supply chain management of textile industry a case study on bangladesh

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Supply Chain Management of Textile Industry: A Case Study on Bangladesh

— This study addresses a descriptive study on the current scenario of Textile industry in Bangladesh. This paper demonstrates above mentioned scenario in terms of supply chain management (SCM). The textile industry, an important segment in Bangladesh's manufacturing industry, play a critical role in its economic development. The textile sector fulfils almost cent percent domestic demand apart from the fulfilling the external demand of clothing and apparels to a large extent in Bangladesh. The Textile industry is a long chain including raw materials production, complement production, clothing production and so on. SCM concept is made possible as a conventional management tool for all manufactures are to strive to improve their product quality, to reduce their product and service cost and to shorten their product delivery and response time in a highly competitive market. This research developed based on the secondary data, including online databases, journals, review papers, etc. The effective SCM of textile industry include lower inventories, lower costs, higher productivity, greater productivity, greater agility shorter lead times, higher profits and greater customer loyalty. This paper encompasses the constraints of textile industry in Bangladesh, including ineffective communication, invisibility of SCM, long lead time, etc. which would unlock further research to develop this sector.

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There is a paramount importance of the Readymade Garments (RMG) industry of Bangladesh as it is the highest contributor in earning foreign exchange for the country. But the industry is facing stiff competition from other RMG producing countries including China, India, and Sri Lanka of the world. Hence, competitiveness especially at the manufacturing level became important for this industry. An efficient Supply Chain Management can increase the competitiveness and the satisfaction of the customers. Nowadays, SCM plays an integral part of a firm's success as it allows firms to quickly deliver products to the end-user for a low cost. Hence, RMG companies have very limited options other than implementing SCM as a strategy in order to remain competitive. This study intends to identify the impediments in applying sound SCM in the RMG industry. A mixed research method with a questionnaire survey has been employed for determining the impediments objectively. Use of descriptive analysis and Kendall Coefficient of Concordance have been made for ranking the challenges. This study found workplace safety, unavailability of raw materials and political instability are the major impediments for SCM applications in the RMG industry of Bangladesh.

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Readymade Garments Industry (RMG) is the largest foreign exchange earning sector for Bangladesh. After the Rana Plaza, Tazrin Fashion fire incident and Holey Artisan Bakery incidents, buyers across the globe have heightened the compliance requirements for this industry (Rayhan, 2016). Moreover, the industry is now in free market competition after Multi-Fibre Arrangement (MFA) and General System Preferences (GSP) have been lifted. The country needs to recoup the benefit of efficient implementation of Supply Chain Management (SCM) in order to achieve lower lead time, lower cost and higher quality. Cheap labor is no more giving required business for the RMG. This study aims to find out the challenges for efficient implementation of SCM in the sector. A descriptive analysis and use of Kendall Coefficient Concordance were made to find the ranking of the challenges. The study reveals that the main challenges for implementing SCM in RMG industry of Bangladesh is workplace safety followed by unavailability of locally produced raw materials and political instability.

Supply Chain Management (SCM) offers some business solutions to companies in various sectors by increasing customer service while minimizing costs. Supply chains for suppliers, manufacturers, distribution centers, resellers, customers or any other members differs from each other depending on their business functions, goals, types of organizations etc. Thus, the definition of supply chain varies from one company to another. But in general, SCM can be defined as a complex business relations network that contains synchronized efforts among these business entities to plan, control, coordinate and distribute raw materials, parts, subassemblies and finished goods from suppliers to ultimate customers. It can be strongly claimed that, the most important objective of SCM is to ensure production and delivery of products at the right diversity, with the right amounts, at the right time and to the right locations. In order to achieve this aim, some strategic decisions have to be made such as fi...

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Supply Chain Management of Textile Industry: A Case Study on Bangladesh

This study addresses a descriptive study on the current scenario of Textile industry in Bangladesh. This paper demonstrates above mentioned scenario in terms of supply chain management (SCM). The textile industry, an important segment in Bangladesh’s manufacturing industry, play a critical role in its economic development. The textile sector fulfils almost cent percent domestic demand apart from the fulfilling the external demand of clothing and apparels to a large extent in Bangladesh. The Textile industry is a long chain including raw materials production, complement production, clothing production and so on. SCM concept is made possible as a conventional management tool for all manufactures are to strive to improve their product quality, to reduce their product and service cost and to shorten their product delivery and response time in a highly competitive market. This research developed based on the secondary data, including online databases, journals, review papers, etc. The effective SCM of textile industry include lower inventories, lower costs, higher productivity, greater productivity, greater agility shorter lead times, higher profits and greater customer loyalty. This paper encompasses the constraints of textile industry in Bangladesh, including ineffective communication, invisibility of SCM, long lead time, etc. which would unlock further research to develop this sector.

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International Journal For Multidisciplinary Research

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Volume 6 Issue 5 September-October 2024

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Supply Chain Management Process of Textile Industry: A Case Study on Bangladesh

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