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At the end of last month, a garment factory fire in Bangladesh killed more than 100 people and injured many more. In Bangladesh, mostly women and often children are exposed to risks from lacking fire safety standards in factories. Let us view this tragedy from a supply chain perspective. Supply chains are typically customer-focused.
A 15-year old boy from Bangladesh was playing hide and seek with his friends and he hid inside a shipping container. Be careful where you hidewhen you’re playing hide-and-seek. Unfortunately, he locked himself in, fell asleep, and ended up in Malaysia six days later. The boy was locked inside the container for 6 whole days.
Practice Theory Bangladesh Corporate Social Responsibility Globalization Outsourcing Procurement Purchasing Supply Chain Management Supply Chain Sustainability' The Socially Responsible Supply Chain: An Imperative for Global Corporations. Supply Chain Management Review, 17 (5), 22-29 [full paper available via EBSCOhost].
News of the increasing death toll in Bangladesh continues to pour in, with the latest at 600 found dead in the rubble of the Rama factory complex. Demonstrators are protesting apparel offices (such as Gap’s offices in San Francisco) to demand better working conditions in Bangladesh factories. But this is not enough.
The political upheaval in Bangladesh has caused logistics disruptions since early June, but the resignation of the Prime Minister on Sunday has the army escalating steps to restore calm after fierce clashes of protesters with police.
The recent press in the Wall Street Journal and other papers on Walmart’s fire in Bangladesh is raising the ire of corporate responsibility groups and human rights groups alike. So if you are tier one supplier in a country like Bangladesh, and a major retailer is your customer – what will you do?
An article written by my former PhD student, Rejaul Hasan, and I just came out this week in Contracting Excellence , the journal published by IACCM, which documents the catastrophe that is unfolding in Bangladesh, one of the world’s major exporters of garments for the apparel sector.
Just two months later, more than 100 people died in a garment fire in Bangladesh in November 2012. The factory had a SA8000 certificate of approval; but when the fire started, locked exit doors doomed factory workers to a fiery death. A Walmart garment order was on the cutting room table. Walmart has worked hard on ethical sourcing.
Ten years ago, on April 24, 2013, the world was shocked by the collapse of the Rana Plaza building in Bangladesh. The tragedy claimed the lives of 1,134 garment workers and injured thousands more. The building housed several garment factories that supplied clothing to major global brands.
In our ongoing discussion of labor and human rights violations in the supply chain, we’ve discussed in prior posts the problems that occurred in Bangladesh resulting in over 700 dead. Companies like Nike and Disney have publicly stated that they are not going to Bangladesh for apparel sourcing in the future.
Rana Plaza, an eight-story building in Bangladesh that housed garment factories employing approximately 5000 workers, collapsed on April 24, 2013. To examine this assumption, we studied the stock market reaction to 39 global apparel retailers with significant sourcing in Bangladesh.
The Rana Plaza factory collapse in Bangladesh in 2013 has opened the eyes of many supply chain managers: Implementing a socially responsible supply chain has, indeed, become an imperative for global corporations and the supply chain management discipline might be in the middle of a paradigm shift.
The report also contains an analysis of three selected sectors (retail, construction and pharmaceutical) and additional case studies, including a case study on the 2013 Rana Plaza tragedy in Bangladesh. More information can be found on the homepage of Raconteur’s Supply Chain 2015 report. Practice Report Supply Chain Management Trend'
In Asia, Vietnam and Bangladesh are more important sourcing locations. VF had committed itself to largely selling goods to consumers in the same region they are manufactured in. China, for example, only produces 14% of their total units, only 3% of those units end up being exported to the United States and 2% to EMEA.
Chile has long been a hub of second-hand and unsold clothing, made in China or Bangladesh and passing through Europe, Asia or the United States before arriving in Chile, where it is resold around Latin America. Some 59,000 tons of clothing arrive each year at the Iquique port in the Alto Hospicio free zone in northern Chile.
Incidents like the Rana Plaza factory collapse in Bangladesh have led to new laws, but laws are not always followed which makes it incumbent upon your business to ensure your supply chain is ethical. Transparency, or lack thereof, carries a huge reputational risk for companies. The stakes are high. Supply chains are opaque.
When the Rana Plaza building collapsed in Bangladesh’ capital, Dhaka, in 2013, more than 1,100 people died and thousands more were injured. It became clear that safety standards and regulation are very poor in Bangladesh, the world’s second biggest garment industry after China. An Accord and an Alliance.
The recent disaster in Bangladesh where hundreds of workers lost their lives when a building collapsed serves as a horrific reminder of this challenge. Filed under: Resilience , Security , Strategy Tagged: 3D printing , Bangladesh disaster , customization , mass production , product quality , product safety , supply chain visibility.
Fires in a Bangladesh sewing factory resulted in 112 deaths. These three drivers are why supply chain leaders should work together to build the network of networks: Brand Protection. On November 2012, the executives of Wal-Mart awoke to find that they were front page news.
Some of the other countries where cricket is widely popular include England, Pakistan, Australia, South Africa, Bangladesh, Zimbabwe, Ireland, and the Netherlands. In India, cricket unites 1.4 billion people like no other sport. Cricket, in popularity, is second only to soccer worldwide.
Recent tragedies such as the Plaza garment factory collapse in Bangladesh, has brought to light the. In addition to how items are shipped, shippers should also have visibility to how and where products are made to ensure compliance across the entire supply chain. Read More.
When something bad happens at a factory in a developing country such as Bangladesh or China, the whole world wants to identify and punish the real culprit. For example, it was not a simple task to identify the person who was responsible for the collapse of the factory building in Rana Plaza (Bangladesh).
the collapse of the garment factory in Bangladesh that killed hundreds of ‘slave-labor’ employees, Rip Curl apparel marked “Made in China” actually being made in North Korea). When it comes to these types of serious supply chain problems, saying “I didn’t know” is no longer an acceptable excuse (if it ever was).
Countries, especially in South Asia, like China, India, Bangladesh, Pakistan, Vietnam, etc., Another cost factor that troubles businesses is apparel is the ever-increasing cost of local and imported raw materials. offer competitive prices for apparel manufacturing to businesses within this industry.
Sourcing to low cost destinations is not a new development and Bangladesh has been a favored destination of apparel brands and retailers. But incidents like Rana Plaza disaster (an eight-story factory collapsed, killing over 1,000 workers) brought to light non-existent safety measures.
Bangladesh, Cambodia, and Vietnam experienced similar wage-related strikes and walkouts. This past summer in China, for example, labor disputes—and a spate of worker suicides—contributed to overnight wage increases of 20 percent or more in some Chinese cities.
He was then posted to Mumbai, India as General Manager, South Asia, overseeing the growth and development of India, Pakistan, Sri Lanka and Bangladesh. In year 2008, Mark joined BMT, based in the Hong Kong office.
Countries like China, Bangladesh, and India all are battling for offering a superior cost to the pieces of clothing purchasers to hold the export share high. Clothing manufacturers make pieces of clothing both for the local and export markets. However, the industrial scale production of clothing is mostly for export.
I asked that question almost three years ago following the collapse of a garment factory in Bangladesh that killed more than 1,100 workers and injured thousands of others. How many slaves are in your supply chain? Based on recent reports, it appears that, three years later, the answer to that question remains the same: We don’t know.
The British Standards Institution (BSI) has also raised the alarm regarding slavery in the supply chain, releasing a new Risk Index Report identifying China, India, Vietnam, Bangladesh and Myanmar as the five highest risk countries for human rights violations.
One consequence of squeezed budgets is the lack of health and safety oversight, which coupled with lax regulatory compliance practices have led to horrific incidents such as last November 2012 Tazreen fire , and the recent Rana Plaza building collapse that killed more than 1,000 factory workers in Bangladesh. And this is ongoing.
US PMI Falls below Key Level in August, Thousands of Trucks Taken off US Highway, New US Distribution Hubs Emerging, Companies Returning to Sourcing from Bangladesh
As a result of the war, Bior reports, “Egypt’s prime minister fixed bread prices, Bangladesh launched a nationwide food subsidy program, and consumers in Indonesia noticed a favorite instant noodle dish went out of stock. In places like Lebanon, where 80% of its wheat comes from Ukraine, the impact of the war will be brutal.
Fan reported that Bangladesh, through a countrywide strategy that implemented a combination of policies and investments to spur growth, provide social protection, and promote healthy diets, “made some of the fastest and greatest reductions in malnutrition in history, cutting undernourishment and child stunting both roughly in half.”
Other recent factors exacerbating the delays include the Suez Canal blockage, COVID-19 outbreaks at shipping hubs in Southern China as well as factories in Vietnam and Bangladesh, and floods in Western Europe and China’s Henan province.” Shortages of longshoreman, truck drivers and warehouse workers have also slowed the flow of goods.
Sourcemap, a New York City tech start-up is building a platform, that could transform the fashion industry: a digital map of all clothing manufacturers in Bangladesh. Read the full article at [link].
In Bangladesh in July 2021, a fire at a food factory claimed the lives of at least 52 people, some of whom were children. The company issued this statement at the time: “We explicitly prohibit child labour in our operations and have been working relentlessly to take a stand against this.” In the U.S.,
By deploying the “fast fashion” business model, the apparel industry began to outsource garment manufacture to suppliers and subcontractors in low-cost countries, such as China, India, Vietnam, Malaysia, Pakistan, and Bangladesh.
India, China, Bangladesh, and Ghana) but those regimes are going to place tremendous fiscal pressure on budgets already stressed by substantial government outlays during the COVID-19 epidemic.” They write, “These problems will spread in the coming months; ultimately all farmers around the world will be impacted.
It’s been three years since the Rana Plaza disaster in Bangladesh that killed 1,135 garment workers when an eight-story building collapsed. The tragedy pushed company leaders to seek greater transparency in their supply chains. It pushed consumers to think about where their goods come from and the definition of supply chain itself.
By some counts there are an estimated 11,000 garment factories in Bangladesh alone, many of them small and off the grid. Now, there’s an effort afoot to digitally map every garment factory in Bangladesh. The goal, says Bonanni, is “to make the Bangladesh apparel sector transparent, and be recognized globally as official.”
We saw the supply chain disruptions caused by the earthquake near Japan and Fukushima meltdown, and the collapse of the garment factory in Bangladesh. We prepared for the impact of the SARS epidemic a few years ago. More recently, we’ve seen disruptions from tariffs and trade wars, not to mention many natural disasters.
Garment Workers in Bangladesh Say No More Low Pay. Australian Ports Hit wth Cyber Attack. Jury Hands Amazon a Big Loss over Alleged Ignoring of Worker Abused by Others. US Manufacturing Flat again in October
It even helped National Geographic track a discarded plastic bottle from Bangladesh to the Indian Ocean. Energy companies are exploring using the same technology for monitoring hard-to-reach wind farms; logistics companies for tracking shipping containers; and agribusiness companies for minding cattle.
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