{"id":99931,"date":"2022-11-23T13:55:28","date_gmt":"2022-11-23T13:55:28","guid":{"rendered":"https:\/\/www.4sustainability.it\/?p=99931"},"modified":"2022-12-21T14:14:17","modified_gmt":"2022-12-21T14:14:17","slug":"shoring-and-reshoring-the-short-range-supply-chain-is-back-in-fashion","status":"publish","type":"post","link":"https:\/\/www.4sustainability.it\/en\/shoring-and-reshoring-the-short-range-supply-chain-is-back-in-fashion\/","title":{"rendered":"SHORING AND RESHORING: THE SHORT-RANGE SUPPLY CHAIN IS BACK IN FASHION!"},"content":{"rendered":"

What is reshoring? Since the early nineties, the fashion industry has focused largely on the relocation of production, driven mainly by issues of margins and labour costs. For some years, also thanks to the increase in the prices of resources and raw materials, we have been witnessing the opposite phenomenon: the so called reshoring.<\/p><\/blockquote>\n

By reshoring<\/strong> \u2013 or nearshoring \u2013 we mean the return of production to the country of origin or in any case geographically closer. This is not a brand-new theme and not only in Italy, but the supply difficulties that we have been experiencing for several months now has made it more topical than ever.<\/p>\n

Some numbers<\/strong><\/span><\/h2>\n

Several studies have analysed the phenomenon.\u00a0 At the European level, one of the most valid analyses was carried out\u00a0 between 2015 and 2018 by the\u00a0European Reshoring Monitor<\/strong>, an organization arising from the\u00a0 collaboration between Eurofound and a group of researchers from several Italian universities to monitor cases of reshoring in the European Union\u00a0 and in the EFTA area (European Free Trade Association).\u00a0 The project recorded 253 cases of reshoring, 60% of them between 2016 and 2017. The largest number of production repatriations were, in order, the\u00a0United Kingdom<\/strong>,\u00a0Italy<\/strong>\u00a0and\u00a0France<\/strong>. If we take into consideration the countries where production had been delocalized, absolute primacy belongs to\u00a0China\u00a0<\/strong>\u00a0with 30% of cases, followed at a distance by\u00a0India\u00a0<\/strong>and\u00a0Poland<\/strong>\u00a0with 6%.<\/p>\n

A nice and good choice<\/strong><\/span><\/h2>\n

Our domestic textile and fashion sector<\/strong>\u00a0seems to be doing great: \u00a0in the first quarter of 2022, Italian weaving grew by 34%, with a + 46% in exports and \u00a0this in spite of the shortage of skilled labour and above all the\u00a0costs of raw materials, energy and gas.<\/strong>
\nTo urge textile and fashion companies to adopt\u00a0zero-kilometre solutions<\/strong>\u00a0is not so much a problem of costs \u2013 \u00a0or at least, this is not the reason at the origin of the trend \u2013 when the need is to\u00a0guarantee services at its historically high levels<\/strong>\u00a0and also the opportunity to consolidate its reputation in the environmental field.<\/p>\n

High labour costs have long served to justify offshore production. Today, however, the volatility of supply chains, shipping complications and costs, duties, uncertainties generated by socio-political instability \u00a0and the proliferation of automation technologies, \u00a0which lead to a \u00a0significant reduction in the number of workers needed to carry out many processes, make reshoring\u00a0a profitable<\/strong>, practical option.\u00a0 and, ultimately safer. \u00a0A sustainable choice because it also helps to\u00a0contain excess production<\/strong>: supply centres far from the reference markets, in fact, imply cumbersome forecasting of demand and consequently higher \u00a0risks of overproduction.<\/p>\n

The recovery of the short supply chain<\/span><\/h2>\n
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In our country, the trend seems to be gaining more consensus than elsewhere, linked as well to the willingness of companies to invest in\u00a0the values of Italianness\u00a0<\/strong>and in districts of excellence. \u00a0With profitable \u00a0returns in terms of efficiency, because the\u00a0short supply chain<\/strong>\u00a0\u2013 and \u00a0there is no lack of supporting evidence \u2013 would guarantee\u00a0better quality and timing<\/strong>\u00a0without important contraindications for margins.<\/p>\n

\u201cWhen calculating the cost of a company\u2019s supply chain, production is not the only component<\/em>\u00a0of the equation,\u201d says Francesca Rulli<\/a><\/strong>, CEO \u00a0of\u00a0Process Factory<\/strong>\u00a0and\u00a0Ympact<\/strong>\u00a0and founder of the\u00a04sustainability\u00ae<\/strong> framework.\u00a0 \u201cItems such as transport, logistics, and storage are of equal importance and it is not just a question of money. In fact, relocation poses other problems such as lower quality of production, theft of intellectual property in countries where controls on compliance with the laws are more labile, low health and safety standards in factories and so on<\/em>\u201c.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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Relocation, in this sense, is part\u00a0of an approach making fashion unethical<\/strong>. And there is no need to mention in support the tragedy symbolized by Rana Plaza with its 1100 deaths or last year\u2019s fire in Karachi, which claimed 300 victims. \u00a0The complaints at global events such as \u00a0the Copenhagen Fashion Summit and the countless interviews with workers in the clothing sector represent a picture that shakes public opinion and pushes \u00a0more and more brands to review their choices in favour of the short supply chain.<\/p>\n

\u201cIf a brand embraces sustainability\u00a0<\/em>\u00a0and\u00a0consistently decides to monitor its production, it must opt for suppliers able to follow it on certain ethical and environmental choices<\/em>\u201c, underlines Rulli. \u00a0\u201cThe principles of sustainability, answered by the tendency to bring production closer to sales markets\u2013 I produce in Europe what I sell in Europe, in Asia what I sell in Asia, etc. \u2013 are indisputable, but upstream there must always be a strategy that rewards the most virtuous and credible suppliers. Here, in this sense, Italy has a golden opportunity, because ours is a more\u00a0<\/em>\u00a0advanced production chain\u00a0both in terms of quality and<\/em>\u00a0sustainability: companies that choose 4sustainability as an implementation framework for the transition to sustainability provide us continuous demonstration.<\/em>\u00a0\u00a0It is a matter of expanding the audience as much as possible to profit from this advantage on global markets<\/em>\u201c.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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SMI: vital to redistribute value<\/strong><\/span><\/h2>\n

According to\u00a0Andrea Crespi<\/strong>, vice president of Sistema Moda Italia<\/a><\/strong>, the positive implications of reshoring for the manufacturing sector are obvious but pay attention to what \u00a0happens upstream and downstream. \u00a0\u201cUpstream of the supply chain, the exorbitant costs of energy risk defusing the good that there is in reshoring from the start. Many companies are already in \u00a0serious difficulty, despite having significant orders booked. And this is a paradox that is everyone\u2019s responsibility to avoid, because if one link in the supply chain is skipped, the whole system crashes down to the valley. Redistribution of value along the entire supply chain, is the challenge to be won quickly! So welcome relocation<\/em>.\u201d<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

What is reshoring? Since the early nineties, the fashion industry has focused largely on the relocation of production, driven mainly […]<\/p>\n","protected":false},"author":3,"featured_media":99934,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[293,328],"tags":[],"class_list":["post-99931","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive","category-insights"],"acf":[],"yoast_head":"\nSHORING AND RESHORING: FASHION COMES HOME<\/title>\n<meta name=\"description\" content=\"What is reshoring? The fashion industry has focused on the relocation of production for years. 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