Did you know, knitwear manufacturers report yarn wastage in knitting factories typically ranging from 8-9% (fibre2fashion)? And that figure can make or break profitability. Especially with luxury yarns, even a small amount of waste can significantly inflate production costs.  

For most knitwear manufacturers, controlling yarn wastage is a top priority. 
Despite constant effort, losses continue to rise—day after day—leaving owners searching for a solution they can truly rely on. 

In this blog, we will take a deep dive into activities and situations that favor yarn wastage and find out how KnitOne helps in curbing such loss. 

Types of Yarn Wastage

It’s a common fact that the journey from yarn to garment is all about phases of change. In each stage, the weight of yarn used goes on decreasing- all thanks to obvious and unexpected wastage.  

First, let’s look into the apparent yarn wastage. 

Yarn Wastage by Process 

This includes yarn loss caused by necessary production processes and the inherent characteristics of the yarn. It includes three main types of losses, explained below: 

Dyeing  

Dyeing is a crucial step that naturally results in some yarn loss. The combination of hot water and chemicals causes the fibers to swell, pushing out dirt and weak ends. In the case of cotton, the waxy coating on the fiber dissolves, while cashmere sheds its fine, loose hair. As a result, each cone typically loses 3-7% of its weight after the dye bath. 

When the yarn is moved on the cone holder during the dyeing process, it rubs against the holder, causing some wear and tear. This friction leads to a small amount of yarn being lost. If the yarn has uneven colors after dyeing, it gets thrown out as waste. Also, the pulling action of the yarn can sometimes break strands, causing additional loss. 

Shrinkage 

Once dyeing wraps up, shrinkage kicks in during the next steps: rinsing, drying, and finishing. Fibers, already relaxed in the hot dye bath, cool in rinse water and hold tension briefly. Drying applies more heat, triggering contraction to the natural length. This shortens the yarn overall, puckers it, and creates defects that demand extra trimming or overproduction. 

Knitting Waste 

Once knitting begins on the machine—with yarn steadily feeding from the cone through tensioners to needles—the most obvious wastage is the constant shedding of fly and lint. Machine speed rubs the yarn surface, generating fine dust and short fibers that blow off into collectors as non-reusable scraps with every meter knitted. 

Well, these were types of wastage that are bound to happen since yarn is to be prepared and used to make garments. But high-volume wastage occurs due to less-efficient yarn handling or production errors. Let’s understand those in detail. 

Situations That Give Rise to Unexpected Yarn Wastage 

Here are some of the conditions where wastage of yarn is possible.

1. Inefficient Machine Handling 

Let’s look into hidden actions that trigger unforeseen and costly yarn wastage. 

When machines are set up for new orders, the operator or programmer is responsible for ensuring everything runs smoothly. If there are faults during the setup, either minor or major, it can lead to unexpected fabric wastage. 

2. Changeovers Between Orders 

Switching from one order to another can often cause yarn wastage, especially when adjustments are made for color or size variations. 

3. Cone-End Residues 

At the end of each cone, there’s usually leftover yarn that can’t be used for the next run. These small remnants accumulate over time and contribute to waste. 

4. Unplanned Breakdown & Repairs 

Unexpected machine breakdowns or repairs interrupt production and can lead to yarn loss. The process of stopping and restarting the machine can cause yarn waste due to misalignment or improper feeding. 

5. Rework of Defective Panels 

When defective panels are found during production, they often cannot be used as they are. These panels must be either repaired or completely replaced with new material, requiring additional yarn. The need for rework consumes more yarn than initially planned, leading to yarn wastage. 

Theft: The Hidden Yarn Loss That Starts Before Production 

Employee theft is a major contributor to yarn loss in the factory. An estimated 60% of inventory losses in many industries, including textiles, are linked to employee theft (The Schulman Center).  

Workers, especially those handling or storing the yarn, can take small amounts over time. This stolen yarn goes unrecorded in inventory and leads to a reduction in the overall yarn supply and an increase in procurement costs. 

So, we understood the various direct and indirect ways of yarn getting wasted and lost. The prime cause? Manually handled work processes! This certainly hints that having a digital transformation in knitwear manufacturing is a must.  

While digital solutions are available in the form of ERPs, the generic ERPs aren’t quite able to understand and track intricate yarn wastage. Knitwear manufacturers need an industry-specific, tailored ERP for knitwear manufacturing, which is none other than KnitOne. 

Let’s look into how implementing KnitOne ERP lowers the amount of yarn wastage. 

How Does KnitOne ERP Help in Reducing Yarn Wastage in Flat-Knit Production? 

Developed through years of research and insights from sweater production experts, KnitOne understands the importance of reducing yarn wastage to maximize profits and meet sustainability goals. Its core modules are specifically designed to prevent and minimize yarn waste throughout the production process.  

Let’s dive into the exact explanation that exhibits KnitOne’s caliber to reduce yarn wastage in knitwear manufacturing. 

1. 99% Accurate Costing to Prevent Overbuying 

During the sample design phase, KnitOne makes sample costing by incorporating essential yarn details such as net weight and yarn cost, along with key factors like size of the sample, supplier rates, exchange rates, and freight costs.  

Once the sample is finalized, the system calculates the yarn required for bulk orders. Over a period, the system calculates 99% accurate yarn quantity along with the total production cost. This level of precision prevents yarn overbuying, as it ensures that only the right amount of yarn is procured. 

Yarn underbuying may not directly cause wastage, but it’s just as cost-driving as overbuying. Underbuying is done when the yarn allocated for an order falls short during production, forcing rushed purchases at higher costs.  

KnitOne’s precise yarn calculations ensure that the right quantity of yarn is procured for an order, eliminating the need for costly, last-minute buys. 

2. Yarn Locking to Avoid Availability Confusion 

In a factory, multiple orders are processed simultaneously while older orders are still being worked on. As the new yarn arrives, having clear inventory insights becomes crucial. To ensure production runs smoothly, it’s essential to reserve yarn for the specific quantity for each order. 

Without proper yarn visibility, confusion can occur, often leading to double-booking (reserving yarn for multiple orders) or purchasing unnecessary yarn. Double-booking, in particular, results in rushed purchases at higher costs. 

KnitOne’s yarn inventory is designed to eliminate this confusion and reduce yarn waste. It features a yarn reserve facility that enables merchandisers to allocate a certain quantity of yarn for a specific order. This module removes the uncertainty for merchandisers, allowing them to focus on production without worrying about yarn availability.  

At the same time, it provides visibility of yarn for other team members, enabling them to make informed purchasing decisions, hence preventing unnecessary yarn buying and waste. 

3. Planned Machine Downtime for Efficient Panel Production 

Machine overruns occur when machines run beyond their intended capacity or during transitions between orders. This can cause the machine to stop unexpectedly, resulting in defective or incomplete panel production. This leads to prominent yarn wastage and production delays. 

These issues can be avoided with adaptive planning, which is available in the Capacity Planner module of KnitOne. Here, you can get a clear view of machine utilization and which and how many machines are running. With the visual data in hand, you can plan and schedule downtime for relevant machines.  

Machine downtime planning and execution minimize the risk of machine breakdowns during production runs and eventually prevent yarn wastage. 

4. Foster Department Coordination and Accountability 

The knitwear production process is highly interconnected, where a mistake or bottleneck in one stage can disrupt the entire workflow. This highlights the critical importance of seamless coordination across all departments. If teams fail to collaborate effectively, errors and inefficiencies can lead to increased waste (IRCRT). 

Moreover, process gaps can encourage unethical practices, such as the unauthorized sale of yarn cones or inflating bills, compromising accountability. These challenges are typical of manual management systems. 

KnitOne’s approval and permission-based workflow provides a clear view of approvals, rejections, and holds, fostering better departmental coordination.  

The worker efficiency module, designed for shop floor workers, tracks individual performance and ensures accountability. It also maintains a bias-free environment, promoting fair evaluations. This system boosts cooperation and minimizes yarn waste/loss. 

5. Aids in Preventive Business Decision Making 

In conventional factory settings, owners often receive production reports after a week or a month. This report. In most cases, such reports lack actionable insights. These delayed reports make it difficult for owners to address inefficiencies in real time, leading to reactive decisions and increased waste. KnitOne eliminates this problem by maintaining a real-time record of yarn wastage in the Order Balance Sheet.  

Each order’s yarn usage is tracked, showing exactly where wastage occurred. This allows owners to pinpoint which order caused the excess waste and identify the underlying cause. With this data, they can take informed business decisions for upcoming orders and control yarn waste. 

KnitOne’s effort to track and control yarn wastage is not just about profits; it’s also about supporting sustainability. How? We have covered that in the next section. 

Reduced Yarn Wastage Supports Sustainable Goals 

According to the European Circular Economy Stakeholder Platform, one of the most common causes of pre-consumer waste in the textile industry is overordering. Manufacturers often purchase 3-10% more material than needed, and in some cases, luxury brands even require manufacturers to destroy excess stock to protect their designs and brand value. This unnecessary waste contributes significantly to environmental and financial losses. 

KnitOne ERP addresses yarn overbuying by providing accurate yarn costing, as well as precise yarn availability information. Moreover, defective yarn and unused yarn remnants are tracked and reused wherever possible, ensuring that no material goes to waste. This effort aligns with SDG 12 (Responsible Consumption and Production). 

All in all, KnitOne promotes sustainable practices in the knitwear production process, focusing on responsible material usage and minimizing waste. 

Final Thoughts 

Yarn wastage in knitwear manufacturing can be caused by process inefficiencies and unexpected situations. Sadly, theft is a bigger driver for yarn loss in your factory. If profits are to be kept intact or to be increased in knitwear manufacturing, yarn wastage has to be prevented. 

KnitOne is a specialized ERP solution designed specifically for flat-knitwear manufacturing. It offers real-time yarn tracking, accurate costing, improved inventory management, and planned machine downtime to optimize yarn usage and stay aligned with SDG 12. 

If we were to predict your factory’s performance without KnitOne, we’re 95% certain that your business will remain trapped in the vicious cycle of lack of visibility, overbuying, waste, and losses. KnitOne breaks this cycle, unlocking the true capabilities of your business, helping you achieve the success you’ve always envisioned. 

Why wait? Boost Profits with KnitOne’s Complete Operational Visibility.