Global-local supply chain configurations for different production strategies: a comparison between traditional and customized productions

Purpose Supply chain (SC) configuration has gained increased acceptance as an important issue when evaluating new customization possibilities and this evidence has contributed to the strengthening of the debate between global vs local production locations. This work contributes in enrichment of this topic by studying how local or global SC location decisions influence performances by considering a SC point of view, in terms of cost and time, in traditional and customized productions. Design/methodology/approach A discrete event simulation approach, based on experimentation through executable configurations, was used to evaluate different SC scenarios for customized as well as traditional products within the footwear industry. Findings The results indicated that to identify proper SC locations, existing trade-offs between the time and cost performances should be studied, avoiding the evaluation of a single performance independently and, instead, adopting a complete SC point of view while considering these performances. Research limitations/implications This evidence has contributed to the reinforcement of the discussion between far-shore destinations vs near-shore production locations. Further studies are encouraged to adopt the present model, in which addition of other variables such as specific manufacturing competences to differentiate suppliers, both local and global suppliers, or the possibility of realizing special types of product customization required by final consumers can be done. Practical implications The paper contributes to the academic and practitioners' debate by proposing a systemic approach to assess SCs' performances in customized contexts and to compare them to traditional collections. Results indicate that cost and time performance must find a balance that does not necessarily correspond to an exclusively local or global production. Originality/value This work contributes to the SC configuration issue by considering the trade-off between efficiency and effectiveness (i.e. SC costs and SC times) for customized productions by reviving and enriching it with an SC perspective in customization contexts.

Automated summary

This research examines how local or global supply chain location decisions influence performance in terms of cost and time, advocating for a comprehensive supply chain perspective that considers both traditional and customized production scenarios to identify appropriate SC locations. The study highlights the importance of balancing cost and time performance trade-offs and avoiding evaluating a single performance independently in order to achieve optimal supply chain configurations.