Overview

In the context of globalization, which is happening at an increasingly rapid pace, especially with
more countries joining the World Trade Organization (WTO), the competitive environment of
businesses is becoming more and more dynamic and fierce. To survive and thrive in today's
trends, businesses must constantly develop, improve production methods, and change their
business strategies such as product costs, product quality, raw materials, marketing, etc.
Among these factors, inventory management is becoming increasingly important in business
strategies.
Inventory management ensures that the amount of goods sold to the market is always
sufficient, without interruption or shortage. Furthermore, good inventory management can
reduce costs related to activities such as producing goods, renting space, and purchasing
storage materials. However, there are still some limitations in inventory management such as
backlog, reduced quality, reduced durability, and expiration. Therefore, businesses often
balance inventory management with inventory checks and warranties and maintenance of their
goods.
To further understand inventory management, we will explore the inventory management
system of small and medium-sized enterprises (SMEs) in Bangladesh. This study used structured
interviews to collect data and Nvivo for analysis. The study found that most small and medium-
sized business owners collect raw materials from the local market, as well as from domestic and
international markets. Some SME entrepreneurs collect raw materials across the country when
they process recycled products. Typically, they use digital technology and online media to
manage raw materials. Small and medium-sized business owners cannot buy a lot of raw
materials due to financial crises, waste, and losses, resulting in a loss rate of 10-15%. This study
contributes greatly to the government, the SME Fund, and relevant trade associations related
to the SME IM system. The study recommends that the government reduce import and export
taxes on raw materials and inventory of small and medium-sized enterprises and export SME
products.