Inadequate infrastructure, delay at ports and limited access to finance are key barriers to improvement of supply chain management (SCM) in the country, speakers said at a roundtable on Saturday.
Poor adaptation and application of technology by the businesses and paucity of skilled labour force at different levels of supply chain are also responsible for holding back the growth of local enterprises, they observed.
They also said integration of digital technology in the SCM, especially in SMEs, can bring transparency to the process and create competitive advantage to reduce the cost of doing business.
The observations came at a roundtable titled 'Challenges and Prospects of SCM in Bangladesh' jointly organised by IPDC Finance Limited and Bangla business daily Banik Barta at a city hotel.
Prime Minister's economic affairs adviser Dr Mashiur Rahman addressed the programme as the chief guest while State Minister for Finance and Planning MA Mannan and Bangladesh Investment Development Authority (BIDA) Executive Chairman Kazi M Aminul Islam spoke on the occasion as the special guests.
Moderated by Bonik Barta editor Dewan Hanif Mahmud, IPDC Finance CEO Mominul Islam, Bangladesh Institute of Bank Management research director Dr Prashanta Kumar Banerjee, IBM Blockchain Leader Jitan S Chandanani and SCM experts from top local and multinational companies also spoke at the programme.
Stressing the need for increasing efficiency of SMEs, Dr Mashiur said big industries don't manufacture everything in their facility until full automation. "By that time, they can source small parts or components from smaller enterprises."
The big companies can also enjoy tax benefits by doing so, he added.
But before that the SMEs need to prepare themselves with skilled labour force to meet the demand.
Dr Mashiur also said one of the key elements in SCM is SME loan because if small producers get proper financing, they will be able to maintain effective supply chain that reduces the cost of doing business.
The BIDA executive director said coordination among the government departments is crucial to providing better SCM facilities while SMEs will benefit most due to the initiative.
He noted that collaboration among the stakeholders depends on better incentive packages.
Bangladesh is one of the best destinations for global companies to experience highest profitability, Mr Islam said adding, "Businesses should find out the issues, push it to the authority concerned so that they can do policy advocacy to resolve the problems."
Speaking at the programme, the IPDC CEO said the country is now passing through a 'critical phase' where lower labour cost isn't going to be the key differentiating factor for competitiveness.
Businesses need to improve productivity and it can be done through focusing on SCM at country, industry and micro company level, he said.
Stating that focus should be on the country's opportunities, Mr Mominul said, "We may not bring large investments to resolve our constraints overnight; rather being a little bit more creative, we can harness lot of opportunities by using technology."
SMEs are one of the key essential elements of supply chain, he said, adding that the sector needs financing, through corporate and their suppliers, to supply quality products on time and consistently.
IBM Blockchain Leader Mr Chandanani emphasised the importance of introducing Blockchain system in supply chain for making the business credible through transparent and rating-based operation.
He also said Blockchain ensures better collaboration among stakeholders due to the system's security features.
Blockchain is an open and cloud-based distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way.
BSRM assistant general manager (sales & marketing) Md Imtiaz Uddin Chowdhury said disruption in the transport sector and major ports increases the cost of doing business.
Improving the facilities at private jetties in ports and simplicity in the customs system can increase business competitiveness, he added.
Business Faculty dean of Dhaka University professor Shibli Rubayat Ul Islam identified infrastructure, human resource management, IT adaptation, and bureaucratic tangles as key obstacles to better SCM.
bKash head of supply chain, procurement, media & digital buying Md Rashedul Alam stressed the need for introducing and popularising academic courses on SCM to meet the growing demand for professionals in the sector.
Marico Bangladesh Ltd General Manager (SCM) Habibur Rahman urged the government to set up big warehouses at the proposed economic zones to ensure better SCM of the investors.
Reckitt Benckiser Bangladesh head of supply service Zia Uddin said e-commerce or IT-based companies will hit hard the traditional supply chain system in the country shortly.
The staggering recent growth of such start-ups is strong evidence to the assumption, he added.
Bangladesh Supply Chain Management Society (BSCMS) president Naquib Khan, Berger Paints Bangladesh general manager (supply chain) Raquibul Alam and financial inclusion evaluation & impact expert of UN Capital Development Fund (UNCDF) Ana Klincic Andrews also spoke at the programme.
© 2024 - All Rights with The Financial Express
