Implementation of strategic alliance in developing supplier relationships for sustainable procurement

Abstract

The relationship between economic development and environmental pollution has become a crucial global concern. In the last three decades, the manufacturing sector has witnessed a growing need for preserving resources, adopting renewable energy sources, enhancing water infrastructure, and minimizing the release of greenhouse gases due to its escalating environment impact. The ability of decision-makers to analyse complicated cause and effect linkages between criteria and take appropriate actions based on such analysis is critical to decision-making efficiency. This research integrates DEMATEL and ANP methods that support decision-making by evaluating 3 factors and 15 selected subfactors. First, the DEMATEL method is used to determine the interrelationships between the predetermined main criteria. The ANP methodology is then used to determine the local weights of the components and subfactors based on the cause-and-effect correlations derived via the DEMATEL method. The local weights are input into the ANP matrix, and the calculation is run to determine a supplier relationship management strategy. The ANP calculation resulted in the alliance strategy as the priority strategy. This study contributes to finding key factors in evaluating sustainable supplier criteria for supply chain sustainability in the leather products industry, including cost, quality, financial capability, labour practices, green competence, and green image. Strategy implementation is provided based on the selected strategy concept.