Well-managed supply chain to fuel growth

Bangladesh needs to improve its supply chain management to take the country to the next level of development, said speakers in a roundtable yesterday.

The economy has developed appreciably over the last two decades mainly because of cheap labour, but the advantage will not last long.

“Efficiency will be the biggest driver behind further economic development of the country, and this efficiency has to come from the supply chain management,” said Mominul Islam, managing director of IPDC Finance.

For instance, a kilogram of vegetable that is going for Tk 5 to Tk 10 in Kurigarm is selling at Tk 50 in Dhaka just because of inefficiency in the supply chain, he said.

Islam's comments came at a roundtable styled 'road to supply chain excellence', organised by the Bangladesh Supply Chain Management Society in collaboration with The Daily Star at the newspaper's headquarters in the city. “The success of a business depends upon how fast one can deliver the product to the customer,” he added.

The roundtable brought four major issues in focus.

These are: what roles should organisations undertake to encourage new supply chain standards, how best practices can be shared among stakeholders, the importance of recognition of best practices and the role of supply chain finance.

Recognition is crucial in all spheres, said Ejazur Rahman, chief executive officer of the International Supply Chain Education Alliance, Asia.

“Hence we believe the corporate houses, the academicians and the media should acknowledge the best practices from time to time for motivation purposes,” said Rahman, who moderated the roundtable. Imran Rahman, special adviser to the board of trustees of the University of Liberal Arts, stressed on the importance of teaching supply chain management in universities.

“Students of our country need to get the opportunity to gather more detailed knowledge on supply chain management.”

As companies have a good demand for the aptitude, many universities are introducing courses on the subject, he added.

Multinational companies have better supply chain management than the local ones, said Naquib Khan, director of corporate affairs of Nestle Bangladesh.

BSCMS should be the hub to collect, recognise and disseminate the best practices in supply chain management across organisations. “We believe such practices will bring deserving cases forward for Bangladesh Supply Chain Excellence Awards every year,” he added.

Countries like Singapore and Hong Kong have made tremendous economic development thanks to excellent supply chain management, said Sajjadur Rahman, business editor of The Daily Star.

“Many developed countries, including our neighbouring India, have started giving knowledge on supply chain management. Our government can take initiative to include supply chain management at the national level,” he added.

Rizwan Dawood Shams, deputy managing director of IPDC Finance; Mahzabin Ferdous, IPDC's head of brand and corporate communication; and Aleya Ikbal, head of IT and business transformation of IPDC, addressed the programme along with others.