Brands buying their own yarn and only paying the factory for "processing" — this is called CMT (Cut-Make-Trim).
Sounds like a money-saver? Not necessarily. CMT saves the margin on yarn procurement but adds yarn quality risk, waste management pressure, and delivery coordination costs.
If you're considering the CMT model, this article helps you run the numbers.
1. What Is CMT (Cut-Make-Trim)?
CMT, or Cut-Make-Trim, is a model where the brand sources its own yarn and delivers it to the factory, which handles only the processing stages: knitting, linking, washing, pressing, and packaging.
Compare with full package production:
| Dimension | Full Package | CMT |
|---|---|---|
| Yarn procurement | Factory handles | Brand handles |
| Yarn cost control | Factory has bulk purchase pricing advantage | Brand purchases independently, price depends on volume |
| Yarn quality liability | Factory bears responsibility | Brand bears responsibility (yarn issues not covered by factory) |
| Delivery coordination | Factory single-source | Two timelines (yarn procurement + processing) — risk at the interface |
| Best for | First orders, small batches, convenience | Large volumes, brands with existing yarn suppliers |
| Processing fee | Includes yarn margin, looks higher per unit | Processing fee only, lower unit cost but yarn is separate |
2. Who Is CMT For?
✅ Brands That Should Use CMT
- High-volume brands (10,000+ pieces/year) — have bargaining power to buy directly from mills, potentially below factory prices
- Brands with stable yarn suppliers — long-term relationships ensuring consistent quality and batch uniformity
- Brands with特殊 yarn requirements — specifying a particular mill's yarn (e.g., Loro Piana, Johnstons of Elgin) that factories don't typically stock
- Reorder (repeat orders) — same style, same yarn with already documented parameters — CMT is efficient
❌ Brands That Should Not Use CMT
- First orders, new development — if the yarn hasn't been tested with the factory's process, don't take the risk of buying it yourself
- Small volume per style (< 500 pieces) — shipping and waste costs for self-purchased yarn don't add up
- Unfamiliar with knitwear craftsmanship — incorrect yarn selection or unclear specifications lead to disputes when problems arise
- Tight delivery schedules — CMT adds another supply chain link to manage; any yarn delay disrupts factory scheduling
3. 6 Core Considerations for CMT Processing
1. How to Calculate Yarn Quantity — Allow for Waste
The factory calculates required yarn using this formula:
Total yarn required = Net yarn per piece × Order quantity × (1 + Waste rate)
Standard waste rates for knitwear processing:
| Process Complexity | Reference Waste Rate |
|---|---|
| Simple plain knit (solid color, crewneck) | 3–5% |
| Jacquard / multi-color | 5–8% |
| Intarsia | 8–12% |
| Chunky gauge (3G/5G) | 5–10% |
| Fine gauge (12G+) | 3–5% |
Make sure to confirm the waste rate with the factory at order confirmation and agree on "excess to be returned, shortfall to be replenished." If the factory says "we'll keep the excess as备用," you need to specify ownership of remaining yarn in the contract.
2. Yarn Inspection — Test Before Knitting
Don't put the yarn directly on the machines when it arrives at the factory. Run these checks first:
- Yarn count confirmation: matches the tech pack?
- Twist test: too much twist makes the feel hard; too little causes fuzzing
- Color shade check: is there any shade variation between cones in the same batch?
- Lot / batch number verification: ensure all cones are from the same production batch
3. Yarn Storage — Environment Matters
Yarn is a "living material" — storage conditions directly affect knitting results:
- Constant temperature (20–25°C) and humidity (60–65%), avoid over-drying or moisture regain
- Do not place directly on the floor to prevent moisture and mold
- Store different color codes separately to prevent color contamination or mixing
Reputable factories provide dedicated yarn storage space. Brands can request the factory to provide a storage standards statement in the CMT contract.
4. Process Parameter Matching — Yarn and Equipment Compatibility
Not all yarns work on all flat knitting machines. Before purchasing yarn, best to ask the factory:
- "What gauge range is this yarn suitable for?" (e.g., certain woolen-spun wool only works on 7G and above)
- "Can your machines achieve the tension this yarn requires?"
- "What is the washing shrinkage rate for this yarn? Do we need to adjust the pattern dimensions?"
Best practice: Send 1–2 kg of the yarn sample for trial knitting before bulk purchasing. Confirm the parameters from the trial, then proceed with bulk ordering.
5. Washing Validation — Post-Wash Results May Vary
The same washing procedure can produce different results with different batches of the same yarn type — firmer or softer hand feel, lighter or darker color, different shrinkage rates.
Therefore, each yarn type and each color needs its own washing test to produce a post-wash measurement report before proceeding to bulk production.
6. Contract Terms — Clearly Define Responsibility
CMT contracts should specifically address:
| Clause | Explanation |
|---|---|
| Yarn quality standards | Specify yarn count tolerance, twist range, colorfastness grade |
| Maximum waste rate | Factory bears costs above this threshold |
| Ownership of excess yarn | Does surplus yarn revert to brand or factory? |
| Yarn-related quality issues | Who bears responsibility for defects caused by yarn (shade variation, breakage, feel deviation)? |
| Yarn replenishment clause | Timeline and cost sharing for insufficient yarn |
4. CMT vs Full Package: Price Comparison
Assume 500 pieces of 7G pure cotton crewneck pullovers. Cost comparison:
| Cost Item | Full Package (Factory Supplies Yarn) | CMT (Brand Supplies Yarn) |
|---|---|---|
| Yarn cost (500 pcs × 0.3kg × RMB 60/kg) | Factory includes in quote | RMB 9,000 (brand self-purchase) |
| Processing fee (knitting/linking/washing/pressing/packaging) | RMB 35/piece | RMB 28/piece |
| Yarn shipping, inspection, storage | Factory handles | RMB 500–1,000 |
| Total cost per piece | RMB 35/piece | (RMB 9,000 + RMB 14,000 + RMB 800) / 500 = RMB 47.6/piece |
Wait — CMT is more expensive?
Yes — when the order volume per style is small, CMT not only doesn't save money, it actually costs more. Because:
- Brand self-purchased yarn doesn't get factory bulk discounts
- Processing fee is RMB 7/piece lower, but yarn cost is RMB 18/piece higher (factory bulk yarn price is about RMB 42/kg)
- There are additional shipping and inspection costs
CMT typically only saves money when a single style exceeds 1,000 pieces and the brand has its own yarn purchasing channel with prices 10–15% below the factory's bulk yarn price.
5. CMT Processing Workflow
| Step | Activity | Duration |
|---|---|---|
| 1. Process confirmation | Factory confirms process parameters (gauge/density/washing method) | 1–2 days |
| 2. Yarn trial | Brand sends 1–2kg yarn for trial knitting | 2–3 days |
| 3. Yarn procurement | Brand bulk-purchases yarn per confirmed specification | 3–7 days |
| 4. Incoming yarn inspection | Factory tests count/twist/shade/batch | 1 day |
| 5. Sampling confirmation | Factory produces PP sample with brand's yarn | 7–10 days |
| 6. Bulk production | Knitting + linking + washing + pressing + QC | 18–25 days |
| 7. Inspection and shipment | AQL sampling + metal detection + packaging | 2–3 days |
The total CMT cycle is approximately 35–50 days, 3–7 days longer than full package — mainly due to the yarn procurement and inspection stages.
How is the yarn waste rate calculated in CMT?
Standard waste rate is 3–8% (depends on process complexity). Waste rate = (yarn input - yarn used in finished goods) / yarn input × 100%. Brands should agree with the factory on a mutually acceptable maximum waste rate in the contract — the factory bears costs beyond that. Our standard: solid plain knit 4%, jacquard 6%, intarsia 10%.
Can CMT handle brand care labels and packaging?
Yes. CMT only means "yarn is supplied by the customer." The factory can still complete the full range of hang tagging, care labeling, and packaging per brand requirements. These are part of the "Trim" in CMT and are standard factory services.
What happens if there is excess yarn?
The contract should specify how remaining yarn is handled: return to the brand (with the brand bearing shipping costs) or purchased by the factory at market price. We don't recommend letting the factory "keep it for future use" — if the next order with this yarn uses a different color batch, the retained yarn may become unusable.
CMT is not a shortcut to savings — it's a choice to take control of the supply chain.
For brands with high annual volumes and existing yarn supplier relationships, CMT can reduce costs and control yarn quality. For first-time cooperations or small volumes, we recommend starting with full package production to establish familiarity with the factory and process, then considering CMT later.
To discuss CMT pricing and cooperation details, contact us or review our customization services.