Sustainable Supplier Selection in Agri-Food Supply Chain Management

Abstract

In recent times, sustainability of supply chains becomes the most interested subject by customers, firms, government bodies, academia, and suppliers as the environmental resources reveal as the most valuable and limited asset for human beings. One of the most important elements determining the performance of sustainable agri-food supply chain business is supplier’s commitment. A mainly inspiring feature in this domain is the wide range of factors influencing supplier selection decision-making process in Triple Bottom Line context must be analyzed. However, it is not easy to completely integrate and measure majority of these factors in a simple optimization model. Therefore, this paper starts with a comprehensive review of literature about supplier selection for sustainable supply chains (SSCs) development. Afterwards, a new two-steps hybrid solution method is suggested. In initial step, a set of criteria for supplier selection process is analyzed built on Fuzzy Analytic Network Process (FANP). The result of the first step is fed in to the second step of the analysis to design a model with multiple objectives for selection process of supplier using fuzzy VIKOR. All three dimensions of sustainability; specifically, factors such as weather, water and soil footprint, energy and material consumption, employment, social services and finally financial performance of supply chain are considered concurrently. The suggested approach generates a comprehensive model to help supply chain managers in supplier selection process. Numerical analysis is completed via exploiting data from a Turkish agri-food company case for validating effectiveness, also and success of the proposed solution. Final analytical results of the analysis provide valuable business policy oriented, operational and practical insights on the influence of economic, environmental, and social sustainability for enhanced supplier relationship management module in sustainable supply chain structure. Moreover, by tracking environmental impact indicators such as, emission and pollution rates, footprint rates, against social and cost indicators it would be possible to perform tradeoff analysis for giving more sustainable decisions on new supply chain investments.