Criteria considered in a manufacturing reshoring decision : a multiple case study

• The manufacturing reshoring phenomenon has received more attention in the academic and business literature in recent years. Due to the newness of the phenomenon, there is a lack of knowledge about how these decisions were made. This research provides a theoretical framework by reviewing literature on possible criteria that are considered in a manufacturing reshoring decision. The criteria are categorized into six categories including competitive priority, resource, strategy, context, preference and global condition. A multiple case study methodology is used to identify the criteria and compare them with the theoretical framework. The findings indicate that total cost is the most common criteria considered and each case company has followed its own cost analysis techniques. Other criteria considered by all case companies were inventory cost, transportation cost, switching cost, delivery lead times, proximity to customer and availability of manufacturing technology. The research concludes that manufacturing reshoring is a holistic decision with criteria occurring at all categories in the theoretical framework. This contributes to the knowledge of reshoring decision-making and suggests that future research should investigate decision support tools for such decisions.

Subject headings

TEKNIK OCH TEKNOLOGIER  -- Maskinteknik -- Produktionsteknik, arbetsvetenskap och ergonomi (hsv//swe)

ENGINEERING AND TECHNOLOGY  -- Mechanical Engineering -- Production Engineering, Human Work Science and Ergonomics (hsv//eng)

Keyword

Reshoring

manufacturing location decision

decision criteria

case study

Publication and Content Type

ref (subject category)

kon (subject category)