Supplier sustainability performance evaluation using the analytic network process

Abstract

Abstract We develop a sustainability performance measurement framework for supplier evaluation and selection, using the Analytic Network Process (ANP) method. Even though the literature is rife with studies that deal with the supplier selection problem, companies that actively pursue sustainability strategies may need to add metrics that show suppliers’ sustainability performance. Existing models for measuring sustainability performance are limited in that they either evaluate the environmental and social performance separately, do not consider the inter-relationships between metrics across the three dimensions of sustainability, or utilize metrics that are difficult to obtain and evaluate accurately. To overcome this deficiency, we use the ANP method, that takes into account the interrelations between quantifiable and easy to obtain sustainability-related evaluation metrics. First, through an extensive literature review and feedback from an experts’ panel, we select and classify salient sustainability performance metrics related to supplier evaluation. With data collected through an extensive survey amongst 144 supply chain professionals in the UK and France, we develop the interdependencies between several sustainability metrics and determine the most critical metrics by calculating their relative weights. Results show that the selected socio-economic metrics carry the most relatively important role in supplier selection. Based on the findings of the study, we discuss implications for theory and practice. The proposed evaluation system can provide details on observing sustainable supply chain performance. It can also help to get a clearer insight into sustainability with a well-established quantitative decision-making process so that business strategies can be developed with more concerns on supply chain sustainability.