Nazir Ahmed, Head of Merchandising and Sourcing, Hullor Fashion Ltd.
Introduction
In the global textile and apparel arena—where competition is fierce, customers are demanding, and trends shift at lightning speed—the backbone of success is not only eye-catching design or brand identity. It is sourcing: the strategic process of securing the right materials, from the right suppliers, at the right time, with the right cost.
While traditionally viewed as a purchasing function, sourcing today has evolved into a strategic leadership discipline. It connects the worlds of design, production, logistics, sustainability, risk management, and customer satisfaction. In short—it is the engine that keeps the modern apparel supply chain running.
Why Sourcing Matters: The Strategic Advantage
Modern sourcing directly influences a brand’s success in multiple dimensions:
1. Cost Leadership
Global markets demand competitive pricing. Buyers negotiate not just product cost, but:
- total landed cost
- transportation
- duties and taxes
- packaging
- compliance overhead
A smart sourcing strategy reduces these expenses without compromising quality.
2. Ensuring Quality
In apparel, quality is reputation. Through supplier audits, sample approvals, and strict quality systems, sourcing teams ensure that every fabric, trim, and finished garment meets expectations.
3. Building a Resilient Supply Chain
Recent global disruptions—pandemic, freight surges, political instability—have proven that risk mitigation is essential. Sourcing strengthens resilience by:
- diversifying supplier bases
- developing multiple regions
- maintaining contingency plans
- monitoring geopolitical trends
4. Innovation & Product Differentiation
Suppliers today are innovation partners. They introduce new fibers, sustainable technologies, advanced machinery, and unique finishes that give brands a competitive edge.
5. Sustainability & Ethics
Modern consumers expect clean, socially responsible production.
Sourcing ensures:
- OEKO-TEX, GOTS, BSCI, WRAP compliance
- ethical labour practices
- reduced environmental footprint
- traceable supply chains
Types of Sourcing That Shape the Industry
The apparel industry uses diverse sourcing approaches depending on product type, speed demands, and market strategy.
Domestic Sourcing
Local suppliers support agility, quick sampling, and easier communication. While costs can be higher, brands gain speed-to-market—crucial for fast fashion.
International Sourcing
Countries like Bangladesh, China, India, Vietnam, and Turkey serve as global hubs due to competitive pricing, technical capabilities, and massive production capacity.
Benefits include variety, specialization, and scalability; challenges include longer lead times, currency fluctuation, and compliance management.
Outsourcing vs. Insourcing
Outsourcing allows brands to rely on expert partners, reducing internal burden. Insourcing, on the other hand, gives full control—ideal for high-precision or proprietary products.
Offshoring
Brands shift production to cost-effective countries. Bangladesh, for example, remains a global leader due to its expertise in woven and knit garments.
The Sourcing Process: A Journey From Concept to Contract
Sourcing is not a single action—it is a complete lifecycle. Here is how a product’s sourcing journey unfolds:
1. Identifying Business Needs
The process begins with defining:
- material specifications
- quality parameters
- order volumes
- budget
- target lead time
- compliance requirements
This clarity helps teams choose the ideal supplier.
2. Market Research & Supplier Identification
Sourcing teams use:
- trade shows
- online B2B platforms
- factory visits
- referrals
- audits
Suppliers are screened based on price, capacity, certifications, innovation, past records, and sustainability.
3. Supplier Evaluation & RFQ/RFP Process
Brands request quotations and technical details from shortlisted suppliers. They evaluate:
- unit price
- cost breakdown
- capability
- compliance
- quality history
- lead time
Samples undergo testing before approval.
4. Negotiation
Negotiations include:
- payment terms
- pricing tiers
- logistics responsibilities (Incoterms)
- seasonal capacity
- defect allowances
- packaging standards
- penalties for delays
5. Contract Finalization
Contracts are executed covering:
- price
- delivery schedule
- quality assurance
- sustainability commitments
- warranty & liability
- confidentiality & IP protection
6. Supplier Relationship Management
Long-term success depends on supplier performance monitoring through KPIs such as:
- On-Time Delivery (OTD)
- Reject rates
- Responsiveness
- Sustainability score
- Cost improvement initiatives
How Sourcing Influences Production & Delivery
Once materials are sourced, the journey continues through production and final delivery.
Demand Forecasting & Order Planning
Sourcing teams align forecasted demand with capacity planning to avoid over- or under-buying.
Production Follow-Up
Continuous monitoring ensures:
- timely fabric in-housing
- smooth cutting & sewing
- quality checkpoints
- shipment readiness
Logistics Management
Sourcing also oversees Incoterms, freight booking, documentation, customs, and warehouse coordination.
A strong sourcing function ensures orders are delivered on time, in full (OTIF).
Modern Sourcing Models: Tailoring Strategy to Business Needs
The apparel industry uses several sourcing models depending on risk tolerance, budget, and operational strategy.
Single vs. Multiple Sourcing
Single sourcing offers consistency; multiple sourcing offers resilience.
Global vs. Local Sourcing
Global sourcing reduces cost; local sourcing improves speed.
Vendor-Managed Inventory (VMI)
Suppliers manage the buyer’s inventory using demand data.
Just-In-Time (JIT)
Companies purchase only when needed, reducing storage cost—but requiring reliable suppliers.
Captive Sourcing
Large companies establish their own factories abroad to secure long-term cost and quality control.
Offshoring Destinations: Why Bangladesh Leads the World
According to the sourcing document, leading offshoring destinations include China, India, Vietnam, Mexico, and the Philippines—each offering unique advantages.
Bangladesh stands out for:
- competitive labour cost
- strong woven and knit expertise
- massive production capacity
- globally recognized compliance improvements
- vertically integrated mills
Despite challenges in infrastructure and diversification, Bangladesh remains one of the most reliable apparel sourcing destinations worldwide.
The Future of Sourcing: Technology, Responsibility & Speed
The next era of sourcing will be shaped by three pillars:
1. Digital Transformation
- AI-driven demand forecasting
- ERP-integrated sourcing
- Real-time supplier dashboards
- Blockchain-based traceability
- 2. Sustainability & Transparency
Brands must meet global expectations on:
- carbon footprint
- water usage
- waste reduction
- ethical compliance
- circularity
This will redefine fabric choices, supplier selection, and factory operations.
3. Speed & Agility
Fast-fashion and e-commerce demand rapid replenishment, encouraging dual sourcing, nearshoring, and automated sampling.
Conclusion: Sourcing as the Leadership Engine
Sourcing is no longer a back-office function — it is the strategic engine that powers modern apparel businesses. It combines cost leadership, quality management, sustainability, innovation, and global coordination into a unified discipline that shapes a brand’s success.
Professionals in this field must be analytical yet creative, detail-oriented yet visionary, and operational yet strategic. As the apparel world evolves, sourcing will continue to be the force connecting every idea to every finished product—quietly but powerfully shaping the future of global fashion.
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