Material Warehouse Procedure in Garment Factory | Step-by-Step Explain with Diagram

08/07/2025

In the garment industry, efficient warehouse management plays a vital role in supporting production flow, maintaining inventory accuracy, and reducing material waste. From fabric and trims to accessories and packaging, the material warehouse serves as a backbone connecting procurement with production. This article provides a detailed, step-by-step guide to material warehouse procedures, with a focus on real-world applications in garment manufacturing.

0. Purchasing Request (PR)

The first step in the warehouse procedure doesn’t actually take place inside the warehouse but originates from the production planning or merchandising departments. Once a new order is confirmed, these teams assess the Bill of Materials (BOM) for each style. The BOM outlines the required quantities and types of materials, including fabrics, linings, elastics, labels, threads, buttons, and packing materials.

Based on this information, a Purchase Requisition (PR) is generated. This is typically done through the company’s Enterprise Resource Planning (ERP) system. The PR details all the necessary raw materials, quantities, specifications, and expected delivery dates. Before the PR is converted into an actual order, it must be reviewed and approved by an authorized manager, often someone from procurement or finance. Once approved, the PR is sent to the sourcing or purchasing department, which initiates contact with pre-approved vendors or suppliers. This process triggers all downstream activities, including delivery, inspection, storage, and issuance to production. Any delay or inaccuracy at this stage could cause production bottlenecks or material shortages later on.

1. Receiving and Inspection of Materials

When the ordered materials arrive at the warehouse, the receiving and inspection process begins. This is a critical control point to ensure that the supplied goods meet the required quality and quantity standards.

First, the warehouse staff verifies all incoming shipments against the purchase order, invoice, and packing list. These documents help confirm that the correct items and quantities have been delivered. Each item, especially fabrics, is thoroughly inspected for quality issues such as shading differences, holes, stains, and weaving defects. In some cases, lab dips or color matching is done to ensure color consistency across production lots.

If the materials pass inspection, they are labeled accordingly and marked as ‘accepted.’ Any defective or excess materials are separated and labeled as ‘rejected’ or ‘on hold’ for further review. This sorting ensures that only approved items proceed to the storage phase. Many modern warehouses use barcodes or RFID systems to speed up this process and minimize errors in data entry.

2. Material Documentation and Recording

Once the materials are accepted, the next step is to record them in the warehouse system. This documentation ensures full traceability and supports real-time inventory management. All accepted items are logged into the ERP or Warehouse Management System (WMS).

Typical documents involved at this stage include the Material Inward Register or Goods Received Note (GRN), which records the arrival and acceptance of goods. Quality Control (QC) inspection checklists and fabric test reports are also attached for compliance and future reference. The warehouse team ensures each item is entered into the system with its correct SKU, batch number, supplier, and storage location. Maintaining accurate records at this point prevents mismatches in stock levels and helps with inventory audits.

3. Storage and Binning

Organizing the warehouse is critical to maximizing space and ensuring fast, error-free material retrieval. After documentation, materials are moved into their designated storage areas. Fabrics are typically stored in vertical racks, sorted by roll number, color, width, and type. Trims and accessories are stored in bins or compartments based on their category.

The warehouse is divided into zones—fabric aisles, trim sections, accessory racks, and packaging material areas. Each zone is clearly labeled, and within each, bin locations are identified using a logical coding system. Warehouses dealing with perishable items or components with shelf lives (such as adhesive tapes or elastic with silicone) often follow a FEFO (First Expiry, First Out) system. For general materials, the FIFO (First In, First Out) rule helps reduce the risk of older inventory becoming obsolete.

Climate control may also be necessary for specific fabrics like spandex, lycra, or organic cotton, which can degrade under extreme temperatures or humidity. Proper binning and storage not only improve retrieval efficiency but also reduce material damage and loss.

4. Inventory Control and Cycle Counting

Ongoing inventory control is essential to prevent production delays and cost overruns. Effective inventory management ensures that stock levels are accurate and materials are available when needed.

Real-time inventory tracking is typically handled through WMS software, which integrates with the ERP system. Each movement—receiving, storage, issuance, or return—is updated in the system instantly. Warehouse teams conduct regular cycle counts, usually weekly or monthly, to verify physical stock against system records. Any discrepancies are investigated and resolved through stock reconciliation processes.

A popular method for prioritizing inventory checks is ABC categorization. In this system, ‘A’ items are high-value or critical materials that require frequent monitoring. These might include expensive fabrics, imported trims, or key production inputs. ‘B’ items are moderately important and checked less frequently, while ‘C’ items are low-cost, high-volume goods like labels or threads, monitored through bulk counts.

5. Issuance to Production

Once production is scheduled, the warehouse begins issuing materials according to the BOM. This process starts with the generation of a Material Requisition Note (MRN) from the production or cutting department. The MRN specifies the style, order number, and the exact material quantities required.

The warehouse staff then picks the materials from the shelves, packs them into kits if needed, and prepares them for delivery to the production floor. Each issuance is tracked by job order or batch, ensuring that materials used for each garment style are properly accounted for. Material movements are recorded in the ERP or WMS to deduct issued quantities from inventory.

One common challenge in this phase is the risk of unplanned or excess issuance. This can lead to material wastage and cost overruns. To avoid this, companies often implement issuance controls, such as requiring supervisor approval or system-generated limits based on BOM quantities.

6. Handling Returns and Scrap

After production, some materials may be returned to the warehouse due to over-issuance, production changes, or quality issues. These returns must be processed properly to maintain inventory accuracy.

Returned materials are first inspected to determine if they are reusable, damaged, or expired. A return note is created documenting the material type, quantity, and reason for return. Reusable items are re-binned in their original storage zones, while damaged goods are labeled as scrap and moved to a designated scrap area.

Scrap management is critical to minimize losses and support sustainability. All scrapped items are recorded in a scrap register with reason codes. Periodically, the warehouse manager reviews scrap inventory for possible reuse, recycling, or approved disposal. Companies often have formal scrap disposal policies that align with environmental regulations and internal quality standards.

Benefits of a Well-Managed Material Warehouse

Implementing a clear and disciplined warehouse procedure brings several advantages to garment manufacturers. Accurate inventory levels help in better production planning and reduce the chances of stockouts or over-purchasing. Organized storage and documentation improve material traceability, making audits and compliance checks much easier.

Efficient warehouse practices also lead to faster order turnaround times. When materials are received, stored, and issued smoothly, production teams can focus on garment output without worrying about missing components. Moreover, with better control of returns and scrap, companies reduce material losses and improve cost efficiency. Supplier performance can also be evaluated more accurately when material receipt and quality records are well maintained.

In conclusion, a standardized material warehouse procedure is not just a back-end operation but a strategic function that directly impacts the productivity and profitability of garment manufacturing operations. Adopting best practices, supported by ERP and WMS systems, ensures your warehouse becomes a value-generating part of the supply chain.

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Material Warehouse Procedure in Garment Factory | Step-by-Step Explain with Diagram