Technology has had a significant impact on financial management practices in the ready-made garments (RMG) industry. By automating manual tasks, providing real-time data, and enhancing collaboration, technology has enabled RMG companies to improve efficiency, accuracy, and transparency in their financial management. This presentation will discuss the impact of technology on financial management practices in the RMG industry in more detail and highlight some of the challenges and opportunities that technology presents for RMG companies.

1. Welcome
to
My Presentation

2. Candidate Profile
Tanzib Ahmed

3. Presentation Topic
Explore The Impact of Technology on
Financial Management Practices in the
RMG Industry

4. Introduction
The ready-made garment (RMG) industry is one of the most important sectors in the global
economy, accounting for over 80% of the world's total textile and apparel exports. The
industry is also a major employer, with millions of people working in RMG factories around
the world and generating billions of dollars in revenue. The RMG industry is characterized by
its ability to adapt rapidly develop fashion trends, changing consumer preferences and
technology. Today, it stands as a symbol of globalization, trade, and the fusion of culture and
fashion, impacting economies, societies, and the environment. In recent years, technology has
significantly influenced financial management in the RMG sector. This influence is clear in
various aspects, such as accounting, payroll, inventory management and financial analysis.
According to WTO's World Statistical Review 2023, Bangladesh ranks second in garment
exports as a single country with apparel export of $45 billion in 2022. As usual China is the
number one position ($182 billion). However, in this sector, Bangladesh is constantly
challenged by another country in Asia, Vietnam, has also retained the third position.

5. Financial Management Practices in the RMG Industry
The Role of Financial Management
Financial management is the process of planning, organizing, controlling, and monitoring the
financial resources of a business. It is essential for all businesses, but it is especially important
for the RMG sector.
Effective financial management in the RMG sector can help businesses to:
Improve profitability: By managing its financial resources effectively, carefully monitoring
expenses, negotiating with suppliers, and investing in new technologies in RMG company can
reduce costs.
Reduce risk: Effective financial management can help companies to reduce these risks and
protect their financial stability.

6. Make better investment decisions: Effective financial management can help companies to
make sound investment decisions that will maximize returns and minimize risks.
Attract investors: Effective financial management can help companies to attract investors by
showing their financial stability and profitability.
Budgeting: RMG companies can use budgeting to forecast their revenues and expenses, and
to identify areas where they can save money.
Cash flow management: RMG companies need to carefully manage their cash flow to
ensure that they have enough cash on hand to meet their requirement, such as paying
suppliers and employees.
Accounts receivable management: RMG companies need to collect their payments from
customers on time in order that maintain a healthy cash flow.

7. Accounts payable management: RMG companies need to pay their suppliers on time in
order to maintain good relationships and avoid late payment fees.
Financial reporting: RMG companies need to generate accurate and timely financial
reports to track their performance and make decisions.
Inventory management: RMG companies need to maintain enough levels of inventory to
meet customer demand, but they also need to avoid overstocking, which can lead to
inventory out of date and losses.
Environmental and Social Responsibility: Investments in sustainable practices, such as
eco-friendly manufacturing processes and ethical labor practices, are financially workable in
the long run and increase brand value.
Supply Chain Financing: Efficient financial management allows for supply chain financing
solutions, ensuring a smooth flow of materials and reducing barrier caused by delayed
payments.

8. Technological Development in the RMG Industry
I) Technology in Financial Data Management:
1. Automated Data Collection: The adoption of automated data collection systems has
improved the accuracy and efficiency of data entry, reducing the risk of human error in
financial records. Barcoding and RFID technology in inventory management have
enabled real-time tracking.
2. Big Data Analysis
Big data analyzing sales trends, customer behavior, and production costs, businesses can
make financial decisions, optimize inventory, and improve forecasting.

9. II) Financial Software Solutions
Advanced financial software platforms, including Enterprise Resource Planning (ERP)
systems and cloud-based accounting software, have become fundamental to financial
management in the RMG industry. These tools facilitate accurate financial reporting,
automating payroll, and managing accounts payable and receivable efficiently. They also
support data analytics for decision-making.
Enterprise Resource Planning (ERP) Systems:
This software solutions enable companies to manage various functions, including finance,
inventory, supply chain, and production, within a single platform
Cloud-based accounting solutions:
Cloud-based accounting solutions allow users to access their financial data from anywhere in
the world. This can be helpful for companies with multiple locations or remote employees.
FreshBooks, Zoho Books, QuickBooks, Xero, Wave Accounting, Free Agent, Sage, Wave
Accounting etc. are the popular Cloud-based accounting software.

10. III) Online Payment Systems:
Online payment systems reducing the time between order placement and payment receipt.
IV) Supply Chain Management Systems
Technology has introduced supply chain management systems (SCMS) that enable real-time
monitoring and control over the entire supply chain. This systems provide inventory
management, and order fulfillment, leading to cost reductions and improved working capital
management.
Blockchain and Transparency:
Blockchain technology is used to ensure transparency and traceability in the supply chain,
particularly in relation to ethical and sustainable practices. It helps in verifying the
authenticity of products and materials.

11. V) Labor and Cost Management:
Automation: Automation in the RMG industry, particularly in manufacturing, has reduced
the dependency on labor.
Human Resource Management Software: HR software work on management, attendance
tracking, and payroll processing, leading to improved cost control.
VI) Risk Management:
Cybersecurity: The RMG industry is also facing a growing threat of cyberattacks.
Investments in cybersecurity are essential to protect sensitive financial data and maintain
the trust of stakeholders.

12. VII) Sustainability Technologies:
Various technologies are employed to reduce the environmental impact of garment
production, including water-saving dyeing processes, recycling methods, and sustainable
materials like organic cotton.
VII) Robotics and automation:
Robotics and automation are used to perform a variety of tasks in the RMG industry, such as
cutting, stitch and packaging.

13. Impact of Technology on Financial Management Practices
Automation of Financial Processes:
Technology has well-arranged financial management by automating various processes,
including payroll management, invoicing, and account reconciliation. Automated systems
reduce human errors, improve efficiency, and provide real-time access to financial data.
Cloud computing:
Technology has made it possible for financial professionals to access financial data in real
time. Cloud-based accounting solutions allow users to access their financial data from
anywhere in the world.
Online payroll processing services:
Online payroll processing services can automatically calculate payroll taxes and
generate paychecks for employees. This can simplify the payroll process and reduce
the risk of errors.

14. Mobile Banking and Payment Solutions:
Mobile banking apps and payment solutions have transformed how individuals and
businesses handle transactions. It allows for easy fund transfers, bill payments, and financial
management on-the-go.
Transparency:
Online portals has made it easier for stakeholders to access financial information. This
has helped to improve communication and trust between management and
stakeholders.

15. Strengths:
Improved efficiency, accuracy and transparency:
Technology can automatic manual tasks in financial management,
accuracy of financial data and make it easier for stakeholders to access
and understand financial information.
Improved decision-making:
Technology can help RMG companies to make better decisions by
providing them with more timely and accurate information.
Reduced costs:
Technology can help companies to reduce costs by automating tasks,
eliminating errors, and improving efficiency. Reduced manual labor,
physical paperwork, optimized supply chain, better inventory
management.
SWOT Analysis

16. Weaknesses:
Initial Implementation Costs: New financial technology can be
expensive, and it may take time to return on investment, which
can be challenging for smaller businesses in the RMG sector.
Cybersecurity Risks: Protecting sensitive financial data is a
continuous challenge.
Training and Adaptation: Employees need to be trained on how
to use new financial management technologies. This can be a
challenge, especially for RMG companies with a large workforce.
Lack of skilled employees: There is a shortage of skilled
employees who are able to use financial management technology.

17. Opportunities:
Sustainability: Technology can enable sustainable financial practices,
such as tracking the environmental impact of the supply chain and
implementing eco-friendly processes, which align with consumer
preferences for sustainable products.
Improved financial performance: Technology can help RMG
companies to improve their financial performance by helping them to
make better decisions, reduce costs, and increase efficiency.
Competitive advantage: RMG companies that adopt and implement
financial management technologies effectively can gain a competitive
advantage.

18. Threats:
Competition:
Other RMG companies are also investing in financial management
technologies. This can make it more difficult for companies to differentiate
themselves and gain a competitive advantage.
Dependency on Technology:
Dependency on technology can lead to weakness in the event of system
failures or technical issues.
Cybersecurity Threats:
The RMG industry is sensitive to cyberattacks, data breaches, and fraud,
which can result in financial losses, damage to reputation, and legal
liabilities.

19. Recommendations:
1. Invest in advanced financial data analysis tools to gain actionable awareness.
2. Invest in Cybersecurity
3. Continue adapt to new technologies to maintain and improve financial management
practices.
4. Regular Technological Updates
5. Invest in training for their employees on how to use new financial management
technologies.

20. Conclusion:
Technology is having a significant impact on financial management practices in the RMG
industry. By automatic manual tasks, providing real-time data, and increase collaboration,
to improve efficiency, accuracy, and transparency in their financial management.
As technology continues to evolve, it is likely that we will see even more changes in the
way that financial management is guided in the RMG industry. Companies that can adapt
to these changes will be well positioned to succeed in the future.