Home > Business > Breaking News SAP solutions for RMG sector October 1, 2013 10:33 pm Bangladesh German Chamber of Commerce & Industry along with its Gold Member SS Solutions- the sole agent and gold partner of SAP in Bangladesh, organized a business networking lunch on Tuesday, October 1, 2013 at a five star hotel in Dhaka. The event witnessed a huge presence of the distinguished personnel of readymade garments sector. The seminar shed lights on how business can integrate and automate manufacturing, supply chain, sales, and financial process with an integrated solution specifically designed for the RMG at an affordable price with SAP. Ghulam Hussain, the Chairman of National Board of Revenue graced the event at the chief guest. Dr. Albrecht Conze, German Ambassador in Bangladesh and Atiqul Islam, President of BGMEA were among the special guests. The speakers at the event shared their insights about the various challenges of the readymade garment sector in Bangladesh and how to get overcome those challenges, and the importance of world class enterprise solution in this regard. The NBR Chairman Ghulam Hussain discussed how Bangladesh is perceived around the world for its entrepreneurship. He said Compliance is a big issue. Everyone knows it has a price, but we must not forget that it has rewards too. Hence, our businesses should think more about it and implement. Modern technology and software solutions are much needed for many reasons in industries. One of them is
assessing the amount of damage occurred due to any incident and managing the post-accident episodes successfully. Software solutions like SAP can be helpful in such occasions. I hope the company will look into the matter of affordability of the software also for a country like Bangladesh. The German Ambassador Dr. Conze said, Bangladesh, like Germany has many middle and small enterprises, many of which are family owned. SAP has been successful in making those business dynamic in Germany ad so should happen here in Bangladesh. The BGMEA President Atiqul Islam said, The next generation of businesses will face bigger challenges and hence they will need more technologically advanced solutions. In this regard, we look forward to solution providers like SAP who can help us integrate our businesses in a better way. Pointing at the rising demand of trade union in the country at present, Islam said, The number of trade unions is increasing. Nevertheless, we have to remember that young garment workers are going to be a part of this. We need to educate them properly about their job responsibility, their rights and so forth. BGCCI President Sakhawat Abu Khair greeted the guests in his speech. Mentioning about McKinsey s Apparel CPO Survey 2013 that discusses about the global sourcing map-balancing cost, compliance, and capacity, he said, it s a good news that Bangladesh is still number one after China. However, we have to keep proving our efficiency, productivity and compliance. We have to keep innovating and for that, we need the right technology at the right place. I hope SAP is going to provide us that kind of smart technological support. Sarazeen Kazi, Managing Director of SS Solutions also spoke at the event. She shared with the distinguished audience her vision and the value of SAP standing on one foot. She said, Our vision is to make SAP a household name at an affordable price with niche foreign and local resources. As SAP makes the world run better, SS Solutions would like to be part of SAP enabling Bangladesh to run better. Today, technology has the ability to integrate and analyze information in order to help build the right assortment; provide a delightful consumer experience; and drive efficiency in supply chain, said Priyadarshi Mohapatra, Vice-President, Ecosystem, Channels & General business, SAP Indian subcontinent. Industry specific solutions from SAP can support the entire value chain of the retail and apparel industry in being able to analyze market trends and respond to consumers better and faster, he added. The seminar was followed by lunch. Daniel Seidl, Executive Director of BGCCI emceed the event.
BUSINESS BGMEA seeks support to educate workers, owners on trade union Star Business Report Albrecht Conze, German ambassador, speaks at a seminar organised by Bangladesh German Chamber of Commerce and Industry in Dhaka yesterday. Photo:Star Bangladesh Garment Manufacturers and Exporters Association yesterday sought support from development partners to educate workers, management and factory owners about the role of trade unions. BGMEA President Atiqul Islam said: We have to keep in mind that those who are forming trade unions are aged between 20 years and 30 years. They are new blood and don t know what the definition of trade unions is. It s a very vulnerable situation, he said at a seminar at the Westin Dhaka. Bangladesh German Chamber of Commerce and Industry organised the event on SAP
(Systems Applications and Products in Data Processing), a world leader in enterprise solution. SAP AG, a German company, has made the enterprise software to help manage business operations and customer relations. We and our mid-level management also need to get trained on trade unions. Otherwise, the sector will not survive, Islam said. We welcome any kind of legal and constructive trade unions. The BGMEA chief backed technological upgradation, saying industries need this type of solution to overcome many of its challenges. We need to reduce wastages to remain competitive and increase our efficiency. He said there were only six trade unions in the country three months ago. But their number now stands at 40. The organisers said SAP solutions could help businesses integrate and automate their manufacturing, supply chain, sales and financial process at affordable prices. Albrecht Conze, German ambassador to Bangladesh, said the SAP answers the needs of Bangladesh s family-based companies and conglomerates. To address the current challenges of the readymade garment sector, Bangladesh is now in a stage where it has to do something and act very, very quickly to restore its reputation. Ghulam Hussain, chairman of National Board of Revenue, said Bangladeshi companies would have to be compliant from the very first day of their operation. Otherwise, they will not survive. Being compliant involves some cost, but in the long-term it makes you efficient. Your cost of production will go down when the efficiency level goes up. Sakhawat Abu Khair, president of the Bangladesh German Chamber, urged the garment factory owners to reach a solution on the minimum wage issue as quickly as possible to save the sector from the current round of unrest. We should have a long-term strategy on the minimum wage. It will tell the workers how much wages would be increased and when. It will cut the number of unrest in the industry. Daniel Seidl, executive director of the chamber, also spoke among others.
bdnews24.com contents also available in Bangla LATEST Awami League refuses to comment on Alim's verdict Home > Business > SAP solutions for RMG sector SAP solutions for RMG sector Senior Correspondent, bdnews24.com Published: 2013-10-01 21:28:40.0 BdST Updated: 2013-10-01 21:54:24.0 BdST The German multinational software corporation, SAP, is offering technological solutions to help run Bangladesh s burgeoning garment industry better. Sarazeen Kazi, managing director, SS Solutions, SAP s representative in Bangladesh, said the software use could be an investment decision for a company. It brings the best of industry practices together, makes processes efficient, and integrates all departments, enabling the entire system to work seamlessly, she said.
She said the system reduces time for stocking raw materials and cuts production cost and wastages. Kazi said at least 46 Bangladeshi companies were currently using SAP technology, and that the demand was rising. She introduced the software to garment industry leaders in a seminar organised by the Bangladesh German Chamber of Commerce and Industry in Dhaka on Tuesday. The seminar shed light on how businesses could integrate and automate manufacturing, supply chain, sales, and the financial process with an affordable solution, specifically designed for the garment industry. German ambassador Albrecht Conze said the software suited the needs of medium-sized companies. He said that after the Rana-plaza building collapse that killed more than 1100 people in April it was found that Bangladeshi entrepreneurs do not have the lists of the people who have worked for them. There were many unidentified people, he said, and added that but if you have a SAP-run programme, you have full control over people who are in your office. It s a software tailor-made for the family-based Bangladeshi RMG sector, he said. President of the Bangladesh Garment Manufacturing and Exporters Association (BGMEA) Atiqul Islam said the technology would be much-needed by the upcoming tech-savvy generation that would face bigger challenges. We look forward to solution providers like SAP, who can help us integrate our businesses in a better way, he said. The National Board of Revenue Chairman Ghulam Hussain said modern technology and software solutions were badly needed by the garment industry for several reasons. One, he said, was the need to assess the amount of damage caused by an accident and managing the post-accident scenario. He said software solutions like SAP could be helpful in such cases. He, however, urged SAP to make it more affordable for Bangladeshi companies. It currently costs Tk 25 million.
The German Chamber President Sakhawat Abu Khair stresses we have to keep proving our efficiency, productivity and compliance after the April disaster, although McKinsey s latest report had placed Bangladesh garments second only to China. We have to keep innovating and for that, we need the right technology at the right place, he said and hoped that SAP would provide that kind of support. More from this section WARNING: Any unauthorised use or reproduction of bdnews24.com content for commercial purposes is strictly prohibited and constitutes copyright infringement liable to legal action.
Plea to develop mid- level management in RMG sector News Report German Ambassador in Dhaka Dr. Albrecht Conze Bangladesh laid emphasis on development of midlevel management and introduction of new technology in the export oriented garment industry, the main export earner of Bangladesh. He was speaking as the special guest at the business networking lunch SAP RMG Meet, hosted by Bangladesh- German Chamber of Commerce and Industry (BGCCI) at a local hotel on Tuesday. SAP is at the centre of today s technology revolution, developing innovations that not only help businesses run, but also improve the lives of people everywhere. Dr. Albrecht Conze said second generation of entrepreneurs are now involved in the RMG business and expressed his hope that sound working environment and safety of workers would be ensured. The German diplomat said that Bangladesh will become a mid-income country within a short span of time as the second generation of entrepreneurs, being educated in the USA, the UK, Australia and Germany, are now running industries with a new vision. He said small- and medium- sized industries are the backbone of German economy and SMEs are also driving Bangladesh s economy. He said RMG is main source of export earning of Bangladesh creating 4 million jobs, most of them women. Abu Sakhawat, President of Bangladesh-German Chamber of Commerce and Industry, expressed deep concern at the recent labour unrest and vandalism on the streets overt the wage hike. Abu Sakhawat, also managing director of Robintex group, a Bangladesh-German joint venture group, said the government and BGMEA should work out a long plan on wage structure in the RMG sector in a bid to prevent unrest after a short span. He expressed the view that a permanent wage structure should be prepared in the sector to minimise the burden on
the owners of the RMG sector. He said 40-50 per cent wage hike at one go will put tremendous pressure on the owners and reduce their competitiveness in the world market. Quoting a new survey by US consulting firm McKinsey & Co found, BGCCI president said Bangladesh will continue to be among the top three clothing sourcing destinations over the next five years, despite the recent industrial disasters. The country s $20 billion garment sector came ahead of smaller rivals Vietnam and Cambodia in the ranking of countries with the highest potential for future sourcing. McKinsey surveyed leading apparel buyers in Europe and the US, who are responsible for an annual total sourcing value of $39 billion, and found that they plan on increasing their sourcing share in Bangladesh through 2020, despite the ongoing debate over safety issues and political developments in the wake of disasters. NBR chairman Golam Hossain said most of garment units in Bangladesh are small- and medium sized, and laid emphasis on merger or acquisition of the existing units to become competitive in the international market. He said as the existing minimum cost of SAP technology is taka 2.5 crore, small RMG industries can hardly afford that technology. Sarazeen Kazi, managing director of SS Solutions-SAP s sole agent and gold partner in Bangladesh, said as the market leader in enterprise application software for the last 40 years, SAP helps companies of all sizes and industries run better. The midsize consumer products companies seeking to improve operating efficiencies can choose an affordable, integrated solution, she said. She highlighted prospects of world renowned enterprise solution provider into Bangladesh s garment and footwear industries. BGMEA president Atiqul Islam and BGCCI executive Director Daniel Seidl also spoke on the occasion.
National Business NBR chief suggests merger of small RMG units for survival FE on Wed 2 Oct 2013 Related BSEC to ask bourses to stop short selling Ministry warns traders on unfair rawhide prices
Electronics retailers target religious festivals Time to tell the success stories of RMG EU urges apparel makers to seek 'fair' prices from buyers National Board of Revenue chairman Ghulam Hussain suggested the small garment factories of the country Tuesday to go for merger for making big investment in compliance to safeguard their business. "There is a tendency among our industrialists that they are the feudal lords who cannot leave their industries although those are incurring losses. One of the answers to their problems can be merger and acquisition," said Ghulam Hussain. He also noted that most of the Bangladeshi garment factories are small in size that cannot afford big investment in compliance issues when they are in a fear of losing orders for not having the right kind of factories. For that reason too, they should go for merger, he added. Mr Hussain was speaking as the chief guest at a luncheon meeting titled 'SAP Meets RMG' hosted by Bangladesh-German Chamber of Commerce and Industry (BGCCI) at a city hotel. German Ambassador in Bangladesh Albrecht Conze was present as the special guest. The NBR chief said compliance has a cost but it has a reward too. Because of the compliance, cost of production comes down, factories get better price, knowledge, experiences and training
that ultimately increase the production. Bangladesh Garment Manufacturers & Exporters Association (BGMEA) should take initiative in this regard. "If you are not compliant you cannot do business. You are small, you are depending on subcontracting and from tomorrow you will not get any work because you are not compliant," said Mr Hussain. The bottom line is our price which makes us competitive in the world and it may not be tomorrow, he added. He said Bangladeshi garment owners should not compare their factories with that of Vietnamese. "The factories in Vietnam are bigger than ours and those are compliant from day one. Vietnam does not allow any factory unless they are compliant," he added. German Ambssador Albrecht Conze said there is a similarity between the German and Bangladeshi industries as both are developed as family enterprises. He stressed the need for resolving the present crisis in the RMG industry as soon as possible to retain the image that Bangladesh has lost due to tragic incidents in the RMG factories. BGMEA president Atiqul Islam said the association always welcomes legal and constructive trade unions but at this stage the garment industry is in a vulnerable state as many ignorant young workers aged 18 to 30 are involved in trade unionism. There should be an arrangement for the trade union workers so that they understand their role and function he further said. "There were only six trade unions three months ago which has increased to 40 within 90 days," he said. Referring to the recent McKinsey report, BGCCI president Sakhawat Abu Khair said Bangladesh will remain in the list of first three countries for garment sourcing till 2020. He said Vietnam may not produce better quality products but the country is very disciplined and there is no hartalss and other irregularities in the RMG sector. So Bangladesh has to develop its industry to remain competitive.
TRADE & MARKET «Previous NewsNext News» Print NBR chief suggests merger of small RMG units for survival Investment in compliance a must, he says Published : Wednesday, 02 October 2013 German Ambassador to Bangladesh Albrecht Conze addressing the luncheon meeting organised by the Bangladesh-German Chamber of Commerce and Industry at a city hotel on Tuesday. Â FE Photo FE Report National Board of Revenue chairman Ghulam Hussain suggested the small garment factories of the country Tuesday to go for merger for making big investment in compliance to safeguard their business. "There is a tendency among our industrialists that they are the feudal lords who cannot leave their industries although those are incurring losses. One of the answers to their problems can be merger and acquisition," said Ghulam Hussain. He also noted that most of the Bangladeshi garment factories are small in size that cannot afford big investment in compliance issues when they are in a fear of losing orders for not having the right kind of factories. For that reason too, they should go for merger, he added. Mr Hussain was speaking as the chief guest at a luncheon meeting titled 'SAP Meets RMG' hosted by Bangladesh-German Chamber of Commerce and Industry (BGCCI) at a city hotel. German Ambassador in Bangladesh Albrecht Conze was present as the special guest. The NBR chief said compliance has a cost but it has a reward too. Because of the compliance, cost of production comes down, factories get better price, knowledge, experiences and training that ultimately increase the production. Bangladesh Garment Manufacturers & Exporters Association (BGMEA) should take initiative in this regard. "If you are not compliant you cannot do business. You are small, you are depending on subcontracting and from tomorrow you will not get any work because you are not compliant," said Mr Hussain. The bottom line is our price which makes us competitive in the world and it may not be tomorrow, he added.
He said Bangladeshi garment owners should not compare their factories with that of Vietnamese. "The factories in Vietnam are bigger than ours and those are compliant from day one. Vietnam does not allow any factory unless they are compliant," he added. German Ambssador Albrecht Conze said there is a similarity between the German and Bangladeshi industries as both are developed as family enterprises. He stressed the need for resolving the present crisis in the RMG industry as soon as possible to retain the image that Bangladesh has lost due to tragic incidents in the RMG factories. BGMEA president Atiqul Islam said the association always welcomes legal and constructive trade unions but at this stage the garment industry is in a vulnerable state as many ignorant young workers aged 18 to 30 are involved in trade unionism. There should be an arrangement for the trade union workers so that they understand their role and function he further said. "There were only six trade unions three months ago which has increased to 40 within 90 days," he said. Referring to the recent McKinsey report, BGCCI president Sakhawat Abu Khair said Bangladesh will remain in the list of first three countries for garment sourcing till 2020. He said Vietnam may not produce better quality products but the country is very disciplined and there is no hartalss and other irregularities in the RMG sector. So Bangladesh has to develop its industry to remain competitive.