Effectiveness of supply chain management in textile and apparel industries of Bangladesh

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Letter of Transmittal
June 20, 2017
Mohammad Rajib Uddin
Assistant Professor
Faculty of Business Studies
Bangladesh University of Professionals
Subject: Submission of Dissertation.
Dear Sir,
Here is the dissertation paper on “Effectiveness of Supply Chain Management in Textile and
Apparel Industries of Bangladesh: A Comparative Case Study” that you have asked me to
conduct as the part of the completion of course MBA (Professional).
As the course title is Supply Chain Management Evaluation in RMG industries of
Bangladesh here I have concentrated on several market scenarios of various industries, its
supply chain management operations. I have tried to find out the challenges that will be
barrier for progress of these industries in future with some personal surveys in the related
field. You will also find in this dissertation some future studies to overcome the challenges
for implementing supply chain management in footwear industries
Finally, I would like to thank you to give me the opportunities to get different type of
experiences rather than our regular study. I expect you would appreciate my sincere effort. I
will be available for any further clarification that you may feel necessary in this aspect.
Sincerely yours
…………………………………………
Md. Musfiqur Rahman Bhuiyan
ID - 1509056,
Session: May-15, MBA (Professional)
Major in Supply Chain Management, Faculty of Business Studies,
Bangladesh University of Professionals.

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Declaration
This is to certify that the work presented in this thesis is the outcome of the investigation
carried out by me under the supervision of Mohammad Rajib Uddin, Assistant Professor,
Assistant Professor, Bangladesh University of Professionals, Mirpur, Dhaka.
It is also declared that neither of this paper nor any part therein has been submitted any where
else for the award of any degree or other qualification.
Md. Musfiqur Rahman Bhuiyan
ID - 1509056,
Session: May-15, MBA (Professional)
Major in Supply Chain Management

Bhuiyan - Page iii of 91
Supervisor’s Declaration
This is to certify that the presented paper entitled “Effectiveness of Supply Chain
Management in Textile and Apparel Industries of Bangladesh: A Comparative Case Study”
that has been carried out by Md. Musfiqur Rahman Bhuiyan, ID-1509056, MBA
(Professional) under my direct supervision at the Department of Business Administration,
Faculty of Business Studies. I recommend that the prepared paper may be accepted in partial
fulfillment of the requirements for the degree of MBA (Professional).
Dissertation Supervisor
…………………………………………
Mohammad Rajib Uddin
Assistant Professor

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Acknowledgement
All praises are to Allah, the almighty, who is the supreme authority of this universe, who
enabled the author to undertake and complete this dissertation and finally write up the
outcome for the degree of MBA (Professional).
The author expresses his deepest sense of gratitude and indebtedness to his reverent
supervisor, Mohammad Rajib Uddin, Assistant Professor, Faculty of Business Studies,
Bangladesh University of Professionals for giving the opportunities and supervise for study
about SCM. The author also expresses his sincere gratitude to Dean and Chairmen of Faculty
of Business Studies, Bangladesh University of Professionals for giving the opportunities to
accomplish his MBA. He would like to express his sincere appreciation and deepest gratitude
to the respectable course teacher, Professor Dr. Nikhil Ranjan Dhar, IPE department, BUET
for his valuable advises.
The author would like to express my heartfelt thanks to all the Executives, Asst. Manger, and
Manager of Multifabs Limited, Partex Denim Ltd. And Graphics Textile Ltd. who helped me
on the way of giving their valuable comments, feedback and suggestions during data and
information collection. Lastly, author’s thankfulness goes to those executives and officers
who have given their valuable time to supply required data. Without their help, I could not
have finished the study properly.
In addition, thanks are due to those who helped me directly and indirectly during the different
stages of the research work.
May Allah bless and help the author with his endless mercy to render something for the
welfare of mankind.

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Executive Summery
Bangladesh textile and apparel sector has a comparative advantage in the world market and
enjoys a good reputation worldwide for its quality. Moreover, the country enjoys duty
exemption under the GSP (Generalized System of Preference) from many importing
countries of the developed world. Bangladesh also enjoys a reduction of Tariff and other non-
Tariff barriers from WTO (World Trade Organization). While these provide an opportunity
for a country like Bangladesh to boost up its export of textile and ready-made garment goods,
problem in sourcing raw materials, unnecessary lead time, increasing cost of making, lack of
backward and forward coordination and many natural and human made accident and
uncertainty are trying to snatch away the opportunity. The business experts believe that
export earnings from the sector could be substantially increased if we use effective supply
chain and advanced technology minimize the sourcing and production cost, lead time and to
produce high quality product. Managing and scheming the Bangladesh textile and apparels
industry’s Supply Chain Management (SCM) is one of the fundamentals for international
business and augments export. The distinctive troubles facing with RMG industries are petite
product rotation for Global Critique, extensive manufacturing lead-time, raw material
sourcing and forecasting blunders. A proper supply chain management ensures success and
growth whereas any problem in this area leads to disaster.
Bangladesh textile and apparel sector understand the need of effective SCM and innovative
approach towards supply chain where most important suppliers and customers are integrated
into the organization itself. In this report, I have tried to study the comparative effectiveness
of supply chain of Partex Denim Ltd., Multifabs Limited and Graphics Textile Ltd in utmost
detail. Based on this study, problems were pointed out. A lot of small issues that create large
problems in the entire process were noticed. Suggestions were made based on my expertise
and facts figured out through working closely with the production officials.

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Table of Contents
Topic Page No:
Letter of Transmittal i
Declaration ii
Supervisor’s Declaration iii
Acknowledgement iv
Executive Summery v
Table of Contents vi
Introduction 1
Introduction 1
Statement of the Study 1
Justification of the study 2
Objectives of the study 2
Research Questions 3
Limitation 3
Supply chain performance: A Literature Review 4
Research methodology 9
Research Design 9
Questionnaires Design 9
Sample and Respondent 10
Data and Information Collection 10
Measurement of the Questions -Data Analysis 11
Questionnaire Sample 12
Company Profile 15
Multifabs Limited 15
Partex Denim Limited 17
Graphics Textiles Limited 19
Topic Page No:

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Supply Chain Practice in Bangladesh Textile and Apparel Industries 21
Bangladesh and Textile and Apparel Industries 21
SCM at Textile and Apparel Industries 22
Decision Level 24
Production Level 25
Sales Plan and Demand Forecasting 25
Sourcing and Procurement Plan 25
Sourcing Component 26
Analyse the Purchase Requisitions 26
Suppliers Selection and Contracts 27
Analyse the Requirements 28
Vendor Search 29
Request for Proposal (RFP) and Request for Quotation (RFQ) 29
Proposal Evaluation and Vendor Selection 29
In-depth Supplier evaluation 30
Weighted Point Method 31
Evaluating through sustainable criteria 32
Price negotiation procedure with different suppliers 35
Placement Process of an Order 36
Use of Incoterm in Global Supply Chain 37
Collect PI from supplier, Check and Send for open LC 38
The Procurement Process 38
Inventory Management and the Role of the Safety Inventory 39
The Bullwhip Effect 40
Product Development 41
Distribution System 41
Returning 42
Supply Chain Cost 42
Supplier Relationship Management 42
Green Supply Chain Management 42
TQM in Supply Chain Management 43
Use of Technology in Supply Chain 43
Topic Page No:

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Known Trends, Events or Uncertainties 44
Challenges of the Supply Chain Department 44
Supply Chain Performance: Comparative Analysis 45
Findings and Recommendations 76
Findings 76
Recommendations 78
Conclusion 80
Bibliography 81

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Chapter One
Introduction
1.1 Introduction
Most of the modern manufacturing businesses heavily depend on the capabilities of
their suppliers, who in turn depend on the companies that supply to them. This has increased
the need for companies to understand and manage the chains proactively and effectively to
ensure all chain members are working to achieve end-customer service objectives. Supply
chain management is a unified chain of business process which leads the business to meet
consumer’s demand. It is a chain of combined business process connecting all the parties
involved e.g. manufacturer, suppliers, transporters, warehouses, retailers, and even customers
to meet consumer’s demand efficiently and effectively. The goal of supply chain
management is to integrate both information and material flows perfectly across the supply
chain as an effective competitive weapon. Supply chain has become a potentially valuable
way of securing competitive benefit and improving organizational performance.
1.2 Statement of the Study
A sound supply chain management helps to identify the supplier and the customer
demand that operation must satisfy, link customer demand with suppliers and production
plans, and keep the operation function focused on satisfying customer need. The supply
chains not only include the manufacturer and suppliers, but also transporters, warehouse,
retailers and customer themselves. Supply Chain Management (SCM) is the synchronized of
all processes of the company to harmonize the flow of materials, service and information as
per customer demand. It also involves the coordination of key processes in the firm such as
forecasting, sourcing, order placement, order fulfilment, purchasing, production, shipment
etc. I begin by taking a bird’s eye view of supply chain management, focusing on it implies
actions for manufacturers and service providers. I describe how companies manage their
customer and supplier interfaces. Next, I discuss the important operating and financial
measures of supply chain performance, followed by a comparison of supply chain designs
and their strategic implications. I conclude with discussions of the dynamics of supply chains
and supply chain management. I will also show the effectiveness of SCM of Partex Denim
Ltd., Multifabs Limited and Graphics Textile Ltd.

1.3 Justification of the study
Textile and Ready-Made Garment industry is very important and helpful for our
Bangladesh. Bangladesh has emerged as a key player in this sector since 1978. Textiles and
clothing account for about 85% of total export earning of Bangladesh. For more improvement
in the sector, the effective supply chain management practice is increasing day by day in this
sector. Theoretical information is not sufficient for business students because there is a gap
between theoretical knowledge and practical ground. This thesis paper has been initiated
mainly to less this gap. So, this practical idea on various activities and functions of different
department of Partex Denim Ltd., Multifabs Limited and Graphics Textile Ltd help me in
future to increase my efficiency and effectiveness.
I believe that the analysis, findings and recommendations will be helpful for the organization
to effectively utilize the benefit of supply chain management & increase the efficiency and
effectiveness of their current operations. The use of these tools enables the textile industries
to greatly increase its profitability because it is able to match supply and demand in a much
more coordinated fashion.
1.4 Objectives of the study
Objective means the purpose of this report. The objectives of this report are as
follows:
• To know details about sourcing and procurement of Partex Denim Ltd., Multifabs
Limited, Graphics Textile Ltd.
• Information gather about commercial.
• To know about inventory management system of Partex Denim Ltd., Multifabs
Limited, Graphics Textile Ltd.
• Comparison between class room learning and practical finding.
• To achieve a realistic idea that how the system working,
• To understand the importance of supply chain management in the RMG industries,
• To define the nature of SCM and give real examples of its application in
manufacturing industries,

1.5 Research Questions
Research question is -
“How much the supply chain performance effective in Bangladesh RMG industry?”
1.6 Limitation
Limitation refers the obstacles I have to face for completing this report and which I
could not cover for this limitation. I will not say that my study and the decisions I made are
self-sufficient. That doesn’t mean that there was any dearth of my professionalism and
eagerness to reach to the solution, rather it means that I had to face some obstacles. Those
may be summarized as follows:-
• Due to the lack of time I could not acquire in depth knowledge of the activities of
different department perfectly and clearly.
• All people don’t have enough time to give the information elaborately.
• Problem in giving confidential data and sample documents to enrich the paper.

Chapter Two:
Supply chain performance: A Literature Review
Supply chain plays a key role in assembling a manufacturing process to transportation
of final goods and service to customers. Since 1990s, many manufacturers and service
providers sought to cooperate with their suppliers to upgrade their purchasing and supply
management functions from a clerical role to an integral part of a new phenomenon known as
supply chain management (Keah Choon Tan, 2010)1
. Unfortunately, the role of supply chain
was taken for granted by the RMG and textile manufacturers of Bangladesh for a long time.
In 2010, Walmart announced a big change in their global sourcing and supply chain strategy.
They saved billions of dollars by consolidating their global procurement functions and
reducing the use of intermediaries in their sourcing process. Till 2010, Walmart which is
world’s largest importer, relied on intermediaries for bulk of its global sourcing activities,
instead of buying it directly from the offshore suppliers. They bought hardly 20% of goods
directly from the suppliers. The mode of sourcing and operation was highly decentralized
across the 15 countries where it has its stores. The elimination of the mark introduced by the
middlemen, helped reduce the cost leading to billions of dollars of savings for Walmart2
.
Harland (1996) defines the supply chain management as managing business activities and
relationships (1) internally within an organization, (2) with immediate suppliers, (3) with
second-tier suppliers and customers along the supply chain, and (4) with the entire supply
chain3
.
Scott and Westbrook (1991) identified supply chain management as the chain linking each
element of the manufacturing and supply process from raw materials through to the end user,
encompassing several organizational boundaries4
.
1
Keah Choon Tan. A framework of supply chain management literature. European Journal of Purchasing &
Supply Management 7 (2001) 39}48
2
Walmart’s approach to Strategic Sourcing; http://cmuscm.blogspot.com/2014/09/walmarts-approach-to-
strategic-sourcing.html, Accessed time: 10 PM, 22 February 2017.
3
Harland, C.M., 1996. Supply chain management: relationships, chains and networks. British Academy of
Management 7 (Special Issue), S63-S80.
4
Scott, C., Westbrook, R., 1991. New strategic tools for supply chain management. International Journal of
Physical Distribution and Logistics 21 (1), 23}33.

Sunhild (2008) expressed the concept of supply chain management and the need of SCM in
textile and apparel industry in his article5
. Use of SCM is increasing day by day in
Bangladesh Textile and apparel sector now what can increase the effectiveness and efficiency
in the competitive market by managing the business activities and the backward and upward
relationships. The basic supply chain of textile and readymade garment industry in
Bangladesh are involves supplier, manufacturer, buyer’s agents and retailers, ultimate
consumer, and service provider.
All the Bangladesh Textile and apparel sector companies are subcontractor and producing at
the low end product of the market. Basically, they are doing cutting, making and trimming
(CMT) activities (Kabir 20076
; Siddiqi 2007; Rashid, 20067
; Abdullah and Yusuf, 2008) This
Textile and apparel sector is highly reliant on the imported raw materials from abroad. About
90% of woven fabrics and 60% of knit fabrics are imported to make garments for export
(Rashid, 2006; Rahman and Anwar, 20068
). For this reason, Bangladesh Textile and RMG
sector needs to maintain a long backward and forward supply chain. Besides elementary
application of ICT and inefficient port management limits its ability to respond quickly to
market change, which is very essential in the fashion market (Abdullah, 20089
).
When raw materials are outsourced from abroad, the total lead time is becoming longer what
put it on a negative edge in competitiveness. Nuruzzaman (2010) indicates that Bangladesh
may create a remarkable position in the world’s total apparel export by managing the partners
of the supply chain to reduce the lead time10
. And it can be possible to reduce the total lead
time through supply chain integration among upstream and downstream partners to make
RMG manufacturers more competitive (Nuruzzaman and Haque, 2009)11
. Implementing
more collaboration among buyers, fabric suppliers and garment manufacturers, this
5
Sunhild (2008), Sustainable Supply Chain Management – The Case of Textile and Apparel Industry, Annals of
the Oradea University, Fascicle of Management and Technological Engineering, Volume VII.
6
Kabir, ASM (2007), The End of Textile Quotas, Dilemma and Vision of Garment Sector: A Case Study on
Bangladesh, University of East London
7
Rashid, M. A. (2016), Rise of Readymade Garments Industry in Bangladesh: Entrepreneurial Ingenuity or
Public Policy. World Bank & BIDS, Dhaka
8
Rahman, M. and Anwar, A. (2006), Bangladesh Apparels Export to the US Market: An Examination of her
Competitiveness vis-à-vis Chain, CPD, Paper No-62
9
Abdullah, M. Yusuf, A. (2008), Growth History of the Textile and RMG Industry: MFA Impact Analysis in the
Perspective of Bangladesh, AIUB Journal of Business and Economics.
10
Nuruzzaman, Ahasanul, H. and Rafiq, A. (2010). Is Bangladeshi RMG Sector Fit in the Global Apparel
Business? Analysis of the Supply Chain Management. The South East Asian Journal of Management, April 4(1):
53-72.
11
Nuruzzaman, M. and Haque, A. (2009). Lead time management in the garment sector of Bangladesh: an
avenue for survival and growth. European Journal of Scientific Research 33(4): 617-629.

incorporation makes it able to manufacture fabrics before taking orders from buyers, for
instance. The urge of Bangladesh textile and apparel industry’s improvement in reducing the
supply time required to produce and fulfil the orders placed by foreign companies using
modern, fast and effective machinery can reduce time taken to deliver the order maintaining
quality and gain more order.
Since the concentration of competition in both local and global business sectors is increasing
day by day, many textile and apparel companies and its service providers have realized the
need to develop more strategic approaches for managing supply chains. These affective
factors and realization then led to the development of tradition SCM systems up to the
advanced systems companies apply at present.
As soon as the concept of supply chain management grew as a new tool that can increase
better business performance and attractiveness, simultaneously the concept and efforts of
measuring this supply chain performance in the establishment came into existence.
Lam and Postle (2006) have reviewed the strengths and problems faced by the Textile and
RMG sector’s supply chains and argued that Bangladesh Textile and RMG sector industry is
generally not conscious about the concept of supply chain management12
. They address the
problem of short product life cycle, long processing lead time and demand uncertainty along
with the supply chain design in meeting the increasingly small product lot size, the needs of
transportation distance and others what increases the overall SCM cost.
Nuruzzaman and Rafiq (2005) took an attempt to develop more effective supply chain for
Bangladeshi RMG to enjoy competitive advantage in the global apparel business through
analysing the current supply chain and investigating the relationship among the players in the
supply chain13
.
Many researchers used different points and metrics to measure the effectiveness of supply
chain. Some claimed for financial fact and others claimed for non-financial fact as the
performance measurement of supply chain. Although there is no agreement on performance
measuring parameters or indicators in all industries or any single industry, many researchers
12
Lam, K. C., Postle, R. (2006), “Textile and Apparel Supply Chain Management in Hong Kong”. International
Journal of Clothing Science and Technology. Vol. 18, Issue. 4, Year 2006, PP. 265 – 277.
13
Nuruzzaman, Ahsanul Haque and Rafiq Azad (2005); “Is Bangladesh RMG Sector Fit in the Global Apparel
Business? Analysis the Supply Chain Management”

have shown common measures that are used in particular sector and others have shown cross-
industry performances that they have experienced in practice.
Avizit Basak (2016) acknowledged that six factors directly and indirectly impact on
effectiveness of supply chain, they are: (1) Forecasting demand (2) Customer orders
placement (3) Managing inventory (4) Planning production (5) Communication between
supply chain members (6) Managing distribution14
.
Chan (2003) proposed the analytic hierarchy process (AHP) of SC performance management
framework with the combination of both qualitative containing quality, flexibility, visibility,
trust, innovativeness, and quantitative metrics containing cost and resource utilization15
.
Gunasekaran (2004) presented three different levels to measure and implement performances
of supply chains in any organization. These measures are in strategic, operational, and tactical
levels what comprise different priority functions and policies as well as require different
levels of managerial involvements16
.
After reviewing the shortcomings of the existing SC performance measures what only
measures cost minimization and sometimes a combined measurement of cost and
responsiveness to customer demand only, Beamon (1999) proposed new model of
measurement adding some qualitative scopes such as “customer satisfaction”, “exchange of
information” and “management of risk”.
Felix (2003) proposed a new model to overcomes the shortcomings of existing systems
including the model by Beamon and Gunasekaran where “customer satisfaction, flexibility,
information and material flow information, effective risk management and supplier
performance” are considered as qualitative performance measures and “cost minimization,
sales, profit, investment on inventory, return on investment, fill-rate, customer response time,
lead time and capacity utilization” are considered as quantitative SC performances. Felix
14
Avizit Basak, Sobuj Kumar Ray, Md. Aminul Islam & M. M. Israfil Shhin Seddiq; Supply Chain Effectiveness of
Clothing Manufacturing Company in Bangladesh. Global Journal of HUMAN-SOCIAL SCIENCE: H
Interdisciplinary (Volume 16 Issue 5 Version 1.0 Year 2016)
15
Chan, T. T. S. (2003). Performance measurement in a supply chain. International Journal of Advanced
Manufacturing Technology, 21, 534-548.
16
Gunasekaran, A., Lai, K. and Cheng, T.C.E. (2008). Responsive supply chain: A competitive strategy in a
networked economy. Omega 36(4): 549-564.

(2003) also developed a fuzzy set model to measure SC performances of any complex supply
chains (Felix et al, 2003)17
.
Theeranuphattana et el. (2012) established a new model to evaluates SC performances using
the three approaches which are Multi-Attribute Value Theory (MAVT), Swing Weight, and
Eigenvector method what can convert the preference of managers to a 5-point or a 7-point
likert scale into numerical scores18
.
Another integrated approach, SCOR model deals with the designing of strategic issues in a
supply chain covering the five management processes- plan, source, make, deliver, and
return what studies all phases of a supplier’s supplier to a customer’s customer (Huang,
2004)19
. SCOR has integrated three major processes - business process re-engineering
(BPR), bench marking and determining best practices in an industry to find out the KPI) of
the supply chain and diagnose and identify poor performances.
The “Forrester-Model” (1961) is proposed introducing integrated supply chain based on
system dynamics what interacts with the flows of materials, orders, money, personnel, capital
equipment, and information including supply chain partners in a four-tier relationship (i.e.
factory, warehouse, distributor, and retailer) to analyse business systems depending upon
changing information and time20
.
Asgari and Hoque (2013) shows that the prospect lies in an integrated supply chain to provide
a competitive advantage by using a system dynamics approach to determine the main
variables which determines the performance of SCM in the industry. Since the end user of the
apparel fashion market are more time-sensitive; the minimizing lead time along with quality
and costing criteria is needed to get more orders from retailers21
.
Apart from these model of measuring supply chain performance, there are more researches
that have described and measured SC performance in new ways, but all the concepts of
measurements and models are not widely accepted and used both in academia and industries.
17
Felix, C. H., Q. Chan., H. Chan., Henry, C. W., Lau, R., and Ip, W. L. (2003). A conceptual model of
performance measurement for supply chains. Management Decision, 41(7), 635-642.
18
Theeranuphattana, A., Tang, J. C. S., and Khang, D. B. (2012). An Integrated Approach to measuring Supply
Chain Performance. Industrial Engineering & Management Systems, 11(1), 54-69.
19
Huang, S. H., Sheoran, S. K. and Wang, G. (2004). A review of supply chain reference (SCOR) model. Supply
chain management: An international Journal, 9(1), 23-29
20
Md Aynul Hoque. Analyzing and modeling of supply chain performance in Bangladesh Ready Made
Garments. Ritsumeikan Asia Pacific University, Beppu, Japan
21
B. Asgari and M. A. Hoque “A system dynamics approach to supply chain performance analysis of the ready-
made-garment industry in Bangladesh”, Ritsumeikan Journal of Asia Pacific Studies, Volume 32, 2013, Japan.

Chapter Three:
Research methodology
3.1 Research Design
This paper is being tried to complete micro level study in a confined, specific and a
given period. The research methods consisting of plans and procedures for organizing the
study and collecting data and their analysis are very important and vary with the nature of the
research. Cresswell described three types of research Qualitative and Quantitative and
another one is Mix method22
. I followed mix method both qualitative and quantitative method
simultaneously and then merged to compare and analyse them.
Data Collection
Qualitative Quantitative
Primary Secondary Literature review Annual Report
Survey Interview KGD Electronic Journal
Annual Report/Studies Prospectus Website
Data Analysis
Pie Chart SPSS Statistics Others
Findings
Recommendation
3.2 Questionnaires Design
Basically, two types of questions for survey. I asked mainly close ended questions and
included very few open-ended questions. I use open ended questions for an exploratory
22
John W. Creswell-Research Design_ Qualitative, Quantitative, and Mixed Methods Approaches-SAGE
Publications, Inc (2013)

research. All other supply chain concepts are more or less familiar in Bangladesh Ready
Made Garments (RMG) sector. We put the highest importance to the design of a good,
careful and focussed questionnaire since it is the key input to our research procedure and its
output. We achieved the necessary knowledge through literature review and we identified the
problems mainly from two sources of inputs. The first one is a literature review and the
second one is the informal discussion with some experts in the RMG field of Bangladesh. All
the apprehended questions were included in the questionnaires.
3.3 Sample and Respondent
The supply chain management concept is comparatively new in Bangladesh Footwear
sector and it requires a total knowledge of the whole supply chain of the to answer the
questionnaire. It also required proper knowledge about SCM. As are result, I considered
AGM, Manager, Executives and department head.
There are more than 4000 textile and apparels companies are enlisted under BGMEA and
BKMEA. So, my population is over 4000. Many companies are located outside of Dhaka, in
Gazipur, Narayanganj, Camilla, Mymensingh and Chittagong so data collection is difficult. I
take three companies for data and information collection for limitation of time and money.
So, my sample is three. They are given below
1) Partex Denim Ltd.
2) Multifabs Limited
3. Graphics Textile Ltd.
All three companies are hundred percent export oriented.
3.4 Data and Information Collection
The data have been collected on primary as well as on secondary basis. The secondary
data were used in the study. Those were collected from various publications, books,
Bangladesh Economic review and the annual reports etc.

Primary Source of Information
• Operational process during manufacturing products
• Observation of various departments
• Interview with managers and executives.
Secondary Sources of Information
• Annual Reports and Periodic Bulletins
• Different websites, BGMEA and BKMEA
• Company documents, online books, research papers, professional blogs, journal
articles etc.
After getting adequate materials, I then went through the materials and was trying to find the
answer of my objective questions. Within the process I had to contact with my supervisor.
Evaluating all the information I gathered, I reached the conclusion.
3.5 Measurement of the Questions -Data Analysis
In analysing the data collected for this study, Likert’s Summative Rating scale used in
section for easy construction of table analysis and reliability of data. Mean rating will be used
to rate the variables. Likert’s Summative Rating method of analysis was used in the analysis
these research questions.
The assigned weight to the various alternatives is
Strongly Agree=5,
Agree=4,
Neutral=3,
Disagree=2
and strong disagree=1.
Mean rating was used for the variables. To get the mean of each table this formula was used
Mean = X̄ = Σx / Σf

Where f =frequency of respondent
x=weight assigned to each alternative
Formula for calculation as used in the research is by multiplication of number of respondents
under each option with the weight assigned to the option and summing up to divide by the
total number of respondents in order to give the mean rating.
The decision rule is that the mean ( X ) of the total response falls –
4.5 to 5.0, it means Supply Chain is - ‘Highly Effective’
3.5 to below 4.5, it means Supply Chain is - ‘Moderately Effective’
2.5 to below 3.5, it means Supply Chain is - ‘Marginally Effective’
2 to below 2.5, it means Supply Chain is - ‘Ineffective’
1 to below 2.0, it means Supply Chain is - ‘Highly Ineffective’
Standard Deviation is also calculated in order to verify the reliability of data. Standard
Deviation less than 1 (SD < 1) is considered as reliability of data as difference between
responses is low.
3.6 Questionnaire Sample:
Respondent :
Working place:
Designation :
When did start its journey in Bangladesh?
1. What are the main tasks of the supply chain management agent?
2. How do you select a supplier?
3. Which materials are outsourced and how much of total outsourcing volume?
4. When and in which stage of the manufacturing process do you check the quality of
the product?
5. What is the solution if the supplier fails to meet up the shipment deadline?

6. Do you have any Sub-contractor for production to carry the order volume and meet up
the delivery deadline? If yes, then how many sub-contractors do you have?
7. How much time is involved for sourcing, inventories, production, Quality Check,
packaging for distribution?
8. Do you face any problem in the port area regarding the shipment/ commercial?
9. Do you use ERP? If you use ERP, how it helps in the Supply Chain Management?
10. Do you face any problem in coordination and communication with backward and
upward linkages?
Please give number to the below alternatives:
For Strongly Agree=5, Agree=4, Neutral=3, Disagree=2 and Strong Disagree=1.
Alternatives 1 2 3 4 5
Supply chain operating costs are relevant.
Procurement, manufacturing and delivering stages
are able to coordinate to reduce time & cost.
Company has cost effective transportation system.
The response time of order placement is fast.
Inventory management department maintains
enough inventories to allow uninterrupted
production.
Order Lead Time is good enough compared with
the industry average.
Suppliers are reliable to supply the right materials
to the right place at the right time.
Company has cost effective warehouse strategies
to reduce the cost to maintain inventory.
Shipments are delivered as per the dateline
Strategic planning and timely decision has taken
to enhance performance
Supplier relationship Management (SRM) is
effective.

Customer relationship Management (CRM) is
effective.
Just in Time (JIT) Supply Model is applied.
Holding safety stock and subcontracting are
practiced
Total Quality Management (TQM) is practiced
Proper coordination among different departments
is practised to ensure the effective supply chain
management
Proper monitoring from top level helps to increase
the effectiveness of supply chain management
Information flow is effective.
IT Management is up to date and well-practiced
Elimination of Waste/Unnecessary inventory level
is practiced.

Chapter Four:
Company Profile
To evaluate the effectiveness of Supply Chain Management in Textile and Apparel
Industries of Bangladesh, I have selected three company - Multifabs Limited (ML), Partex
Denim Ltd. (PDL) and Graphics Design Ltd. (GDL) as a sample of my case study.
Multifabs Limited:
Multifabs Ltd. is a hundred percent export oriented manufacturer of all sorts of knitted
apparel of latest quality and design conforming to ethical and eco-friendly standards. The
Multifabs Ltd. factory premise consists of three buildings, 7 storied, 5 storied and 11 storied
storied buildings. They started the production in first two buildings in2006. Since then,
sustaining a spectacular growth at a rate of more than 20 percent a year, it exported apparel
worth US $20 million in 2010. Among many indicators, whatsoever, perhaps this increase of
export alone would sketch the degree of its exponential growth. Multifabs Ltd. is directed to
offer organic cotton products for
all segments of apparel users
including babies and infants. It
maintains eco-friendly living
around its factory base. It
conforms to all ILO standards
applicable in the country.
Multifabs Ltd. is WRAP
certified23
.
Vision:
To be the most admired and trusted organization through excelling in everything we
do following ethical business practices and adding value to stakeholders
23
Multifabs Limited; http://www.multi-fabs.com; Accessed on 10 June 2017

Location:
Corporate Office: House-532 (2nd Floor), Lane-11 DOHS, Baridhara, Dhaka
Factory: Noyapara Kashimpur, Konabari, Gazipur
Tel No : (+880-2) 8410008, (+880-2) 8416151-52, (+880-2) 8416150
Fax No: +880-2-8417496
E-mail : faruqui@multi-fabs.com
Web URL: www.multi-fabs.com
Contact person:
Mahiuddin Faruqui Bivuti Hira
Chairman and Managing Director Manager (Compliance)
Cell: +8801711-591175 Cell: +880 1730734892
E-mail: faruqui@multi-fabs.com E-mail: mgr.compliance@multi-fabs.com
Capacity and product:
Multifabs Ltd. used to produce about 70,000 pieces of very high quality knit apparel a
day earlier but, to meet its buyers' increased demand, it has doubled its capacity in the year
2010.
Knitting: It produces many kinds of knit fabrics e.g. Single and Double Jersey, Cotton
Elastane, Rib, Rib Cotton Elastane, Interlock, all kinds of Drop Ribs and Piques, Engineering
Stripes, Fleece, Terry Fleece, Thermal, Jersey Twill and many more. Including Auto Stripe
fabrics, it can produce about 15 tons of knit fabrics per day.
Dyeing: It can dye about 15 tons of fabrics using latest technology and well-known brand
machinery.
Printing: It can print 20,000 pieces of garments a day in 12 colours by pigment, silicon, puff,
flock, transfer, glitter, metal stone and rubber.
Embroidery: It is capable of 520000 pcs monthly production.
Garment: It has 37 lines of sewing machines. It is now exporting about 1,800,000 pieces of
garments every month.

MIS Automation Process: It helps monitor the entire production, inventory, quality,
delivery, HR, and technology status maintaining a high speed Earth-net Local Area Network.
Buyers:
Stockmann Plc (Lindex), ALDI North, ALDI South, Dansk Supermarked A/S, Shop
Direct, Wuensche Group, Steilmann Holding AG, RNB RETAIL AND BRANDS AB, Teddy
Spa, Baumhueter International GmbH, METRO AG, Takko Holding GmbH
Organizational Structure:
Multifavs employees over 3 thousand skill workers and 200 supervisory and
managerial staff in its production facilities and office. Compliance:
Partex Denim Limited:
Partex Denim Limited, a sister concern of Partex Group, Country's pioneer in Latest
& largest Denim fabrics manufacturer Industry in Bangladesh Built in an area of 30 acres of
land with vertical set up. Established in
2005 to meet the domestic demand and
direct export to abroad on demand of
buyer. Since then the company is
growing and in recent years it has an
export turnover of US$ 50-60 million
per year contributing a substantial share
in country's export earnings. Factory is
located 60 km from Dhaka city, 1.5-
hour drive from City.
Corporate logo:
Partex Denim Limited maintains this logo
from the initial stage of its business. With this logo
Partex has taken its identity towards the people of
the world.

Location:
Head office: House # 37, Road # 1, Block # I, Banani, Dhaka-1213, Bangladesh.
Factory: Bangla Bazar, Bhawal, Rajendrapur, Mirzapur, Gazipur, Dhaka
Tel: +880 2 9872340 9872370
Fax: +880 2 9872360
E-mail: mail@partexgroup.com
Web: http://www.partexgroup.com
Vision & Mission:
To offer world class Denim fabrics from Bangladesh for all valued customers to earn
their long term confidence & Trust.
To achieving our vision Partex is consistently working to equip their company with
specialized state of the art machinery to meet the needs & requirement of global market with
green mind in harmony with nature “Compliance & Safety” at in highest priority.
Products:
It produces various Denim fabrics, Denim Shirt, Trouser and Jacket. Partex Denim
limited is a fully vertical unit of Fabrics Manufacturing, Dyeing, Printing, Finishing and
packaging of Denim fabrics and they have different section for all of these.
Production Capacity:
Looms : 348
Capacity: 160000 Meter/Day.
Capability: 04.50 oz to 16.00 oz.
Partex Denim Limited has weaving facilities with 348 Air jet looms. The Mill is capable to
made Denim fabrics like Cotton Denim, Slab, STP, SPD, RSD, Ring, PD, OPAL, OE, LT,
Stretch, Cord knitted, Grey, Stripe & Check, Herringbone & Zigzag Denim etc.
Major Buyers:
Marks & Spencer, H & M, Adams, Charles Vogele, C & A, Next, Okaide, Zara,
Lindex and Tom Tailor.

Organizational Structure:
Partex Denim Limited is a 100% export oriented private limited company (PLC)
engaged in manufacturing and exporting Denim fabrics. It is the most latest & larges Denim
project in Bangladesh and successfully carrying out its business since last 10 years. Partex
Group started its journey in 1959 with the torchbearer M.A Hashem, founder chairman of the
group. The yearly turnover of the company is $ 50-60 million. Partex has 25,000 employs.
The Board of Directors of it:
➢ M. A. Hashem, Chairman
➢ Showkat Aziz Russell, Managing Director
Graphics Textiles Limited:
Graphics Textiles Limited is an export oriented circular knit composite factory what
started its production in 2008. It was established in April 2006. It focuses on quality and
punctuality in providing products
to buyers with a headache free
solution by forming a strong
partnership with its buyers. Social
and environmental compliances are
strictly maintained as well as it
creates a happy workforce f better
quality product24
.
Corporate logo:
Graphics Textiles Limited maintains this logo from the
initial stage of its business.
Address:
Head office: 225, Tejgaon I/ A, Dhaka-1208, Bangladesh
24
Graphics Textiles Limited; http://www.graphics.com.bd/; Accessed on 11 June 2017.

Factory: Sreerampur, Sutipara, Dhanmrai, Dhaka, Bangladesh
Tel: +88028819464
Fax: +88028819472-3
Website: http://www.gtltd.com.bd; http://www.graphics.com.bd/
Contacts:
Arifur Rahman, DGM Compliance Mohammad Ali Hasan, AGM O&M
Graphics Textiles Limited Graphics Textiles Limited
+8801988885530 +8801988885690
arifur.rahman@graphics.com.bd ali.hasan@graphics.com.bd
Capacity and Products:
It can produce Knit Fabrics 12,000 Kgs per day and 3,00,000 Kgs per month. In its
Garments section, it can produce 36,000 Pieces T-shirt per day and 9,00,000 Pieces T-shirt
per month by 20 Basic T-shirt lines and 16,800 Pieces Polo Shirt per day and 4,42,000 Pieces
Polo Shirt per month by 12 Polo Shirt lines.
Organization structure:
GTL has total 3500 employees where 2000 employees are female and 1500
employees are male. The top management body consists of these people:
Najib Malek Chowdhury – Managing Director
Warid Malek Chowdhury – Director Operations
Ehtesham H Khan– Director Logistics
Major Buyers:
BESTSELLER, Otto Group, Ernsting's family GmbH & Co. KG, KappAhl, Marks &
Spencer, Fruit of the Loom, Sandryds, New Frontier GmbH, APG & Co.

Chapter Five:
Supply Chain Practice in Bangladesh Textile and Apparel Industries
5.1 Bangladesh and Textile and Apparel Industries:
The textile and readymade garment (RMG) industry acts as the backbone of
Bangladesh economy. The RMG sector is the largest employer in the country. In 2015-16
fiscal year, there were 4328 factories in the country and employed about 4 million workers of
whom 85% were women (BGMEA25
). More than 95 per cent of those factories are locally
owned except very few foreign owned factories. In 2015-16 fiscal year, the total RMG export
was 28094.16 million USD what is the 82.01% of total export of Bangladesh (Export
Promotion Bureau). Shirts, T-shirts and trousers are the main woven products and
undergarments, socks, stockings, T-shirts, sweaters and other casual and soft garments are the
main knit products. Although various types of garments are manufactured in the country,
only a few categories, such as shirts, T-shirts, trousers, jackets and sweaters, constitute the
major production-share (BGMEA). The textile and apparel industries can be divided into
several groups such as Yarning, Fabrication, Dyeing and Garment. Finished goods from each
unit are supplied to both within groups and external customers.
Important issues related to the Bangladesh ready-made garment industry:
Year Issue
1970-1980 Early period of growth
1982-1985 Boom days
1985 Imposition of quota restriction
1990 Knitwear sector developed significantly
1993 Child labor issue and its solution
2003 Withdrawal of Canadian quota restriction
2005 Phase out of quota restriction
2006 Riots and strike by garments labor
2007-2008 Stable growth
2008-2015 Continuous growth
25
BGMEA; http://bgmea.com.bd/home/pages/TradeInformation, Access time: 20 June 2017

Source: Compiled by the databases of the Bangladesh Garment Manufacturers and
Exporters Association, and the Export Promotion Bureau, Bangladesh.
5.2 SCM at Textile and Apparel Industries:
Supply chain plays a key role in assembling a manufacturing process to transportation
of final goods and service to customers. The supply chain process starts with suppliers,
manufacturers, distributors, retailers, customers and suppliers, service providers, customers,
and end with consumers respectively to add value to the product. The basic supply chain of
textile and apparels garment industry in Bangladesh includes supplier, manufacturer, ultimate
consumer, and service provider. For Bangladesh textile industry, Local and Foreign - two
main types of customers are included in the supply chain. The value making chain of this
industry seems to look as below:
Source: Self-Constructed
Farming
Ginning
Raw Cotton
Spinning
Printing/
Embroidery
Dyeing
Local customer /
Foreign customer
Knitting
Weaving
Yarn
Formation
Import from Foreign/
Local SupplierFabric
Formation
Import from
Foreign Supplier
Cutting Sewing Finished goods

The basic diagram of supply chain in apparel industry is shown below:
Backward Linkage Manufacturer Forward Linkage
Flow of Demand Flow of Supply
Source: Self-Constructed
Customers always gives greater value on better quality with rational price and delivery time.
For this reason, manufacturers have to place more value on quality and lead time in today's
highly competitive global marketplace.
In this competitive global market, the competitiveness and profitability can be achieved
through increasing quality and minimizing cost and delivery time through the support of
Sales Plan and Demand
Forecasting
Order receiving
Strategic Planning
Sample Development
Sample Approval
Raw materials Sourcing
Raw materials In-house
Cutting
Sewing / Weaving
Quality Inspection
Washing
Finishing
Quality Inspection
Packing
Warehousing
Shipment Audit
1. Import
cotton, yearn
and other raw
materials
2. Processed by
spinning,
weaving or
composite unit
3. Dyeing,
Printing,
Finishing
4. Embroidery
Local Supplier/
Foreign Supplier
Consumers
Buyers /
Retailers
Shipment
C&F Agent
Transportation
Supporting
Activities like 3rd
party inspection
Transport&LogisticsSupportWarehousing
Sub-contractor
AlterrAlterr
Buying House/
Buyers’ Agent

supply chain management. In the process, if any tiny material is being missed or delayed, it
not only generates a small gap in the line but also jeopardizes the whole process. For
example, simple schedule failure, unplanned sourcing, surplus or scarcity of inventory, lack
of coordination etc. can create the gap what will make negative impact in the delivery time,
costing, next order receiving, branding and finance. Without effective supply chain
management, even overtime and unauthorized sub-contract cannot fill the gap but increase
the overall cost of the process and violation of compliance. So, the integration of effective
supply chain is very important in Bangladesh textile and apparel industry.
Though there are some lack of proper integration of effective supply chain in in this industry
but it is trying to develop it using the available information and resources carefully to
decrease operational costs, increase the companies’ responsiveness as per the demand,
decrease order cycle time as well as improve overall productivity.
The practice of SCM of Bangladesh textile and apparel industry can be categorized in two
level – decision level and production level.
Decision Level:
Effective supply chain management needs many decisions relating to the flow of
information, product, and funds what fall into three decision phases - Supply Chain Strategy,
Supply Chain Planning and Supply Chain Operations depending on time and frequency of
each decision over which decision phase has an impact 26
. Bangladesh textile and apparel
industry takes the strategic, the tactical, and the operational level decision based on time and
supply chain activity.
In strategic level, top management takes on total cash flow time for Plan activity, range of
product and services for Make activity and effectiveness of enterprise distribution planning
schedule for Delivery activity.
In tactical level, management makes short-term business decisions to meet customer demands
and achieve the best end value controlling costs and minimizing risks. Such as, accuracy of
forecasting techniques for Plan activity, supplier booking procedure for Sourcing activity,
26
A. K. M. N. Huda, B. B. Pathik, A. A. Mohib and M. M. Habib,“Structuring Supply Chain Model for JMI Group:
A Case Study”, in Proceedings of the International Conference on Innovation Driven Supply Chain 2014,
Malaysia, 26-28 March 2014. ISBN: 978-983-43522- 2-6.

capacity utilization for Make activity and effectiveness of delivery invoice methods for
Delivery activity.
In operational level, management takes the day-to-day decisions. Without focusing on the
strategy and tactical levels, many textile and apparel industries make mistakes by jumping
into operational level. In operation level, these factories takes the decision regarding order
entry method, supplier pricing, human resource productivity index, cost per production hour,
on time delivery, quality of delivered goods etc.
Production Level:
SCM of Bangladesh textile and apparel industry has basically four activities – plan,
source, make and delivery. Though most of the textile and apparel factories has no separate
SCM department but the SCM activities is conducted by other related department – Purchase,
Store, Merchandise and Commercial Departments. These departments mainly focus on three
works:
➢ Purchasing and sourcing of raw material
➢ Coordination in import
➢ Coordination in export
Sales Plan and Demand Forecasting
In textile and apparel industry demand of raw materials are creating by marketing and
production department as per buyer’s order and annual demand forecasting. For the demand
of Fabrics and accessories against a buyer’s order, marketing department raise indent to
procurement department and for chemical and machineries production department raise
indent to procurement department. For Fabrics and accessories marketing department submit
buyer approve sample and buyer’s instruction to procurement department.
Sourcing and Procurement Plan
The Supply Chain department prepares the sourcing and procurement plan to select
and evaluate suppliers based on the Material Requirement Planning. As per the company

policy all materials are kept stock for minimum 07- 30 days based on the availability, lead
time and nature of the goods.
Sourcing Component
Sourcing are usually triggered by a business requirement for a product or service.
Material requirements might include:
• Equipment
• Components
• Raw materials
• Finished products
Service requirements might include:
• Computer programmers
• Hazardous waste handlers
• Transportation carriers
• Maintenance service providers
The main raw materials for textile and apparel industry are cotton yarn, copper or zinc
used for buttons, rivets and zippers. So, when the manufacturer receives the L/C from the
buyer, he/she opens back to back L/C for obtaining the required yarn and accessories.
Generally, the yarn is booked with a yarn manufacturer and then the yarn manufacturer gets
the back to back L/C for the yarn. For an average quality and quantity of yarns, it takes about
10-30 days to get them. Yarn and Thread outsourced 75% from local factories and 25% from
Chinese factories.
Analyse the Purchase Requisitions
When there is need to have something. Purchase Requisitions is made. After getting the
requisition, it should be analysed. It contains:

• Description of required material or service
• Quantity and date required
• Estimated unit cost
• Operating account to be charged
• Date of requisition
• Date required
• Authorized signature
Statements of Work (SOW) for services specify the work that is to be completed, when it is
needed, and what type of service provider is required.
• Marketing may want to purchase an advertising campaign.
• R&D may need a clinical trial.
• Human resources may need to print a brochure.
Suppliers Selection and Contracts:
The vendor selection process can be a very complicated task. A list of promising
suppliers will appear when the analysis has been completed. Most of the textile and apparel
industry selects desired suppliers by using a variety of mechanisms including-
1. Offline competitive bids – Selecting best one from suppliers who have submitted
proposals as per the request of textile and apparel industry.
2. Reserve auctions - textile and apparel industry has the right to discard the proposal,
if the winning proposal is below the reserve price.
3. Direct negotiations.
No matter what mechanism is used, supplier selection should be based on total cost of
using a supplier and quality is being delivered and not just the purchase price.
Before selecting a supplier, textile and apparel industry decides whether it will use
single sourcing process or will use multiple suppliers. The basic diagram of supplier selection
and contracts:

1. Recognition of need
2. Define Minimum
Qualification Level and
specification
3. Define Supplier
Selection and Evaluation
Criteria
4. Identifications and analysis
of possible sources supply
5. Make a List of Qualified
Suppliers
6. Develop Decision Hierarchy
7A. Pairwise Comparison of
Criteria
8A. Pairwise Comparison
of Suppliers
7B. Relative priorities of
Criteria
8B. Relative Priorities of
Supplier
9. Calculate Overall Prioroties
of Suppliers
10. Select Supplier with
Highest Priority
11. Preparation and placement
of the Purchase Order
12. Follow-up and /or
expediting of the order
13. Receipt and inspection of
goods
14. Invoice/bill clearing and
payment
16. Maintenance of records
and relationship
Analyze the Requirements:
Before textile and apparel industry begins to gather data and interviews, assemble a
team of people who have an interest in this particular vendor selection process. The first task

that the vendor selection team needs to define what is looking for, the product or service
specification, requirements for vendors, business and technical aspects, and how they will
give weight for the requirement.
Vendor Search:
After developing the requirements, the team searches for potential sellers that will be
able to provide the raw material, product or service as per requirements and make a short
pool of sellers after basic screening. Finally, textile and apparel industry assesses their
responses as per their given RFI (request for information) and make a "Short List" and move
on to the next round.
Request for Proposal (RFP) and Request for Quotation (RFQ):
After that textile and apparel industry ask for a Request for Proposal or Request for
Quotation from the selected short list. Most of the textile and apparel industries’ RFP and
RFQ contain the following sections:
• Submission Details
• Introduction and Executive Summary
• Business Overview & Background
• Detailed Specifications
• Assumptions & Constraints
• Terms and Conditions
• Selection Criteria
Proposal Evaluation and Vendor Selection:
To maintain effective supply chain management, textile and apparel industry seeks
input from all stakeholders and use the following methodology to lead the team to a unified
vendor selection decision:
• Preliminary Review of All Vendor Proposals
• Record Business Requirements and Vendor Requirements
• Assign Importance Value for Each Requirement
• Assign a Performance Value for Each Requirement
• Calculate a Total Performance Score

• Select a winning supplier
In-depth Supplier evaluation:
In-depth evaluation is compulsory for major procurements. It is used for non-routine
supply items of higher value and higher quality product or essential raw materials. It starts
with a list of potential suppliers and assessed in the below six assessment criteria:
1. Equipment and facilities
• Up-to-date? Technical level compared to sector average.
• Ability to expand in the future?
• Expertise level?
• Innovation and technical creation.
2. Operation and Processes
• Ramp-up capabilities?
• Process cycle times? Lead time?
• Customer Service and Responsiveness?
• Reliable quality control program?
• Inventory management?
• Working conditions? JIT or TQM?
• Status of back orders?
3. Risk Factors
• Suppliers’ risk and risk of engagement with suppliers
• Legal, geo-political and cultural risk
• Trade & exchange rate related risk etc.
4. Financial Capabilities
• Sales rate and profitability rate
• Liquidity, ROI, and Debt ratio
• Transparency in financial data etc.
5. Management Capabilities
• Project management skills?
• Stable, harmonious team?
• How do they view your company as a customer?

• Long-range strategic vision?
• Leadership?
6. Information Systems
• Up to date?
• Training requirements?
Weighted Point Method:
Most of the textile and apparel industry ranks suppliers according to the score gained
against the required criteria using a Weighted Point evaluation system. For example, Partex
gives weights on quality, delivery, price, and service of and provides score from 1 -5 for two
suppliers in these criteria and assess the total score as per the below graph.
Factor Quality
Vendor A
(Score 1-5)
Vendor A's
Score
Vendor B
(Score 1-
5)
Vendor B's
Score
Quality 40 4 out of 5
=(4/5)40
= 32
3 out of 5 24
Price 30 3 18 4 24
Delivery 20 4 16 3 12
Service 10 2 4 3 6
Total=100 70 66
In this example, Supplier A has a score of 4/5 on quality, 4/5 on delivery, 3/5 on
price, and 2/5 on service, with a total score of 70. Supplier B scores is not better than A on
quality, not as well on delivery, but better on price and service. Given the associated weights
on quality, delivery, price, and service that are important to the purchaser, the weighted
scoring system suggests that Supplier A is better suited for this purchase, and should be
awarded the contract.

Evaluating through sustainable criteria:
In recent year, supply chain management (SCM) is forced to increase its focus on
sustainability not for only buyers requirement but also for own sustainability. This a universal
check list is divided into three parts such as economic, environmental, and social with lots of
sub criteria. The number value is given on the level of implementing or practicing each
criterion and then compare with the figures what is found from the value given. Here is a
sample of the checklist –
Level of implementing
Dimension Sub-Criteria Not at
all
imple
menti
ng
Slightly
impleme
nting
Some
what
imple
menti
ng
Modera
tely
implem
enting
Extre
mely
imple
mentin
g
Economic Economic performance
Market presence
Indirect economic impacts
Optimization of Flow
management through logistics
integration
Quality
Delivery/Service
Cost
Technical capability
Credit strength
Financial stability
Initial price
Reduce excess packaging
Environme
ntal
Recycled material
Nontoxic materials
Nontoxic Energy
Nontoxic water
Biodiversity, reduce

emissions, Effluent and waste,
compliance, and transport
Green image
Pollution control
Green competencies
Environmentally friendly
transport
Resource sharing Solutions
Environmental management
systems for preventing and
controlling pollution (such as
emissions, effluents, and
waste)
Resource consumption
(energy, water, minerals)
Recycling
Animal rights
Packaging – may use
renewable or non-renewable
resources, and generate
recyclable or non-recyclable
Waste
generates significant
greenhouse gas (GHG)
emissions
Environmental degradation
and animal welfare issues
related to farming (e.g. cotton
and wool
High use of water, largely
potable (high quality, treated
and drinkable) in manufacture
and for the care of the product

throughout its life
Social Discrimination in employment
(age, religion, gender, and
other similar factors
Child labor
Flexible working
arrangements
Satisfactory working
environment
Health and safety of the staff
and customers,
Customer privacy, and cultural
properties
Wage standard (Standard of
wages against man hours
spent)
Discrimination
Sanitation (population who
have adequate sewage
facilities
Health care delivery (Access
to primary health care
facilities
Safety measures (Safety
measures undertaken by the
company to protect the
employees)
Human rights
Percentage of child employed
Living conditions
Collective bargaining

Employment practices
(Training, Disciplinary and
security practices)
Health & safety (Safety audit
and assessment, Standardized
health, and safety conditions)
The table clearly shows the suppliers’ implementation level of such three dimensions
(Economic, Environment, and Social) of sustainable criteria. Numeric value has been added
on this table for each criterion after assessing each supplier. For example, Graphics Textile
finds three different figures or graph to compare further like the below graph:
Price negotiation procedure with different suppliers:
The final stage in the vendor selection process is developing a contract negotiation
strategy. Review textile and apparel industry’s objectives for the contract negotiation and
plan for the negotiations be covering the following items:
• List rank priorities along with Alternatives
• Know the difference between what it need and what it want
• Know the Bottom Line of the negotiation
• Define any Time Constraints and Benchmarks

• Assess potential Liabilities and Risks
• Confidentiality, non-compete, dispute resolution, changes in requirements
In price negotiation step, most of the textile and apparel industries ranks priority with
alternatives and chooses a bottom line of the negotiation and benchmark, risk and
contingency plan and then follows the below steps:
For selling, textile and apparel industry always tries to implement its pricing strategy
as per buyer satisfaction. The main aim of pricing policy not only gain new customer but also
retain existing customer through customer satisfaction. Now a days, textile and apparel
industry develops its strategy in such a way to survive effectively over the competitors.
Placement Process of an Order:
Textile and apparel industry places the purchase order for raw materials and fabrics to
the suppliers through some common medium, the mediums are:
➢ E-mail
➢ Phone
➢ Supplier Representative
➢ Letter
➢ Fax
Arrange meeting with different suppliers/buyers
Collect price offer from different suppliers/buyers
Select some price
Argument with selected suppliers/buyers
Fixed up price with win situation
Placing order to supplier/buyers

It requires highest 20 days. The company asks for pro forma invoice from the
suppliers using the aforesaid means of communication where the terms and conditions are
mentioned clearly. Below items are included in P.O:
➢ Order quantity.
➢ Product
description.
➢ Size breakdown.
➢ Mode of shipment
(Must also be
included in L/C)
➢ Buyer details.
➢ Country of origin
➢ Payment terms.
➢ Carton marks.
➢ Time to ship the goods
etc. (Must also be
included in L/C)
➢ Fabric construction.
➢ Care label instruction.
➢ Port of loading
➢ Supplier bank address.
Use of Incoterm in Global Supply Chain:
Bangladesh textile and apparel industries outsource most of its manufacturing raw
materials from abroad as well as it is 100% export oriented factory. That is why, Incoterms or
International Commercial Terms play a great role in supply chain. Most of the time textile
and apparel industry inclines to import on CIF (cost, insurance & freight) or C&F/CFR (cost
& freight) Incoterms and therefore, it leaves the organization of the transit with the supplier.
For this reason, sometimes industry has to spend and waste time accelerating and checking
where the goods are, when they will arrive etc. And textile and apparel industry often inclines
to export on FOB (Free on Board) Incoterms and therefore, it pays the cost upto carriage.

Collect PI from supplier, Check and Send for open LC:
Textile and apparel industry collects a Proforma Invoice (PI) after getting product
offer from supplier by e-mail, fax or courier services. Then P.I. is checked by the responsible
personal of procurement department and send to commercial department for open Letter of
Credit (LC) against the supplier. Order for raw materials is placed to supplier through a
negotiated instrument or through a back to back L/C. This includes complete specifications of
fabrics & other materials. This ensures right quality of good in appropriate quantity to be
sourced on time.
The Procurement Process:
There are two main categories of purchased goods of textile and apparel industry -
Direct and Indirect materials. Since most of the textile and apparel industry produces 100%
export oriented textile and RMG products, the main raw material is the fabrics, dyes &

chemicals and accessories. The company imports most of the Yarn from locally as well as
from abroad, Chemicals from China, Taiwan, and Germany etc. Some factories source their
accessories and packaging materials from local suppliers i.e. Partex prefer YKK for
accessories and some abroad suppliers also as per buyer’s requirement. For international
purchase, textile and apparel industry works through C&F agent in port and carries the goods
by its own transport from port to the bonded warehouse.
Most of the textile and apparel industry does not have any written procurement policy.
But company is trying to develop a standard procurement policies and procedure. So, till
today procurement functions of the company are conducted by verbal instruction of top
management. Managing Director of the company approves all purchasing requirement
directly and indirectly.
Inventory Management and the Role of the Safety Inventory:
Inventory management of textile and apparel industry is one of the important function
of SCM. Without analyzing the cost of keeping inventory and demand forecasting, sometimes
industry tries to keep more raw product inventory, the work in process inventory, or the
finished goods inventory to minimize the lead time and ensure the order from buyer. But it
can be possible by improving the management of supply chain. But safety inventory/stock is
also practiced in of textile and apparel industry since demand forecasts is uncertain. As a
safety inventory, Partex Denim and Graphics keeps small amount of gray yearn, different
categories work in process, and finished item. Raw material inventory is used for upcoming
product, work in process inventory is already in use of making product and the finished goods
inventory is ready for the shipment.
Supplier Raw Materials inventory Work in Process inventory Finished goods
inventory Customer.
Source: Basak; Supply Chain Management in Garments Industry27
Textile and apparel industry usually maintain these three types of inventory management
which are given below:
27
Avizit Basak, M. M. Israfil Shahin Seddiqe, Md. Rifaul Islam, & Md. Omar Faruk Akanda. Supply Chain
Management in Garments Industry. Volume 14 Issue 11 Year 2014

a. Overall Inventory Control system:
I. Enter all stores transaction on-line.
II. Track all material by batch number or lot number by store department.
III. Generate stock ledgers and other reports and keep documentation.
b. Finished Goods Inventory:
I. Enter all stores transactions on-line.
II. Track stocks batch wise with manufacturing details.
III. Print stock statements and stock ledgers instantly with ultra-fast processing
engine.
IV. Print excise bond stock statement.
c. Warehouse Inventory:
I. Record finished Goods receipt by warehouse.
II. Record delivery from warehouse.
III. Record inter-warehouse transfers.
IV. Generate warehouse wise stock statement and various other reports including
warehouse wise sales, product wise sales and region wise sales.
Some textile and apparel industries uses A-B-C approach in classifying the inventory to
allocate effort to different inventory items according to the relative importance measuring the
relative value and number of items.
Based on the uses rate and lead time, some textile and apparel industries identify reorder
point or fixed order size to minimize the annual cost of holding and ordering products. Unless
the quantity discounts impact on the overall cost of holding and ordering, this re-order point
is maintained.
The Bullwhip Effect:
Textile and apparel industry maintains the bullwhip effect by the experience of
fluctuation in ordering quantity in different seasons of the year. The quantity of order varies
in winter and summer season. High quantity of order is placed in the month of September,
October, November and December. And then from January to August they received law
quantity of order. In general, demand for yarn is prevailed in whole year yet from September

to April demand goes at high. Sometimes most of the company produces yarn at its highest
capacity around the year to sell in pick season but they suffer from various storing problem of
that yarn. Different storing costs are associate with this. Depending on the time and trend,
successful textile and apparel industries maintain rational inventory and backward and
forward linkage.
Product Development:
For developing new product, textile and apparel industry follows the requirements of
buyers’ and customers’ demands. Some of textile and apparel industries have own R&D
department and studio which support in new product development. It follows the below steps
in product development:
1. Know the customer demand or buyers’ requirement
2. Design approved
3. Upgrade design if required
4. Customer approved
5. Test by third party e.g. SGS / INTERTECK / TUV
6. Confirmation
7. Sample making
8. Technical data sheet for the product
9. Prototype production
10. Bulk Production after getting order
Distribution System:
Moreover, some textile and apparel industries e.g. Partex Denim Limited has own 13
covered van carriers to deliver the product to the buyers timely. Some time they convey
goods from their supplier by these covered vans. The company make contract with third party
carrier service to transport the product in shortest possible time to avoid the failure of
shipment date of the buyers. When goods are received by customer, the company will send an
invoice for delivering products. For retail storage, industry uses the hired or customer pickup.

Returning:
Textile and apparel industries must create a network for receiving defective and
excess goods back from buyers and supporting buyers who have problems with delivered
goods. The successful companies allow the buyers to replace the defective products with
good products. Some company use its own transportation to collect the defective product for
replacement.
Supply Chain Cost:
Different costs are associated with export of finished goods and import of raw
materials, Such as Fabrics, Dyes, Chemicals, accessories and packaging materials. Such as,
order handling, production, transportation, insurance, warehousing, internal material handling
cost, obsolete losses, transit losses, stealing and etc.
Supplier Relationship Management:
Now-a-days, textile and apparel industry believes in long term business relationship
with its supplier rather than switching too much. For example, Graphics Textile tends to buy
its 75% raw material from the existing suppliers and left 25% raw material is sourced as per
the buyers’ requirement or potential new suppliers. That is why the supplier relationship
management play a vital role in its supply chain process to create closer, more collaborative
relationships with key suppliers to uncover and realize new value and reduce risk of failure.
Green Supply Chain Management:
Bangladeshi textile and apparel industry tries to implement green supply chain
management not only for the international buyer’s requirements but also from the
responsibility to the human, environment, and country. Multifabs, Partex and Graphics
Textile all of them earned ISO 1400 and Oeko-Tex Standard 100 certification for practicing
green manufacturing what is related with its commitment of green supply chain management.
It has intention to build a green factory.

TQM in Supply Chain Management:
Quality in production and satisfaction of customer can not be without total quality
management in supply chain process of textile and apparel industry. That is why, its’ supply
chain is customer focused and involve with people and believes in mutual beneficial supplier
relationships. Based on customer needs and demand and factual approach to decision making,
it develops process and system management to achieve continual improvement in supply
chain.
Use of Technology in Supply Chain:
Most of the textile and apparel industries use information technology in different
departments. For example, Partex is the first garments and textile manufacturer of
Bangladesh who started to implement SAP ERP software in a large scale at first. The
resource planning software SAP is used in all aspects of the group’s operations. Rest of the
software used is Orgatex, Fast React, GDS, Kormee etc. The practices of ERP, EDI, E-
COMMERCE, etc give high level of competitive advantage to Graphics Textile also.
Figure 5: Organizational chart for the different software uses in textile and apparel
industry
However, this software is expensive and maintenance of compatible hardware is difficult.
The aim of achieving technological efficiency, though commendable, has a high expenditure.
textile and apparel industry makes a lot of effort to train and groom employees now-a-days.
Establishement
Sales &
Distribution
Inventory &
Material
Management
Orgatex EDI Asia
Production
Planning
Fast React GSD
Quality
Assurance
HRM
Oracle/
Kormee

These training periods are long and expensive on the part of HR. in spite of the training
sessions, employees are resistant to change and the dynamic nature of the business. This
rigidity as well as high turnover rate makes the expensive trainings and orientations rather
futile.
Known Trends, Events or Uncertainties:
Textile and apparel industries faced earlier and may face many unknown events,
trends and uncertainty. Such as fall of demand for knitwear at international market, scarcity
of funds (liquidity crisis), removal of GSP facility, entrance of new technology, government
monetary policy, increased competition, natural calamities, Tajrin Fire - Rana Plaza collapse
incidents, labour unrest, Artisan attack and many political unrest were known events that
might affect the business of the Company but come over all of this with best quality product
with cheap price.
Challenges of the Supply Chain Department:
Supply Chain personnel of textile and apparel industries faces many challenges to conduct
supply chain activities. Some of the challenges that are faced by Partex Denim and Graphics
Textile are mentioned here:
➢ Evaluating and supplier selection challenge.
➢ Safety and quality challenges.
➢ Higher lead time and less inventory.
➢ Lack of coordination with backward linkage.
➢ Accessing to latest technology.
➢ New supplier selection and supplier switching.
➢ Transparency and communication challenge.
➢ Lack of resources and fund.
➢ Lengthy process and formalities.
➢ Environment, global and natural challenge.

Chapter Six:
Supply Chain Performance: Comparative Analysis
Based on the answer of the questionnaire from the three sample - Partex Denim Ltd. (PDL),
Graphics Textile Ltd. (GTL) and Multifabs Limited (ML), a comparison has been shown
below:
6.1 Procurement, manufacturing and delivering stages are able to coordinate to reduce
time & cost:
Table 1A: PDL
From Table 1A, it is found that 75% of the respondents strongly agree and agree that
procurement, manufacturing and delivering stages can coordinate to reduce time and cost.
The mean rate is 4 which fells into range between 3.5 to below 4.5 which means it is
“moderately effective”.
Table 1B: GTL
From Table 1B, it is found that 81% of the respondents strongly agree and agree that
The mean rate is 4.18 which fells into range between 3.5 to below 4.5 which means it is
Number of
Respondents
Percentage (%) Mean X̅ SD
Strongly Agree 4 33%
Agree 5 42%
Neutral 2 17%
Disagree 1 8%
Strongly Disagree 0 0%
4 0.913
Number of
Respondents
Agree 4 36%
Neutral 1 9%
Disagree 1 9%
4.1818 0.936

Table 1C: ML
From Table 1C, it is found that 82% of the respondents strongly agree and agree that
The mean rate is 3.818 which fells into range between 3.5 to below 4.5 which means it is
Graph 1
From Graph 1, it is found that respondents of GTL more strongly agree that procurement,
manufacturing and delivering stages can coordinate to reduce time and cost than others.
6.2 The response time of order placement is fast
From below Table 2A, it is found that 84% of the respondents strongly agree and
agree that response time of order placement is fast. The mean rate is 4.25 which means it is
Number of
Respondents
Strongly Agree 1 9%
Agree 8 73%
Neutral 1 9%
Disagree 1 9%
3.818 0.716

Table 2A: PDL
Table 2B: GTL
From Table 2B, it is found that 90% of the respondents strongly agree and agree that
response time of order placement is fast. The mean rate is 4.3 which means it is “moderately
effective”.
Table 2C: ML
From Table 2C, it is found that 100% of the respondents strongly agree and agree that
response time of order placement is fast. The mean rate is 4.45 which means it is “moderately
effective”.
The below Graph 2 shows the comparative response of respondents from PDL, GTL and ML.
Averagely, ML believes more that their response time of order placement is fast than others.
Number of
Respondents
Agree 5 42%
Neutral 2 17%
Disagree 0 0%
4.25 0.722
Number of
Respondents
Agree 5 50%
Neutral 1 10%
Disagree 0 0%
4.3 0.640
Number of
Respondents
Agree 6 55%
Neutral 0 0%
Disagree 0 0%
4.455 0.498

Graph 2
6.3 Supply chain operating costs are relevant
Table 3A: PDL
From Table 3A, it is found that only 8% of the respondents agree that supply chain operating
costs are relevant. The mean rate is 2.58 which means it is “marginally effective”.
Table 3B: GTL
Number of
Respondents
Strongly Agree 0 0%
Agree 1 8%
Neutral 6 50%
Disagree 4 33%
2.5833 0.759
Number of
Respondents
Strongly Agree 0 0%
Agree 1 10%
Neutral 7 70%
Disagree 2 20%
2.9 0.539

From Table 3B, it is found that only 10% of the respondents agree that supply chain
operating costs are relevant. The mean rate is 2.9 which means it is “marginally effective”.
Table 3C: ML
From Table 3C, it is found that only 20% of the respondents strongly agree and agree
simultaneously 40% disagree that supply chain operating costs are relevant. The mean rate is
2.9 which means it is “marginally effective”.
Graph 3
6.4 Inventory management department maintains enough inventories to allow
uninterrupted production
From below Table 4A, it is found that only 77% of the respondents strongly agree and agree
that inventory management department maintains enough inventories to allow uninterrupted
production. The mean rate is 4.07 which means it is “moderately effective”.
Number of
Respondents
Agree 1 10%
Neutral 4 40%
Disagree 4 40%
2.900 0.943

Table 4A: PDL
Table 4B: GTL
From Table 4B, it is found that only 64% of the respondents agree that inventory
management department maintains enough inventories to allow uninterrupted production.
The mean rate is 3.54 which means it is “moderately effective”.
Table 4C: ML
From Table 4C, it is found that only 55% of the respondents agree that inventory
management department maintains enough inventories to allow uninterrupted production.
The mean rate is 3.364 which means it is “marginally effective”.
The below Graph 4 shows the comparative response of respondents from PDL, GTL and ML
Number of
Respondents
Agree 6 46%
Neutral 3 23%
Disagree 0 0%
4.0769 0.730
Number of
Respondents
Strongly Agree 0 0%
Agree 7 64%
Neutral 3 27%
Disagree 1 9%
3.545 0.656
Number of
Respondents
Strongly Agree 0 0%
Agree 6 55%
Neutral 3 27%
Disagree 2 18%
3.364 0.771

Graph 4
.
6.5 Company has cost effective transportation system
Table 5A: PDL
From Table 5A, it is found that only 50% of the respondents strongly agree and agree that
company has cost effective transportation system. The mean rate is 3.417 which means it is
“marginally effective”.
Table 5B: GTL
Number of
Respondents
Strongly Agree 1 8%
Agree 5 42%
Neutral 4 33%
Disagree 2 17%
3.417 0.862
Number of
Respondents
Strongly Agree 0 0%
Agree 1 9%
Neutral 2 18%
Disagree 8 73%
2.364 0.643

From Table 5B, it is found that only 9% of the respondents agree that company has cost
effective transportation system. The mean rate is 2.364 which means it is “ineffective”.
Table 5C: ML
From Table 5C, it is found that only 9% of the respondents agree that company has cost
effective transportation system. The mean rate is 2.27 which means it is “ineffective”.
Graph 5
6.6 Suppliers are reliable to supply the right materials to the right place at the right
time.
that suppliers are reliable to supply the right materials to the right place at the right time. The
mean rate is 4.08 which means it is “moderately effective”.
Number of
Respondents
Strongly Agree 0 0%
Agree 1 9%
Neutral 4 36%
Disagree 3 27%
2.273 0.962

Table 6A: PDL
Table 6B: GTL
From Table 6B, it is found that only 82% of the respondents strongly agree and agree that
suppliers are reliable to supply the right materials to the right place at the right time. The
Table 6C: ML
From Table 6C, it is found that only 72% of the respondents strongly agree and agree that
suppliers are reliable to supply the right materials to the right place at the right time. The
Number of
Respondents
Agree 5 42%
Neutral 3 25%
Disagree 0 0%
4.083 0.759
Number of
Respondents
Agree 6 55%
Neutral 2 18%
Disagree 0 0%
4.091 0.668
Number of
Respondents
Agree 5 45%
Neutral 3 27%
Disagree 0 0%
4.000 0.739

Graph 6
6.7 Order Lead Time is good enough compared with the industry average.
Table 7A: PDL
order Lead Time is good enough compared with the industry average. The mean rate is 4.17
which means it is “moderately effective”.
Table 7B: GTL
Number of
Respondents
Agree 6 50%
Neutral 2 17%
Disagree 0 0%
4.167 0.687
Number of
Respondents
Agree 6 55%
Neutral 1 9%
Disagree 1 9%
4.000 0.853

Table 7C: ML
Graph 7
6.8 Company has cost effective warehouse strategies to reduce the cost to maintain
inventory.
Number of
Respondents
Agree 5 45%
Neutral 1 9%
Disagree 1 9%
4.091 0.900

Table 8A: PDL
From Table 8A, it is found that only 33% of the respondents agree that company has cost
effective warehouse strategies to reduce the cost to maintain inventory. The mean rate is 3.08
which means it is “marginally effective”.
Table 8B: GTL
From Table 8B, it is found that only 45% of the respondents agree that company has cost
Table 8C: ML
From Table 8C, it is found that only 36% of the respondents agree that company has cost
Number of
Respondents
Strongly Agree 0 0%
Agree 4 33%
Neutral 5 42%
Disagree 3 25%
3.083 0.759
Number of
Respondents
Strongly Agree 0 0%
Agree 5 45%
Neutral 5 45%
Disagree 1 9%
3.364 0.643
Number of
Respondents
Strongly Agree 0 0%
Agree 4 36%
Neutral 4 36%
Disagree 3 27%
3.091 0.793

Graph 8
6.9 Shipments are delivered as per the dateline
Table 9A: PDL
shipments are delivered as per the dateline. The mean rate is 3.75 which means it is
Table 9B: GTL
Number of
Respondents
Agree 4 33%
Neutral 4 33%
Disagree 1 8%
3.750 0.924
Number of
Respondents
Agree 5 45%
Neutral 4 36%
Disagree 0 0%
3.818 0.716

Table 9C: ML
Graph 9
6.10 Strategic planning and timely decision has taken to enhance performance
From below Table 10A, it is found that only 31% of the respondents agree that strategic
planning and timely decision has taken to enhance performance. The mean rate is 3 which
means it is “marginally effective”.
Number of
Respondents
Agree 6 67%
Neutral 1 11%
Disagree 0 0%
4.111 0.567

Table 10A: PDL
Table 10B: GTL
From Table 10B, it is found that only 36% of the respondents agree that strategic planning
and timely decision has taken to enhance performance. The mean rate is 3.18 which means it
is “marginally effective”.
Table 10C: ML
From below Table 10C, it is found that only 54% of the respondents strongly agree and agree
that strategic planning and timely decision has taken to enhance performance. The mean rate
is 3.54 which means it is “moderately effective”.
The below Graph 10 shows the comparative response of respondents from PDL, GTL and
ML.
Number of
Respondents
Strongly Agree 0 0%
Agree 4 31%
Neutral 6 46%
Disagree 2 15%
3.000 0.877
Number of
Respondents
Strongly Agree 0 0%
Agree 4 36%
Neutral 5 45%
Disagree 2 18%
3.182 0.716
Number of
Respondents
Strongly Agree 1 9%
Agree 5 45%
Neutral 4 36%
Disagree 1 9%
3.545 0.782

Graph 10
6.11 Supplier relationship Management (SRM) is effective.
Table 11A: PDL
supplier relationship Management (SRM) is effective. The mean rate is 4.08 which means it
is “moderately effective”.
Table 11B: GTL
Number of
Respondents
Agree 5 42%
Neutral 3 25%
Disagree 0 0%
4.083 0.759
Number of
Respondents
Agree 4 36%
Neutral 2 18%
Disagree 0 0%
4.273 0.750

Table 11C: ML
Graph 11
The Graph 11 shows the comparative response of respondents from PDL, GTL and ML.
6.12 Customer relationship Management (CRM) is effective.
that customer relationship Management (CRM) is effective. The mean rate is 4.09 which
means it is “moderately effective”.
Number of
Respondents
Agree 4 36%
Neutral 2 18%
Disagree 0 0%
4.273 0.750

Table 12A: PDL
Table 12B: GTL
customer relationship Management (CRM) is effective. The mean rate is 4.0 which means it
Table 12C: ML
customer relationship Management (CRM) is effective. The mean rate is 4.09 which means it
ML.
Number of
Respondents
Agree 4 36%
Neutral 3 27%
Disagree 0 0%
4.091 0.793
Number of
Respondents
Agree 4 40%
Neutral 3 30%
Disagree 0 0%
4.000 0.775
Number of
Respondents
Agree 6 55%
Neutral 2 18%
Disagree 0 0%
4.091 0.668

Graph 12
6.13 Just in Time (JIT) Supply Model is applied.
Table 13A: PDL
Just in Time (JIT) Supply Model is applied. The mean rate is 3.0 which means it is
Table 13B: GTL
Number of
Respondents
Strongly Agree 0 0%
Agree 4 33%
Neutral 5 42%
Disagree 2 17%
3.000 0.913
Number of
Respondents
Strongly Agree 0 0%
Agree 3 27%
Neutral 6 55%
Disagree 1 9%
3.000 0.853

Table 13C: ML
Graph 13
The Graph 13 shows the comparative response of respondents from PDL, GTL and ML.
6.14 Holding safety stock and subcontracting are practiced
that holding safety stock and subcontracting are practiced. The mean rate is 3.75 which
means it is “moderately effective”.
Number of
Respondents
Strongly Agree 0 0%
Agree 4 36%
Neutral 6 55%
Disagree 1 9%
3.273 0.617

Table 14A: PDL
Table 14B: GTL
holding safety stock and subcontracting are practiced. The mean rate is 3.73 which means it
Table 14C: ML
holding safety stock and subcontracting are practiced. The mean rate is 3.45 which means it
is “marginally effective”.
ML.
Number of
Respondents
Agree 4 33%
Neutral 4 33%
Disagree 1 8%
3.750 0.924
Number of
Respondents
Agree 3 27%
Neutral 4 36%
Disagree 1 9%
3.727 0.962
Number of
Respondents
Strongly Agree 1 9%
Agree 5 45%
Neutral 3 27%
Disagree 2 18%
3.455 0.891

Graph 14
6.15 Total Quality Management (TQM) is practiced
Table 15A: PDL
Total Quality Management (TQM) is practiced. The mean rate is 3.75 which means it is
Number of
Respondents
Agree 5 42%
Neutral 5 42%
Disagree 0 0%
3.750 0.722
Number of
Respondents
Strongly Agree 1 9%
Agree 6 55%
Neutral 4 36%
Disagree 0 0%
3.727 0.617

Table 15B: GTL
Table 15C: ML
ML.
Graph 15
Number of
Respondents
Agree 6 55%
Neutral 2 18%
Disagree 0 0%
4.091 0.668

6.16 Proper coordination among different departments is practiced to ensure the
effective supply chain management
Table 16A: PDL
From Table 16A, it is found that only 75% of the respondents agree that proper coordination
among different departments is practiced to ensure the effective supply chain management.
The mean rate is 3.67 which means it is “moderately effective”.
Table 16B: GTL
proper coordination among different departments is practiced to ensure the effective supply
chain management. The mean rate is 3.73 which means it is “moderately effective”.
Table 16C: ML
Number of
Respondents
Strongly Agree 0 0%
Agree 9 75%
Neutral 2 17%
Disagree 1 8%
3.667 0.624
Number of
Respondents
Strongly Agree 1 9%
Agree 8 73%
Neutral 0 0%
Disagree 2 18%
3.727 0.862
Number of
Respondents
Agree 6 55%
Neutral 2 18%
Disagree 1 9%
3.818 0.833

proper coordination among different departments is practiced to ensure the effective supply
chain management. The mean rate is 3.82 which means it is “moderately effective”.
ML.
Graph 16
6.17 Proper monitoring from top level helps to increase the effectiveness of supply chain
management
Table 17A: PDL
From Table 17A, it is found that only 33% of the respondents agree that proper monitoring
from top level helps to increase the effectiveness of supply chain management. The mean rate
is 3 which means it is “marginally effective”.
Number of
Respondents
Strongly Agree 0 0%
Agree 4 33%
Neutral 5 42%
Disagree 2 17%
3.000 0.913

Effectiveness of supply chain management in textile and apparel industries of Bangladesh

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