Why is ERP System Necessary in Garments Industry of Bangladesh?


The Garments Industry of Bangladesh is one of the largest and fastest-growing industries in the country. It accounts for a significant portion of the country’s exports and provides employment opportunities to millions of people. The industry has come a long way since its inception in the 1970s, and today, it faces various challenges related to production, supply chain management, and cost optimization. One of the ways to overcome these challenges is by implementing an Enterprise Resource Planning (ERP) system. This article will discuss why an ERP system is necessary in the Garments Industry of Bangladesh.

Integration of Business Processes:

The Garments Industry of Bangladesh involves various business processes, including design, procurement, production, quality control, and logistics. These processes are often managed by different departments, and there may be a lack of communication and coordination between them. An ERP system can integrate these business processes into a single platform, enabling better communication and coordination between departments. For example, the design department can provide the production department with detailed instructions on the type and quantity of materials required for a specific garment design. Similarly, the production department can inform the logistics department of the delivery date for a specific order, allowing them to plan the shipment accordingly.

Real-time Information:

In the Garments Industry of Bangladesh, timely and accurate information is essential for effective decision-making. An ERP system provides real-time information on various aspects of the business, including inventory levels, production schedules, order status, and sales data. This information can be accessed by authorized personnel from any location, enabling them to make informed decisions quickly. For example, if a customer places an urgent order, the production team can check the inventory levels in real-time and determine if they have the necessary materials to fulfill the order. If not, they can place an immediate order with the supplier, ensuring that the order is delivered on time.

Efficient Supply Chain Management:

The Garments Industry of Bangladesh has a complex supply chain that involves multiple suppliers, manufacturers, and distributors. An ERP system can streamline this supply chain by automating various processes, including procurement, production planning, and logistics. This automation can reduce the lead time for procurement and production, improving the overall efficiency of the supply chain. Additionally, an ERP system can provide real-time visibility into the supply chain, enabling better decision-making and faster response times to supply chain disruptions.

Cost Optimization:

Cost optimization is a critical factor in the Garments Industry of Bangladesh, where competition is high, and profit margins are often low. An ERP system can help companies reduce costs by optimizing various processes, including procurement, production, and inventory management. For example, an ERP system can identify cost-saving opportunities by analyzing the historical data of procurement and production. It can also monitor inventory levels in real-time and provide alerts when the inventory levels exceed a certain threshold, preventing overstocking and reducing inventory carrying costs.

Compliance with International Standards:

The Garments Industry of Bangladesh is a significant player in the global apparel market, with exports to various countries worldwide. To maintain this position and comply with international standards, companies need to ensure that their operations meet various quality, safety, and environmental standards. An ERP system can help companies comply with these standards by automating various compliance-related processes, including quality control, safety inspections, and environmental audits. This automation can ensure that companies meet international standards consistently, reducing the risk of compliance-related issues and reputational damage.


In conclusion, the Garments Industry of Bangladesh can benefit significantly from the implementation of an ERP system. An ERP system can integrate business processes, provide real-time information, streamline supply chain management, optimize costs, and ensure compliance with international standards. These benefits can help companies overcome various challenges and remain competitive in a rapidly evolving industry. Therefore, it is essential for companies in the Garments Industry

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