factor affecting scm outsourcing from bangladesh
TRANSCRIPT
Seminar on
“Factors affecting supply chain management efficiency in cross
border outsourcing”Monir Uz Zaman
8th sem., Textile eng. dept.
Extent of discussion:
Factors affecting SCM efficiency in cross-border outsourcing
Outsourcing Global outsourcing SCM Efficiency of SCM Factors affecting SCM efficiency H&M outsourcing strategy from Bangladesh. Identification of factors playing vital roles for efficient SCM
practice (H&M and Bangladesh)
Outsourcing and Global Outsourcing
Strategic Business Practices
Make it and Serve it to ultimate customers. Don't make but serve to ultimate customers. Don't make and don't serve but still do business. Make partial and serve.
OutsourcingObtain (goods or services) by contract from an outside supplier.
Outsourcing and Global Outsourcing
Generalized business strategy
“You may choose to outsource this function to another company or do it yourself ,,
Outsourcing –Space
Techno craft- Panipat, Kanpur, Salem, Coimbatore. Shahi Exports- Bangladesh. Zebra Fashion (Brazil) – Bangladesh.
Outsourcing and Global Outsourcing
Out –resourcingOnsite sourcingNear shoringOff shoringCrowd sourcingMultisourcingIn-house
Outsourcing-
Terminology
Outsourcing and Global outsourcing:
Why Outsourcing?
Outsourcing & Global Outsourcing
Strategy of outsourcing:
Strategic Assessment Need analysis
Vendor assessment
Contract and negotiation
Project Initiation and transition
Supply Chain Management
Supply chain management (Structure)
Suppliers @Ultimate Raw material producerLevel-2 @ Arvind crops
Suppliers @Raw material dealersLevel-1 @ Jaydip Cotton Fibre Pvt. Ltd
Manufacturers @Arvind Textile Pvt. Ltd
Customers @ Retailers- Wal-Mart, Zara Level-1
Customers @ Ultimate CustomersLevel-2 @ Arvind Life Styles
Supply chain management (Structure)
Service Providers
Finance(Bank)
Logistics(Cargo service) Market
Research
IT
Product Design
Supply Chain management
Actors in supply chain management:
Fields of acting in SCM:
Suppliers
Manufacturers
Customers
Service provider
Logistic
Information sharing
Inventory
Manufacturing
Sourcing
Supply chain management
Suppliers selection Sourcing lead time Inventory decisions Production lead time Utilization of capacity Mode of transportation Communication system Pricing issues
Export/import compliance Standard testing practice Advanced technology Endowment factors Govt. incentives and
regulations Ports facilities etc
Factors affecting actor’s acting in SCM:
Cross border outsourcing and SCM-Case studies:
Cross border outsourcing and SCM-Case studies: (RMG industry In Bangladesh)
Cross border outsourcing and SCM-Case studies:
Supply chain process of H&M in Bangladesh:
Sample development and approval
Order processing, price setting & selection of suppliers
Material sourcing by suppliers
Manufacturing process at suppliers production plant
Compliance auditing
Product quality inspection
Export processing
Analysis: Cross border outsourcing and SCM ( Sample development stage)
Market analysisTrend analysisProto designing
Dhaka
Sweden
Green Tag sample
12 days
Cross border outsourcing and SCM-Case studies
Order processing: GPQ, Visual Audit
Dhaka-Office- H&M(130 suppliers, 30-40 subcontractors)
Suppliers
PriceQualityLead TimeCSRCapacities
Stoc
kholm
offi
ce
6-8 days PO
Cross border outsourcing and SCM-Case studies:
Material sourcing by Suppliers-: (37- 44 days)
Manufacturing at suppliers plant : (20-25 days)
Quality inspection
CSR Auditing
Cross border outsourcing and SCM-Case studies:
CSR VS CRM:
“Europeans and Americans mindset”
Cross border outsourcing and SCM-Case studies: (Export processing)
Customs
Analysis: Cross border outsourcing and SCM
Factors cause efficiency in SCM:
1. Building EPZ.2. World class-industry infrastructure.3. FDI policy.4. Cost effectiveness.5. Natural gas resources.6. Geographical Advantages.7. GSP support
Analysis: Cross border outsourcing and SCM
Identified factors cause inefficiency in SCM:
Unavailability of raw material Lack of utilities supply
Inadequacy of transportation supply Bureaucracy
Port congestion Political unrest
Labour cohesion Inefficient technological support.
References
1. Md. Rajib Hasan and Mohammad Abdul Alim, Factors Affecting Supply Chain Management Efficiency in Cross Border outsourcing: A case study of H&M and its Outsourcing Operations in Bangladesh ,Master Degree Project No.2010:60 , Logistics and Transport management, University of Gothenburg, Sweden.
2. Asli Koprulu, M. Murat Albayrakoglu , Supply chain management in the textile industry: a supplier selection : Model with the analytical hierarchy process , ISAHP 2007, Viña Del Mar, Chile, August 3-6, 2007.
3. Mohammad Ali, Dr. Mamun Habib, Supply Chain Management of Textile Industry: A Case Study on Bangladesh, vol.1 no-2, International Journal Of Supply Chain Management.
If anybody have any question, feel free to ask otherwise I will ask!!!