Supply Chain Management In Bangladesh Essay

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Over the past few decades, globalization has dramatically changed how businesses operate. Manufacturers today can not only reach customers in new markets but also outsource raw materials and finished products through their expansive supply chain network, which are usually globally distributed. It is quite common for a manufacturer to assemble several parts coming from several suppliers spread all over the world, to form a finished good. As the supply chain networks get more and more intricate, manufacturers are always on the lookout for cost efficient options. This in turn has made supply chain management an integral part of businesses.
When a company’s operations are under its control, it has access to information and hence managing risk becomes easier. But with the global nature of production processes, it is not just the company but several other actors that get involved i.e. Subcontractors, daily wage workers working under sub-contractors etc. Due to the complexity of the process, information
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Now let us apply this theory in Bangladesh. The readymade garment (RMG) industry has seen rapid and consistent growth despite its several internal political instabilities. Today, in less than 15 years, its share of apparel imports to Europe and the US has more than doubled and is ranked third among importers to the Europe Union and fourth among US importers. According to the Bangladesh Export Promotion Bureau, the sector exported US$21.52 billion worth of garments in fiscal year 2012-2013, which is a 12.71% increase over the previous year. The sector today provides direct employment to more than four million people – the majority poor women, for whom there are no other formal sector jobs – and indirect support to millions more. These developments come from the fact that Bangladesh offers two major advantages – price and

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