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.