Greening the pillars of pharmaceuticals: Sustainable supplier selection in emerging economies

Abstract

The pharmaceutical industry is vital for global health, supplying necessary medicines, yet its conventional supply chain has notable environmental and social impacts. Amid a growing sustainability focus across sectors, the pharmaceutical industry must also adopt sustainable practices throughout its supply chain. This includes lessening its ecological impact, curbing waste, and endorsing social responsibility. Assessing a supplier's environmental performance, or "green performance," is of great interest. This involves gauging their eco-friendly actions like energy efficiency, waste management, and carbon footprint reduction. Metrics cover certifications, resource conservation, and responsible sourcing. In a study within a renowned Bangladeshi pharmaceutical firm, a key drugs manufacturer, seven criteria were used to evaluate suppliers' green performance. For this multi-criteria decision-making (MCDM) task, the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) was applied, considering a fuzzy environment. It ranked alternative suppliers via a widely used approach using linguistic terms expressed as Triangular Fuzzy Numbers (TFN). Important weights were determined via the Center of Area (COA) method. The study revealed supplier 4 as the top performer in green performance among five alternatives. This study introduces an innovative strategy for manufacturing decision-makers to choose the most suitable green supplier. It's anticipated to aid decision-makers in emerging economy pharmaceutical industries, facilitating the efficient evaluation of economically viable and environmentally sustainable suppliers for the long term.