Effective supply chain to get competitive advantage in Garments Industry

Topics: Supply chain management, Supply chain, Management Pages: 20 (5480 words) Published: June 14, 2014
1.0 Introduction:

Bangladesh is predominantly an agriculture-based country. Major percentage of the population is either directly or indirectly engaged to this sector. But, the growth of the external sector of Bangladesh is controlled mainly by the growth and performance of the manufacturing sector especially Ready Made Garments (RMG) sector. This sector contributes almost 78 percent of the total export basket (Source: BBS). There are lots of factors that affect the profitability and the sustainability of this sector. This research will focus on effective supply chain management and its affect on the profitability of Garments Industry. Here the profitability of Textile Industry depends on the volume trade, productivity and proper use of resources. The sustainability of the long standing growth of this sector in this bizarre situation is crucial for the economic growth of the country. That is why, an evaluation of the effective supply chain management to get more profitability from this sector. 1.1 Research Objectives

a) Broad Objective: The broad objective of the research is:
“To evaluate the effect of supply chain management of Bangladesh Textile Industry” b) Specific Objectives: Specific objectives of the research are: To evaluate the whole supply chain process of Textile Industry in Bangladesh. To find out the challenges of the supply Chain Management of Bangladesh textile industry. To identify the productivity situation of the RMG sector.

To assess the effect of supply chain management in this industry

1.2 Research Background:

Readymade Garments sector is a booming sector in Bangladesh and the government is giving incentive to this sector as huge employment is created by this sector, especially unskilled and semi skilled women are getting employed by this sector. In spite of having lots of obstacle and challenges the sector is doing great and is playing a vital role to the economy. This sector is heavily depends on the international supply chain. And effective supply chain is very much helpful for the development and sustainability of this sector. In this paper the researcher discussed the whole supply chain management, the challenges that it is facing and the way to improve the efficiency.

1.3 Research Scope:
The research will specifically identify the whole process of supply chain management of Textile Industry and its effects on profitability. It will partially cover other factors that influence the profitability of this industry. But, the research will briefly address the problems of Supply chain in this sector and it will only consider in terms of Bangladeshi perspective.

1.4 Research Design
The basic research design of the current research is Exploratory. Other relevant issues regarding the research are briefly presented below: 1.4.1 Type of Data: The underlying research on the affect of supply chain management in Textile Industry of Bangladesh in the quota free period will be based on secondary data source especially. Beside, primary data will also be collected and analyzed to get an insight of the actual situation of the RMG sector of Bangladesh. 1.4.2 Methods of Data Collection: The secondary data will be collected from different articles, journals, trade magazine, books and web sites. The required primary data will be collected through the appropriate research instrument (i.e. personal interview of the officials of the related trade body). 1.5 Method of Analysis

Since the research paper will basically deal with secondary data sources, the gathered data will be analyzed using simple statistical tools to reveal any significant trends of the performance and productivity situation of the sector. Beside, data will be presented using simple table and charts representing major trends and deviations.

2.0 Literature Review:
2.1 Supply Chain Management
The term “Supply Chain Management” was revealed in the late 1980s, and then it was exposed to all in...
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