Impact of strong supply chain in textile industries of Bangladesh: A study on cost minimization

& process improvement.

Introduction:

The growing gap between enhanced forecasting and faster, more efficient delivery of
products or services are the major reasons why supply chain management is so important to
the industries. The logistic management of goods from manufacturers to consumers is one
function affected by business digital transformation. One reason why supply chain
management is important to industry is the need to reduce expenses by operating more
efficiently as operations become more complex. It is well known that supply chain
management is an integral part of most businesses and is essential to company success and
customer satisfaction.
It can also reduce inventory, warehousing, and overhead costs associated with inventory
storage, including rent, labor and energy costs. By optimizing current resources, including
enabling the ability to work around the clock, companies can gain up to 20 percent more
productivity in areas that have been automated. The characteristics of a good supply chain
are visibility, optimization, having the lowest cost possible, timeliness, and consistency.

A strong supply chain can help to obtain several benefits in any industries including textile,
since it’s the largest sector of the country including lots of backward linkage industries
closely connected together. Below are some of the benefits which can be obtained through a
strong supply chain process in any industry including textile-

 Improved collaboration
 Mitigate overhead costs
 Keeping up with demand
 Optimization in shipping process
 Improvement in quality control process
 Better cash flow
 Reducing risk possibilities.

Research Objectives:

Being one of the largest (3rd in the world) apparel & textile products supplier in the world,
Bangladesh has over 3000 active industries countrywide. To meet the target price & delivery,
Bangladesh has to compete with the neighboring countries like India, Myanmar & other
Asian countries e.g. China, Cambodia, Vietnam, Pakistan, Indonesia etc. Bangladesh has to
compete with some of the European countries such as Turkey, Spain & Germany as well in
terms of delivery dates & price as well. It is important for every industry to keep the
manufacturing cost to the minimum with faster delivery dates to keep up with the challenges.
This is where a strong supply chain management comes as a key requirement. The primary
objective of the study is to find out the challenges that the industry faces & set up a
comparative study between the gaps of the material supply process & how an effective
implementation of a better supply chain can reduce costs & improve the material supply
process that eventually benefits the company.

Specific objectives-

 To assess how supply chain cost reduction impact on the overall profit margin in the
textile business.
 To identify how process development can improve efficiency of the employees.

Methodology of the Report:

The primary data for the research will be collected from through online surveys which will be
conducted over the professionals from the textile industry. Physical interviews will be taken
where possible & rest of the interviews will be conducted through online video platforms &
researchers experience in this field.

Secondary data will be collected from various research papers & renowned websites e.g.
sciencedirect, onlineclothingstudy, fibre2fashion, textiletoday, apparelresources etc.

Data’s will also be collected from the official websites of BGMEA, BKMEA, BTMA,
BGPMEA, articles of reputed local newspapers, personal blogs of professionals from textile
sectors in Bangladesh etc.

Data sampling will be conducted through cluster sampling method. Since the entire industry
is connected through several supporting organizations (e.g. accessories, spinning, knitting,
dyeing, printing etc.), so cluster sampling method will help to identify the impacts of a strong
supply chain on each different organization.