Application of blockchain in RMG supply chain: a literature review

Abstract

The Bangladeshi Ready-Made Garments (RMG) sector faces higher lead times than competitors, making supply chain efficiency crucial for global competitiveness. Blockchain technology, first introduced by Nakamoto in 2009, offers a potential solution by encoding transaction data, reducing operational costs, and enhancing decision-making. Its application in the RMG supply chain could improve production speed, logistics, and stakeholder coordination while minimizing delays. Moreover, blockchain supports circular economy models by reducing environmental damage, ensuring compliance, and enhancing transparency. It also helps mitigate the bullwhip effect, preventing overproduction and inefficiencies. For Bangladesh, a global RMG leader, adopting blockchain would build trust with Western buyers through verifiable standards and lead to repeat orders and long-term competitiveness. Based on secondary sources like JTSE and JBMER, this research highlights how blockchain integration has benefited other industries and how the RMG sector can similarly gain transparency, sustainability, and performance.