A supplier selection life cycle approach integrating traditional and environmental criteria using the best worst method

Abstract

Supplier selection is a strategic decision that significantly influences a firm's competitive advantage. The importance of this decision is amplified when a firm seeks new markets and potentially a new supplier base. Recognizing the importance of these decisions, an innovative three-phase supplier selection methodology including pre-selection, selection, and aggregation is proposed. Conjunctive screening is used for pre-selection, the best worst method (BWM), a novel multiple criteria decision-making method is introduced for the selection phase. Material price and annual quantity are integrated with the decision at the aggregation phase. Qualitative, quantitative, traditional business, and environmental criteria are incorporated. The proposed methodology is applied within a food supply chain context, the edible oils industry. In this illustration the focal organization faces a global entry decision in a new international market. An extensive search is completed to identify the potential suppliers. Through initial screening a sub-set of qualified suppliers is identified. BWM is then used to find the best suppliers from among the qualified suppliers. Eventually the significance of the supplies in the aggregation phase is determined. The outcome is a relatively meaningful ranking of suppliers. The paper provides insights into the methodology, decision, and managerial implications. Study and model limitations, along with future research directions are described.