Applying 3DCE for value creation in second-hand clothing chain : a Swedish study

Abstract

Second-hand clothing value chains in western countries are fragmented and complex affecting value generation. In this context, various attributes of product, process and supply chain design decisions are essential to enhance value creation; for example, new product take-back schemes, process reengineering, reuse and redesign, closer coordination, etc. These activities need to be synchronized to redesign products, processes and associated value chains independently and more necessarily simultaneously thus calling for three-dimensional concurrent engineering (3-DCE) as a critical lens to explore the existing value creation activities. The paper explores the antecedents of value creation in second-hand clothing value chains in Sweden along 3-DCE perspective. The research adopts a mixed method where data is collected through desk research and semi-structured interviews twelve actors in the second-hand clothing network.  The paper identified value generating stages as collection, sorting, refurbishing, reselling of used clothes and redesigning. These stages have various enablers and challenges at the intra-organizational and value chain levels. At the intra-organizational level, key antecedents are strategic logistics infrastructure for collection, sorting, transportation as well as creative retailing. Effective merchandise planning is another critical enabler for reuse and redesign, while right market knowledge is yet another essential enabler. At the value chain level, key antecedents are process integration, well-designed collection network and collaborative collector-sorter partnerships along with product design for durability. Further, supporting sustainability communication also enables higher value generation in the organization. These antecedents were further mapped in the paper along 3-DCE drivers to identify their foci.Re:textil