Product Sourcing & Factory Selection in an RMG Buying House
In the highly competitive global apparel market, Product Sourcing & Factory Selection are two of the most critical functions of an RMG (Ready-Made Garments) Buying House. A professional buying house acts as a bridge between international buyers and garment manufacturers, ensuring the right product is sourced from the right factory at the right price, quality, and timeline.
For a buying house in Bangladesh—one of the world’s largest apparel exporters—strong sourcing and factory selection strategies directly impact customer satisfaction, compliance, and long-term business growth.
1. What is Product Sourcing?
Product sourcing refers to the process of identifying, developing, and procuring garments that meet the buyer’s requirements in terms of:
- Design & Style
- Fabric & Trims
- Quality Standards
- Target Price
- Lead Time
- Compliance Requirements
A buying house analyzes buyer inquiries (tech packs, samples, specifications) and then sources suitable manufacturers capable of producing the product efficiently.
Key Steps in Product Sourcing:
- Buyer Requirement Analysis
Reviewing tech packs, measurements, fabrics, trims, and special instructions. - Costing & Price Negotiation
Preparing accurate cost sheets including fabric consumption, CM (Cut & Make), trims, washing, printing, embroidery, packing, and logistics. - Material Sourcing
Identifying reliable suppliers for:- Fabrics (knit, woven, denim, sweater)
- Accessories (buttons, zippers, labels, elastics)
- Packaging materials
- Sample Development
Coordinating with factories for:- Proto samples
- Fit samples
- PP (Pre-Production) samples
- Shipment samples
- Market Trend Analysis
Understanding global fashion trends to suggest value-added products to buyers.
2. Factory Selection in RMG Buying House
Factory selection is the process of identifying and approving manufacturing units that can meet buyer expectations in terms of quality, capacity, compliance, and reliability.
A wrong factory selection can lead to:
- Shipment delays
- Quality failures
- Compliance violations
- Financial loss
Therefore, buying houses follow a structured factory evaluation system.
3. Key Criteria for Factory Selection
1. Production Capability
- Type of product specialization (Knit/Woven/Denim/Sweater)
- Machinery & technology
- Monthly production capacity
- Skilled workforce availability
2. Compliance & Certifications
Factories must meet international compliance standards such as:
- Social compliance (BSCI, SEDEX, WRAP)
- Fire & building safety
- Environmental certifications (OEKO-TEX, GOTS, ISO)
3. Quality Control System
- In-house quality team
- Inline & final inspection procedures
- Lab testing facilities
- AQL standards compliance
4. Financial Stability
- Bank solvency
- Past export performance
- Reputation in the market
5. Lead Time & Reliability
- On-time shipment record
- Raw material sourcing capability
- Production planning efficiency
4. Factory Audit Process
A professional buying house conducts:
- Initial Factory Visit
- Technical Audit
- Compliance Audit
- Production Capacity Assessment
- Quality System Evaluation
Only after successful evaluation is the factory enlisted in the approved vendor list (AVL).
5. Risk Management in Sourcing & Factory Selection
Risk management is essential to protect both buyer and buying house reputation.
Common risks:
- Fabric delay
- Subcontracting without approval
- Quality mismatch
- Ethical non-compliance
To minimize risk:
- Maintain multiple approved factories
- Regular monitoring visits
- Strong communication
- Strict documentation system
6. Role of Bangladesh in Global RMG Sourcing
Bangladesh is a global leader in garment manufacturing due to:
- Competitive labor cost
- Large production capacity
- Skilled workforce
- Strong backward linkage in knit sector
Buying houses operating in Bangladesh play a vital role in connecting international brands with compliant and capable factories.
7. Benefits of Strong Product Sourcing & Factory Selection
✔ Competitive pricing
✔ Consistent quality
✔ On-time delivery
✔ Compliance assurance
✔ Long-term buyer relationship
✔ Business sustainability
Conclusion
Product Sourcing & Factory Selection are the backbone of a successful RMG Buying House. A well-structured sourcing strategy combined with a rigorous factory selection process ensures quality, compliance, and profitability.
In today’s global apparel market, buyers are not only looking for low prices—they demand ethical production, sustainability, and reliability. Therefore, buying houses must continuously improve their sourcing networks, monitor factory performance, and maintain strong partnerships to stay competitive.
If managed professionally, effective product sourcing and factory selection can transform a buying house into a trusted global apparel partner.