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What apparel brands physically track, and how it is valued
The sections below cover the material side of apparel inventory and the accounting side, the two areas where apparel differs most from general inventory management. They were consolidated into this guide from a separate article so that one page answers the whole question.
Materials apparel brands track before production starts
Finished goods are only half of an apparel inventory. The other half is what the garment is built from, and it is the half most general inventory tools ignore. Each material class below carries its own unit of measure, its own supplier lead time and its own failure mode when it runs short.
Fashion brands rely on a variety of key materials to create garments, each serving a unique function in the finished product. The most common main materials include:
Fabric
The primary material forming the main body of a garment. Fabrics vary in type, texture, weight, and fiber composition.
Examples: Cotton, wool, silk, linen, polyester, nylon, blends, bamboo, TENCEL, recycled fibers.
Trim
Decorative or functional additions applied to garments to enhance style or function.
Examples: Ribbons, lace, appliques, piping, beading, embroidery.
Interlining and Interfacing
Materials placed between the outer fabric and the lining to provide structure, support, and sometimes insulation, particularly in collars, cuffs, and waistbands.
Examples: Canvas, fusible interlining, non-woven interlining, cotton, polyester.
Closures and Fasteners
Functional components used to open, close, or adjust garments.
Examples: Buttons, zippers, snaps, hooks and eyes, Velcro, buckles, toggles.
Findings, Notions, and Hardware
Additional elements that enhance garment construction, function, or aesthetics.
Examples: Zipper pulls, clasps, eyelets, rivets, buckles, sliders, elastic, thread, labels, lining.
Specialty and Innovative Materials
Used for specific applications or to achieve unique effects, including eco-conscious or technical purposes.
Examples: Leather, faux fur, cactus leather, recycled or upcycled materials.
Why material tracking matters:
Tracking all these materials by type, color, width, lot, and supplier in AIMS360 ensures traceability, compliance, and optimal usage, helping fashion brands prevent shortages, reduce excess, and streamline production for both quality and sustainability.
Maintenance, Repair, and Operations (MRO) Inventory
Maintenance, Repair, and Operations (MRO) inventory includes all the supplies, spare parts, and materials a company uses to keep its production processes, equipment, and facilities running smoothly, but which are not part of the finished product.
What is included in MRO inventory?
- Maintenance supplies: Items used for the upkeep and cleaning of machinery, warehouses, or retail spaces, for example lubricants, cleaning chemicals, mops, replacement bulbs.
- Repair parts: Spare components or tools used to fix machines and equipment, for example machine belts, motors, gears, screws, sewing machine needles.
- Operations supplies: Everyday consumables and equipment used in business operations, for example gloves, safety gear, batteries, packaging materials, tape, office supplies.
Why MRO inventory matters in fashion
- Production uptime: Quickly fixing broken sewing machines or replenishing cleaning supplies avoids costly delays and downtime on the manufacturing floor or in the warehouse.
- Workplace safety: Having safety equipment and operational supplies on hand keeps employees safe and compliant with regulations.
- Smooth warehouse operations: Consumables like barcode labels, shrink wrap, and packing tape are vital for accurate order fulfillment and shipping.
AIMS360 WMS tracks and manages MRO inventory alongside raw materials and finished goods, so maintenance and operational supplies stay stocked and production lines keep moving.
Damaged or Unsellable Inventory
No business is immune to damaged, defective, or obsolete stock. Accurate tracking of these items is essential for write-offs, returns, and loss prevention. What happens next depends on your brand model, target market, and long-term strategy.
What you can do with damaged or unsellable stock
Liquidation or off-price sale. Many fashion brands liquidate unsellable or slow-moving stock through off-price retailers, online liquidation marketplaces, or flash sale sites for slightly damaged but still desirable items.
Sample sales. Private or staff-only sample sales clear defective items, returns, or excess samples. AIMS360 works with Shopify POS, so every sale at a pop-up or sample event updates inventory and sales data in real time.
Donations. Unsellable but usable items can go to charities, disaster relief organizations, or shelters. This can yield tax benefits, support CSR commitments, and reduce landfill waste.
Recycling or upcycling. Partner with textile recyclers to turn unusable garments into rags, insulation, or new textiles, or upcycle stock into accessories and limited-edition pieces.
Destruction. For luxury and premium brands, destroying unsellable goods is sometimes chosen to protect brand image and prevent items appearing in unauthorized channels. It is controversial, and brands are increasingly seeking sustainable alternatives.
Strategic considerations
- Brand positioning: Luxury and high-end labels rarely sell or donate to off-price channels, to protect exclusivity and pricing integrity.
- Sustainability goals: More brands now prioritize recycling, upcycling, and donations to reduce environmental impact.
- Legal and tax: Donations can qualify for tax deductions, and destruction of inventory may require documentation for accounting and compliance.
AIMS360 tracks damaged or unsellable inventory in real time, provides clear audit trails for write-offs, and helps brands segment inventory for liquidation, donation, or recycling.
Lots and Rolls
Fashion inventory often includes fabric rolls and lots, each with unique dye lots, lengths, and characteristics. Precise tracking of lots and rolls is critical for quality standards, regulatory compliance, and operational efficiency.
What are lots and rolls?
- Lots: A lot is a batch of material, typically fabric, produced under the same conditions, often during a single manufacturing run or dyeing process. Each lot has its own unique number or code. Example: a lot of navy twill dyed on the same day, with a specific shade and finish.
- Rolls: Fabric is stored and transported on rolls or bolts, each with a specific length, width, and sometimes minor color variations, especially in natural fibers or hand-dyed goods. Example: a 100-yard roll of jersey knit from Lot 4587.
Why detailed tracking is essential
- Color consistency: Dye lots vary slightly from batch to batch. Mixing lots in the same production run can produce shade differences across finished garments, which is a major quality issue.
- Compliance and traceability: Brands working with children's apparel, technical fabrics, or regulated markets must trace finished products back to the exact lot and roll for compliance, certifications, or recall management.
- Inventory optimization: Knowing the exact quantity, length, and location of each roll helps optimize cutting, reduce waste, and confirm you have enough fabric for planned production.
- Recall or defect management: If a batch of fabric is defective, lot tracking isolates and recalls only the affected items, avoiding a full-scale recall.
How AIMS360 handles lot and roll tracking
- Lot and roll numbers: Assign and track unique numbers for each lot and every individual roll, from receipt through cutting to finished goods.
- Attribute tracking: Track dye lot, width, length, supplier, and fabric type, down to partial roll usage and remaining yardage.
- Cut ticket management: Allocate specific lots and rolls to production orders, so you know which materials went into each garment batch.
- Real-time updates: As rolls are partially used, available yardage updates automatically for planners and cutters.
- Audit trail: Every movement or usage is logged, providing traceability for quality control and recall processes.
A worked example: a contemporary women's brand receives 10 rolls of silk from three different dye lots. It can assign garments from each lot to specific production runs, track which retailers received garments from which lot, and notify only the affected stores if an issue arises.
Common storage methods for finished goods
Fashion brands store finished goods in several ways, depending on product type, volume, and handling needs.
- Goods on hanger (GOH): Garments hang from rails or racking. Ideal for items that wrinkle easily or ship ready to display, such as dresses, suits, and coats.
- Flat shelving or bins: Folded garments in bins, on shelves, or in cubbies. Works well for t-shirts, jeans, knitwear, and bulkier items.
- Carton or box storage: Goods packed in cartons, stacked on shelves or pallets. Efficient for high-volume SKUs and case-quantity shipments.
- Pallet racking: Palletized goods on industrial racks, maximizing vertical space for high-volume distribution centers.
- Automated storage and retrieval: Conveyor-driven storage or robotics, increasing speed and accuracy while reducing labor.
- Mezzanine storage: Additional floors within a warehouse for seasonal or overflow goods.
- High-density mobile shelving: Shelving on tracks to maximize space, often for folded garments or accessories.
- Caged or secure storage: Locked cages or secure rooms for high-value or limited-edition goods.
Choosing the right storage method
The right method depends on product type, order volume, handling requirements, and space. The AIMS360 WMS supports all of these, tracking inventory location down to specific racks, bins, or hanger rails, optimizing picking routes, maintaining garment quality for GOH items, and streamlining counts, transfers, and replenishment.
Inventory valuation: why it matters for accounting and compliance
Proper inventory management is not only about operational efficiency. It is essential for accurate accounting, financial reporting, and long-term profitability. How your business tracks, values, and reports inventory affects your bottom line, tax obligations, and strategic decisions.
Why inventory valuation matters
Inventory is often one of the largest assets on a fashion company's balance sheet. Valuation accuracy affects:
- Cost of goods sold: The value of inventory sold during a period directly affects gross profit and taxable income.
- Net income: Incorrect valuation can overstate or understate profits, leading to poor decisions or compliance issues.
- Tax reporting: Accurate valuation means reporting the right numbers to tax authorities and avoiding penalties.
- Cash flow and planning: Knowing the true value of inventory helps optimize cash flow and plan purchases, markdowns, or investment.
Common inventory valuation methods in fashion
- FIFO (first in, first out): Assumes the first goods received are the first sold. Common in fashion because it reflects true product flow, especially with seasonal styles.
- LIFO (last in, first out): Assumes the most recently acquired inventory is sold first. Less common in apparel, used for certain accounting strategies mainly in the US.
- Weighted average cost: Values inventory at an average cost per unit, useful when similar items are bought at different prices.
- Specific identification: Assigns actual costs to individual items, useful for luxury or limited-edition pieces.
How AIMS360 supports accurate valuation
- Real-time inventory counts keep records current for both operational and accounting needs.
- Automated cost tracking follows costs from raw materials through finished goods, factoring in landed costs, labor, and overhead.
- Direct integration with accounting supplies accurate inventory data to your accounting platform, reducing manual entry and error.
- Audit trail keeps a full history of inventory movements and valuations, supporting year-end audits and compliance.
Sustainability: reducing waste and supporting circular fashion
Optimized inventory levels also mean less overproduction and waste. By tracking inventory closely and making data-driven decisions, brands reduce unsold goods and support sustainable practices including recycling, donations, and resale models.
Cloud apparel inventory software, and who it fits
Cloud apparel inventory software runs in a browser rather than on a server in your building, which means the warehouse, the showroom, a 3PL and a rep on the road all read the same stock number at the same moment. For an apparel brand the practical difference is not where the software lives, it is that nobody has to email a spreadsheet to find out what is sellable.
AIMS360 is cloud based. There is no server to buy, updates arrive without an IT project, and access works from any location with a connection, including a warehouse handheld, a store register and a laptop at a trade show. That matters more in apparel than in most categories, because a single style's availability is being asked about simultaneously by a wholesale rep, an ecommerce store and a retailer's EDI feed.
Boutique and small brand inventory management
A boutique or a brand with one location has the same structural problem as a large one, in smaller numbers. One style still becomes dozens of size and color combinations, a single missing size still makes the style unsellable to the customer who wants it, and stock still sits in more than one place once a pop-up, a consignment account or a webstore is involved.
What changes at small scale is what you should pay for. A boutique running a single register and no wholesale does not need production tracking or retailer compliance, and should not buy them. The moment a first wholesale account or a retailer program appears, the requirements change quickly, which is the point most brands discover their first tool cannot follow them. If you are weighing that decision, the comparison of nine apparel inventory platforms sets out which tier fits which operation.
Garment inventory software for manufacturers and importers
Garment inventory software is the same category described from the production side. Where a brand thinks in finished styles, a manufacturer or importer thinks in fabric, cut tickets, work in process and finished goods that have not left the factory yet. Both need the same underlying record, because the question "what can I promise for October" depends on goods that are still being made.
AIMS360 tracks raw materials and finished goods in one structure, so a cut ticket draws down real fabric and incoming production appears in availability against its ex factory date rather than after it lands.
Handmade and made to order brands
Brands that make in house or to order have a different inventory shape: very low finished goods, high raw material, and demand that is known before production rather than after. The tracking that matters is component level, how much of each fabric, trim and finding is left, and what is already committed to open orders. That is the same materials tracking described above, used in the opposite direction.
Where each part of this runs in AIMS360
Everything described on this page is handled inside one platform rather than assembled from separate tools. The pages below cover each piece in detail.
- apparel inventory management software, the hub covering unlimited warehouses, virtual warehouses and available to sell
- Style, color and size inventory, the matrix this whole page depends on
- Raw material and trim inventory, for the fabric, trim and findings described above
- Multi-warehouse and bin locations, for stock held across buildings and shelves
- Mobile device scanning and barcodes and RFID, which is what keeps the count true
- Pick tickets and intelligent allocation, for deciding which location fills which order
- Retail store inventory, for boutiques and multi-store brands
- 3PL integration, with 18 fulfillment partners already connected
- GS1-128 carton labels and EDI 846 inventory advice, for retailer programs
- Production and PLM, where incoming stock comes from
For a side by side of the platforms apparel brands shortlist, including where AIMS360 is not the right answer, see the best apparel inventory management software comparison. For fulfillment specifically, the 3PL warehousing and fulfillment guide covers costs and EDI dropship in depth.
More inventory questions
Is apparel inventory management software cloud based?
Most current platforms are, including AIMS360. Cloud means the software runs in a browser rather than on a server you own, so updates are automatic, there is no hardware to buy, and the warehouse, a 3PL, a retail store and a rep on the road all read the same stock record. A small number of legacy apparel systems remain on premises, which trades agility for direct control of the infrastructure.
What is the best inventory management software for a boutique?
For a single location with no wholesale, a lightweight tool or a POS with inventory built in is usually enough. The decision point is the first wholesale account or retailer program, because that introduces future dated orders, allocation and compliance requirements that boutique tools do not handle. Choose based on where the business will be in two years rather than where it is now.
Can inventory software handle both raw materials and finished goods?
Apparel specific platforms can, and general tools usually cannot. The requirement is that fabric, trim and findings carry their own units of measure and are consumed through a bill of materials when production runs, so cutting a style draws down real components rather than an estimate. AIMS360 holds both in the same location and bin structure.
