Selection of environmental-conscious sourcing: an empirical investigation

Abstract

PurposeThe prime objective of this paper is to design a green supply chain management (GSCM) framework to evaluate the performance of environmental-conscious suppliers using multi-criteria decision-making (MCDM) approach.Design/methodology/approachThe literature survey reveals critical factors for implementing GSCM, adopted methodologies and the result obtained by several researchers. Data have been collected by conducting surveys and interviews with strategic-level personnel of five esteemed organizations in automobile manufacturing sectors. A GSCM framework is developed in which a mathematical tool entropy–the technique for order of preference by similarity to ideal solution (TOPSIS) has been used to analyze the six parameters of automobile manufacturing unit. Initially, entropy is used to find the weights of each of the parameters that influence the decision matrix of the TOPSIS method. Secondly, the proposed GSCM framework ranks the supplier. Finally, sensitivity analysis of the model satisfies the GSCM framework and benchmarked the supplier.FindingsThe result shows that “Total CO2 emission” has an influential role for GSCM sustainability, and hence, firms should put more effort to reduce emissions to improve overall performance. Again, the parameters like investment in R&D and total waste generation may be ignored in the selection process. The result reveals the benchmarked supplier and its strategies for effective sourcing, which would have an indirect effect on organizations' overall sustainability.Research limitations/implicationsThis research entirely focuses on sustainability within supply chain considering economic, social and environmental paradigms. The mathematical modeling of the proposed work considers many influential parameters and provides an easy and comprehensive decision-making technique.Practical implicationsThe methods may be adopted by the industries for sustainable supply chain management. This study benchmarks the supplier organizations and explores the adopted policies by benchmarked organizations. Other organizations should follow the policies followed by benchmarked organization for enhancing environmental, social and economic performance. Organizations striving for sustainable development can adopt this framework for evaluation of supplier performance and benchmark with better accuracy.Originality/valueThe design of the GSCM framework explores both the qualitative and quantitative data based on environmental, social and economic parameters simultaneously in the evaluation of environmentally conscious suppliers. The research also investigates the constraints of the system to implement the GSCM in automobile manufacturing unit. Additionally, the sensitivity analysis justifies the benchmarked supplier and the adopted strategies to be followed by other manufacturing unit.