Supplier sustainability performance evaluation and selection: a framework and methodology

Abstract

This study proposes a supplier sustainability performance evaluation framework for evaluating and selecting suppliers based on their sustainability performance. An integrated model which uses fuzzy-Shannon Entropy to determine the sustainability criteria weights and fuzzy-Inference system to prioritize suppliers from the individual sustainability dimensions perspective is proposed to aid in the evaluation and selection. A Pakistan manufacturing company is used to exemplify the applicability and usefulness of the proposed suppliers' sustainability performance evaluation decision framework. The results show that amongst the economic, environmental and social sustainability dimensions, three criteria, namely: ‘Quality’ (10.87%), ‘Cleaner Technology Implementation’ (11.51%) and ‘Information Disclosure’ (13.75%), respectively, are the topmost ranked criteria. Across the triple-sustainability dimensions, suppliers 3 was ranked the topmost suppliers overall. This means that, to improve the sustainability of the company's supply chain, supplier 3 is most appropriate and recommended amongst the four suppliers for partnership. Managerial implications, limitations and further research directions are discussed.

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