Current Observation Regarding Supply Chain

Management in Bangladesh

Current Scenario of SCM in Bangladesh

SCM practices involve a set of activities undertaken in an organization to promote effective
management of its supply chain. The short-term objectives of SCM are to enhance
productivity, reduce inventory and lead time. The long-term objectives of SCM are to
increase market share and integration of supply chain. In Bangladesh, Supply Chain
Management practices are well embraced by MNCs, various international organizations and
large local business conglomerates. It is practices in mostly in manufacturing and service
industry.

The current scenario of supply chain management in Bangladesh is at a growing

stage. As supply chain is a new trend in recent years many businesses are yet to successfully
implement them in their business model. Though few companies such as Unilever, Pran,
British American Tobacco, ACI etc have established the supply chain business successfully,
the level of practices in most company as well as industries is not satisfactory yet, especially
in the RMG and services sectors. There are evidences of using supply chain management in
the manufacturing sector with limited scale. Service beneficiaries are not receiving full
benefit of the services because of lack of efficient service delivery process. Services are used
intensively in the production of all goods, making up around 10-20 percent of production
costs in both manufacturing and agriculture, and sometimes more.

Over the past three decades, Bangladesh has evolved from a controlled economy to
a market oriented economy through a wide range of policy reforms which include
reforms in trade policy, industrial policy, monetary and fiscal policy, exchange rate
policy, and promotion of foreign direct investment. Like manufacturing sectors, service
sectors are also becoming the core of Bangladesh economy. It has been observed that
implementation of Supply Chain Management Practices in Service Sector of Bangladesh is
not remarkable in comparison to manufacturing industry. However few process and practices
like use of technology demand management, inventory management, lead time management,
sourcing etc have been used to a limited scale.

To emphasize its significance for the success of a company and enhance its practices
in farms, Supply Chain Management is being studied and mastered in an academic level in
Bangladesh. These courses are provided by universities, also by many Supply Chain
Development organizations such as ISCEA, DCCI Business Institute (DBI), Strategic
Consultation Bangladesh etc. Mastering Supply Chain Management promises a bright career
prospect in Bangladesh, as many companies are trying to integrate the supply chain networks
in their business models causing a great demand for supply chain specialists. As a result,
more and more individuals are trying to establish their career in this area.
Top Organizations practicing SCM function
Supply Chain Management is practiced in most of the manufacturing industry in Bangladesh,
including the Fast Moving Consumer Goods (FMCG) companies. Here is a list of some of the
top positioned companies that are successfully using SCM function in their business model-

1. Unilever
2. Nestle Bangladesh
3. Coca Cola
4. Grameenphone
5. Renata Company limited
6. Siemens
7. ACI
8. Reckitt Benckiser

Future prospects and Improvement

In Bangladesh supply chain education has a bright prospect because of its out coming
booming business and for its geographical place. To remain competitive and progress
continuously, supply chain can add a different edge to our important industries. Besides, the
existing local companies, whether its product or service oriented, are not becoming able to
cope with the multinationals who are running their business in Bangladesh because of the
edge supply chain management gives to them. Now a days, in local companies of Bangladesh
there is very lack of integration among different departments. For that reason, they are losing
efficiency and quality service and at the same time cost advantage.

In near future, local companies can also dominate the market share if they can
successfully practice and implement Supply Chain in their business function. To do that, they
have to integrate all of their departments and consider all the functions to be taken under
sustainable Supply Chain Development. The RMG and service sectors can also benefited by
proper implication of it. Supply Chain also has a good career prospect in Bangladesh. Many
university students are pursuing their degrees in this area. Also, more universities of
Bangladesh should add the courses of Supply Chain in their curriculum.