Sustainable procurement in RMG sector: a focus on Aman Knittings Ltd., Bangladesh

Abstract

This practicum report, titled “Sustainable Procurement in the RMG Sector: A Focus on Aman Knittings Ltd., Bangladesh,” was conducted from January to May 2025 as part of the requirements of the MPSM program. The report explores how sustainable procurement practices are integrated within the Ready-Made Garment (RMG) industry in Bangladesh, using Aman Knittings Ltd.—a prominent knitwear manufacturer and sister concern of Unifill Group. The topic was chosen in light of increasing global attention toward environmentally and socially responsible sourcing, especially in labor-intensive industries such as garments. The practicum relied on primary data collected through interviews with 20 mid- and top-level professionals from various departments such as merchandising, supply chain, quality, and compliance, as well as insights gained through the author’s professional experience at Aman Knittings Ltd. Chapter 1 provides the context and objectives of the practicum, discussing the rising importance of sustainable procurement in response to global standards like the Sustainable Development Goals (SDGs) and ISO 20400. The chapter outlines the objectives of identifying key imperatives for sustainable manufacturing and evaluating the contribution of supply chain management in achieving sustainability. Aman Knittings Ltd. has shown proactive efforts in sustainable sourcing by only procuring Better Cotton Initiative (BCI) certified yarn, and increasingly sourcing organic and recycled materials in response to global customer demands. The company maintains a strict compliance framework to select suppliers and has made sustainability a core aspect of its procurement strategy. Chapter 2 elaborates on the supply chain management structure of Aman Knittings Ltd., emphasizing its supplier evaluation system and procurement practices. Suppliers are categorized based on performance into Platinum, Diamond, Gold, Silver, and Bronze tiers. Strategic suppliers are chosen based on evaluations related to price, delivery, quality, and customer service. The company follows a disciplined approach regarding lead time, payment terms, negotiation, documentation, and delivery processes. Aman ensures ethical procurement through strict codes of conduct that prohibit bribery, enforce labor rights, and demand product traceability. A comprehensive evaluation system ensures continuous monitoring and elimination of non-compliant suppliers. Chapter 3 presents the main findings and observations from the practicum. It identifies that sustainable procurement is no longer optional but a business imperative driven by customer expectations and environmental concerns. The chapter highlights that Aman Knittings Ltd. is working towards sourcing 50% of its materials from sustainable sources by FY30, including organic cotton, recycled fibers, and BCI-certified cotton. Data shows a significant shift in procurement patterns, with BCI cotton accounting for over 92% of procurement in early 2024. However, a major challenge was identified regarding delays in receiving Transaction Certificates (TCs) from suppliers for organic cotton. These certificates are critical for verifying compliance with organic standards and are often delayed due to poor documentation, internal inefficiencies, or misleading assurances from suppliers. In response, Aman Knittings has implemented a detailed Standard Operating Procedure (SOP) to address the issue, including checkpoints from sampling to final delivery, and rigorous verification by the sourcing and technical departments. This has helped improve accountability and traceability in the supply chain. In summary, this practicum demonstrates that while Aman Knittings Ltd. has made commendable progress in integrating sustainability into its procurement and supply chain management, there are still challenges—particularly in documentation and supplier awareness—that need to be addressed. The findings reinforce the critical role of structured procurement practices, supplier collaboration, and effective documentation systems in achieving long-term sustainability goals in the RMG sector.