Supply Chain Management on Apparel Order Process: A Case Study In Bangladesh Garment Industry
Mohammad Safiqul Islam PhD Candidate Glorious Sun School of Business and Management Donghua University, Shanghai, China E-mail: babu9999@hotmail.com Mr. Gu Qing Liang Supervisor E-mail: glqu@dhu.edu.cn ABSTRACT Bangladesh Garment Industry improvement is desired in reducing the Supply time required to produce and fulfill the orders placed by foreign companies. One way to decrease the supply time required for producing RMG is to increase domestic linkage expansion way we can have deep level improvements in the RMGI too. Supply time refers to the time required for supplying ordered garment products after the export order has received. Using modern fast and effective machinery can reduce time taken to deliver the order. The implementation of SCM had been beneficial as this helped in improving the communication channels, production and services of the companies. Considering the important role of apparel manufacturers within the global chain, we conducted a research on the Bangladesh garments industry and focus on several important supply chain operational issues. The objectives are to analyze apparel supply chain matters such as new orders, raw materials supply, production processes and logistics related to finished goods delivery. We collect data for trade statistics, conducted structured interviews and send survey questionnaires to garment manufacturers. Analysis shows apparel manufacturers are striving for sustainable business growth. We identify related supply chain practices influencing the industry, set guidelines for improvement and offer recommendations for sustainability Keywords: RMG- Reade Made Garment, SCM: Supply Chain Management, RMGI- Ready Made Garment Industry, BD- Bangladesh, INTRODUCTION The garment industry is an important business sector in Bangladesh. For this reason, companies
References: Bangladesh Readymade garment Manufacturers and exporters Association (BGMEA). Export Promotion Bureau.(EPB) , accessed during 2003-2009 Bangladesh Knitwear Manufacture and exporter Scheduled Bank Statistics (different years). Note: All figures are of end of calendar year. The figures are for all scheduled commercial banks Bangladesh bank Investment Management Production & Marketing: Bangladesh Perspective By- Abul Quasem Haider Bangladesh Textile Mills Association (BTMA) Nuruzzaman, Md. (2005), “Development of Readymade Garment Business (RMG) in the Process of Lead Time reduction- A study on Bangladeshi Readymade Garment Sector”,Draft Master Thesis, GBS, Gothenburg University, Sweden www.fabric2fashion.com Journal: Nuruzzaman Md. (2007), "Developing Export of RMG products in Bangladesh: Analyzing the Lead time”, Management Trends, Vol.4, No.1, P- 1 Journal of Textile and Apparel Technology and Management, Volume 6, issue 2, fall 2009 Journal of ‘Asia-Pacific Trade and Investment Review ‘ Vol.3 , No.1 June 2007 Newspapers: Financial Express, Tuesday February 16, 2010) ICOQM-10- The Indian Apparel Industry: A Critical Review of Supply Chains- June 28 -30, 2011 Lean or agile, A solution of Supply Chain Management of Textile and Clothing IndustryMargaret Bruce and Lucy Daly, UK, 2005 Garment Industry Analysis in China- Case Study on YiChang Richart Factory LimitedDegree Thesis of 30 credit points, Service Science- 2007 ©Society for Business Research Promotion | 71 www.ajbms.org ISSN: 2047-2528 Asian Journal of Business and Management Sciences Vol. 2 No. 8 [60-72] Gereffi, G. (2002). The International Competitiveness of Asian Economies in the Apparel Commodity Chain , working paper No: 15, Asian Development Bank Apparel Out looking -2012 Hashim D(2005) Marketing the textile industry competitive After MFA Economic and Politically weekly . Vol. XL No: 2 , 117-127 working papers . Samar Verma, Supply Chain in Indian Textile Industry, IUP Publications Online, January 2003 Int. J. of Integrated Supply Management, 2010 Vol.5, No.4, pp.322 – 343 The south East Journal of Management April 2010, V OL IV NO.1 Writer: Nuruzzaman*, Ahasanul Haque** and Rafiq Azad*** International Journal of Business and Management Vol 6 No. 11 November 2011 Writer: Shimima Sultana Appendix: 1 A. Manufacturer contact with the buyer Contact time: One week B. Suppliers (Receive order for cloths) Fabric manufacturing time 10-12 days C. Producer fabrics & Shipment Shipment time: 20-25 days D. Unloading fabrics at sea port & transport to the Manufacturing point Unloading & transportation time, 10-14 days E. Sample making, approval & production Sample approval & Production time, 45-50 days F. Shipment to the buyers Shipment time 30-35 days Destination Port ©Society for Business Research Promotion | 72