The competitive advantages of supply chain management in the RMGindustry in Bangladesh

Abstract

The ready-made garment (RMG) industry is a major contributor to the economy of Bangladesh. However, the industry has been criticized for its environmental and social impacts. This paper examines the role of effective supply chain management in promoting the competitive advantages of supply chain management in the readymade garment industry in Bangladesh. Supply chain management is a key issue for garment manufacturers, retailers, and consumers. The literature on current supply chain management in garment factories in Bangladesh is very poor. Therefore, in this study, the author has made an attempt to analyze a more effective supply chain scenario for the Bangladeshi garment industry that will lead to better competitive advantage over their rivals by analyzing the current supply chain and examining the relationships among the actors in supply chain management. The purpose of this study was to examine the impacts of supply chain management practices on competitive advantages among Bangladeshi apparel manufacturers. Using a quantitative approach, data were collected from apparel manufacturers in Bangladesh via an online survey. The SCM practices were conceptualized as a multidimensional construct to include strategic supplier partnership, customer relationship, information sharing, and process integration. The competitive advantages in 4 performance areas, cost, quality, delivery, and flexibility, were assessed. The paper concludes by arguing that effective supply chain management is essential for promoting sustainable growth in the RMG industry in Bangladesh. The paper also makes recommendations for businesses in the RMG industry to adopt effective supply chain management practices