Supplier performance and selection from sustainable supply chain performance perspective

Abstract

PurposeThis paper aims to address the supplier selection problem based on a developed framework capturing the essence of the supply chain operations reference (SCOR) model, sustainability and providing services to customers. Specifically, the authors consider planning, manufacturing, delivery, sustainability and customer service attributes to evaluate and select suppliers.Design/methodology/approachRelevant literature is reviewed, a framework capturing the essence of major supply chain functions was developed and suitable measurement attributes were identified. An integrated fuzzy analytic hierarchy process and fuzzy technique for order performance by similarity to ideal solution method are employed to obtain the final ranking of the attributes and suppliers. The proposed methodology is illustrated through a real case of an Indian automobile company.FindingsThe authors observed that planning, manufacturing, customer service, sustainability and delivery are preferred in decreasing order to select component suppliers for an automotive company. The impact of suppliers on planning and manufacturing is most important to consider while assessing suppliers. Interestingly, concerns about sustainability and delivery are the least cared factors when selecting suppliers. The top five criteria contain measures of operational efficiency rather than purchasing cost.Originality/valueThis paper proposes and demonstrates a supplier selection framework harmonizing supply chain functions of the SCOR model, sustainability and customers service that adds a valuable wing to literature that expounds on the connection of purchasing strategy to corporate strategy. A case study in an automotive company throws unique and valuable managerial implications for purchasing and supply chain performance.

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