Modelling of barriers in implementing sustainable manufacturer-supplier collaboration and coping strategies

Abstract

Finding new, creative ways to improve the performance of their supply chains is one of the biggest problems that manufacturing organizations confront in the age of globalization and competition. To achieve better performance, companies should engage in networking activities such as integrating with other supply chain participants. Manufacturing businesses also face sustainability issues caused by suppliers' practices that fail to meet sustainability criteria. In this sense, developing a collaborative relationship with a supplier is essential for successfully implementing sustainable practices and gaining a competitive edge. Therefore, it is imperative for manufacturing companies to effectively manage their relationships with their suppliers by strengthening their suppliers' commitment to sustainability. The concept of sustainable supplier collaboration (SSC) emerges from the combination of sustainability and supplier relationship building. SSC, in general, broadens the traditional supplier management system by incorporating long-term partnerships into the sustainable aspects. Companies have begun to acknowledge the value of SSC and are taking initiatives in this regard. The adoption has been extremely slow, despite the assurances of sustainable collaboration with suppliers. Hence, research is required to determine how supplier collaboration with economic, environmental, and social promises has been hindered. It is important to acknowledge any hurdles that manufacturing organizations may have while developing SSC. Also, a thorough analysis of these barriers is essential so effective and sustainable collaboration with suppliers can be achieved. Therefore, the primary goal of the study is to identify and analyze barriers to sustainable collaboration with suppliers. The integrated methodology of Total Interpretive Structural Modelling-Decision Making Trial and Evaluation Laboratory (TISM-DEMATEL) is used to achieve the purpose of study. An extreme case scenario involving one manufacturer of home appliances and its suppliers is used in a dyadic India based case study. The findings of this study reveal that the most significant barriers to SSC are lack of manufacturer-supplier communications for sustainable standards and appropriate regulations, lack of trust between manufacturer and supplier, lack of scope and focus for sustainable collaboration, unwillingness to share risks and rewards, lack of top management involvement, lack of combined training programs, and lack of consistent and adequate performance measurement systems. These barriers not only contribute directly to hindering SSC efforts but also influence other barriers at intermediate and lower levels. Additionally, the study offers detailed explanations of each barrier, thereby providing valuable insights for better understanding and effective implementation of sustainable manufacturer-supplier collaboration (SMSC).