Reverse supply chain configurations in the fashion and textile industry

Abstract

In line with the Agenda 2030, the fashion and textile industry is undergoing a transition towards a less environmentally intensive future, embracing the circular economy paradigm. A pivotal role is played by the reverse supply chain, necessitating strategic supply chain location decisions within evolving regulatory and technological landscapes. Literature calls for further investigations into where to locate reverse operations, and on the local-versus-global design of reverse supply chains. This study explores reverse supply chain configurations and their driving factors, through multiple-embedded case studies. Semi-structured interviews were conducted with 9 reverse supply chain actors in Europe, covering all steps of the reverse supply chain. Findings suggest four main reverse supply chain configurations: Fully local, Recycling waste hubs, Mass regeneration zones, and Fully global. Fully local configurations are driven by low transportation costs and environmental benefits but face scalability issues. Recycling waste hubs and Mass regeneration zones, balance local and global trade-offs, optimizing operational efficiency and economies of scale. Fully global configurations, while cost-effective, raise concerns over transparency, environmental impacts, and ethical practices. The study offers recommendations to managers and legislators, while contributing to the local-versus-global debate and circular supply chain management literature.