Factors Affecting Implementation of Effective Supply Chain Management in EPZ Based RMG Industries of Bangladesh

Abstract

In an increasingly globalized and competitive business environment, effective supply chain management (SCM) has become a crucial factor for the success of export-oriented industries. Bangladesh’s Ready-Made Garments (RMG) sector, particularly firms operating within Export Processing Zones (EPZs), plays a vital role in the national economy but continues to face significant supply chain challenges. This study examines the factors affecting the implementation of effective supply chain management in EPZ-based RMG industries of Bangladesh. The research adopts a mixed-method approach, combining quantitative data from structured questionnaires collected from 42 supply chain professionals with qualitative insights from interviews with senior industry managers. Guided by the Supply Chain Operations Reference (SCOR) model and the Resource-Based View (RBV), the study analyzes the influence of technological capability, infrastructure and logistics support, human resource capability, regulatory and policy environment, and supplier–buyer collaboration on SCM effectiveness. Quantitative data were analyzed using descriptive statistics, correlation analysis, and multiple regression techniques with the help of SPSS. The findings indicate that all examined factors have a significant positive impact on SCM effectiveness. Human resource capability emerged as the most influential determinant, followed by technological capability and supplier–buyer collaboration. Infrastructure and logistics support also significantly affect supply chain performance, while the regulatory and policy environment plays a comparatively weaker yet important role. Qualitative findings further reveal persistent challenges such as skill shortages, technology gaps, logistics bottlenecks, and buyer-driven supply chain pressures. The study concludes that improving SCM effectiveness in EPZ-based RMG firms requires integrated efforts focusing on workforce development, technological adoption, infrastructure improvement, supportive regulatory frameworks, and stronger collaboration among supply chain partners.