Comprehensive insight into supplier quality and the impact of quality strategies of suppliers on outsourcing decisions

This study aims to provide a comprehensive insight into the role of the quality management (QM) systems in international suppliers (e.g. ISO, Total Quality Management, Lean and Six Sigma) on outsourcing decisions of buyer companies with regard to reshoring activities.

By the means of a comprehensive survey data collected within USA textile and apparel industry, the authors identify four quality factors and compare these factors for international and domestic suppliers by the means of linear discriminant analysis (LDA) and consequently define a reshore vector. Next, the most-effective QM system within international suppliers is analyzed by the means of a new application based on LDA.

The results reveal that international suppliers perform worse for all quality factors compared to domestic USA suppliers, which may leave the door open for reshoring activities. Furthermore, it is shown that Lean and Six Sigma within international suppliers lead to superior levels of quality because they are aligned along the most opposite directions against reshore vector. Therefore, it is claimed that Lean and Six Sigma within the international suppliers can inhibit reshoring activities of US companies.

The willingness of US textile companies to assist their international suppliers and the challenges on this subject are discussed on the basis that supplier development (or quality management) programs can be strong alternatives to reshoring activities.

QM systems in suppliers are analyzed with a new method within a new context based on reshore phenomenon, which provides an essential point of view for academic and industrial environments.