Proximity manufacturing for enhancing clothing supply chain sustainability

Reshoring Decisions for Adjusting Supply Chains in a Changing World: A Case Study from the Apparel Industry

Global conditions for manufacturing are evolving rapidly and the myopic financial factors that once made overseas locations attractive for offshoring are now in favor of revising it. Besides, the COVID-19 pandemic has highlighted the need for restoring the previously offshored competencies. As a strategic decision, reshoring requires a balance of short- and long-term financial and non-financial considerations. This study extends the reshoring literature by exploring the underpinnings of the decision. For this purpose, the extended fuzzy Decision-Making Trial and Evaluation Laboratory (DEMATEL) is used to study the interrelationship among the decision criteria and explore the sequential effect of the prominent criteria on reshoring decisions. Data from the UK apparel industry is used as a baseline to provide insights for other industry situations. Findings are supportive of the supply process complexity as the prominent considerations with the highest potential impact on the financial criterion. Along with supply process complexity, environmental sustainability appears to have had the highest influence on cost-efficiency as the major driver of past offshoring decisions. Overall, the research findings provide insights for deeper analysis of the manufacturing location decisions for a globalized setting.

Back-shoring vs near-shoring: a comparative exploratory study in the footwear industry

After decades of off-shoring strategies, companies are often critically re-evaluating their earlier location decisions; in doing so, sometimes they implement the so-called relocation of second degree. Among them, back-shoring (i.e., relocation to the home country) and near-shoring (relocation to the home region) are two of the alternatives attracting growing interest from scholars. This paper aims to shed new light on the variables influencing the choice made between these two alternatives. As requested in the extant literature, a contingency approach is adopted, focusing attention on the footwear industry. Given the exploratory nature of the paper, evidence from 41 back-shoring and near-shoring strategies are analysed, comparing data from Spanish and Italian companies. Collected data are adapted to test hypotheses concerning three sets of variables: firms’ characteristics, motivations for the second degree relocation and its barriers. Collected data show that firm’s size directly influences the chosen alternative since larger companies prefer to near-shore instead of back-shore. When considering motivations, while the “made in” effect does not influence the firm’s choice, availability of skilled contractors and/or government aids induces companies to relocate to the home country instead of the home region. Finally, companies fearing encountering barriers, in terms of skilled contractors’ availability and/or (re-)development of internal manufacturing competences, will prefer the back-shoring rather than the near-shoring option. The study is focused on two countries (Spain and Italy) where the manufacturing sector (and the footwear industry within it) is still relevant to the local economy. Findings cannot be generalized to countries/industries where the local industry has been totally dismantled, without a previous in-depth analysis. The findings obtained offer managers useful insights on the elements that should be carefully evaluated when considering back- and near-shore alternatives. Additionally, valuable insights are provided for policy makers that plan to design industrial policies supporting back-reshoring policy initiatives. To the best of our knowledge, this is the first paper in the extant literature addressing variables influencing the choice between back- and near-shoring alternatives.

Sustainability Prerequisites and Practices in Textile and Apparel Supply Chains

The proposed study deals with sustainable supply chain management (SSCM) in the textile and apparel (T&A) industry. We analyze prerequisites and practices of supply chain (SC) sustainability in a multiple case study of the German and Ethiopian T&A industry. Our analysis is based on ten semi-structured interviews conducted with the managers of seven companies in the Ethiopian T&A production and the German fair fashion retail industries. The contribution of expert knowledge helps in identifying SC sustainability prerequisites and practices. The chosen cases of production in Ethiopia and retail in Germany highlight the complexity of T&A SCs while representing both the suppliers’ and retailers’ perspectives, which is rare in the related literature. As a major research contribution, the study adapts a framework for SC sustainability in the chemical industry and transfers it to T&A SCs. Moreover, practitioners from the T&A industry find useful insights into relevant practices and their prerequisites, which helps in improving SC sustainability in this sector. The study reveals that management orientation and interest groups such as customers represent the most important prerequisites for sustainability. Manufacturers rely more on internal practices such as monitoring, while retailers focus on external sustainability practices, such as supplier development. In a comparative approach, similarities and differences between T&A SCs and the chemical industry are identified.

Relational impact of buyer–supplier dyads on sustainable purchasing and supply management: a proximity perspective

Purpose

Sustainable purchasing and supply management (SPSM) is a lever of sustainable development for companies and remains an interesting research issue that can be analysed from various perspectives. By considering the polymorphic concept of proximity as a theoretical support, this research studies the buyer–supplier dyad and aims to answer the following question. How does the diversity of buyer–supplier dyad relationships influence the SPSM of direct and indirect purchases within a manufacturing company?

Design/methodology/approach

The authors used a qualitative approach founded on a matrix analysis to describe buyer–supplier relationships through the prism of the proximity concept. The field of study consists in a single case with embedded units including a manufacturing company and a sample of 13 suppliers of direct and indirect purchases.

Findings

The research reveals diverse combinations of proximities that characterise relationships between a buyer and suppliers of several purchasing categories. This diversity of relational contexts influences SPSM in different ways. The authors highlight three SPSM approaches labelled contractual, relational and embedded and describe practices carried out with suppliers as part of the different relational profiles.

Research limitations/implications

The research is developed in a single perspective. To ensure that it can be generalised, it should be applied in other contexts supported by new case studies.

Practical implications

The research provides practitioners with guidelines on building successful buyer–supplier partnerships in a sustainable view. The authors’ findings aid managerial decision-making by validating the necessity of adapting SPSM depending on buyer–supplier relational situations.

Originality/value

This paper offers an original study angle on buyer–supplier relationships based on a proximity analysis. The authors’ research confirms the variety of sustainable purchasing relationships underlined by the literature and can advance the portfolio approach to sustainable purchasing.

A Strategic Location Decision-Making Approach for Multi-Tier Supply Chain Sustainability

Few studies on supply location decisions focus on enhancing triple bottom line (TBL) sustainability in supply chains; they rarely employ objective quantifiable measurements which help ensure consistent and transparent decisions or reveal relationships between business and environmental trade-off criteria. Therefore, we propose a decision-making approach for objectively selecting multi-tier supply locations based on cost and carbon dioxide equivalents (CO2e) from manufacturing, logistics, and sustainability-assurance activities, including certificate implementation, sample-checking, living wage and social security payments, and factory visits. Existing studies and practices, logic models, activity-based costing, and feedback from an application and experts help develop the approach. The approach helps users in location decisions and long-term supply chain planning by revealing relationships among factors, TBL sustainability, and potential risks. This approach also helps users evaluate whether supplier prices are too low to create environmental and social compliance. Its application demonstrates potential and flexibility in revealing both lowest- and optimized-cost and CO2e supply chains, under various contexts and constraints, for different markets. Very low cost/CO2e supply chains have proximity between supply chain stages and clean manufacturing energy. Considering sustainability-assurance activities differentiates our approach from existing studies, as the activities significantly impact supply chain cost and CO2e in low manufacturing unit scenarios.

Brazilian logistics practitioners' perceptions on sustainability: an exploratory study

Purpose

Confronting globalization, logistics systems need to achieve greater efficiency in processes to be competitive. Competitiveness is not related only to economic aspects; companies need to perform their activities aligned to the triple bottom line concept. In this context, the main objective of this research is to analyze how Brazilian professionals think about sustainable logistics through an exploratory study.

Design/methodology/approach

A set of 33 indicators, compiled from a literature review, was used to develop a research instrument applied in a survey of 50 professionals working with logistics processes in Brazilian companies. First, the Cronbach's alpha was run to verify the questionnaire reliability. Respondents were grouped through cluster hierarchical analysis, and their answers were analyzed through TOPSIS technique.

Findings

The results from the sample analysis showed that Brazilian professionals think in the three dimensions of TBL when considering sustainable logistics systems; however, social aspects are relegated to a second level of importance when compared with environmental and economic indicators. In addition, it is possible to highlight that most important environmental aspects are directly related to economic objectives.

Originality/value

There are few studies examining sustainable logistics system in Brazilian companies that consider the purpose mentioned by evidencing originality in the same way as this current study. The results presented here can contribute to amplifying debates in the theme.