A proposed framework for multi-tier supplier performance in sustainable supply chains

Abstract

Over the past few years, supply chains have become globalised and multi-tiered. These factors complicate their structure as the focal company is responsible for the problems experienced at each stage in the multi-tier supply chain. The critical issue for focal companies in managing their multi-tier supply chain is to adopt sustainability standards. One of the study's contributions is the role of weight determination in the tiers and evaluation of alternative suppliers in facilitating the effective management of multi-tier supply chains, especially in complex industries such as the food industry. The other contribution of this study is its proposition for a multi-stage framework based on sustainability concerns. The study identifies 14 criteria for companies in diffusing sustainability standards throughout multi-tier supply chains. The weights of these criteria are determined for each tier of the food supply chain using the Best Worst Method. Results show that the ‘environmental’ criteria are most important for supply chain tiers in the food industry. Supply chain visibility/traceability is the most important criteria for the first tier, followed by environmental responsibilities, for the second and environmental competencies for the third. Finally, for the food company, PROMETHEE is used to evaluate three alternative suppliers for each tier.