The factory wants a plus or minus 3% tolerance on shipped quantity. Is that normal?

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Flat illustration of an inspection checklist, a factory and a knit fabric swatch

The factory wants a plus or minus 3% tolerance on shipped quantity. Is that normal?

A small quantity tolerance is common because cutting and defects make exact numbers hard. Agree the limit per style, colour and size, pay for what ships, and cap shortages in key sizes.

Sourcing & Supplier SelectionKnitwear Talk3 min readKnitwear Base Editorial Team
Flat illustration of an inspection checklist, a factory and a knit fabric swatch
Buyer question

Our purchase order for 2,000 tees in four colours says exactly 2,000. The factory asks to add "quantity +/-3%". We worry about receiving fewer pieces in our best-selling sizes. What should we agree?

Main answer
Knitwear Base Editorial Team
Main answer

Yes, a small tolerance is common in knitwear orders. Fabric is bought by weight, cutting yields vary, and some pieces are lost to defects, so a factory rarely finishes exactly the ordered number. A tolerance clause sets how far the shipped quantity may differ from the order without penalty. The key is to agree how it applies, not only the percentage.

Apply it at the right level

A tolerance on the total order can hide large gaps in individual colours and sizes. Agree that the tolerance applies per style and colour, and set tighter limits, or zero shortage, for key sizes. For example, you might accept a small overall variation but require that no size in a colour is short by more than an agreed number of pieces.

Over and under

Decide whether you accept extra pieces and up to what limit, and whether you pay for them. Many buyers pay for the quantity actually shipped within the tolerance. Extra pieces in slow-selling sizes may not be welcome, so say whether overs are allowed in all sizes or only in some.

Shortages

Agree what happens if the shortage exceeds the tolerance: a price reduction, a make-up shipment, or the right to cancel the shortfall. Ask the factory to tell you before shipment, not after, if it expects to be short, so you can decide.

Inspection and documents

Ask for a final packing list by style, colour and size, and ask your inspector to check carton counts and quantities against it during final inspection. The inspection sampling plan under ISO 2859-1 checks quality, not quantity, so quantity needs its own check. Make sure invoices match the packed quantities, since customs value and payment depend on them.

Write it into the purchase order

Put the tolerance, the level it applies to, payment terms for overs and shorts, and the notice requirement into the purchase order or supply agreement. Keep it consistent with the delivery terms, such as the Incoterms rule agreed.

For small orders, a percentage may be only a few pieces, so a fixed number per colour and size can be clearer.

Sources and further reading

Standards and rules are summarised from their published scope or official guidance. Use the current edition and confirm requirements for your market.

Three perspectives on this question

Knitwear Base Editorial Team
Purchasing perspective

I'd accept a small tolerance per colour, with tighter limits on our best-selling sizes and payment for actual quantity.

Knitwear Base Editorial Team
Merchandising perspective

Shortages in our core sizes cost more than overs in slow sizes. The clause should reflect that.

Knitwear Base Editorial Team
QC perspective

We'd check carton counts and size breakdowns against the packing list during final inspection.

Working on a similar program?Send your tech pack, fabric references and test requirements. We reply with a quote and the questions we need answered.

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