This paper determines how operational capabilities influence reshoring decision-making based on proximity make-buy alternatives in apparel supply chains in high-cost locations. By drawing operational capabilities from reshoring literature, a hierarchical model is constructed and tested using fuzzy AHP in a workshop with industry and academia. The priority weights for 12 capabilities categorized into three criteria influences the four reshoring alternatives in the order: make-onshore, make-nearshore, buy-onshore, buy-nearshore. Sourcing/production capabilities were the most important criteria followed by value-added products/services. Relationship was least important but its underlining aspects: availability of skilled labor/know-how and flexible supplier relationship were necessary preconditions for reshoring.
This research has been funded by “Sparbanksstiftelsen Sjuhärad” in the region of West Sweden, under the project titled “Competitive local textile manufacturing” (2017). Project Number: 20160258.