For the last few years, especially after the advent of the pandemic, concerns
have been growing worldwide about the sustainability aspects of businesses.
In this regard, the Bangladeshi RMG export industry is no different. Due to
rapid adverse changes in the business climate and issues with ethical
sourcing, consumers worldwide are more aware and selective when it comes
to buying their clothes. This, in turn, has raised the propensity of foreign
apparel buyers to assess potential suppliers in terms of sustainability.
Therefore, unsurprisingly, businesses which are yet to embrace sustainable
practices are more likely to miss out on orders. As the sector accounting for
the lion’s share of the country''s exports, the Bangladeshi RMG industry
needs to adopt sustainable strategies to maintain their place in the global
apparel export market. In the last year alone more than 11,000 BGMEA
member companies have lost US$ 3.18 billion worth of work orders due to
cancellations during the pandemic. Therefore, it is crucial for the RMG
industry to adapt sustainable practices into their supply chains as well as
inform potential buyers about said practices to attract and retain more
orders.
While Bangladeshi apparel manufacturers are already implementing
sustainable practices and green initiatives into the value chain, there is still
room for improvement -- particularly for the occupational health and safety
areas of the spinning, weaving and knitting, and dyeing and finishing
sectors. For the readymade garments sector, the areas to improve on include
reducing waste in manufacturing without losing productivity (lean
manufacturing), meeting compliance requirements and managing quality.
Businesses can adapt multiple strategies to deal with their sustainability
related issues, a crucial one being the use of technology. Especially during
the ongoing global crisis, technology can help enhance communication
among buyers and suppliers thereby reducing the need to meet in-person.
It also allows for real-time monitoring and tracking of products which helps
make the logistics system more efficient. Additionally, technology can help
companies be more transparent in their activities, especially through supply
chain traceability solutions which help companies show ethical sourcing in
their supply chains, among other things.
Technology is significantly helpful for apparel manufacturers when it comes
to consolidating data, increasing accountability and enhancing reporting
and compliance management. Serai is one example of technology that can
help apparel businesses with achieving end-to-end supply chain traceability
and transparency. Serai is a free digital B2B platform that allows apparel
businesses to track cotton and other raw materials going into their products.
Businesses can use the solution to trace order flow throughout the supply
chain, manage supply chain risks and collect data for compliance needs.
Serai helps businesses map upstream suppliers and track environmental,
sustainability and governance (ESG) commitments. For more information,
readers may visit https://www.seraitrade.com/traceability.
Source: The Financial Express, Bangladesh Thursday, 22 April 2021