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.