Sustainable Supplier Segmentation: A Practical Procedure

Abstract

AbstractSustainability of supply chain is determined by the sustainability performance of each partner in the chain. The relationship between buyer and supplier has an important role in improving the sustainability of supply chain. The purpose of this chapter is to explain the process of segmenting the sustainable suppliers and presenting strategies for collaboration and improvement of the suppliers. In this chapter, a six-step process is suggested in which the output of one step is considered as the input of the other step. At first, the performance indicators in each dimension of sustainability are introduced, and then given the performance indicators in the segmentation model, the sustainable suppliers are assigned into seven segments (three main segments, economic, social, and environmental; three balancing segments, bearable, viable, and equitable; and supplementary segment, sustainable). Finally, some supplier development strategies appropriate to each dimension of sustainability are suggested. The present study is beneficial for the researchers and companies’ executive managers. By a deeper understanding of this process, researchers can benefit from the proposed process for sustainable supplier segmentation, and the corporate executives and experts can have the opportunity of using the supplier collaboration and development strategies in the supply chain.KeywordsSustainable supply chainSustainable supplierSupplier development