Abstract

An important contribution to the environmental impact of agro-food supply chains is related to the agricultural technology and practices used in the fields during raw material production. This problem can be framed from the point of view of the Focal Company (FC) as a raw material Green Supplier Selection Problem (GSSP). This paper describes an extension of the GSSP methodology that integrates life cycle assessment, environmental collaborations, and contract farming in order to gain social and environmental benefits. In this approach, risk and gains are shared by both parties, as well as information related to agricultural practices through which the FC can optimize global performance by deciding which suppliers to contract, capacity and which practices to use at each supplying field in order to optimize economic performance and environmental impact. The FC provides the knowledge and technology needed by the supplier to reach these objectives via a contract farming scheme. A case study is developed in order to illustrate and a step-by-step methodology is described. A multi-objective optimization strategy based on Genetic Algorithms linked to a MCDM approach to the solution selection step is proposed. Scenarios of optimization of the selection process are studied to demonstrate the potential improvement gains in performance.

Highlights

  • Environmental awareness has shifted consumer behavior towards more efficient and environmentally-friendly products, including processed foods

  • We proposed that the Focal Company (FC) be the integrator firm within the context of contract farming as described by Rehber [31], under a Management and Income Guaranteeing contract [32], known as a Production Management Contract (PMC) [33]

  • Partnership for Sustainability can be a useful tool in tackling the supplier selection problem by providing a paradigm shift regarding collaboration as a means to improve overall performance of sustainable food supply chains

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Summary

Introduction

Environmental awareness has shifted consumer behavior towards more efficient and environmentally-friendly products, including processed foods. This has led food manufacturers to find opportunities by developing strategies targeting eco-friendly consumers and markets, through the use of eco-labelling [1,2]. In order to satisfy these niche markets and continue developing this branding strategy, a shift from conventional food production to a more sustainable one has been progressively pursued. One of the most important links in the ASC lies in the interface between farms and manufacturers, given that the raw materials needed to produce the current selection of food products at retail stores. Red to as the supplier selection problem (SSP). Tchoilslapbaopreartilvoeokscshaetmthee, SthSaPtoafdadnitoiorannaglleyjuinicelupdreosdiuncitnhgeicrosmuppanliyerthroatstuesre,ssmsuaplpl lainerds mineadciuolmlabfaorrmateivrse, sucnhdemere,athcoatnatrdadcittifoanrmalliynginmcluodeesl.inFuthrtehirersmupoprlei,eritropsrtoepr,ossmesaltlhaendusme eodfiuthme fgaremeenrss,uupnpdleierrasceolnectrtaiocnt fpaarmraidnigmmothdaetl.inFcourrpthoerramteos reen, vitirponrompeonsteasl tpheerfuosremoafnctheeofgrseuepnpsliueprspilnierthseelseeclteioctniopnaprardocigemss. tThhate ionbcjoercptiovreatoefs tehnivsirpoanpmerenistatlhpeenrftoormshaonwce hoofwsupwpitliherssyinnetrhgeysmeleacdteiotnhrporuogcehssc.oTllhabeoorbajteicotniv, ecoonfttrhaicst pfarpmerinisgtahnedn taogsrheoewn shuopwplwieirthseslyencteirognypmerasdpeecthtirvoeu, gimh pcorollvaebmoreantitosnin, ctohnetrpaecrtffoarrmmaincgeaonfdtahegrfeoeond ssuupppplliyerchsealienctciaonn bpeerascpheiectvievde,iinmepcroonvoemmice,nstsociinalthaendpeernfvoirrmonamnceenotaflttheermfoso.dItsaunpspwlyercshtahienscpaencibfiec arcehseieavrecdh iqnueecsotnioonm: iWc, shoactiailsatnhdeernevsiuroltnmofenintaclutedrimngs. pItaartnnsewrsehrsipths einspaecisfiucprpelsiearrcshelqecuteiostniond:ecWishioant ims tohdeerleinsgultaopfpirnocalcuhdiinngtpearmrtnseorsfhsieplsecintioansucpriptelireiar swelietchtiinonthdeecgisrieoenn msuopdpeliyngchaapipnropaacrhadinigtmer?mTshoifs saeplepcrtoioanchcrwitiellribaewreitfherinretdhetogirneewnhsautpfpolylocwhsaians pParatndeigrsmh?ipTfhoirsSaupsptaroinaacbhilwitiyll(bPefSr)e(fseerereFdigtourien1w).hat follows as Partnership for Sustainability (PfS) (see Figure 1)

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