Bangladeshi supply chain managers work in a more uncertain condition compared to any other country, unsure about delivery of goods from the Chattogram port, experts said on Wednesday.
Poor infrastructure, transportation problems and lack of planning have been identified as the major challenges to the supply chain management, especially in the manufacturing sector, they noted.
It has resulted in loss of productivity, sufferings of the consumers and trouble for companies, they added.
"There is no deep-sea port, no mother vessel comes to the Chattogram port. Only feeder vessels come. We cannot say how many days it will take to receive the goods," said Bangladesh Supply Chain Management Society (BSCMS) President Naquib Khan.
"We still have to manage everything because of the poor infrastructure and, most importantly, an unpredictable situation," he added.
Mr Naquib was answering a question about the state of supply chain management in Bangladesh and the challenges at a press conference.
Bangladesh Supply Chain Management Society (BSCMS) and IPDC Finance Limited jointly organised the press conference in the city to announce launch of the first ever Bangladesh Supply Chain Excellence Award (BSCEA) 2018.
International Supply Chain Education Alliance (ISCEA), Bangladesh will be the knowledge partner.
Naquib Khan also said supply chain is the lifeline for any company. Any mismatch or a missing link of a single department may jeopardise the whole productivity of the company resulting in loss of sales, consumers' sufferings and loss of competitive edge of the company.
ISCEA Chief Executive Officer (Asia) Ejazur Rahman said supply chain cost accounts for 60-70 per cent of the total business expenditure. So the risk of losing business is as much as that.
He said Bangladesh does not have the scope to be isolated as it is part of the global world.
Citing example of the readymade garment industry, the supply chain management expert said Bangladesh produces garment products for global brands.
They all are masters in supply chain management. Bangladesh has to gear up its supply chain to catch up with the global counterparts, he added.
Managing Director and CEO of IPDC Finance Mominul Islam said proper supply chain management in this challenging situation in Bangladesh requires an advanced level of coordination and thinking.
The managers here are doing it successfully. They work amid a lot of uncertainties, he added.
The supply chain management experts suggested speeding up infrastructure development and improvement of the transportation system.
They also demanded a separate ministry for supply chain as in Singapore for better coordination.
They also noted that the special economic zones (SEZs) will help to a great extent as it will solve several investment problems in Bangladesh including ensuring industrial land, infrastructure development, power and energy supply and 10 years' tax benefit.
Mr Mominul said Bangladesh has to elevate efficiency in the post-LDC (least developed country) era, when the low-cost labour will no more be available in the labour-intensive industries like the garment sector.
To enhance skills and remain globally competitive, Bangladesh has to focus on supply chain management as it is a collaborative function, he added.
Supply chain management plays an important role in developing small and medium enterprises (SME) through this collaborative function as they supply to the big companies.
Experts said supply chain management is relatively a new term for the Bangladeshi industries, although professionally recognised since early 2000.
The experts said local companies have grown so large that almost all have supply chain departments, whatever the name is-commercial, logistics, supply chain.
About 3,500 supply chain professionals were produced in the country over the last seven years by the ISCEA that indicates there is a growing demand.
The BSCEA 2018 will be given in seven categories: Collaborative Supply Chain; Supply Chain Talent Development; Manufacturing Excellence; Supply Chain Finance Management; Excellence in logistics, distribution, transportation & warehouse management; Young Supply Chain Talent of the year, and Supply Chain Professional of the year.
The jury panel will select 15 best cases (five individuals, five local and five multinational companies or MNCs) as the winners. The award ceremony will be held on July 21.
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