Bangladesh’s Apparel Sourcing Landscape: The Challenge of Growth

Many product sourcing companies look at Bangladesh as the chief location for sourcing apparel. The enormous number of apparel producing shops in Bangladesh is, in fact, the new hot spot for ready-made garment marketers. But every coin does have another side. And, in this way, besides the benefits of sourcing apparel from Bangladesh, there are also some disadvantages. There are quite a few challenges faced by the sourcing companies when they outsource their services to Bangladesh.

Let’s take a look at five of the main challenges faced by Bangladesh sourcing companies that can be daunting for companies looking forward to outsourcing their services in Bangladesh.

Infrastructure

The infrastructure in Bangladesh is a major drawback for the markets present there. The lack of proper infrastructure is an extreme problem faced by the companies who source their products to Bangladesh which also affects when it comes to carrying out business in Bangladesh efficiently. Transportation facilities impasses from ineffective rates of lead generated for the garments and the products delivered to the clients. This issue becomes worthwhile when clients feel the need to outsource more contemporary products with decreased lead rates.

The power supply is an additional concern for the companies situated in Bangladesh. Nine out of ten Bangladesh sourcing specialists believe that the poor power supply in Bangladesh is one of the leading causes of poor administration of the companies present there.

Supplier performance and professional workforce

An efficiently working workforce is the leading necessity for any company that wishes to outsource its apparel production requirement to Bangladesh. A professionally skilled workforce with good performance is extremely important for improved supplying capabilities. Enhancement in the performance of suppliers is highly demanded as it can effectively bridge the gap between several sourcing nations and to decrease the impact of an increasing number of wages with every passing day. A skilled workforce will effectively contribute to the production of more sophisticated products that will help bring in more clients for the organization. Also, more production will mean an enhanced profit margin, which ultimately means a greater sum that can be invested to purchase modern technologies and appliances.

Political and economic stability

Another major reason behind ineffectual sourcing in Bangladesh in the unstable political as well as economic situation. The political level is so bad in Bangladesh that most of the sourcing companies are highly offended by political instability. A majority of sourcing companies are of the strict opinion that they will stop maintaining any business relation with Bangladesh’s apparel sourcing companies if the country can afford to undergo decreased political stability. Several studies conducted to test the extent of political inefficiency in Bangladesh have shown that strikes and political unrest remain at their peak in maximum parts of the years causing the apparel sourcing companies in Bangladesh to face huge inefficiencies in carrying out the business.

Compliance

The issue related to compliance is one such difficulty that has gained its attention for the past few years for the product sourcing companies in Bangladesh. Several non-governmental organizations are there that view Bangladesh’s apparel sourcing companies as hubs of common non-compliance problem. A major part of the setback comes from the suppliers of Bangladesh who strongly and significantly differ from their level of compliance, thereby making it hard for buyers to make a considerable contract with them.

Raw materials

Although Bangladesh is considered as the hotspot of apparel manufacturing organizations, it increasingly faces difficulties in using high-quality fabrics and synthetic raw materials in producing the garments. This can be the most annoying drawback for a sourcing nation that comes first on the list when thinking about outsourcing apparel services. The inefficiency in the availability of effective raw materials is mainly because of the high cost of raw materials and uncertainties and extended lead hours.

The most evident way a business will benefit from sourcing in Bangladesh is if the stakeholders potentially act together. Companies can efficiently open up to compelling opportunities by choosing suppliers and pinpointing the best possible ways to find values at a reasonable price. Business owners primarily focus on increasing the profit margin while staying honest towards the quality of products or services that they provide. Therefore, Bangladesh sourcing can become effective if stakeholders can enhance their operational performance.