Swedish retailer wanted to ensure its European suppliers were a better fit than Far East – SGS assessment programme raised standards of Macedonian supplier

Retailer Shepherd of Sweden sells sheep skin and woollen consumer products, sourced from European manufacturers.

Geneva, Switzerland (16 May 2025) – A partnership between testing, inspection and certification company SGS and luxury goods retailer, Shepherd of Sweden, has led to a transformation in footwear quality, reduced waste and increased production from one of the Swedish company’s principal European suppliers.

Known for its high-quality sheepskin and woollen products, including slippers, shoes and home furnishings, Shepherd of Sweden is proud of its reputation for the high quality of its products.

The Svenljunga-based retailer conducts regular sourcing reviews to determine whether to maintain production within Europe or explore options in the Far East. Its ultimate decision to keep production in Europe was due to the benefits of flexibility, reduced lead times, a smaller carbon footprint and brand value.

However, this decision makes it imperative that Shepherd of Sweden’s manufacturing suppliers meet its rigorous standards. The company was concerned that a well-established factory in Macedonia supplying its footwear, Dimko Mitrev, may not have updated its processes to meet the evolving demands of its key customer and the wider market.

Knowing SGS’s expertise in the footwear industry, Anders Johannson, Supply Chain Manager at Shepherd of Sweden, sought help from the company. SGS recommended a Technical Factory Assessment (TFA) which would provide a detailed overview of the factory to document, score and report on its capabilities, capacity, skills and safety. 

The TFA forms a pillar of SGS’s Footwear Operational Optimization Technical Services (FOOTS) programme. 

A 2-day assessment was carried out by SGS’s footwear specialist based in Porto, Portugal, working closely with a UK-based colleague. SGS worked upstream with departments, partners and suppliers in a highly detailed process to identify faults and recommend corrective actions.  The TFA concluded in a meeting with factory management and the customer, in which findings and recommendations were presented in an open and transparent forum.
 
Technical Factory Assessment outcomes
 
The key areas SGS identified for corrective action were process control and employee training, with recommendations – which have now been implemented by factory management – including improved training, better online control, employee rewards and incentivization, replacement of the head of the sewing plant and a single final production inspection instead of two.

Each employee on the factory line gained a better understanding of their specific role and the importance of achieving a perfect product to pass on to the next process, taking pride in their work and their contribution to the finished product.

“The impression from the Dimko team was that the SGS representative adopted an advisory approach rather than that of a traditional auditor, which was very much appreciated,” Johannson said. “The weaknesses were clearly highlighted in the final written report as well as in the verbal closing meeting. We have already seen a positive effect with increasing productivity and reduction of rejects.”

SGS is a benchmark for quality and integrity in the softlines industry. Its global network of industry experts is ready to support the industry with comprehensive operational optimization solutions that help to overcome supply chain and production challenges by providing insights and identifying areas for improvement. To find out more about SGS’s FOOTS™ programme visit: https://www.sgs.com/en/services/foots-and-goods