Prioritizations of GSCM criteria by DEMATEL method for Government Public Procurement in Indian perspective

Abstract

Contemporary Supply Chain Management aims to maintain long-term partnership with the suppliers who are not only reliable, quality conscious, promptness of delivery, price competitive but also environmental conscious. The increasingly deterioration of environment in the fast phase forces many organizations particularly in the industrial sectors to develop and implement the Green Supply Chain Management (GSCM) in their business activity gains its momentum. This study aims to utilize the Decision-Making Trial and Evaluation Laboratory (DEMATEL) method to identify the priority of the influential criteria in GSCM applicable to Government Public Procurement under typical Indian environment. Twenty six GSCM criteria under eight dimensions were identified from literature review and interview with six Decision Makers(DM), Sr. Managers from the Purchase Department, Materials Management Department, Production Department, Quality Control Department, Finance Department and Environmental Departments of the case study company, the Metropolitan Transport Corporation, a part of State owned Public Transport Corporation. By considering the interrelationships among the criteria, DEMATEL was applied to deal with the importance and causal relationships among the evaluation criteria of supplier selection. Obtained results show that the criteria of Green Supply Chain Management systems of Management Dimensions and Price Dimensions are the top two significant influences in selecting suppliers with Green Competencies. By identifying the structures and interrelationships, it can offer an insight for managers to understand the cause-effort relationships and allow to select suppliers who have competence in GSCM and improve the environmental performance.