Bangladesh apparel makers must not wait for brands

Bangladesh manufacturers must get on the front foot and not wait to be led by the brands. Apparel manufacturers in Bangladesh must look to digital technology to help make their supply chains more transparent and sustainable. With the advent of advanced technology like Big Data, firms can make important predictions which would help prevent production surplus, lower costs and reduce the time to market their products. Through technology, manufacturers can gather necessary information and data to gauge buyer demand volume and preferences as well as adopt competitive pricing strategies. 

Vivek Ramachandran, Chief Executive Officer, Serai said this in an interview.

Following is the excerpts of the interview.

Question: What is the current state of global apparel supply chains? 

Vivek Ramachandran: Global apparel supply chain is fragile and changing rapidly. Similar to other industries, the pandemic has heightened concerns about sustainability whilst also creating new hurdles for apparel buyers and suppliers to adapt to the market. 

As more of the world is now looking at sustainable alternatives to mainstream production, apparel businesses are prioritizing ethical sourcing and supply chain transparency more than before. Global supply chains are vulnerable to international geopolitics which can have rippling effects on manufacturing, exports and regulation. The fragmented apparel supply chain is looking for solutions to help them navigate these uncertain times which comes with fluctuating demand and dynamic regulatory environments. 

Question: How does Serai fit in to this ecosystem? 

Vivek Ramachandran: Serai makes global trade easier for apparel businesses. Through our digital B2B platform, members can build new relationships and strengthen existing ones. Companies can share information about their business, products and services to create a trusted ecosystem across the supply chain. Companies can also exchange complex information from multiple data sources to gain visibility into their supply chain and trace is from end-to-end.

Question: Given this recent focus on sustainability and supply chain transparency, what can Bangladesh manufacturers do?

Vivek Ramachandran: Bangladesh manufacturers must get on the front foot and not wait to be led by the brands. Apparel manufacturers in Bangladesh must look to digital technology to help make their supply chains more transparent and sustainable. With the advent of advanced technology like Big Data, firms can make important predictions which would help prevent production surplus, lower costs and reduce the time to market their products. Through technology, manufacturers can gather necessary information and data to gauge buyer demand volume and preferences as well as adopt competitive pricing strategies. 

Supply chain traceability solutions can also allow apparel manufacturers to track where their raw materials come from and subsequently show this transparency to the buyers they sell to, ensuring ethical sourcing and fair trade at each step of the fashion value chain. 

Question: How does Serai’s digital platform help apparel businesses promote themselves and grow globally?

Vivek Ramachandran: Before the pandemic, foreign buyers used to rely on in-person meetings to assess and monitor their supply chain. Now, this process has become significantly more difficult for apparel manufacturing companies in countries such as Bangladesh. 

Serai allows suppliers, manufacturers, buyers and brands in the garments and apparel sector worldwide to develop new relationships, showcase their strengths and services and grow their online presence. We offer a platform where suppliers and manufactures can create a company profile and highlight key areas of their business which include certifications of sustainability and compliance. Members of the platform also get exclusive access to industry news, views and data shaping global trends in the apparel sector. 

Serai is an essential evolving resource that gives businesses control and ownership over their data and digital assets. It’s all about helping members overcome the challenges and complexities of global trade – and making it easier for everyone.

We continue to build on the platform to introduce valuable features to our customers so that Serai becomes a one-stop portal for facilitating global trade. For example, Serai recently launched a solution aimed at providing apparel companies with the ability to track their supply chains from end-to-end. 

Question: Bangladesh’s RMG sector contributes 80% to the country’s total exports. As such a crucial part of the economy, how can the apparel sector move towards sustainable growth through using digital platforms like Serai?

Vivek Ramachandran: Businesses worldwide have shifted online, and technology is key to doing business in this ‘new normal’. As people look to diversify their supply chains, breakthrough digital platforms such as Serai are enabling new connections in a time where travel has come to a virtual standstill.

It is no secret that Bangladesh’s RMG sector has suffered due to decreased demand from buyers. With a digital profile on Serai they are able to seek out new potential buyers, along with new opportunities to diversify their own product portfolio. At Serai, we have seen a flux of Bangladesh manufacturers onboard since we launched in the country. 

In addition, by utilizing Serai, the RMG manufacturers are encouraged to showcase their sustainable practices and achievements. As consumers become increasingly socially-conscious, brands are prioritising sustainable practises and partners. Hence, suppliers and manufacturers who can show this sustainability in areas such as waste management, ethical working conditions, and raw material processing become more attractive to global brands.  

Serai allows data to be shared between connected companies via the platform to promote transparency in a time when legitimate sources are critical. Serai’s additional traceability solution helps companies meet additional compliance requirements in their supply chain.

Technology platforms like Serai aren’t just good for business but they are good business. By introducing higher traceability and transparency we can build a more accountable system, which promotes sustainable and inclusive growth.  

Question: Tell us a bit more Serai’s journey so far? What kind of response has the platform received?

Vivek Ramachandran: Since its inception in 2019, Serai has on boarded c.4,500 companies from over 60 countries including Australia, USA, UK and Europe which heavily rely on RMG imports. Serai began its journey in Bangladesh at the start of 2020. Since then, almost 700 manufacturers, including renowned ones such as Viyellatex, DBL group and Envoy Textiles, are already using the platform. 

Manufacturers using Serai can easily highlight their strengths and showcase their facilities, certifications, and range of products to potential buyers. Businesses can also leverage solutions to achieve end-to-end supply chain traceability and assess and mitigate counterparty trade risk. We also continue to enhance the platform with our recent developments which include enhanced search and connect functions, allowing companies to search for suppliers or buyers based on location, business type and even degree of connection. Buyers and brands who are actively looking for specific products or services can also post their quotation requests on the platform, making it much easier for manufacturers and suppliers to directly respond to interested parties. 

Question: How can sustainable practices help the Bangladeshi apparel manufacturing industry become a leader in the global RMG exports market?

Vivek Ramachandran: There are many aspects to sustainability and there is huge pressure on the clothing industry to reduce its impact on the environment. Bangladesh has the highest number of green garment factories in the world, with 67 LEED-certified garment factories in Bangladesh, 13 of which are rated platinum. Whilst great strides have been made there is always room for improvement, especially as fast fashion has not receded despite its now commonly known negative impact – from the intense season cycles and tons of waste. 

The steps Bangladesh RMG manufacturers take to be more sustainable will not go unnoticed by brands and buyers. This is what their consumers are asking for so they will make business decisions based on the ethical and green practices within their supply chain. By harnessing this opportunity, in my opinion manufacturers in Bangladesh can score a greater proportion of the market.