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.

I klädindustrin är materialval och beslut om produkter en viktig del av produktutvecklingsprocessen som påverkar design, kostnad, känsla samt estetik i en produkt. Materialvalsprocessen har blivit mer komplex och utseende samt kvalitet konkurrerar nu också med hållbarhet. Många aspekter är därför viktiga att balansera vid beslutsfattande. Det finns metoder, men om och hur de används av svenska klädföretag är relativt outforskat. Artificiella intelligenta-system som kan användas i beslutsfattandet finns tillgängliga idag och används redan i olika områden inom klädindustrin. Det finns också AI-system för materialval, men ännu inte i klädindustrin. Syftet med denna studie är att studera beslutsfattande inom svenska klädföretag avseende hållbara produkt- och materialval samt om AI skulle kunna stödja processen. Semistrukturerade intervjuer genomförda med två svenska klädföretag användes i denna studie för att besvara två forskningsfrågor kopplade till syftet tillsammans med en iterativ litteraturstudie. Studien visar att svenska klädföretag inte använder några speciella verktyg eller kända metoder vid beslutstagande gällande material och produkter för att uppnå deras hållbarhetsmål. Ofta är det intuition och erfarenhet som ligger bakom beslut och val men det finns även kravspecifikationer för varje produkt med krav som måste vara uppfyllda för att beslutet om materialval ska tas. I dag använder företagen inga AI-system men enligt teorin finns det några AI-metoder som skulle kunna implementeras inom material- och produktbeslut där det gäller kvantitativa aspekter, exempelvis vattentäthet. Dock kan inte något AI-system i dag ersätta människans förmåga att ta beslut vad gäller mer kvalitativa egenskaper, såsom känslan av ett material. / In the apparel industry, material choice and decisions regarding products are an important part of the product development process, influencing design, cost, feeling and aesthetic of a product. The material choice process is becoming more complex and look along with quality now also competes with sustainability. Many aspects are therefore important to balance when making decisions. There are methods, but it is unclear if and how they are used by Swedish apparel companies. Artificial Intelligence systems that can be used in decision making are available today, and already in use in different areas within the apparel industry. There are also AI-systems for material choice, but not yet in the apparel industry. The purpose of this study is to study decision making within Swedish clothing companies regarding sustainable product and material choices and whether AI could support the process. Semi structured interviews conducted with two Swedish apparel companies were used to answer two research questions, together with an iterative literature study. The study shows that Swedish apparel companies do not use any special tools or known methods while making decisions regarding material and products in order to achieve their sustainability goals. Often intuition and experience is behind making a decision or choice, but also specifications regarding each product with requirements that have to be fulfilled. Today the asked companies do not use AI-systems for making decisions regarding materials or products, but according to literature, there are some methods that possibly could be implemented regarding quantitative aspects such as water permeability. However, there does not seem to be any AI-systems today that can replace human’s ability to make decisions concerning the qualitative aspects such as the feeling of a material.