University of Dhaka

Term Paper (Summer, 21)

Course Code: EIB- 525/ 540

Topic: “Supply Chain Circularity Practices of Snowtex Outerwear Ltd.”

Submitted To:
Dr. Shobod Deba Nath
Associate Professor

Department of International Business

Submitted By:

Name ID
Taukir Ahmed 801826010
Emran Khan 801826048
Faisal Nasirul Huq 801928011
Wasim Akram 801928037
Jeblin Khisa 801930055

Date of Submission: 5th December, 2021

Introduction …………………………………………………………………….…………… 1

Snowtex Outerwear Ltd. Overview …………………………………………….……………2

Literature Review ……………………………………………………………….……………3

Objectives of the study ………………………………………………………….……………4

Methodology …………………………………………………………………….…………...5

Limitations of the study ……………………………………………………….……………..5

SCC practices and reasons for implementation ……………………………….……………..6

Challenges of Supply chain circularity ……………………………………….……………...7

Overcoming the Challenges of SCC ……………………………………………….………...8

Finding & Analysis …………………………………………………….………….…………8

Recommendations ………………………………………………………..….……………….9

Conclusion ……………………………………………………………..……………………10

References ………………………………………………………………...…………………12

Appendix ……………………………………………………………………..….…………..13
 Abstract

This study is about Supply chain circularity’ at RMG manufacturing companies in Bangladesh.

This study is qualitative and exploratory in nature. It is based on the analysis of information

collected by taking interviews. Interviews have been taken from management and workers of

Snowtex outerwear Limited, operating in Bangladesh with workforce of around 5000 people.

The garment sector is the most important driver of the Bangladeshi economy, accounting for 83

percent of total export earnings in 2019-2020, totaling 27.94 billion USD. The garment sector

needs to cope with a complex worldwide supply chain. As many apparel-exporting countries

adopt sustainable supply chain circularity, Bangladesh is also improving the practice of supply

chain circularity umbrella day by day. Sharing responsibility with suppliers and inspiring them to

adopt more environmentally friendly behaviors is critical in the RMG industry for enhancing

product quality and guaranteeing adequate preservation. Not only that, but governments all over

the globe are pushing for sustainability, with a variety of fines and rewards for firms who follow

their policies and recommendations. As a result, businesses are rapidly transitioning to "green"

supply chains. Supply chains that are less wasteful, employ recyclable resources, and have a

lower carbon impact, among other things.

In terms of foreign currency revenue, RMG is Bangladesh's most important industry. Bangladesh

is the world's second-largest clothing exporter, after China. It is responsible for 80% of

worldwide export revenues. Consumers are looking for more environmentally friendly solutions

as a result of rising global emissions and more knowledge. Customers in the target market are

increasingly health-conscious and actively promote greener lifestyles. Circular supply chain

management is also known as ecological supply chain management or environmental supply

chain operations. Regulations, products and services, laws and policies that cause minimum

environmental impact are covered under environmental terms and conditions. For Bangladesh's

textile sector, circular supply chain management is clearly a new platform.

The fashion industry must convert to circular supply chain processes as soon as possible. A

regenerative system, such as a circular textile economy, allows clothing to cycle with maximum

value kept for as long as feasible before re-entering the system through reuse or recycling. The

transition to circular supply chain methods has already begun, and there is rising momentum for

long-term sustainability. Many significant milestones in the readymade garments industry

tackling climate change and igniting development have been reached in recent years. Many

organizations have begun to incorporate new or recycled materials, cleaner technology, and

innovative organizational and logistical processes into their supply chains in order to improve

their operational, economic, and social responsibility performance. Beyond environmental

concerns, the circular supply chain has become a strategic element for businesses. As much of

the research on practices in the sphere of transition towards a more sustainable production

system has been established, there is also an essential path extending the focus of study and

evaluating the social and economic scenarios that influence the many stakeholders, in a broad

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sense. To properly adapt the circular economy principles to supply chains, a new set of particular

activities must be defined, which will need the adoption of systemic innovations.

Snowtex Outerwear Ltd. Overview:

Snowtex Group is a woven garments manufacturing industry that is diverse and integrated, with

strong backward linkage. The factory opened in 2000 and now offers services such as quilting,

cutting, printing, sewing, and finishing. In Bangladesh, Snowtex is one of the largest and most

export-oriented woven clothing manufacturers. We sell high-quality garments to the greatest

stores and fashion brands all around the world. We guarantee that our clients will receive their

orders on time and that quality will not be compromised at any cost. Snowtex has grown steadily

and continuously from its inception into one of Bangladesh's most capable and professionally

well-equipped RMG companies. The firm has amassed an arsenal of skills in the field of

sourcing and manufacturing high-quality apparels in a short period of time. The firm can proudly

claim of completing the most difficult and demanding orders from all over the world with

accuracy and to the fullest satisfaction of its prestigious and high-standard customers. The sister

concerns of Snowtex Group are given below: Snowtex Outerwear Ltd., Snowtex Sportswear

Ltd., Snowtex Apparels Ltd., SaRa Lifestyle Ltd., Cut N Sew Ltd.

Snowtex Outerwear Ltd. is one of the largest apparel and 100% export-oriented woven garments

manufacturers in the world, with a dedication to honesty and integrity. Mr. S.M. Khaled, the

company's founder and managing director, owns it privately. The driving force behind this

organization is a group of highly talented individuals with extensive backgrounds in industrial

management, international marketing, and local business. They sell excellent apparels to the

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finest of the globe as one of the country's major export-oriented RMG manufacturing

companies. Snowtex has grown steadily and continuously from its inception to become one of

the most capable and professionally well-equipped organizations in the Bangladesh's RMG

industry. The firm has amassed an arsenal of skills in the field of sourcing and manufacturing

high-quality apparels in a short period of time.

Literature Review:

It is about how climate action relates to supply chain management. Almost every company these

days has a sustainability page on their website. Some use the term circularity. We can think of

circularity as a subset of sustainability. Sustainability refers to safer, greener, more responsible

operations as they relate to people, the planet, and profits- the triple bottom line approach.

Circularity does this as well but focuses on the resource cycle and waste specifically. The

circular supply chain network describes circular supply chain as interconnected system that use

secondary and regenerative inputs to generate value by reducing end extending resource use.

Supply chain management lies at the heart of our efforts because making stuff is the heart of the

problem, exacerbating the challenges of too much plastic, fossil fuels, and transportation, waste,

and electricity sources of a better framework for the future. Circular economy is increasingly

recognized as a better alternative to the dominant linear (take, make, and dispose) economic

model. Circular Supply Chain Management (CSCM), which integrates the philosophy of the

circular economy into supply chain management, offers a new and compelling perspective to the

supply chain sustainability domain. Consequently, there is increasing research interest. However,

a review of the extant literature shows that a comprehensive integrated view of CSCM is still

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absent in the extant literature. This prohibits a clear distinction compared to other supply chain

sustainability concepts and hinders further progress of the field. In response, this research first

classifies various terminologies related to supply chain sustainability and conceptualizes a

unifying definition of CSCM. Using this definition as a base, it then conducts a structured

literature review of 261 research articles on the current state of CSCM research. Based on the

review results, the researchers call for further studies in the following directions that are

important but received little or no attention: design for circularity, procurement and CSCM,

biodegradable packaging, circular supply chain collaboration and coordination, drivers and

barriers of CSCM, circular consumption, product liabilities and producer's responsibility. A typical

supply chain framework evolved, integrating environmental and social issues and economic concerns

with the advancement of sustainable operations management (Seuring & Müller, 2008). Supply chain

management plays a pivotal role in today's business arena where sustainability has called for industrialist

and researchers' attention from different aspects (Islam et al., 2020). Regardless of business organizations'

size or nature, sustainability has become an inseparable part of their business (Kaur et al., 2018).

Sustainability is the term that describes the capability to perform business with a vision of maintaining the

society, environment, and economy (Hassini et al., 2012).

Objective of the study

This study is conducted to explore supply chain circularity practices of Snowtex Outerwear Ltd.

Industry. Though practicing of supply chain circularity in Bangladeshi RMG industry is still a

question mark to many researchers. The study's goals are to determine the value of good supply

chain circularity management for the Snowtex Outerwear industry. Its complexities, flaws, and

detrimental influence on enterprises are all factors to consider. Finally, to identify ways to

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overcome such challenges in order to ensure the sector's long-term growth. Three main

objectives of this study are-

 To understand the integration of supply chain circularity practices and the reasons for such

integration/implementation.

 Challenges for integrating supply chain circularity practices.

 Strategies to overcome the supply chain circularity implementation challenges.

Methodology

This study is qualitative in nature. It is based on the analysis of information collected by taking

interviews. This research is conducted based on the analysis of information retrieved from three

selective interviews from management level of Snowtex outerwear Ltd., an existing company

operating in Bangladeshi RMG industry.

An interview has been taken from management of Snowtex Outerwear Limited, operating in

Bangladesh with a workforce of around 500 people. The interview has been taken via telephone

from a structured questionnaire emphasizing the worker issues like workers health and safety in

Covid-19 pandemic, wages, bonus, overtime, rules and regulations.

Limitations of the Study

This study is conducted by taking only one company (Snowtex Outerwear Ltd.) operating in

RMG industry of Bangladesh. This is really difficult to make judgment with limited survey.

Another barrier to conduct this type study is difficulty in retrieving genuine information by

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conducting primary survey within a short period of time. Getting access at management level and

taking interviews are ready difficult.

Supply chain circularity practices and reasons for implementation:

For the textile industry to become circular, the whole infrastructure and supply chain must be

changed and made circular. Bangladesh RMG sectors have come up with several unique "out of

the box" ideas, all of which are distinct from traditional economic models and lead to firms with

closed-loop product cycles as their ultimate objective. At Snowtex Outerwear Ltd. the resource

belongs to the corporation, the product will be fixed or recycled for the consumer rather than

replaced with a new pair. Implementing circular economy techniques is critical for driving the

design of circular and reverse supply chains, allowing items to re-enter the network through

recycling and reuse. By linking the production and disposal ends of the value chain, the growth

of textile production connected to reverse logistics capacity might increase supply chain

resilience.

At Snowtex Outerwear Ltd. Maintains circular supply chain that is designed to reuse both its

actual waste products and its returns. Its goal is to recycle these materials and returns into new

items that they can resell. As a result, supply networks are undergoing a transformation. A

paradigm shift in which trash as we know it no longer exists or is maintained to a minimal

minimum. Naturally, this implies near-perfect long-term viability.

It is necessary to rethink the productive system, in such a way that CE can focus on the three Rs

(reduction, reuse, and recycling), the 6Rs (reuse, recycle, redesign, remanufacture, reduce,

recover), or the 9Rs (refuse, reduce, reuse, repair, refurbish, remanufacture, repurpose, recycle,

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recover) to achieve greener but also more efficient production processes, which would make

them more profitable for organizations. Through circular supply chains it is possible not only to

reduce the production of waste, but also to achieve self-sustaining production systems in which

materials are returned to the production cycle.

Challenges for integrating supply chain circularity practices:

CSCM methodology and its implementation have never been easy for Snowtex Outerwear Ltd.

Lack of management approach is one of key hindrances for CSCM adoption. The government

regulations are one of the major setbacks for CSCM implementation. Lack of reward for

adopting circularity from government has been the obstacle for CSCM implementation. Lack of

effective CSR initiatives in the supply chain performance system. Absence of strong

environmental legislation, enforcement of law and regulations has been seen as key. Improper

supply chain monitoring and lack of policy framing for retaining experienced operators and lack

of strategy with reluctance to change. Design complexities possess a cause of concern. Absence

of closed loop chain has also been identified. Goods and Service Tax emerged as a key hindrance

for SMEs to adopt circularity in their operation. Information gap has been identified which

created lack of market demand for recycled/reused product as a factor which prevents adoption

of circularity practices. The lack of cooperation and willingness among supply chain partners,

constraints have also been found. Budgetary constraints, high initial investment, market

competitiveness, credit unavailability are regarded as key financial challenges.

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 Overcoming the challenges of supply chain circularity:

 Generate higher sense of responsibility and ownership among consumers.

 Institutionalize consumers ‘active roles as customers, sellers, partners and suppliers.

 Circular product design strategies, e.g. design for disassembly, mono-materiality Innovative

recycling technologies.

Findings & Analysis

Findings from the Interview of the Industrial manager of Snowtex Outerwear Ltd.:

Summing up the whole 15 minute interview, it is true that the company is abiding by the rules

and regulations given by the government and are complying with the standards set by regulatory

bodies and also has a pretty competitive policy structure compared to the peer companies in the

industry. They deserve appreciation for their efforts and their intentions are pure. Overall it

seems like a worker-friendly company. It is widely accepted by now that the “normal” supply

chains of material use- producing materials, using them, and then discarding them into landfills,

other countries, or rivers and seas are wasteful and damaging to the environment. As an extreme

example, in 2019 oceanographers found a plastic bag in the Mariana Trench, the deepest known

point in the world’s oceans. It’s easy, therefore, to see why consumers and policymakers have

become interested in the concept of the “circular” supply chain, in which at least a large fraction

of materials is recycled and reused in the product. A significant insight on how to present a

framework with taking the data-driven approach into account as well as adopting the empirical

study in verifying the theory are both welcome. This also encourages the research in employing

the methods of multi-criteria decision making, neural network integration, and machine learning

and so on to address the issue of CSCM. We do believe that complexity relations exist among

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CSCM discussions, and these relations need a hierarchical structure as a guideline to lead the

decision-makers to make the improvement. We also consider case studies and empirical

statistical analysis as effective research tools in addressing the issues.

Analysis: The RMG industry in Bangladesh is attempting to reduce hazardous/toxic material use

by focusing on aspects such as collaborating with suppliers to address customer environmental

concerns at the end of the product life cycle. Establishing a transportation system for recycling

used and defective end-of-life products, community environmental campaigns, providing project

specifications for vendors that include environmental requirements for "purchased" items, and

collaborating with suppliers to manage reverse flows of materials and packaging. And all these

factors have a strong relationship with decrease in consumption for hazardous/toxic materials.

Finally, we must strengthen our collaboration with suppliers in order to control reverse flows of

materials and packaging, as well as build a transportation infrastructure for recycling old and

faulty end-of-life items.

Cooperating with suppliers to address consumer environmental issues at the end of the product

life cycle, sharing responsibilities with suppliers to encourage them to adopt more

environmentally friendly behaviors, improved capacity utilization, and green and eco design

products all have a moderate relationship with improving product quality.

Recommendations for Supply Chain Circularity of RMG sectors of Bangladesh:

Lack of information technology can help deter technologies and procedures from being adopted.

The lack of information technology and specialists in this field hinders the implementation of

new technologies and operations. To meet this difficulty, the textile and clothing sector should

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adapt with applicable information technology and equip professionals to facilitate the newest

technology transfer, installation, and adaption.

The high cost of sustainability and circularity adoption is caused by a lack of government

assistance and legislation. Without government financial backing and regulations that promote

sustainability, the textile and clothing industries would be unable to make meaningful progress

toward supply chain sustainability. To solve this problem, the government should provide

financial incentives to the textile and garment industries and develop an easy-to-implement set of

rules.

Reverse logistics, market competitiveness, and unpredictability are all caused by a lack of supply

chain integration. For supply chain management to maintain reverse logistics operational,

forward and backward integration is required. To reuse, recreate, and recycle textile and clothing

items, the textile and apparel industry needs extend its supply chain on both the supplier and

customer sides.

Difficulty in measuring and regulating environmental practices has resulted in lack of buying

house's environmental mission. Buying firms can be the harbinger of sustainability adoption in

the textile and apparel supply chain. It is essential to install a flexible method to measure and

monitor all the participatory firms' environmental practices.

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 Conclusion:

The objective, requirement and issues of circular supply chain management of Snowtex

Outerwear Ltd.’s textile and apparel business are examined in this research. Textile goods'

increased consumption, production, and usage have an impact on global climate, ecosystem

quality, and human health due to their significant use of energy, chemicals, land, and water.

Despite providing much-needed jobs and critical human services, the textile sector poses

significant societal concerns. Despite the fact that all phases of the value chain consume a lot of

energy and/or natural resources, the considerable use of chemicals in cotton farming and wet

textile manufacturing makes these stages stand out in terms of their effects on human health and

ecosystems. Activities at these phases have a direct impact on the health of textile workers,

particularly if working conditions are hazardous, but they also have an indirect impact on the

health of the wider community by contaminating the environment in which the activities are

carried out.

Changes at each level of the value chain, including businesses of all sizes and market groups,

will be required to move toward sustainable and circular textiles. With a transition away from

fossil fuels and toward renewable energy and materials, the use of harmful compounds in textile

manufacturing will have to be abolished, and resources will have to be used much more

effectively. Clothing and other textile items will need to have significantly longer life spans, as

well as drastically enhanced recycling when materials approach their end-of-life. As a result,

sustainable and circular textiles will necessitate whole new business models, but they will result

in an industry that benefits business, society, and the environment.

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 References

Snowtex group. (n.d.). Snowtex Group. Retrieved November 27, 2021, from
http://snowtex.com.bd/

Carrico, M., & Kim, V. (2014). Expanding zero-waste design practices: a discussion
paper. International Journal of Fashion Design, Technology and Education, 7(1), 58-64.

Hopkinson, P., Zils, M., Hawkins, P., & Roper, S. (2018). Managing a complex global
circular economy business model: opportunities and challenges. California Management Review,
60(3), 71-94.

Milewska, B. (2019). Supply chain models in garment industry. Transport Economics

Vimal, K.E.K., S. Rajak, and J. Kandasamy, Analysis of network design for a circular
production system using multi-objective mixed integer linear programming model. Journal of
Manufacturing Technology Management, 2018

Rissanen, T. I. (2013). Zero-waste fashion design: a study at the intersection of cloth,

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 Appendix

SNOWTEX OUTERWEAR LTD

 Year of Establishment : 2014

 Investment : OWN

 Total Line : 80

 Factory Space: 4,50,000 SFT

 Land Space: 3,50,000 SFT

 Total Manpower: 7,700 PERSON

 Location: B 65/3, LAKURIAPARA, DHULIVITA,DHAMRAI, DHAKA-1350.

 Email: MIS.SOL@SNOWTEX.ORG

 Tel: +88 09611680680Md. Rayhan Salahin

Interviewed Managers Information:

Name: Md. Rayhan Salahin

Designation: Senior Manager

Department: Industrial Engineering

Contact: 01888-813064

Snowtex Outerwear Ltd.

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 Primary Research Questionnaire

The report consists of findings from in-depth interviews with Snowtex Outerwear Ltd.’s senior

manager, a RMG sector manufacturing company regarding supply chain circularity practices.

Questions/topics used as triggers to obtain information are given below:

 Please describe the power source on the production floor in workshop (along lines of:

Lighting, water, equipment, etc.)

 If yes, List the criteria and Rank in order of importance.

 Are all operations, involved in making the final product sustainable? Or only the product

material is sustainable?

 Which is the most wasteful process?

 Which is the most economical process?

 Current sustainable practices of the organization.

 Future plans for improving sustainability.

 What are the reasons for implementing circular supply chain?

 What are the challenges the company facing regarding maintaining the supply chain

circularity practices?

 Do you believe in circular supply chain practices to improve sustainability? If yes please

explain briefly with an example of your organization.

 What are the kinds of machines which are high in demanded?

 What are the principled followed by your organization to keep business sustainable?

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