Reshoring: a strategic renewal of luxury clothing supply chains

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Colleges, School and Institutes

Abstract

This paper contributes to the emerging literature on reshoring by taking a value-driven enquiry into the renewal of supply chain strategy. It enhances the understanding of the use of reshoring in generating the value demanded by a changing business model. An iconic British high-end clothing brand, Burberry, is the chosen case study to explore the recent move towards reshoring because its changes of leadership, business model and evolving supply chain strategy from 1997 to early 2016 provide a timely and pertinent context. Burberry has continued to realign its business towards a brand-led and customer-centric model along with restoring its corporate heritage and core brand values. The changes in Burberry’s business model triggered the need to renew and realign its supply chain strategy through consolidating and rebuilding manufacturing activities back in the UK, in order to support its brand repositioning as quintessentially British and the company’s refocus on heritage products. The increased managerial control in the supply chain together with the close proximity of design and manufacture enables the promise of quality and brand provenance to be fulfilled. The renewal of Burberry’s supply chain strategy has contributed to an increase in revenues and brand values. These findings suggest that the renewal of supply chain strategy through reshoring and increasing control in supply chain operations can enhance value and firm competitiveness.

Details

Original languageEnglish
Pages (from-to)89–101
Number of pages13
JournalOperations Management Research
Volume9
Issue number3-4
Early online date30 Jun 2016
Publication statusPublished - Dec 2016

Keywords

  • Burberry, Reshoring, Supply chain strategy, Renewal