With the rise in local production, Bangladesh is gradually reducing its reliance on imported fabric. In the first seven months of 2023, the import of woven fabric in the country declined by 25.97 percent compared to the corresponding period of last year.
Local deliveries are more efficient and suit exporters as the buyers now demand a significantly shorter lead time to catch business in tune with the recovery in the global supply chain. To make up for past recession the global retailers and brands are trying to establish 12 sales seasons instead of the six or eight of the pre-pandemic times owing to fierce competition in the business.
They want quick shipment of goods even if they are delivered through expensive air shipments instead of the normal delivery route overseas. The local garment suppliers, textile millers, weavers, spinners, and knitters have also changed their production and procurement behavior to match up with their buyers’ demands. Bangladeshi garment suppliers have now started procuring fabrics from local sources instead of imported fabrics to comply with demands for a shorter lead time.
The lead time for delivery by most brands has been shortened to 45-60 days instead of the previous delivery period of 90-120 days.
It is not possible to comply with shortened delivery times with imported fabrics as shipments from China (the main fabric supplier take 30 days. In case of delay in executing brand consignments, the orders are promptly cancelled.
According to the Bangladesh Textile Mills Association, the import of woven fabrics stood at 2,69,671 tonnes between January and July of this year whereas it was 3,64,321 tonnes in the corresponding period last year. The increase in the local sourcing of woven fabrics also indicates that more value addition is taking place in the domestic garment sector.
Some global brands insist, on deliveries in two weeks. For instance a major Spanish brand wants deliveries within a maximum of two weeks said an exporter.
He said execution of such orders is only possible by procuring fabrics from the local markets instead of importing them.
In the case of knitwear, local spinners for many years have been able to supply more than 90 percent of the raw materials. So, they have been able to enjoy a shorter lead time for a long time. In the case of woven items, the same may happen soon.
Another advantage of local procurement is that garment makers can also buy fabrics through deferred payments and frequently seek replacements for the fabrics in case of quality issues, which would not have been possible in the case of imported fabrics said another exporter.
Many composite mills can supply garments even with 30 days of lead time as they have raw materials on hand. But such cases are rare. A miller said the demand for locally-made woven fabrics has been increasing but a clearer picture would be available after the next quarter.
