Understanding and digitalization of the supply chain in Bangladesh's RMG sector: current practices, challenges and opportunities

Abstract

This dissertation explores the current practices, challenges, and opportunities in the supply chain of Bangladesh's Ready-Made Garments (RMG) sector, with a focus on digitalization. As the largest contributor to the nation's export earnings, the RMG industry faces significant supply chain inefficiencies due to limited adoption of advanced digital tools such as Enterprise Resource Planning (ERP) systems. The study analyzes data collected from key industry stakeholders, highlighting critical issues such as dependency on imports, quality control challenges, and inadequate logistics infrastructure. Additionally, barriers to digital transformation, including cost constraints, lack of expertise, and resistance to change, are identified. Despite these challenges, the research underscores opportunities for improvement through digital technologies, such as IoT, blockchain, and predictive analytics, which can enhance transparency, efficiency, and sustainability. Recommendations are provided to foster innovation and competitiveness in the sector, emphasizing the importance of ERP adoption, skill development, and strategic investment in supply chain digitalization.