Bangladesh has received international acclaim for its garment products made with synthetic fibres and the manufacture of complex products such as outerwear, tailored items and lingerie.
Industry 4.0 has introduced big data, internet of things (IoT),and artificial intelligence (AI), which has digitally transformed many companiesto become smart, efficient, and more profitable. Additionally, sustainability compliance has become crucial in contemporary global trade for companies to thrive internationally. It is imperative for Bangladesh’s RMG industry to become sustainable and smart to future-proof its growth.
In recent years, Bangladesh has received international acclaim for its garment products made with synthetic fibres and the manufacture of complex products such as outerwear, tailored items and lingerie. Moreover, consulting firms like McKinsey have praised our new washes, prints, and laser finishes. They also note that our suppliers can now offer lead times below the standard 90 days, which is a testament to our vertical integration progress.
McKinsey published a report titled ‘Bangladesh’s Ready-Made Garments Landscape: The Challenge of Growth.’ 10 years ago and more recently in 2021. The McKinsey report gives important insights into the necessary steps that need to be taken in order for Bangladesh to stay competitive in the global market. The conclusions in the report highlighted that due to the pandemic and the shifts in the global market, Bangladesh’s RMG industry must upgrade, innovate, and diversify in the days to come. To that end, there must be investments in flexibility, sustainability, worker welfare, and infrastructure. It must be understood that Bangladesh cannot afford to be complacent if it wants to remain a globally competitive leader in the RMG production space.
Industry 4.0 and Bangladesh Garments Industry
The 4th Industrial Revolution brings an enabling environment of smart machines that facilitate automation of production lines while also interacting and analysing and understanding a specific level of production, including the human beings behind the system.
The Annual Survey of the Industries of Bangladesh revealed that 96.5% of the manufacturing industry is dominated by industrial establishments, 86% of which is are apparel products. According to Textile Today, there are more than 5000 garment factories in which almost 4.4 million people are employed. A sudden change in the new industrial revolution could also negatively impact several areas. It is important to incorporate the changes of the 4th industrial revolution gradually, as it could create chaos in Bangladesh which has still not yet fully grasped the 3rd industrial revolution. In this light, some specialists argue that the garments sector will be the worst sufferer of the Industry 4.0 revolution as there is a possibility of 27 lakh, or almost 60% of jobs being lost. However, not everything is as bleak as it seems.
Benefits of Industry 4.0
Technology company Lectra proposes that their 4IR ready Apparel 4.0 solution can offer an 85% increase in forecast accuracy and a 20-50% reduction in inventory cost. Moreover, they saw a 20-50% rise in market speed, a 10-20% fall in cost to market, and a 2-3% increase in overall productivity. A series of other benefits complement these.
Producing for the Masses
IoT has enabled machineries to be connected to share information that have volume, velocity, and variety, also known as big data. Aided by AI, a larger network of connected machineries will ensure significant profit margins due to lower operating and production costs.
Customised Creations
For IoT-based companies, creating personalised products at large will become possible while also being profitable. For example, one scope can be an industrial IoT-based solution that augments the decision-making process with actionable intelligence to improve productivity and reduce defects by creating a virtual digital belt of a factory floor by capturing events in real-time and contextually streaming them to the management. Thus, the solution would facilitate the factories to make a smooth transition from mass production to mass personalisation.
Supply Chain Streamlining
Enterprise-wide transparency gives companies the flexibility to adjust their supply chain mechanism accordingly to individual needs.
Agile Growth
Being able to produce multiple small-volume series, companies can supply different designs to their customers.
Succeeding in Sustainability
Bangladesh has risen like a phoenix from the ashes in the context of the development of the Garments sector. Gone are the days where issues like Rana Plaza plagued the image of the nation’s largest foreign currency earning industry. These days, the country has a good line of compliant factories that can compete globally.
Among these 280 green factories in Bangladesh, 67 are certified by the US Green Building Council (USGBC). Several of these are Platinum rated and acknowledged for the best practices in construction, design, and operations that protect the environment and human health. At present, among the top 10 green factories in the world, seven are of Bangladesh origin.
Top 10 Green Factories in Bangladesh
Apparel Resources have compiled a list of the leading factories spearheading the green revolution. The list of green factories has been collected from the research division of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
1) Genesis Washing Ltd.
2) AR Jeans Producer Ltd.
3) Tarasima Apparels Ltd.
4) Kaniz Fashions Ltd.
5) Echotex Limited
6) Columbia Washing Plant Ltd.
7) Genesis Fashions Ltd.
8) Remi Holdings Ltd.
9) SQ Birichina Ltd.
10) SQ ColBlanc Limited
Growing Green with Green Finance
Intelligent and sustainable industries and business parks are the obvious solutions. Such parks provide a major boon for inward investment, particularly green finance. With the European Union taking the global lead in ESG finance, it will no longer just be an incentive. Still, it can translate to becoming a compulsory requirement to gain business and investment from countries that promote green practices.
Smart and Sustainable Solution
While it can be challenging to push futuristic technologies into existing factories or locations because of so many sustainability-related technology changes in the past 20 years, the smart alternative is, to begin with, fresh building blocks. These renovated sustainable business parks can be realised with public-private partnerships and are characterised by many features.
Steps to Success
In an article by Mostafiz Uddin, the managing director of Denim Expert Limited and the founder and CEO of Bangladesh Apparel Exchange (BAE), he mentions a procedure that can be undertaken to address the issue. First, the parks would be created sustainably from the bottom up. Businesses located here could follow the guidance of an environmentally-friendly site master plan and adhere to the best international practices in such areas. Each building would comply with the best international standards for green design and layout. Many RMG factories in Bangladesh are already Leadership in Energy and Environmental Design-certified, but additional measures can be taken with a specific garment-production focus.
Rising Renewably
Mostafiz opines that there should be a major focus on the use of renewable energy, especially solar and wind energy, in these parks. Solar power would be a prime renewable energy sector as great technological advances have been made in recent times. Additionally, the wide-scale adoption of cleaner production and water-saving technologies can be adopted for water preservation. A central rainwater harvesting system could be installed and used by all tenants. Water is our most precious natural resource, and as Bangladesh is a water-stressed country, we must make optimum use of it.
A central rainwater harvesting system could be installed and used by all tenants. Water is our most precious natural resource, and as Bangladesh is a water-stressed country, we must make optimum use of it.
Ideal Integration
Mostafiz further suggests that tomorrow’s sustainable business parks must be vertically integrated as it is the holy grail for any textile manufacturing hub. China is one of the best examples of such success stories. Shortened supply chains boost economies of scale, facilitating a quicker turnaround of products, and ultimately supports more items to be reserved for exporting nations. It is quintessential that we begin contemplating how we can bring more stages of production under one roof in the country and benefit from economies of scale. Structuring building from scratch could be the right step in that direction.
Waste Management Matters
In addition, Mostafiz suggests that smart and sustainable business parks can incorporate a sludge treatment facility for responsible disposal. Tests can be added that use microalgae to break down sludge and incorporate it into fuel furnaces and bricks with a bio-mat mask. The most sophisticated Common Effluent Treatment Plant (CETP) can be utilised to provide treatment facilities for all tenants.
Design and Development
Central design and development facilities can be built on-site, and the benefits of localising such facilities to make them available to all site park tenants can ensure further economies of scale.
Developing smart and sustainable business parks in Bangladesh would be the preliminary step. Green investments would be encouraged to flow from regions like the EU and Canada where sustainability and compliance are significant factors across the supply chain. Although some companies have started the movement, the momentum needs to be continued for all future initiatives. Smart technology and sustainability are tomorrow’s needs, and our RMG industry needs to stay compliant and lead the global market.
The Writer is the CEO of MCFG and the Executive Director of Global Chamber Dhaka. He can be reached at maimun@globalchamber.org.
