An integrated framework for sustainable supplier development through supplier evaluation based on sustainability indicators

Abstract

The chemical industry has growing importance in sustainability because of the potential adverse effects on the environment. Also, stakeholders emphasize many social issues besides environmental protection for the chemical industry. Relying on a solid supplier base has become the main prerequisite for chemical manufacturers to achieve environmental targets and fulfill stakeholders’ expectations while remaining competitive. This study develops the Integrated Sustainable Supplier Evaluation & Development Framework (ISSED-F) to support chemical manufacturers with managing supplier relationships according to the economic, environmental, and social facets of sustainability. Although the literature is rife with evaluation models aiming to fulfill the supplier selection tasks, these models mostly ignore the developmental role of supplier evaluation. To remedy this gap, ISSED-F adopts a deductive and holistic approach from setting the criteria to setting the measurement structure, evaluating the suppliers, and developing the suppliers. Materiality analysis, Analytic Network Process (ANP), Preference Ranking Organization Method for Enrichment Evaluation (PROMETHEE), and cluster analysis are the fundamental methods that constitute the ISSED-F structure. A case study presents the use of the ISSED-F in a transnational chemical manufacturer’s supplier relationship management (SRM) process. The case company evaluates 69 suppliers and assigns development strategies to the relevant performance segments within the implementation. The successful implementation of ISSED-F shows that it can be a roadmap for chemical manufacturers to adopt sustainability practices and ensure continuous development in their supply chains.