Supply Chain Management in Readymade Garments Industry, Bangladesh

Abstract

The export-oriented readymade garment (RMG) industry has some distinctive features, which differentiate it from other businesses. Wage, Supply chain, Time-frame, and Compliances are among the most important features of this business. Each of four features is interrelated and interdependent. Among the features, effective Supply Chain Management (SCM) is the core. Whatever the wage level or lead time (the period from order confirmation to shipment) without proper management of supply chain business is not viable and sustainable. Supply chain can categories 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, it can be information, and even it can be a supply of business (continuation of business). One single and very simple issue like mismatching thread count or wrong button line, incorrect or delayed information can make the whole process jeopardies. Considering the importance, present study has been carried out on supply chain system in Bangladesh RMG industry. The study revealed the difficulties in supply chain system and also tried to set some guidelines to improve the system for the sustainable development of the sector.