SCM of H&M and Bangladesh Garment industry.

1. Seminar
on
“Factors affecting supply chain
management efficiency in cross
border outsourcing”
Monir Uz Zaman
8th sem., Textile eng. dept.

2. 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)

3. 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.
Outsourcing
Obtain (goods or services) by contract from an outside supplier.

4. 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.

5. Outsourcing and Global Outsourcing
Outsourcing
-
Terminology

6. Outsourcing and Global outsourcing:
Why Outsourcing?

7. Outsourcing & Global Outsourcing
Strategy of outsourcing:

8. Supply Chain Management

9. Supply chain management (Structure)
Suppliers @Ultimate Raw material producer
Level-2 @ Arvind crops
Suppliers @Raw material dealers
Level-1 @ Jaydip Cotton Fibre Pvt. Ltd
Manufacturers @Arvind Textile Pvt. Ltd
Customers @ Retailers- Wal-Mart, Zara
Level-1
Customers @ Ultimate Customers
Level-2 @ Arvind Life Styles

10. Supply chain management (Structure)
Service Providers
Finance
(Bank)
Logistics
(Cargo service) Market
Research
IT
Product Design

11. Supply Chain management
 Actors in supply chain management:
 Fields of acting in SCM:
Suppliers
Manufacturers
Customers
Service provider
Logistic
Information sharing
Inventory
Manufacturing
Sourcing

12. Supply chain management
Factors affecting actor’s acting in SCM:

13. Cross border outsourcing and SCM-Case
studies:

14. Cross border outsourcing and SCM-
Case studies: (RMG industry In Bangladesh)

15. 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

16. Analysis: Cross border outsourcing and
SCM ( Sample development stage)
Market analysis
Trend analysis
Proto designing
Dhaka
Sweden
Green Tag
sample

17. Cross border outsourcing and SCM-
Case studies
 Order processing:
GPQ, Visual Audit
Dhaka-Office- H&M
(130 suppliers,
30-40 subcontractors)
6-8 days
PO

18. 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

19. Cross border outsourcing and SCM-
Case studies:
CSR VS CRM:
“Europeans and Americans mindset”

20. Cross border outsourcing and SCM-
Case studies: (Export processing)
Customs

21. 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

22. 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.

23. 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.

24. If anybody have any question, feel free to ask
otherwise I will ask!!!