Circular economy in Bangladeshi's apparel industry : the impact of sustainability on the supply chain

Abstract

In this study, the impact of integrating circular economy and sustainability measures on the efficiency of the supply chain in the Ready-Made Garment sector in Bangladesh is investigated. This is because the country’s industry plays a critical role in the economy and is currently under immense global pressure to transform its current linear “take–make–dispose” approach to a circular model that prioritizes waste reduction, resource efficiency, and environmental friendliness. The paper aims to do so through the following three objectives: to identify the current level of circular economy incorporation, establish a relationship between such an incorporation and supply chain efficiency, and suggest incorporation approaches ad hoc to sustainability. The study’s research design was quantitative, descriptive and causal, and primary data were collected via structured questionnaires in interviews with apparel industry supply chain, procurement, and sustainability specialists. Analysis was performed descriptively and inferentially through SPSS, and a descriptive measurement using Cronbach’s Alpha value demonstrated internal reliability and consistency against the survey instrument’s 0.973 score. The results revealed that most large export-focused companies invest in two sustainable elements: recycling textile waste and environmentally friendly sustainability. Small and medium enterprises, on the other hand, still face obstacles associated with financing, awareness, and technological factors. Furthermore, the Chi-square tests found statistically significant associations between circular economy, stakeholder interaction, and technology with supply chain efficiency, verifying all three hypotheses -. The results exposed that corporations adopting circular economy practices are more cost-effective and resilient, with shorter lead times. Conversely, stakeholder collaboration and technological innovation further strengthen them, demonstrating that sustainability is equally good for the environment and business competitiveness.