The purpose of this thesis is to provide companies with an understanding of how Swedish apparel companies manage supplier risks connected to production activities located in China. In order to conduct this study, previous literature regarding supply chain risk management has been analysed in relation to the empirical data collected during this study. In order to answer the research question, a qualitative method and a deductive approach have been used. A qualitative method was chosen as a deeper understanding of the phenomenon supply chain risk management was desired. A deductive approach was further chosen as the topic was acknowledged by reading previous research, which clearly emphasized existing research gap within supply chain risk management.  The literature review presented in this thesis regards the importance of managing a global supply chain and the risks connected to a global supply chain. Presented is also a process of how to manage risks, and the process consists of three steps, which further provides alternative strategies in order to conduct each step. Further, the reasons why Swedish companies outsource production activities to China and the importance of supply chain risk management in China is presented. The literature review is finalized with a conceptual framework summarizing the chapter. Differences and similarities between collected empirical data and the literature review is discussed and analysed in the analysis chapter. The following chapter provides conclusions answering the research question as well as theoretical and practical implications. This thesis has contributed with filling the research gap regarding supply chain risk management, this as the thesis focuses on one specific market and one specific industry. A new framework has been constructed based on previous research and the empirical findings. This framework also contributes to the practical implications as companies with a desire to outsource to China can use the process presented in the framework. The process includes three steps which will facilitate for companies to manage supplier risks in China. This thesis has also contributed to create an understanding for companies regarding the great importance of supply chain risk management. Therefore, this thesis can contribute with valuable information for Swedish apparel companies wanting to include supply chain risk management when outsourcing to China.

<p>With the extensive use of outsourcing and more frequent technological innovations, global supply chains become vastly stretched and dynamic networks. As a result, firms face increasingly significant challenges to managing their fragile supply networks and responding to more rapidly changing demand evolutions. In this dissertation, we analyze three aspects of these challenges and summarize the findings in three essays. The first essay considers firms' problem of managing social and environmental non-compliance risk at its sub-tier suppliers. We figure out under what circumstances the firms should delegate the sub-tier supplier non-compliance management to its direct suppliers and under what directly control. In the second essay, we analyze the firm's strategy to deal with random demand surges. We develop a new demand model that captures important non-Markov characteristics of possible random demand surge trajectories and derive the optimal safety stock and reactive capacity strategy. Eventually, we establish a useful framework for supply chain planning under a variety of surge demand characteristics (e.g., frequency, intensity, duration, and shape). In the third essay, we examine a dynamic customer-base management problem for a firm with finite capacity, when its customers are prone to disruption and retention risks. We show that the optimal base size is an adding-up-to policy and derive the firm's optimal capacity allocation policy when capacity shortage occurs. In summary, our studies in this dissertation provide useful modeling ideas, decision tools, insights, and guidance for firms to build up resilient supply chains from both the supply and demand sides.</p> / Dissertation

This dissertation investigates two major themes: (1) the strategies that global firms use to overcome weak institutions in their outsourcing and (2) how local institutions affected how firms reconfigured their global supply chains in response to the financial crisis. All three papers use a unique dataset of international contract manufacturing orders that provides hitherto unavailable insight into the global supply chains of many of the world's largest brands in footwear, sportswear, and apparel. In the first essay I create a formal model that examines the use of relational contracting by firms to overcome weak contracting institutions in their supply chains. The model predicts that, when the risk of future demand shocks is high, buyers make long-term commitments to source from suppliers in weak institution countries. I test this model and find that buyers preserved their relationships with suppliers in weak contract enforcement countries during the financial crisis for reasons that cannot be explained by cost. In conjunction with the model, these results suggest that relying on relational contracting to overcome weak contracting institutions can reduce a buyer’s flexibility in configuring his supplier networks. In the second essay, I examine whether firms choose to source from multinational (MNC) suppliers instead of local suppliers as a means of overcoming weak contract enforcement institutions or as a means of accessing supply chain management capabilities. I find strong evidence that buyers are more likely to source from MNC suppliers in countries where contract enforcement is weak and when they have less experience sourcing from a given country. Buyers are also more likely to source from MNC suppliers when they source a wider variety of products, have smaller supplier networks, and have smaller order volumes. My third essay investigates how trade credit terms are affected by local credit markets, financial institutions, and market power. I find that trade credit terms are longer when local credit markets are more developed and when buyers have market power. I also test how trade credit terms responded to the financial crisis and find that terms lengthened subject to the depth of local credit markets and buyer market power.

Background: Globalization has resulted in a more interconnected world than ever before. Global supply chains are a phenomenon which has led corporations to rely on a network of suppliers in various parts of the world. Such global reliance brings benefits but also exposes organizations to an elevated level of risks. The covid 19 pandemic boosted the digital transformation in societies which put a lot of stress on the already strained semiconductor supply chain. Markets are currently facing supply shortages of semiconductors which leads to adverse impacts on company's operations. Purpose: The purpose is to develop the knowledge and develop patterns and trends regarding how Swedish companies handle disruptions stemming from the semiconductor crisis. Method: By engaging in a comprehensive analysis and gathering of previous literature in the field it will provide a theoretical ground for the research. Thereafter, an empirical data collection in the form of interviews with representatives from the industries in question, has been conducted to provide insights and knowledge regarding the issue. The interview data has then been synthesized and analysed to spot patterns. Conclusion: The results show that the issue is complex, companies may have different abilities and possibilities to impact the situation. Although closer communication with the supply chain,Isac Pihl, Jonathan Lind &amp; Simon Henkow Ulf Linnman2022-05-19shortage”, “SCRM process”, “Crisis management”.Date:Key terms: “Supply chain risk management”, “Global supply chains”, “Semiconductor2engaging in supplier development, stockpiling inventory, utilizing the open market to acquire semiconductors (SPOT market), and quickly adapt to the changing conditions can be concluded to be the most common patterns spotted

The purpose of this research is to investigate and understand the current situation of the suppliers in the textile and apparel industry, who are located in Asia, towards the Digital Product Passport (DPP). In particular, this research intends to assist in understanding if the suppliers of this industry are aware of the DPP legislation, which is their attitude regarding this topic, and how prepared they are to follow its prerequisites. Design/methodology/approach: This study adopts an exploratory qualitative research approach. The goal is to explore and gain further knowledge about the current attitude and preparedness of the Asian suppliers regarding the DPP and finally to lay the groundwork for further studies. An inductive approach was followed since this research was conducted by interrelating relevant literature with new findings with the purpose of providing the existing literature with new empirical data. Data were collected through interviews and new knowledge and discussions were produced as a result of the research process. Findings: The findings of this research show that the suppliers’ attitude towards the DPP is positive rather than negative. There is a willingness to learn more about this topic and follow the prerequisites. However, several difficulties were encountered that should be taken into account carefully. In addition, with regard to their preparedness, the suppliers are considered not ready. However, it was noted that for some of them, the implementation might be easier than for others. Originality/value: In the literature, there is a gap with regard to the current situation of the suppliers in the textile and apparel industry, who are located outside the European Union, and particularly in Asia, towards the DPP. Studies have been focused on the DPP, but not with an explicit focus on the suppliers in Asia and in the textile industry. Therefore, this research is considered original and valuable since it is regarded as one of the first to describe the current situation of the Asian suppliers regarding the DPP and with a specific focus on the textile industry. Paper type: Master Thesis

This dissertation discusses two independent topics. The first part of the dissertation relates three theories of international economics (comparative advantage, competitive advantage, and competitiveness), and formulates the thesis that incorporating them in the form of readily available individual competitiveness indicators in OR/MS models offers promise to enhance decision-support for the strategic planning of global supply chains in general, and for locating facilities in particular. The objectives of this research were to relate each of these theories and to describe their interrelationships; to describe measures provided by two well-known annual competitiveness reports; and to illustrate application of the theories as a means of supporting the thesis of the research, and justifying the research questions we pose for future research. While this research discusses topics relative to the broader background of global supply chain design, it illustrates applications associated with facility location, a component of the global supply chain design. In the last chapter of the first part of the dissertation, we provide a vision to foster future research that will enhance the profitability of international enterprises under NAFTA. The second part of the dissertation deals with the DSCR model with capacity expansion and contraction. The strategic dynamic supply chain reconfiguration (DSCR) problem is to prescribe the location and capacity of each facility, select links used for transportation, and plan material flows through the supply chain, including production, inventory, backorder, and outsourcing levels. The objective is to minimize total cost. The configuration must be dynamically redesigned over time to accommodate changing trends in demand and/or costs by opening facilities, expanding and/or contracting their capacities, and closing facilities. The problem involves a multi-period, multi-product, multi-echelon supply chain. Research objectives are alternative formulations of DSCR and tests that identify the computational characteristics of each model to determine if one offers superior solvability in comparison with the others. To achieve the first objective, we present an initial MIP model, a refined model that relates decision variables according to a convenient structure, and branch and price (B&P) schemes for the refined model. We found that the network-based formulation offered superior solvability compared to the traditional formulation.

This thesis examines the challenges faced by businesses in implementing sustainable governance policies, particularly in the context of the reconfiguration of global supply chains and the politicization of corporations. The European Union's efforts to establish unified sustainable due diligence regulations for supply chains are analyzed using Multi-level Perspective theory and Institutional Theory. Through a case study approach, this thesis focused on the development process of Corporate Sustainable Due Diligence Directive, which will be a significant legal framework in the future European market from 2026. The empirical analysis draws on various sources, including semi-structured interviews, media press releases, and official EU document, using Critical Discourse Analysis to analyze the texts. The results highlight the dynamic factors influencing the development of these regulations and shed light on the challenges and opportunities faced by Swedish companies. Large enterprises generally support due diligence regulations to maintain competitiveness, while small and medium-sized enterprises exhibit a more conservative attitude due to potential additional costs. Government attitudes and support are crucial in driving the implementation of Corporate Sustainable Due Diligence Directive. Overall, this study contributes to a deeper understanding of the complexities involved in implementing sustainable supply chain practices and emphasizes the importance of government involvement in promoting such initiatives.

Risker och oförutsägbara händelser är ett högst aktuellt ämne i dagens värld. Beslutsfattare och företag världen över behöver reagera och agera på olika kriser inom ekonomi, miljö, energi och transport eftersom riskerna i sin tur skapar utmaningar och störningar på internationella försörjningskedjor. Klädindustrin, vilket är en av världens mest globaliserade sektorer, är utsatt för risker då försörjningskedjan är uppbyggd på snabba leveranser med långa transportsträckor, vilket är ett resultat av globalt spridda aktörer. Globaliseringen har resulterat i framväxten av internationella försörjningskedjor, vilket antas som en affärsstrategi av företag för att uppnå affärsmässiga fördelar, likväl av företag inom klädindustrin. Inom klädindustrin utkontrakteras vanligen produktionen till geografiskt avlägsna lågkostnadsländer, vilket har gör internationella försörjningskedjor mer komplexa. Detta medför i sin tur osäkerhet i försörjningskedjans processer och en sårbarhet för risker och oförutsägbara händelser. När företag verkar på den internationella marknaden är inte riskhantering av det enskilda företaget tillräckligt då internationella försörjningskedjor är mer riskfyllda än inhemska försörjningskedjor, eftersom dessa kopplar samman ett brett nätverk av aktörer, vilket kräver mer omfattande riskhantering. Tidigare forskning inom riskhanteringsstrategier har främst genomförts på storskaliga varumärkesägande klädföretag medan det finns en betydligt mindre andel forskning avseende hur små och medelstora varumärkesägande klädföretag påverkas av risker och hur små och medelstora varumärkesägande klädföretag arbetar med riskhantering relaterat till företagets samverkan på den internationella försörjningskedjan. Vetenskapligt framställda riskhanteringsstrategier tenderar att vara modeller som inkluderar en rad olika steg som ska utföras linjärt, vilket är argument för att de tenderar att vara teoretiska snarare än praktiska. I linje med detta tenderar vetenskapligt framställda riskhanteringsmetoder att vara beroende av omfattande resurser, vilket gör dessa modeller mindre kompatibla för ett företag av små eller medelstor storlek. Med hänsyn till små och medelstora varumärkesägande klädföretags sårbarhet för oförutsägbara händelser och externa risker, samt för att täcka ovanstående forskningsgap, är syftet med denna studie att undersöka hur små och medelstora varumärkesägande klädföretag med internationella försörjningskedjor påverkas av risker samt hur dessa företag arbetar för att lindra riskernas påverkan på dess verksamhet. Vi kommer att jämföra relationen mellan empiriska datan med vad tidigare teorier illustrerar som viktiga aspekter för risk och riskhantering. I denna studie har vi genomfört semistrukturerade intervjuer med representanter från sex små och medelstora varumärkesägande klädföretag. Det empiriska materialet transkriberas, kodas samt kategoriseras genom en tematisk analys. Studiens resultat visar att små och medelstora varumärkesägande klädföretag identifierar liknande typer av risker och påverkas i liknande omfattning av risker. Externa risker innefattar oförutsägbara händelser som uppkommer utanför företaget och försörjningskedjans kontoll, medan interna risker uppkommer till följd av försörjningskedjans struktur och hantering, vilket avser inneboende element i företaget och dess försörjningskedja. Vi fann vidare att de risker som identifieras av respondenterna redan inträffat och därmed fått ett utfall, samt haft en direkt inverkan på företaget och dess försörjningskedja. Resultatet visar även att ytterligare en intern risk för små och medelstora varumärkesägande klädföretag finns, begränsade ekonomiska resurser, vilket inte betraktats av tidigare forskning. Resultatet visar dessutom att företagens riskhantering är baserat på hur risken uppstår, där det finns en skillnad mellan kortsiktig riskhantering, vilket främst innefattar kostnadskontroll, och långsiktig riskhantering, vilket innefattar ett proaktivt och förebyggande arbete mot risker.