Governance Framework and Overall Readiness for AI Enabling in Supply Chain Management in Bangladesh

Abstract

Digital transformation in Supply Chain Management in Bangladesh’s RMG and SME sectors has become very popular because of the need for transparency and digital compliance by foreign customers as well as demand forecasting, inventory control, logistics, traceability and operational decision-making. But most organizations could not implement Artificial Intelligence and digital technology yet. The research reviews several academic papers, industry surveys, institutional reports, government sources and other secondary sources to investigate how prepared Bangladesh is to enable, use and maintain digital technologies like Artificial Intelligence in its supply chain management and what the challenges are there. Studies suggest that high cost of implementation, insufficient number of experts, weak digital infrastructure and the unreadiness of employees and supply chain partners to adapt to a new system are the very obstacles in implementing AI not just in Supply Chain Management but also in various other departments of an organization. Other than that, big firms like export-oriented firms tend to be more prepared than SMEs in accepting advanced digital systems due to a financial and technological edge. To understand this unevenness, this research proposes a ‘Two-axis Digital Readiness Matrix’ which is based on an organization’s internal capability and digital connectivity with external supply-chain partners. This study recommends higher opportunities for financing, advancement of workforce skills, increase in management capability and digital integration among supply chain participants