An integrated multi-criteria decision-making and multivariate analysis towards sustainable procurement with application in automotive industry

Abstract

Green Supply Chain Management (GSCM) has emerged as a paramount issue in modern business organizations striving to become environmentally sustainable. Suppliers are pivotal in building a green supply chain. Green supplier selection (GSS) is a complex task involving several steps, from evaluation to final selection. This research aims to select spare parts suppliers of an automotive company based on their GSCM practices. Fourteen critical criteria are extracted from extant literature and refined through a Delphi study. The data was collected through interviews with industry experts using structured questionnaires. This study proposes integrated multi-criteria decision-making (MCDM) and multivariate analysis method with internal consistency checks. The Principal Component Analysis (PCA) is used to calculate criteria weights. A Simple Additive Weighting (SAW) method ranks the suppliers based on weighted criteria. The result shows that “collaboration with suppliers for green purchasing” is the most influential parameter for GSS. The outcome of this research may aid managers in selecting the most suitable green suppliers in the automotive industry by attaining sustainability. The proposed framework can be replicated to select suppliers in other industries.