Clue-to-Glory

Clothing exports have been running around the globe for many years, and Bangladesh has been a part of this industry for nearly 25 years. In addition to the declines and losses, there have been impressive turnarounds and profits. We are aware of the ups and downs in the apparel world. This article is solely created to provide beneficial information for our readers and parallelly provide some enlightenment for all the aspiring entrepreneurs out there in the apparel industry.

Recent years have seen Bangladesh become the world’s second-largest garment exporter. Despite the many challenges facing this industry, three factors have significantly increased its export competitiveness: labor costs, technological advances, and the country’s market access policy. As the study reveals, although the garment industry in Bangladesh has succeeded in upgrading its industrial capabilities, social upgrading still constitutes to be a challenge.

After analyzing the entire market situation and years of experience have led us to list 7 keys of success in the apparel sector. The points are discussed in the following section:

1. Efficiency: To maintain optimal efficiency levels, buyers demand a higher value and lower prices. It is the 4Ms that are responsible for garment manufacturing efficiency: manpower (trained staff at all levels), machinery (both core machines and software), material (availability and quality), and methods (standard systems and processes). High-tech factories with no trained workers cannot guarantee higher efficiency. Instead, they need trained workers to operate those machines. Operating at an optimum efficiency level is no longer an option in these times and is a requirement to succeed. Failure to do this can have a detrimental effect on profitability. Even after paying higher wages to employees in the form of production incentives, a 10–15 percent improvement in efficiency can result in a 3–5% increase in EBITDA. Secondly, when countries have efficient garment manufacturing plants, they are more attractive to buyers on the global stage, resulting in larger orders and more income opportunities for their workers.
2. Compliance: Compliance means that a company meets its legal obligations regarding workers’ health, safety, and welfare. A lot of retailers insist on traceability so they can ensure that the goods they sell are produced ethically, such as H&M, C&A, and Zara. Multiple compliance requirements have also been established by the Government of India, including labor compliance, social compliance, and environmental compliance. As a result, conforming to internationally recognized production standards is an important success factor for any business in garment manufacturing that wants to serve global consumers. Despite compliance becoming extremely important, the varied requirements imposed by global brands could be confusing to a new investor. When designing a garment factory, a garment manufacturing consultant can help investors build a safe and functional facility that fits each requirement.
3. Factory Layout: Layout for factories consists of the physical arrangement of industrial facilities such as sewing machines, storage systems, and fixed assets that support production. In addition to being an effective physical arrangement for saving space, an effective layout should also reduce material and labor movement. As a result of the development of an efficient plant layout, smooth processing occurs throughout the production process, improving production efficiency and reducing space usage by 10-12 percent. To achieve compliance and productivity simultaneously, it is very vital to prepare an efficient factory layout.
4. Technology: A business’s success is determined by its ability to use technology. A machine that automates reduces the need for manual intervention, therefore resulting in lower labor costs. Automation can also reduce manual labor, reduce breakdowns, improve the quality of products, and control inventory in addition to reducing the need for manual labor. Aside from automated sewing machines, technology also includes applications of software, such as real-time data analysis, visual fit, and transparency in supply chains. Despite this, not all garment manufacturing setups will adopt technology the same way.
5. Training and HR: Almost any industry with a high labor intensity needs training and human resources, and garment manufacturing is no exception. Without the training of the workforce, it is almost impossible to produce a quality product. In the Indian garment industry, which recognizes the importance of training and human resources, conventional training traditionally involves four weeks of basic training for unskilled workers. It is rarely taught how to develop soft skills, including motivation, health, hygiene, group behavior, self-management, and time and task management. A high-performance training module envisions skilling, with 80 percent of workers being multi-skilled and most of them becoming trainers as well. In the garment industry, skill development is a crucial factor for success, particularly for high-performance training.
6. Buyers tie-ups: Bangladesh and Vietnam are emerging as garment manufacturing countries, putting India in stiff competition to stay competitive in the industry. It is best to develop long-term partnerships with customers when such challenging conditions exist. Such long-term partnerships benefit both suppliers and consumers. The service provides brands with a reliable sourcing source, as well as manufacturers with increased profitability by maximizing the value of the brand, ensuring consistent orders, and reducing the possibility of stalled inventory.
7. Customer service: Customers are even more important in the manufacturing sector than the services sector; instead, this trend is affecting most industries. Having the right products at the right time is not only critical for garment manufacturers, but also being flexible and adaptable to new designs, and having internal quality audits. Manufacturers must form long-term partnerships with brands to ensure that they remain aligned with the changing buyer’s needs such as short product lives and a high number of stock-keeping units. 

The essential ingredients for success are patience, hard work, and dedication. All the factors described above have to be maintained more or less to guarantee success, but it is the perseverance and trust of an individual that makes the difference to generate lucrative profits.

SOURCE:

https://www.fibre2fashion.com/industry-article/8581/apparel-production-the-9-key-factors-to-success

Image Courtesy:

1. https://betterwork.org/2018/12/19/raeda-the-first-mechanic-in-jordans-garment-industry/
2. https://apparelresources.com/events-news/upcoming-fair-expected-boost-vietnams-growing-garment-textile-sector/
3. https://www.shutterstock.com/video/clip-8936449-production-synthetic-fibers-textile-industry

Written By Rafiad Ruhi