Adoption and Performance of Enterprise Resource Planning (ERP) in the Ready-Made Garment (RMG) Industry of Bangladesh.

Abstract

Bangladesh's ready-made garment (RMG) sector, which accounts for over 80% of the country's export revenue, is progressively implementing Enterprise Resource Planning (ERP) systems to boost productivity, compliance, and competitiveness in the international market. ERP helps manufacturers avoid delays, cut down on waste, and improve buyer-required traceability by offering integrated data visibility across production, merchandising, inventory, HR, costing, and finance. The operational function, strategic advantages, and difficulties of ERP implementation are examined in this study using a wealth of secondary data from worldwide studies, peer-reviewed journals, and BGMEA publications. The results show that ERP supports adherence to international standards and improves workflow coordination, production planning accuracy, real-time inventory monitoring, and analytics-based decision-making. However, obstacles to widespread adoption, particularly among small and medium-sized businesses, include high costs, a lack of digital skills, organizational reluctance, and the requirement for factory-specific customization. According to the study's findings, ERP has a great deal of revolutionary potential for Bangladesh's RMG sector; nevertheless, its success is contingent upon leadership commitment, organized training, appropriate data management, and industry-level support for digital transformation.