Critical Manufacturing Prerequisites for Successful Reshoring

Abstract

Reshoring is an emergent theme in research and practice.It is important for researchers to understand the motivating force and prerequisites for these reshoring activities, and to develop a method that supports sustainable reshoring decisions.The purpose of this study is to shed light on the prerequisites for successful reshoring.The preparation for this study consists of a systematic literature review.The findings presented here, however, are revelatory and emerged during a workshop.The findings were further researched at a total of four companies, which were part of data collection in a larger project.This research identified three scenarios, in which preceding manufacturing step, creation of parallel steps, or exploration of overcapacity are central.The paper also presents a stage-gateprocess for reshoring decisions as well as a typology of reshoring alternatives.This research sheds light on prerequisites and contextual factors that enable companies to reshore.The importance of manufacturing capabilities can be seen in literature, but has not yet, to our knowledge, been given sufficient attention.The main practical implication is related to offshoring.Overly-aggressive offshoring can complicate future reshoring.As such, reshoring needs to be considered during offshoring, specifically what manufacturing capabilities that are kept at the domestic location.

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