There is a growing focus on production relocation in several industries including the textile and fashion sector, based on the promise to respond better to both challenges and opportunities. However, several barriers continue to hinder such reconfigurations. This study explores seven case company value chains since 2019 to identify drivers/challenges of local manufacturing implementation and scaling in UK and Sweden. Studying relocations over time provides a nuanced understanding of how decision-makers view and manage localisation opportunities and reconfiguration challenges. The findings shed light on several inherent complexities, and specifically highlight common human resource challenges (e.g., skills, knowledge) as hindering scaling.

The purpose of this paper is to understand supply network configuration for small-series production within high-cost contexts, and the context-specific decision logics associated. A total interpretive structural modelling (TISM) and MICMAC mixed-methods approach is used to determine and interpret interrelationships among SNC and capability-related aspects identified from the literature. Respondents come from EU textile/apparel companies, undertaking small-series production/sourcing in the region, with different roles in the value chain. The findings led to several propositions. They highlight the foundational nature of supply chain relationships and digital data sharing; interacting product/process flexibility and specialisation considerations, with associated enablers and barriers; the challenges related to location, which is the crucial supply chain driver; and the need to balance various interrelated capability drivers, such as quality, innovation, and sustainability. These findings can support practitioners for reconfiguration, and the approach can be used to address other contexts and thus enhance generalisability.

This report details the third study undertaken within the research project “Resilient supply chains for local textile and clothing production in small series” with funding from Sparbanksstiftelsen Sjuhärad.

Specifically, this report summarizes the results of a feasibility study focused on understanding the perspectives of practitioners operating within the Sjuhärad region in Western Sweden regarding how feasibility it currently is to implement and scale local textile and apparel manufacturing supply chains. These results are based on the perceptions of representatives from five case companies that have had experience with local sourcing, that are diverse in their company characteristics and local sourcing products/projects.

Feasibility is assessed in this study through a multidimensional approach, that seeks to cover different aspects of configuration, including products, technology/processes, supply chains/business models, as well as cost/financial feasibility and dynamic capabilities (proactive and reactive capabilities to implement and scale local supply chains). This multidimensional feasibility assessment targeted answering the two questions addressed:

■    What is the feasibility of local textile and apparel supply chains (for small-series production)?

■    How can the feasibility be enhanced to scale local textile and apparel supply chains?

In answer to the first question about the feasibility of local textile and apparel supply chains (for small-series production), the results highlight mixed/conflicting assessments of the five cases studied-some of which represent more than one local product or project. While the results show that the scaling/scalability of local activities is even more challenging than implementation, two cases do show interest or in-progress efforts to scale up and/or continue their local activities. Such scaling is most often with a combination of at least two product/business model characteristics that maximize value with higher costs, like customization focused on simple or standardized products, or remake products that have some customization on-demand.

In answer to the second question, regarding how to improve the feasibility and thus scalability of local textile and apparel supply chains, the results suggest the crucial need to overcome supply chain and business model challenges (supplier/customer), as these were faced by all five cases studied. Such challenges include dependence on customer demand, communication/marketing to customers, logistics challenges and sourcing risks both globally and locally, and designing scalable business models for repair or remake. Within such business models, cost and financial feasibility is mostly challenging, and technology and process difficulties remain to be overcome. However, despite challenges related to balancing higher costs with higher value for end-customers, one company still intends to scale up or replicate projects in the future because of sustainability goals/drivers. This case, and the other one continuing local sourcing and looking to scale up, show the importance of investing in internal resources and capabilities to enable scaling of local activities, and targeting slow growth and learning from experimentation (in other words, dynamic capabilities).

The cases studied in this report show different approaches to such local supply chain opportunities and suggest various drivers or motivations for implementation. However, despite the potential for co-location to enable higher levels of resilience in supply chains, these benefits are not as often discussed as motivations as compared to sustainability/circular economy goals. This suggests that companies may not yet understand or see the benefits of local supply chains for proactive and reactive resilience capabilities, or that the multidimensional challenges found are barriers to scaling up and achieving these benefits. Such challenges include local sourcing being considered to be, or found to be, higher risk than global sourcing, which requires efforts to reduce these risks, for example, through enhanced collaboration (among suppliers and/or with brands). Additionally, the promise of local sourcing to reduce overproduction (and overconsumption) is not widely identified, suggesting this perspective can be strengthened in the future. 

The findings show that dynamic capabilities are already frequently available to the brands studied, as they seem to have high readiness to implement such local activities. Thus, to achieve further sustainability and resilience benefits, companies can seek to replicate local activities-to balance their efforts focused on learning/development with their use of this knowledge gained from previous projects.

This report details the second study undertaken within the research project “Resilient supply chains for local textile and clothing production in small series” with funding from Sparbanksstiftelsen Sjuhärad.

Specifically, this report summarizes the results of an interview study focused on understanding the perspectives of practitioners operating within the Sjuhärad region in Western Sweden regarding what is required to implement and scale local textile and apparel manufacturing supply chains. These results are based on the perceptions of representatives from diverse companies that have had experience with local manufacturing and/or sourcing, or are interested in such opportunities. The companies interviewed for this study included eight producers, three brands currently implementing such local configurations, one with established local supply chains, and one brand interested in local manufacturing/sourcing. This represents diversity in both decision-making roles and experience.

This study specifically addresses localization opportunities in the textile and apparel industry, which face tensions and challenges, in particular related to location decisions and resilience as highlighted in the previous study. Here the focus is on implementation and scaling of such opportunities as they relate to the configuration of products, processes, relationships, and supply chain structures. The key results of the interview study show that many issues are relevant or crucial for both implementation and scaling in such production contexts, in particular several factors were highlighted that can also be challenging due to insufficient levels or other difficulties. 

• Overall, brands show more focus on product-related considerations with implementation, like on-demand production and customization, as well as standardization, however, standardization is also suggested to be beneficial for producers regarding scaling, specifically expanding beyond material sharing between products to standardized products for reduced development costs.
•  Several process considerations are both crucial and challenging, including the imperative of knowledge spanning from production skills like sewing to competence linked with required technology as well as business-related skills. Additionally, these considerations are linked to capacity requirements which are related to the need for or limitations related to competence, machinery, space, and so on. Moreover, they are linked to efficient processes in production and throughout the whole supply chain which can be challenging, and  remake and redesign processes which can benefit from improvements for instance, related to technology to overcome complexity.
• The results show relationship considerations stresssed are related to supplier relationships (and trust) for both implementation and scaling. For scaling, customer relationships were  more of a focus, both with end-consumers, and between producers and brands.
• Complexities and challenges are also highlighted related to supply chains, specifically location considerations that are difficult due to local supplier vulnerabilities and the location and availability of materials globally rather than locally. This finding adds insights to the complexity around location decisions as found in the previous study in this project, suggesting difficulties related to local manufacturing and resilience outcomes. Ownership and control was also emphasized, especially for brands.
• Among the other considerations mentioned as crucial are several related to capabilities and performance priorities, including quality which is always strongly required and in some cases is challenging. Additionally, cost mindset changes were suggested, which is described as helpful for some brands to overcome cost challenges - which were highlighted in the earlier study - together with increasing product value through sustainability and customization. It is with these types of products that such local production is considered feasbile to implement, but local production is not necessarily required with such product focuses. Lead time and sustainability performance priorities and performance benefits are also crucial with local production including for further scaling. Additionally, capital was mentioned as being required to invest in marketing to end-consumers and grow demand, as well as to invest in improved processes and other efforts to grow.

The report also includes an overview of a workshop on future scenarios, which both confirms and adds to the results from the interview study. Looking forward, the requirements revealed in these two studies provide a foundation for a feasibility study.

This report details a Delphi study undertaken within the ongoing research project “Resilient supply chains for local textile and clothing production in small series” with funding from Sparbanksstiftelsen Sjuhärad-No.20221947. 

Specifically, this report summarizes the results of a Delphi study-designed to capture the level of agreement among practitioners operating within the Sjuhärad region in Western Sweden regarding the enablers and challenges of resilience within local textile and apparel manufacturing supply chains. These results are based on the perceptions of representatives from diverse companies that have had experience with local manufacturing and/or sourcing, which undertake activities within one or more value chain stages (textile manufacturing; garment manufacturing; retail). The two main steps of the Delphi study were, first to identify issues that are enablers and/or challenges-relevant to at least two companies within an interview round, and then to evaluate those issues using an online questionnaire to analyze and visualize levels of agreement. 

A key argument of the study and larger research project is that both localization opportunities and challenges are significant within the textile and apparel industry, due to having high risk exposure with complex global supply chain structures. So, there is a need to understand the complexity of such location decisions in this context, including associated trade-offs for resilience. On one hand, localization can lead to enhanced flexibility, responsiveness, and customization due to reduced complexity and shorter supply chain distances, but on the other hand local supply chains can reduce adaptability related to global network structures and can be challenged by cost trade-offs. To understand this complexity, the supply network configuration approach can be helpful-to show structures that underpin resilience. By addressing the supporting structures and capabilities required for resilience, this report can support development of more resilient supply chains by highlighting what is required for improved resilience outcomes (Competitiveness; Growth; Reduced risk exposure; Reduced recovery time) and what challenges must be overcome.

The key results of the Delphi study show moderate levels of resilience in the context, which is supported by several enablers, which can be challenging with insufficient levels. Agreement is found with enablers related to:

• Capabilities and performance priorities (situational awareness; quality; delivery/short lead times; sustainability)
• Processes (flexibility and agility; competence)
• Relationships (close and long-term relationships; transparency and communication)

The only two challenges with high levels of agreement are competence limitations and high costs/cost trade-offs. However, the lack of both strong opinions and high levels of agreement about resilience indicates opportunities for improvement. The suggested need for managers to have strong situational awareness can be a key area to develop.

In contrast, there were more mixed opinions found among respondents about other enablers/challenges, including location as either an enabler or challenge for resilience, and challenges related to exposure to external risks/disruptions. This suggests diverse experiences related to localization in a context of increasing external challenges. Additionally, the lack of strong opinions about digital tools/automation as an enabler suggests additional development is required, although several respondents emphasize significant recent investments as crucial. The lack of strong agreement about product-related enablers/challenges suggests different perspectives on small-series production, although the majority of respondents consider focusing on small volume, high value products to be more an enabler of resilience than a challenge. Overall, these findings indicate that managers must carefully consider localization with respect to cost trade-offs, limited industry know-how and varying levels of exposure to other challenges in high-cost contexts. 

Looking forward, such insights related to enablers/challenges of resilience should be taken into consideration within decision-making processes-that define supply network configuration (products, processes, relationships, supply chain structures), with respect to implementation and scaling goals. Notably, the findings suggest companies are likely to need to invest in competence development, including process and technology-related skills, as well as sensing skills (awareness). However, careful consideration of cost trade-offs is required within such decision-making processes, which should be addressed throughout the supply chain from the perspective of actors with control over supply chains. Such decision-making considerations will be addressed in the following report within this research project.

Increasing disruptions demand understanding challenges with localizing supply chains for resilience. These opportunities and challenges are significant within the textile and apparel industry. The purpose of the research is to understand how supply network configuration factors (structure/capabilities) enable or challenge the resilience of local manufacturing supply chains, through a two-stage Delphi study. Based on semi-structured interviews with diverse practitioners within a specific high-cost context and survey responses, consensus is found regarding enablers including flexibility, sustainability, close relationships, and situational awareness, and only cost and competence challenges. Findings confirm complex trade-offs and additionally suggest the importance of developing/building upon sensing capabilities.

Purpose

While localized small-series production is a significant opportunity, various tensions challenge implementation in high-cost contexts. This paper explores how managers view and respond to different tensions in small-series production implementation by adopting a paradox-based perspective.

Design/methodology/approach

The paper presents a multiple case study addressing small-series production within EU's apparel industry, as key context to address managerial awareness, and responses to tensions regarding location and supply network configuration decisions. Seven cases were selected for variation in customization and implementation (early/established), ownership, location and company size, to identity commonalities.

Findings

The study highlights performing tensions related to sustainability, and risk, in addition to confirming traditional goal-related tensions predominantly impacting small volume production. With on-demand/custom production, tensions include costs in conflict with process scale, and several process-related tensions (flexibility, expansion/development, risk management). Identified multidimensional responses do not include location or structural decisions, instead focusing on synthesis, through product-operations efficiency, knowledge development and process innovation and supply chain collaboration. Temporal separation is found with customization, including reducing product/process complexity short-term with enhancing process development, which suggests latent learning tensions and limited awareness.

Research limitations/implications

Future research should address the extent to which tensions can be resolved or remain paradoxical, as well as dynamic decision-making and latent tensions.

Originality/value

The paper shows how paradox theory facilitates a deeper understanding of complex network configuration decisions, including reshoring/localization. The findings identify organizing tensions/elements and elaborate upon performing/performing-organizing tensions suggested with small-series production, location decisions and supply chain management.

Purpose of this paper:

While strategies like nearshoring, digitalization and small order sizes are expected to support resilience in the textile and apparel industry, literature suggests complex implications of small-series production in high-cost contexts on risk exposure. The purpose of the paper is to understand the how supply network configuration related to small-series production models influence resilience, in EU’s textile and apparel industry amidst COVID-19.

Design/methodology/approach:

A multiple case study is presented, with data collected through semi-structured interviews with seven case companies representing different types of small-series production models. The analysis of risk exposure draws from supply network configuration literature, to identify the implications of small-series production model structures and reconfigurations on resilience.

Findings:

Product and operations characteristics are more often resilience enablers, whereas priorities/performance (sustainability, innovation, delivery), and supply chains (relationships, locations) can both enable and impede resilience in the face of both external and internal supply chain risks. These findings thus confirm the benefits of such small-series production models for mitigating, adapting to, and withstanding risks emerging from COVID-19 situation.

Value:

The supply network configuration-based framework adopted in the study enabled analysis of the implications of small-series production and its configuration on resilience (and associated risk exposure), which can support future reconfigurations.

Research limitations/implications:

Future research can complement this study with quantitative measures of resilience, and comparisons with other industry and location contexts. Additionally, in-depth case studies can address how companies balance positive and negative impacts of small-series supply network configuration on resilience.

Practical implications:

Managers can be aware of enabling and challenging effects of small-series production model priorities and performance goals, location and relationships, when configuring or reconfiguring structures in response to risks.

Purpose

Technology and market pressures are encouraging localized and small-series production in customer-driven industries. The purpose of this paper is to explore and understand the supply chain-, product- and process-design factors for small-series production in EU's textile and apparel industry, to understand configuration decisions, priorities and challenges. 

 Design/methodology/approach 

An interview study was undertaken with ten companies that represent diverse small-series production models and value chain roles. Interview data was analysed to identify supply network configuration characteristics, decision priorities and challenges. 

 Findings

Three small-series production models emerged from the analysis, differing with respect to adoption of process postponement and customization. The findings confirm and extend past research regarding diverse decision priorities and product, process, supply chain structure/relationship configurations. Challenges identified relate to planning (priorities) and implementation (configuration). Whereas competence availability and digital technology challenges are common, several difficulties are linked to production model like tensions related to priorities and small volumes, which are not found with customization. 

 Research limitations/implications 

Future research can make comparisons with other industry and location contexts; adopt dynamic approaches to distinguish between design and reconfiguration processes; and address indicated paradoxical-tensions. 

 Practical implications 

The study findings can provide guidance for companies regarding identification of priorities and management of (planning/implementation) challenges impacting small-series production in T&A. 

 Originality/value 

The paper brings a configuration perspective at the supply chain level to the problem of small-series production implementation, which demands holistic and context-specific understanding.