Bangladesh Defense
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Boosting efficiency, image of RMG sector
The rapid expansion of readymade garments industry (RMGI) over the past four decades has made significant contribution to the socio-economic uplift of Bangladesh. It is also a matter of satisfaction that a majority of workers employed in this sector are female. At present, about 75 per scent RMG fa
Boosting efficiency, image of RMG sector
Helal Uddin Ahmed
Published :
Oct 08, 2024 00:27
Updated :
Oct 08, 2024 00:27
The rapid expansion of readymade garments industry (RMGI) over the past four decades has made significant contribution to the socio-economic uplift of Bangladesh. It is also a matter of satisfaction that a majority of workers employed in this sector are female. At present, about 75 per scent RMG factories are located in the Dhaka region, viz. Dhaka city, Savar, Ashulia, Gazipur and Narayanganj. But the recent turmoil in these factories have once again proved the need for maintaining a stable working environment through coordinated efforts and team-work of all stakeholders including the workers and owners.
Initiatives should be taken now to enhance the competitive edge and efficiency of the RMG sector for its sustainable growth. Loopholes in the regulatory framework should be addressed to reduce the time-lag in sending or receiving consignments. The time-frame for customs clearance should be reduced drastically and the whole exercise should be digitalised by shedding unnecessary dependence on manual procedures.
With the exception of a few units, most garments manufacturers in the country lack research and development (R&D) set-up. But the R&D teams in the factories of competitor countries are usually stronger. The local factories normally take 3 to 4 months for product development (from design to sample preparation). But countries like China spend only 15 to 30 days for the purpose. Lack of efficiency and weak productivity have become critical factors, as a result of which average production cost unnecessarily goes up, thereby offsetting the advantage of lower labour cost in Bangladesh.
Repairing and developing the road infrastructure at places like Ashulia and Gazipur have also become urgent now, as better road communication would decrease the time wasted during transportation of RMG consignments. Alongside adequate port facilities, the overall logistic framework including reliable supply of utilities like electricity should be ensured, so that all related activities including import of inputs and export of RMG products can be performed seamlessly without unnecessary delays.
In the backdrop of a rapidly changing market scenario across the globe, the entrepreneurs need to enhance their investments in automation and digitalisation, as production efficiency can be improved through adoption of modern technology and digital systems. Besides, value-addition can be enhanced through curtailing dependence on manual labour. For tapping the growth potentials, due importance should also be attached to the skill development of workers, which in turn would lead to enhanced productivity. These skills include communication cum technological knowhow and expertise. Moreover, ensuring a safe work-environment accompanied by fair wages and other benefits for workers is very important for fruitful team effort. A stable and motivated workforce can be maintained if workers' rights are upheld and regular dialogues are held between the factory management and trade union members.
The recent proliferation of online trading has added an element of unpredictability in RMG business. Many buyers prefer to do business online now instead of undertaking physical visits. Consequently, the nature of business is fast changing and smaller establishments have to compete with bigger ones on equal footing via the worldwide web for attracting buyers. The shape and form of retail marketing are also undergoing significant changes, and appropriate adjustments are needed to remain competitive. However, the big buyers usually maintain consistency in their sourcing, and usually do not make sudden or erratic moves.
The RMG products also need diversification in the light of a changing global scenario. A gradual shift towards sportswear, specialised apparels and dresses can aid in this move to high-value garments from that of low-value traditional ones. But items like shirts, trousers, jackets, t-shirts and sweaters still dominate the export basket of Bangladeshi RMG. Greater product diversification has therefore become urgent for improving the situation.
The power of innovation should also be applied in the use of fabrics and other ingredients. Utilising environment-friendly and sustainable fabrics will not only meet global expectations, but will also help Bangladesh in playing a leading role in sustainable fashion marketing across the globe. For this, good governance and policy supports have to be ensured. A stable political climate as well as neutral cum non-partisan business environment are essential for the growth of local RMG industry. Specifically, reforms should be undertaken in the banking, customs, and taxation sectors in order to ensure transparency, efficiency, and accountability. The industry should comply with the global standards for remaining competitive globally. Maintaining the highest quality through compliance with the standards of production and processes, and upholding labour rights and environmental sustainability are crucial for future growth of the industry.
Overall, the 'Bangladesh' brand should be projected in the right manner as a reliable supplier in the global market. The country's achievements in the area of sustainability should also be highlighted. For example, the leading role played by Bangladeshi RMG factories in green industrialisation can be publicised. This would also enhance Bangladesh's reputation as an ethical source. Besides, measures should be taken for ensuring fair prices from international buyers, which will also help in providing higher wages and improved work-environment for workers. This, in turn, may attract more skilled workers to the RMG industry.
The social and ethical considerations should be given top priority by the factory owners and the government. The image of Bangladesh's RMG industry will be automatically bolstered if corruption is curtailed and transparency in business processes cum official procedures are ensured. Regular dialogues between the employers and workers and strict adherence to ethical labour standards and fair management practices will help the industry in meeting social obligations and boosting its reputation worldwide.
For expanding the RMG exports to new and emerging markets, diplomatic initiatives may be undertaken by the government alongside BGMEA and BKMEA. Boosting exports to the potentially high-growth non-traditional markets will help reduce dependence on the traditional export markets like the EU and USA, and assist in overcoming associated risks. A competitive edge in the global market should be maintained through strengthening supply chain management - especially by reducing lead time and enhancing efficiency. This should include adoption of best practices and application of modern technology for optimal production.
Helal Uddin Ahmed
Published :
Oct 08, 2024 00:27
Updated :
Oct 08, 2024 00:27
The rapid expansion of readymade garments industry (RMGI) over the past four decades has made significant contribution to the socio-economic uplift of Bangladesh. It is also a matter of satisfaction that a majority of workers employed in this sector are female. At present, about 75 per scent RMG factories are located in the Dhaka region, viz. Dhaka city, Savar, Ashulia, Gazipur and Narayanganj. But the recent turmoil in these factories have once again proved the need for maintaining a stable working environment through coordinated efforts and team-work of all stakeholders including the workers and owners.
Initiatives should be taken now to enhance the competitive edge and efficiency of the RMG sector for its sustainable growth. Loopholes in the regulatory framework should be addressed to reduce the time-lag in sending or receiving consignments. The time-frame for customs clearance should be reduced drastically and the whole exercise should be digitalised by shedding unnecessary dependence on manual procedures.
With the exception of a few units, most garments manufacturers in the country lack research and development (R&D) set-up. But the R&D teams in the factories of competitor countries are usually stronger. The local factories normally take 3 to 4 months for product development (from design to sample preparation). But countries like China spend only 15 to 30 days for the purpose. Lack of efficiency and weak productivity have become critical factors, as a result of which average production cost unnecessarily goes up, thereby offsetting the advantage of lower labour cost in Bangladesh.
Repairing and developing the road infrastructure at places like Ashulia and Gazipur have also become urgent now, as better road communication would decrease the time wasted during transportation of RMG consignments. Alongside adequate port facilities, the overall logistic framework including reliable supply of utilities like electricity should be ensured, so that all related activities including import of inputs and export of RMG products can be performed seamlessly without unnecessary delays.
In the backdrop of a rapidly changing market scenario across the globe, the entrepreneurs need to enhance their investments in automation and digitalisation, as production efficiency can be improved through adoption of modern technology and digital systems. Besides, value-addition can be enhanced through curtailing dependence on manual labour. For tapping the growth potentials, due importance should also be attached to the skill development of workers, which in turn would lead to enhanced productivity. These skills include communication cum technological knowhow and expertise. Moreover, ensuring a safe work-environment accompanied by fair wages and other benefits for workers is very important for fruitful team effort. A stable and motivated workforce can be maintained if workers' rights are upheld and regular dialogues are held between the factory management and trade union members.
The recent proliferation of online trading has added an element of unpredictability in RMG business. Many buyers prefer to do business online now instead of undertaking physical visits. Consequently, the nature of business is fast changing and smaller establishments have to compete with bigger ones on equal footing via the worldwide web for attracting buyers. The shape and form of retail marketing are also undergoing significant changes, and appropriate adjustments are needed to remain competitive. However, the big buyers usually maintain consistency in their sourcing, and usually do not make sudden or erratic moves.
The RMG products also need diversification in the light of a changing global scenario. A gradual shift towards sportswear, specialised apparels and dresses can aid in this move to high-value garments from that of low-value traditional ones. But items like shirts, trousers, jackets, t-shirts and sweaters still dominate the export basket of Bangladeshi RMG. Greater product diversification has therefore become urgent for improving the situation.
The power of innovation should also be applied in the use of fabrics and other ingredients. Utilising environment-friendly and sustainable fabrics will not only meet global expectations, but will also help Bangladesh in playing a leading role in sustainable fashion marketing across the globe. For this, good governance and policy supports have to be ensured. A stable political climate as well as neutral cum non-partisan business environment are essential for the growth of local RMG industry. Specifically, reforms should be undertaken in the banking, customs, and taxation sectors in order to ensure transparency, efficiency, and accountability. The industry should comply with the global standards for remaining competitive globally. Maintaining the highest quality through compliance with the standards of production and processes, and upholding labour rights and environmental sustainability are crucial for future growth of the industry.
Overall, the 'Bangladesh' brand should be projected in the right manner as a reliable supplier in the global market. The country's achievements in the area of sustainability should also be highlighted. For example, the leading role played by Bangladeshi RMG factories in green industrialisation can be publicised. This would also enhance Bangladesh's reputation as an ethical source. Besides, measures should be taken for ensuring fair prices from international buyers, which will also help in providing higher wages and improved work-environment for workers. This, in turn, may attract more skilled workers to the RMG industry.
The social and ethical considerations should be given top priority by the factory owners and the government. The image of Bangladesh's RMG industry will be automatically bolstered if corruption is curtailed and transparency in business processes cum official procedures are ensured. Regular dialogues between the employers and workers and strict adherence to ethical labour standards and fair management practices will help the industry in meeting social obligations and boosting its reputation worldwide.
For expanding the RMG exports to new and emerging markets, diplomatic initiatives may be undertaken by the government alongside BGMEA and BKMEA. Boosting exports to the potentially high-growth non-traditional markets will help reduce dependence on the traditional export markets like the EU and USA, and assist in overcoming associated risks. A competitive edge in the global market should be maintained through strengthening supply chain management - especially by reducing lead time and enhancing efficiency. This should include adoption of best practices and application of modern technology for optimal production.
