What Makes Bangladeshi RMG Suppliers Resilient in Global Apparel Supply Chain Management?

Abstract

The global Readymade Garments (RMG) industry heavily relies on global supply chain management that aims to seek suppliers offering affordable, high-quality products delivered quickly. However, research on the factors influencing supplier selection in the RMG sector is scarce, and existing models fail to explain the paradox of rising exports in Bangladesh despite supply chain disruptions. This research strived to pervade this knowledge gap through a mixed-method empirical study on 66 international clothing brands. The findings reveal a two-step supplier selection process involving enlistment in a qualified supplier pool and subsequent allocation of work orders within the pool. Supplier competence and competitiveness are critical for enlistment and order qualification, while supplier relationship, competitiveness, and competence influence the selection of order winners. Notably, larger companies prioritize relationships in supplier selection. International RMG buying companies should focus on supplier competence factors to mitigate supply chain risks and maintain positive public relations. For the same reason, Bangladeshi policymakers should enforce compliance and help RMG suppliers to gain competencies.