DHAKA - A new report in Supply Chain Insider saw from the University of Dhaka and Shahjalal University of Science and Technology analyse how Artificial Intelligence (AI) can reduce export complexities in Bangladesh’s Ready-Made Garment (RMG) industry. This sector, central to Bangladesh’s economy, faces logistical inefficiencies, lengthy lead times, and quality control issues that hinder competitiveness on the global stage. 

The study suggests that integrating AI and Internet of Things (IoT) technologies in supply chain management could help streamline operations, enhance product quality, and cut down costs.

AI-driven solutions, such as route optimisation, offer the potential to shorten delivery times and lower expenses, which is critical as Bangladesh aims to achieve US$100bn in apparel exports by 2030. Using advanced algorithms combined with Convolutional Neural Networks (CNNs), AI can identify optimal shipping routes, balancing costs and travel time. This approach could significantly reduce lead times, a critical factor in global market competitiveness.

The study looks at IoT’s role in enhancing real-time monitoring and data analysis. By using IoT sensors throughout the supply chain -from tracking raw materials in transit to monitoring quality during production - companies can maintain high product standards and proactively address potential issues, reducing shipment rejections. Integrating IoT with AI enables predictive analytics, improving demand forecasting and inventory management, which are essential for maintaining steady production and avoiding costly delays.

Survey responses from industry stakeholders revealed a generally positive attitude toward AI, with 90 per cent supporting its implementation despite concerns about costs and the need for workforce adaptability. However, the study also highlights potential challenges, such as data security, skill shortages, and financial barriers, especially for smaller manufacturers. The researchers propose a phased AI integration strategy, including workforce reskilling, ethical guidelines, and government support to ensure smooth adoption and mitigate disruptions.

The study concludes that implementing AI and IoT in Bangladesh’s RMG supply chain could drive sustainable growth, enabling the industry to meet ambitious export goals while maintaining a competitive edge globally.