Supply chain mapping of apparel export from Bangladesh to the USA market a case study from buyer’s perspective

Abstract

Bangladesh remains an attractive source for global apparel manufacturing for past several years mainly due to its cheaper labor cost. Most of the worlds renowned apparel brands and retailers are highly dependent on Bangladesh as their one of the major supply base. On the other hand, apparel industry plays an extremely important role in Bangladesh’s economy for export earning as well providing employment. However, long lead time is a major threat to Bangladesh’s long term competitiveness as labor cost keep increasing, which will make Bangladesh less competitive in future compared with the competitors who benefit from relatively shorter lead-time due to various reason. This project work took a macro look at overall supply chain of the garments made in Bangladesh from a foreign buyer’s perspective and explore opportunities for overall lead time reduction. This study used a tool named Supply Chain Value Stream Mapping (SCVSM) or Mapping the Extended Value Stream (EVSM). The result showed 27% potential lead time reduction opportunity for overall supply chain of apparel products made in Bangladesh for USA market. If implemented, both Bangladesh apparel industry and foreign apparel buyers can be benefited from it.