Supply Chain Management in Readymade Garment Industry of Bangladesh

Abstract

<p><em>The export-oriented readymade garment (RMG) manufacturing is one of the suitable examples of Supply Chain Management (SCM). The industry has some distinctive features, which differentiate it from other businesses. Wage, Supply chain, Lead time, and Compliances are among the most important features of this business. Each of four features is interrelated and interdependent. Among these features, effective Supply Chain Management (SCM) is the core one. A chain is as strong as all of its rings are. In RMG business there is a very strong correlation between business value chain and supply chain. The supply chain is mostly controlled by the buyers who control the business. Only lowest wage can't ensure the business. Without proper management in supply chain, it is not possible to comply with the lead time given by the buyer. The supply chain can be categorized into two phases: Macro level- part of global supply chain and Micro level - the supply chain system within the manufacturing unit. In supply chain system, it can be materials, information or it can even be supply of business (volume of business). Object of the study is to identify the interest group in supply chain, analyze the importance and difficulties of SCM and find out the solutions to overcome those difficulties.</em></p> <p><em>Qualitative approach has been used and more emphasis given on primary data focusing on woven garments. In woven garments most of the items are imported including fabrics. So the scope of the research is within woven garments units. People having experiences for decades in various positions were interviewed in-depth. Political instability and workers unrest, disrupted road communication and power supply, inefficient pprt management are major issues to make the chain strong. Upgrading business model from CM based to FOB, direct marketing, elimination of middle men and reducing the dependency of materials on other countries, use of technology managing inventory can help to establish an effective supply chain system.</em></p>

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