Abstract
This study attempts to understand current strategies and difficulties by providing a systematic evaluation of the literature. This work employs an approach that involves a systematic literature review of 138 English-language peer-reviewed journal articles. The research reveals sixteen supply chain strategies and challenges faced by Bangladesh's RMG industry. The report highlights the necessity for flexible tactics and data-driven analytics in light of the industry's difficulties with demand forecasting. Relationships between buyers and suppliers are crucial and require open communication and customer-focused strategies. Stakeholder interactions are improved via real-time technology-enabled communication channels, guaranteeing consumer happiness and quality. The study also emphasises how reluctant the sector is to accept new technologies, arguing in favour of funding for R&D, staff development, and creative problem-solving. It does this by emphasising the value of proactive risk mitigation and robust risk management frameworks.
TopIntroduction
The ready-made garment (RMG) industry in Bangladesh stands as a cornerstone of the nation's economy, responsible for a substantial 84% of total export earnings (Islam et al., 2021). Despite its significant contribution, this industry grapples with multifaceted challenges in executing efficient supply chain strategies. Presently, the supply chain strategies embraced by the Bangladeshi RMG sector are predominantly geared towards production streamlining and cost reduction. This emphasis on cost-efficiency has fostered heightened market competition, often at the expense of manufacturers' profit margins. Moreover, the expansive supply chain of the industry, featuring a plethora of stakeholders ranging from suppliers and distributors to retailers and end customers, has engendered intricate supply chain management complexities (Milewska, 2022).
In conjunction with the complexities induced by a sprawling supply chain, the Bangladeshi RMG industry contends with issues concerning quality control and compliance management. Owing to resource constraints and a dearth of expertise, numerous manufacturers find themselves ill-equipped to effectively implement and oversee compliance measures (Islam, 2021). Furthermore, the Bangladeshi RMG sector confronts a dearth of technology and infrastructure, hindering efficient supply chain management. Heavy reliance on manual processes and outdated technology has led to a dearth of visibility and inefficiencies throughout the supply chain. Consequently, manufacturers struggle to monitor the movement of their products, precipitating delays and inefficiencies in the supply chain (Islam et al., 2018). The Bangladeshi RMG industry confronts an assortment of impediments in implementing effective supply chain management strategies, including intricate supply chains, challenges pertaining to quality control and compliance, and the absence of technological infrastructure. To surmount these challenges, the industry must invest in technology, enhance its infrastructure, and devise strategies to ensure adherence to safety regulations (Rahman et al., 2019).
Presently, research is lacking concerning the efficacy of prevailing supply chain management strategies employed within the Bangladesh ready-made garment industry. As this sector continues its expansion and globalization, comprehending the ramifications of its existing strategies grows increasingly imperative (Khan et al., 2023). Additionally, there exists a paucity of research examining the tribulations faced by the Bangladeshi RMG industry when endeavoring to implement supply chain strategies. From an economic standpoint, comprehending the extant disruptions and inefficiencies within the Bangladeshi garment industry's supply chain is pivotal for sustaining competitiveness (Uddin, 2023). Thus, research that scrutinizes both the effectiveness of extant supply chain management strategies and the obstacles encountered during their implementation is urgently required. This review paper intends to inspect prevailing SCM strategies, pinpoint common implementation challenges, and proffer insights for mitigating these issues (Khan et al., 2023). It aims to furnish a comprehensive overview of existing SCM strategies within the Bangladeshi RMG sector, appraise their pros and cons, and identify the hurdles thwarting their successful implementation. Furthermore, the research has been delved into the role of technology in bolstering supply chain management processes (Alghababsheh et al., 2023). Given the resource limitations often faced by the RMG industry in Bangladesh, evaluating the potential of digital solutions and traditional methods such as systemic collaboration with suppliers is indispensable for enhancing supply chain models (Tasnim et al., 2022).
Key Terms in this Chapter
Communication Channels: Communication Channels refer to the various mediums or pathways through which information is transmitted between individuals, groups, or entities. These channels facilitate the exchange of messages, ideas, data, or emotions, allowing for effective interaction and understanding among participants. Communication channels can take diverse forms, including face-to-face conversations, written documents, emails, telephone calls, video conferences, social media platforms, and more.
Transparent Relationships: Transparent relationships refer to interpersonal connections characterized by openness, honesty, and clear communication between individuals involved. In such relationships, there is a mutual willingness to share thoughts, feelings, intentions, and information without fear of judgment or repercussion.
Sustainable Supply Chain Management: Sustainable Supply Chain Management (SCM) refers to the strategic integration and coordination of environmentally, socially, and economically responsible practices across the entire supply chain lifecycle, from raw material extraction to end-of-life disposal or recycling. It involves the development and implementation of policies, processes, and initiatives aimed at minimizing negative environmental and social impacts while maximizing economic efficiency and value creation.
Logistics Management: Logistics management refers to the strategic coordination and oversight of the flow of goods, information, and resources from the point of origin to the point of consumption or distribution. It involves planning, implementing, and controlling various activities such as procurement, production, inventory management, transportation, warehousing, and distribution to ensure efficient and cost-effective movement of goods and services throughout the supply chain.
Inventory Management: Inventory management is the strategic process of overseeing and controlling the flow of goods or materials within a business's operations. It involves the planning, procurement, storage, tracking, and optimization of inventory levels to ensure that the right products are available in the right quantities at the right time.
Transportation Network: A transportation network refers to the interconnected system of infrastructure, facilities, and routes that enable the movement of people, goods, and services from one location to another. This network typically includes various modes of transportation such as roads, highways, railways, airways, waterways, and pipelines.
Technology-Driven Supply Chain Management: Technology-Driven Supply Chain Management refers to the strategic use of technology and digital solutions to optimize and streamline the processes involved in the sourcing, production, logistics, and distribution of goods or services within a supply chain network. This approach leverages various technological tools such as advanced analytics, artificial intelligence, internet of things (IoT), blockchain, and automation to enhance visibility, efficiency, agility, and collaboration across the supply chain ecosystem.
Management Strategy: Management strategies” refer to the comprehensive plans, techniques, and approaches employed by organizations, businesses, or individuals to effectively oversee, direct, and optimize resources, operations, and objectives towards achieving specific goals or objectives. These strategies encompass various aspects such as decision-making, resource allocation, leadership styles, organizational structure, and performance evaluation.
Supply Chain Management: Supply Chain Management (SCM) refers to the strategic coordination and integration of all activities involved in the sourcing, procurement, production, and logistics management of goods and services. Its primary goal is to ensure the efficient flow of materials, information, and finances from the raw material stage through to the final delivery of products to end-users. SCM involves optimizing processes, minimizing costs, reducing lead times, managing inventory levels, fostering collaboration among suppliers and partners, and enhancing overall customer satisfaction. It encompasses a broad range of functions, including demand forecasting, inventory management, supplier relationship management, transportation, warehousing, and distribution. Effective supply chain management enables organizations to adapt to changing market demands, mitigate risks, enhance competitiveness, and ultimately achieve strategic objectives.