Overcoming Supply Chain Obstacles: Challenges Faced by Local Manufacturers in the Adhesive Industry of Bangladesh

In today’s fast-paced and competitive business landscape, supply chain management has become an essential factor for the success of any organization. The adhesive industry is no exception to this rule. Local manufacturers face unique challenges in their supply chains that make it difficult for them to compete with global players.

From sourcing raw materials to delivering finished products, local manufacturers have to navigate various obstacles daily. In this blog post, we will explore some of the biggest hurdles faced by these manufacturers and share valuable Fin sights on how they can overcome them. So buckle up and get ready to delve deep into the world of adhesive industry supply chains!

Introduction to the Adhesive Market in Bangladesh

The Bangladeshi adhesive market is one of the most promising and fastest-growing industries in the country. The sector has seen a tremendous growth over the last few years with the rise in demand for construction, electronics, packaging, and medical applications.

However, local manufacturers face various challenges in meeting the rising demand owing to supply chain obstacles. These include lack of raw material availability, high production costs, lead time issues, and fragmented distribution channels.

Let’s take a closer look at each of these Challenges Faced by Local Manufacturer:

  • Lack of Raw Material Availability: One of the biggest challenge faced by local adhesive manufacturers is the lack of raw material availability. Most of the raw materials used in making adhesives are imported from China, which makes it difficult for Bangladesh-based companies to procure them on a regular basis. This often leads to production delays and increases in overall costs.
  • High Production Costs: Another challenge faced by local adhesive producers is high production costs. The cost of manufacturing adhesives in Bangladesh is higher than that in China and India due to higher electricity and labor costs. Additionally, local companies also have to import many of the key ingredients used in making adhesives, which further adds to their manufacturing expenses.
  • Lead Time Issues: Lead time issues are also common among Bangladesh-based adhesive manufacturers. Due to lack of raw material availability and high production costs, local companies often find it difficult to meet customer deadlines.
Challenges Faced by Local Manufacturers

What are the Supply Chain Challenges Faced by Local Manufacturers?

Most manufacturers are aware of the commonly discussed obstacles to optimal supply chain management, such as supplier related issues, customer expectations, manufacturing lead-times and regulatory compliance.

However, local manufacturers can face additional challenges that may not be as well known or understood. These can include:

  • Inadequate Infrastructure: Local manufacturers may find it difficult to obtain the raw materials they need due to inadequate infrastructure. This can include a lack of roads, railways or port facilities.
  • Lack of Skilled Workers: In some regions, there may be a lack of skilled workers available to staff the manufacturing facility. This can make it difficult to meet production goals and deliver products on time.
  • Language Barriers: Manufacturers who are based in regions where English is not the primary language can face difficulty communicating with suppliers and customers. This can lead to misunderstandings and delays in the supply chain.
Challenges Faced by Local Manufacturers

The Impact of Technology on Overcoming Supply Chain Obstacles

Companies within the adhesive industry are constantly seeking to improve their production processes and find ways to overcome difficulties associated with the procurement of supplies. The impacts of technology on the manufacturing process have been profound, providing new opportunities for those in the industry to optimize their business models and reduce costs. One area where technology has had a particularly significant impact is in overcoming supply chain obstacles.

The challenges faced by local manufacturers when procuring supplies can be significant, but there are a number of ways that technology can help to overcome these obstacles. For example, online marketplaces provide a convenient way for companies to connect with suppliers from around the world, facilitating the sourcing of difficult-to-find or specialist materials. In addition, technology can also be used to streamline communication and collaboration between different suppliers, helping to ensure that everyone is working towards the same objectives.

Ultimately, the impact of technology on overcoming supply chain obstacles has been hugely positive, enabling companies within the adhesive industry to operate more efficiently and effectively. By utilizing the latest tools and technologies available, businesses can continue to overcome any challenges they may face, ensuring that they remain competitive in an ever-changing marketplace.

Leveraging Logistics and Efficient Distribution Channels

It’s no secret that the adhesive industry is highly competitive. In order to stay ahead of the curve, manufacturers must constantly be on the lookout for ways to improve their operations. One way to do this is by leveraging logistics and distribution channels.

An effective logistics strategy can help local manufacturers in the adhesive industry overcome a number of supply chain obstacles. For example, a well-designed distribution network can ensure that finished products reach customers in a timely and efficient manner. Additionally, a good logistics partners can provide valuable insight into trends and changes in the marketplace, which can help manufacturers adapt their strategies accordingly.

Of course, no two businesses are alike, so there is no one-size-fits-all solution when it comes to logistics and distribution. However, by working with an experienced partner, local manufacturers in the adhesive industry can develop a customized strategy that meets their unique needs and helps them stay ahead of the competition.

Methods of Reducing Barriers to Entry for Local Manufacturers

In order to compete with foreign manufacturers, local manufacturers must first overcome several supply chain obstacles. One major obstacle is the high cost of raw materials. Another is the lack of access to new technologies and the knowledge needed to operate them. Local manufacturers also face barriers to entry in the form of government regulations, trade barriers, and infrastructural limitations.

One way to reduce these barriers is by working with other local manufacturers to pool resources and share knowledge. This can be done through cooperative arrangements, trade associations, or informal alliances. By collaborating, local manufacturers can increase their buying power, access new technologies, and benefit from shared expertise.

Another way to reduce barriers to entry is by investing in research and development. This can help local manufacturers develop new products and processes that are more competitive. R&D can also help them learn about and adopt new technologies.

Local manufacturers can try to lobby for government policies that will level the playing field with foreign competitors. For example, they could push for lower tariffs on imported goods or for more investment in domestic manufacturing infrastructure.

Cost Reduction Strategies to Benefit Local Manufactures

As the cost of doing business in China continues to rise, many local manufacturers are feeling the squeeze. In order to stay competitive, they must find ways to reduce their own costs. Here are some strategies that can help:

  1. vertically integrate your manufacturing process. This means bringing more of the steps involved in production in-house, rather than outsourcing them. Not only does this save on labor costs, but it also gives you more control over quality and delivery times.
  2. make use of technology. There are many software programs and online tools that can help streamline your manufacturing process and make it more efficient. By investing in these tools, you can save time and money in the long run.
  3. focus on quality control. One of the biggest expenses for manufacturers is dealing with defective products. By focusing on quality control at every stage of production, you can avoid these costly mistakes.
  4. develop a lean manufacturing process. Lean manufacturing is all about eliminating waste and maximizing efficiency. By implementing lean principles in your factory, you can save time and money while improving quality at the same time.
  5. Streamline your logistics operation. One of the biggest expenses for manufacturers is shipping and logistics costs. By streamlining your operation and using consolidation services, you can reduce these costs significantly

Tips from Rinomas Bangladesh Ltd. about adhesive manufacturing problems

In adhesive manufacturing, avoiding common problems is key to maintaining high-quality products and satisfied customers. To avoid issues such as improper bonding strength or inconsistent production, it’s crucial for manufacturers to follow a set of best practices. Firstly, selecting the right raw materials is essential in ensuring that adhesives are made with consistent quality. Additionally, precise measurement and mixing techniques must be followed during the manufacturing process to ensure product uniformity. Regular equipment maintenance is also necessary to avoid any breakdowns or inconsistencies during production runs. Finally, having a thorough understanding of the end-use application of each adhesive will help manufacturers create products that better suit their intended purpose while also reducing returns from dissatisfied customers. By prioritizing these critical steps in the adhesive manufacturing process, industry professionals can significantly minimize many commonly experienced challenges and produce more reliable results overall.


In conclusion, overcoming supply chain obstacles in the adhesive industry can be difficult but is necessary if local manufacturers want to remain competitive. By looking at the challenges faced and developing strategies such as increasing collaboration with suppliers, leveraging technology, and optimizing inventory management processes, manufacturers can ensure that their supply chains are optimized for success. With all of these tips in mind, you should be able to easily manage your supply chain so that it meets the needs of your business now and into the future.

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