Backward integration of leading footwear industries in Bangladesh: problems & possibilities

Abstract

Backward integration refers to integration of any operation or service prior to the specific main operation or service. In other words, BI means acquiring an operation or service within the business unit which were outsourced before. These operations hold the success factors of entire production, hence the industry. Bangladeshi footwear industries have faced many problems throughout the years while material purchasing. Procurers have been facing problem in finding a reliable domestic source, delay in delivery and so many issues. In this report, we’d like to see the current condition of the supplier chain of Bangladeshi footwear industries, how different factors of the procurement function can affect the productivity and profitability of a footwear manufacturing industry while we observe the impact of these purchase on production & profitability.