Examining Sustainability Alignment of Supplier Selection Criteria during Industrial Revolutions

Abstract

Suppliers have evolved alongside industrial revolutions induced by their selection criteria for over two centuries. While sustainability has remained a pledge in their inter-creditor agreements, the claims of 11,000 scientists regarding the Earth’s colossal pollution and the calls of 196 nations to reach net-zero emissions by 2030 have accentuated concerns regarding the sustainability of supply selection criteria. Twenty supply selection criteria and seventy associated indicators were identified in industrial revolutions. The identified criteria and indicators were forwarded to 250 volunteers with expertise in the supply chain across six industries. Maintaining confidentiality, the volunteers were first requested to rank the criteria and related indicators concerning the three pillars of sustainability, the environmental, economic, and social, using The second request was to mark the percentage of influence of economic criteria and the related indicators on environmental and social sustainability. The third request was to state their professional views on sustainability during the industrial revolutions. Statistical analyses of the responses suggested that the identified supplier selection criteria were not equally driven by economic, environmental, and social sustainability. Supply chain professionals supported the statistical analysis and confirmed that the economic indicators dominating the selection of suppliers were significantly higher than the environmental and social criteria. They also confirmed that economic indicators have negatively impacted environmental and social sustainability during industrial revolutions. They recommended that transitioning into sustainable supply chains requires shifting emphasis from economic to environmental and social sustainability.