Sustainable and resilient supplier selection: the case of an Indonesian coffee supply chain

Abstract

Supplier selection has become one of the core elements of supply chain management because suppliers affect a company's bottom line and supply chain performance directly. Supplier selection is a complex decision-making process that includes multiple criteria and a set of supplier alternatives. This study integrates the dimensions of sustainability and resilience into the supplier selection process. The aim is to propose a systematic supplier selection framework to help companies categorize suppliers based on their sustainability and resilience performance and select the ones that perform well on those two dimensions. We use a novel multi-criteria decision-making method (MCDM), the Best-Worst Method (BWM), to solve the complex decision-making process of coffee supplier selection in a local roastery in Indonesia. The data was collected from two groups: experts regarding the coffee supply chain in Indonesia and a decision-maker at a coffee roastery in Indonesia. The result shows that the economic criteria for sustainability performance and risk reduction criteria for resilience performance are the most important supplier selection criteria for both groups. There are no significant differences between the importance evaluations of criteria by both group of experts, which indicates that the supplier selection process of the company aligns with the expert perspective.