Integrating sustainability into strategic supplier portfolio selection

Abstract

Purpose

The purpose of this paper is to propose a comprehensive methodology and a problem-specific model for the configuration of the optimal strategic supplier portfolio in terms of traditional, performance-related objectives and sustainability targets.

Design/methodology/approach

To bridge the research gap, i.e., to align strategic supplier portfolio selection with corporate sustainability targets, a hybrid model of the analytic network process (ANP) and goal programming (GP) is developed. To validate the model, a case example is presented and managerial feedback is collected.

Findings

By enabling the integration of sustainability targets into strategic supplier portfolio configuration, the hybrid ANP-GP model contributes to research in the area of sustainable supply chain management. Results indicate that simplifying the model by omitting one or more details may lead to unfortunate actions.

Research limitations/implications

The model has been applied using a case example in the automotive industry. To strengthen the findings, it should be examined under other terms as well.

Practical implications

Integrating economic, environmental, and social targets into strategic supplier portfolio configuration reduces supply risks and promotes the achievement of the sustainability goals of the purchasing company.

Social implications

Strategic supplier selection counts among the decisions that have an impact on the environment and society for several years. Configuring economically rational, environmentally friendly, and socially responsible supplier bases supports worldwide efforts towards sustainable development.

Originality/value

Although sustainable supplier selection has gained importance in recent years, this is the first time that a comprehensive model for the determination of the optimal strategic supplier portfolio in terms of performance-related objectives and sustainability targets has been proposed.

Citation

Neumüller, C., Lasch, R. and Kellner, F. (2016), "Integrating sustainability into strategic supplier portfolio selection", Management Decision, Vol. 54 No. 1, pp. 194-221. https://doi.org/10.1108/MD-05-2015-0191