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Friday, 21 December 2018 12:21

Bangladesh supply chain lacks buyer support

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Bangladesh’s readymade garment supply chain still suffers from lack of shared responsibility on the part of global buyers. Very few factories, if at all, have received financial assistance from buyers instead they have seen reduced prices. The fundamental business model of the garment supply chain has not changed. Production remains an industry with high levels of opportunity for countries to connect to global value chains, but that has come at a price for workers.

However, transparency of buyers and working conditions in the country’s readymade garment factories have improved since the Rana Plaza building collapse in 2013. The inspection process continues to be problematic. Reasons include multiple inspections by multiple inspectors, miscommunications and unplanned inspections.

There is a stronger concern for worker safety and labor standards on the one hand and continued tensions between buyers’ demands for low production costs and speed on the other. Factories in shared or non-purpose built premises need to relocate. Firms in such premises which were not able to meet the new standards had to move and often ended up in more remote regions. Such factories have to bear the relocation costs and do not receive financial support from buyers, the government or their industry associations.