Development of composite sustainable supply chain performance index for the automobile industry

Abstract

The automobile companies are becoming increasingly aware about the importance of sustainability and its challenges. In order to compete in the global market, the industry has responded to these challenges by identifying the sustainability indicators. It is quite difficult to evaluate the performance of the company on the basis of large number of sustainability indicators. Integration of key sustainability indicators is quite essential for effective decision-making. This article presents an integrated method by accommodating both qualitative and quantitative approaches for the development of composite sustainable supply chain (SC) performance index. We applied an integration of fuzzy analytical hierarchy process, Liberatore score and signal-to-noise ratio approaches to compute the index. The proposed methodology demonstrates how quantitative statistical inputs can be combined with expert opinion to construct an overall index of sustainability. The index can be extensively used by SC managers to measure their organization's contribution towards SC sustainability. An application of an integrated methodology is demonstrated for an automobile SC.