discrepancy was observed in how fabric was handled between the fabric store and the cutting department. The cutting team requisitioned and received a significantly higher amount of fabric than what was actually supplied by the vendor or planned for that style. This over-issuance went unnoticed and unreported at the time, pointing to a serious communication gap and lack of internal checks between departments.

It was later discovered that the cutting department used this excess fabric for producing other styles that required the same material and color. While this may appear resourceful on the surface, it violates standard operating procedures. Such practices obscure the actual fabric consumption data, making it difficult to reconcile material usage accurately and potentially leading to inventory mismatches and financial discrepancies.

In another instance involving a different color, the full quantity received from the vendor was issued to the cutting floor, but only a small leftover was recorded. However, this leftover may not be physically traceable, as it may have been redirected to other productions without documentation.

An analysis of fabric used versus garments produced revealed inconsistencies. For some colours, the quantity of fabric recorded as issued appears insufficient to complete the full order, suggesting either errors in reporting or untracked movement of fabric between styles.

This situation illustrates a systemic flaw in material management practices. The lack of a formal approval process when additional fabric is required, and the absence of documentation when fabric is shared across styles, undermines the integrity of production tracking.

Leftovers in style 9961

Reasons Behind the Existence of Deadstock

In a garment export house, the generation of deadstock or leftover fabric is a recurring concern that impacts both inventory efficiency and cost-effectiveness. The reasons are varied and often interconnected, stemming from both intentional planning buffers and unanticipated deviations during production. Below is a comprehensive analysis of the major causes that contribute to the existence of deadstock across different styles.

Fabric consumption is often overestimated. When actual usage is lower due to efficient cutting or favourable fabric characteristics, leftovers occur. Mills sometimes supply fabric with a width greater than specified, reducing the actual yardage needed per garment and resulting in surplus. Defective fabric is replaced by the supplier free of charge, but the rejected fabric often remains unused in inventory.

Mills enforce minimum yardage per order, which can exceed actual requirements especially in low-volume or colour-specific orders. Merchants add buffer quantities (e.g., 1 yard extra or more) while booking to avoid stockouts, leading to unutilized fabric if not required. To prevent delays due to fabric shortages, departments intentionally over-order fabric beyond calculated needs. Vendors may supply more than ordered, either due to rounding off or production tolerances at their end. Discrepancies between fabric specification (GSM, shrinkage, width, etc.) and actual receipt can disrupt consumption estimates.

Fabric from one style is sometimes diverted to another without proper tracking, making it difficult to monitor true leftover status. Without timely and accurate reconciliation between departments (fabric store, cutting, merchandising), deadstock remains unaccounted. Poor documentation or absence of a digital tracking system causes fabric movement and usage to go unmonitored. Unexpected fabric flaws during cutting result in portions being unusable, and their replacements add to overall leftover.

Findings & Suggestions

The findings from the fabric reconciliation and leftover analysis at Shahi Exports Pvt. Ltd. reveal several key issues contributing to fabric wastage. One major finding is the excess supply of fabric from vendors, particularly for colourways like "Black," "Collegiate Navy," and "Mosstone," which often leads to unnecessary leftover fabric. This surplus supply is exacerbated by a standard wastage percentage of 2%, which, although common, may result in over-forecasting fabric requirements and generating excess waste. Additionally, variations in marker consumption across different fits suggest that fabric usage is not consistently aligned with the required quantities, further contributing to surplus fabric. There is also a lack of data-driven fabric booking strategies, which means that fabric quantities are often generalized rather than optimized based on actual usage trends and fabric types. Furthermore, the current marker planning process, while utilizing CAD technology, may not be optimized enough to reduce fabric wastage effectively, especially considering shrinkage rates and fabric characteristics.

To address these issues, several suggestions can be implemented. Improving communication with fabric suppliers is essential to reduce the over-supply of fabric, ensuring that vendors provide more accurate estimates based on historical usage. A more refined fabric booking strategy that uses historical data and predictive analytics can optimize fabric ordering, reducing unnecessary excess. Enhancing marker planning efficiency by optimizing CAD layouts and considering variations in marker consumption across different fits would also minimize waste. Additionally, introducing a real-time fabric tracking system, such as RFID or barcode scanning, can ensure more precise tracking of fabric consumption and leftover fabric, reducing discrepancies and manual errors. Repurposing leftover fabric from previous orders, particularly when similar fabric types are involved, would further reduce waste. Strengthening shrinkage control measures, such as pre-shrinking fabrics before cutting, would help minimize fabric wastage during production. Reviewing and optimizing fabric roll distribution based on shrinkage and width variations would also contribute to better fabric usage. Implementing sustainability goals, such as reducing waste per order or increasing the repurposing of leftover fabric, would align with both cost-saving and environmental initiatives.

Conclusion

This study on fabric reconciliation and leftover fabric management at Shahi Exports Pvt. Ltd., focusing on Columbia Sportswear's XM9961 ‘M Mt. Village FS Softshell Jacket’ order, underscores the importance of efficient fabric utilization in reducing waste and optimizing resource usage in garment manufacturing. The research analysed key factors such as marker consumption, fabric roll distribution, shrinkage, and production planning, revealing that excess fabric supply from vendors and inaccurate CAD marker bookings were significant contributors to fabric wastage. These factors, compounded by the discrepancies in planning, resulted in leftover fabric that could have otherwise been minimized.

The study highlights the need for consistent allowances in fabric booking, which could streamline the process and prevent overestimation of fabric requirements. Additionally, improving communication between various departments such as production planning, sourcing, and the design team is crucial for ensuring that the fabric supply is aligned with actual requirements, thus reducing waste. Incorporating data from previous orders and using historical fabric consumption patterns could further enhance accuracy in forecasting fabric requirements.

The implementation of better monitoring systems for shrinkage and fabric utilization across different production stages is vital in improving the efficiency of the manufacturing process. By focusing on these key areas, Shahi Exports can achieve significant reductions in leftover fabric, translating to both cost savings and a more sustainable production process. Ultimately, this study emphasizes that fabric reconciliation should be an ongoing process, requiring continuous optimization, communication, and data-driven decision-making to reduce waste and improve overall manufacturing efficiency.

References

Arora, C., & Saini, S. (2019). Role of ERP in textile manufacturing. Indian Journal of Industrial Relations.

Bheda, R. (2002). Productivity improvement and measurement in the clothing industry. The International Journal of Clothing Science and Technology.

Choudhary, A. K., Kumar, R., & Sengar, V. K. (2012). An investigation into waste management in garment industries. Journal of Cleaner Production.

Das, A., & Parmar, M. (2020). CAD marker planning for optimal fabric utilization. Fashion and Textiles.

Kumar, S., & Dhingra, A. K. (2013). Lean manufacturing and its effect on productivity. Journal of Manufacturing Technology Management.

Nayak, R. K., & Padhye, R. (2015). Automation in Garment Manufacturing. Textile Progress.

Sharma, K., & Bhardwaj, S. (2022). Traceability in the Textile Supply Chain. Journal of Fashion Marketing and Management.

Vidhate, R. (2021). Sustainable Fabric Consumption in Apparel Units. Journal of Textile Engineering & Fashion Technology.

Yin, R., & Zhao, L. (2016). RFID technology in textile and apparel supply chains. International Journal of Production Economics.

ZDF, M. (2015). Introduction to Fabric and Trims Waste Management in Garment Production. Textile Waste Solutions.