scholarly journals Sustainable procurement practices in the supplier selection process: an exploratory study in the context of Brazilian manufacturing companies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alex Moysés Barbanti ◽  
Rosley Anholon ◽  
Izabela Simon Rampasso ◽  
Vitor William Batista Martins ◽  
Osvaldo Luiz Gonçalves Quelhas ◽  
...  

Purpose This paper aims to evaluate the adoption of sustainable procurement practices adopted by Brazilian manufacturing companies in supplier selection; additionally, it is aimed to understand which of these practices enable a better differentiation of the analysed companies. Design/methodology/approach A systematic literature review was performed to compose the theoretical base of this research. In addition, a detailed study of ISO 20400 standard was conducted. The guidelines of ISO 20400 were used as a base to structure a questionnaire used in a survey with professionals working in procurement sphere of manufacturing companies in Brazil. The data were analysed via frequency and CRITIC (Criteria Importance Through Intercriteria Correlation) method. Findings A moderate dispersion in the adoption level of sustainable procurement practices in supplier selection process of the manufacturing companies was observed; in practices associated with social aspects, the dispersion is greater. A negative issue to be highlighted is that almost 20% of analysed companies did not even considered in their supplier selection process if their candidates accomplish philanthropic activities, generate jobs in local community and fulfill the Universal Declaration of Human Rights of United Nations (UN). Those two last practices are the ones with the best capacity to differ the companies in the sample. Originality/value There are few studies that focuses on understanding the adoption of sustainable procurement practices in manufacturing companies' supplier selection process. The main contribution of this study to the literature is to evidence that social requirements in supplier selection process are considered in a clear and well-structured form only by few Brazilian manufacturing companies. Despite the sample size, companies analysed in this research are prominent organisations in manufacturing sector. Thus, if this situation occurs in these companies, a more critical scenario will be evidenced in other organisations. This study has implication for practice and academy. For companies' managers, information present here can be used to debate the theme in the organisational context and the nine practices and scale can be used to perform a critical analysis of company's practices. For researchers, the information present here can be used as starting point for futures studies.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chang Liu ◽  
Pratibha Rani ◽  
Khushboo Pachori

PurposeDue to stern management policies and increased community attentiveness, sustainable supply chain management (SSCM) performs a vast component in endeavor operation and production management. Sustainable circular supplier selection (SCSS) and evaluation presented the environmental and social concerns in the fields of circular economy and sustainable supplier selection. Choosing the optimal SCSS is vital for organizations to persuade SSCM, as specified in various researches. Based on the subjectivity of human behavior, the selection of ideal SCSS often involves uncertain information, and the Pythagorean fuzzy sets (PFSs) have a huge capability to tackle strong vagueness, uncertainty and inaccuracy in the multi-criteria decision-making (MCDM) procedure. Here, a framework is developed to assess and establish suitable suppliers in the SSCM and the circular economy.Design/methodology/approachThis paper introduced an extended framework using the evaluation based on distance from average solution (EDAS) with PFSs and implemented it to solve the SCSS in the manufacturing sector. Firstly, the PFSs to handle the uncertain information of decision experts (DEs) is employed. Secondly, a novel divergence measure and parametric score function for calculating the criteria weights are proposed. Thirdly, an extended decision-making approach, known as PF-EDAS, is introduced.FindingsThe outcomes and comparative discussion show that the developed method is efficient and capable of facilitating the DEs to choose desirable SCSS. Therefore, the proposed framework can be used by organizations to assess and establish suitable suppliers in the SCSS process in the circular economy.Originality/valueSelecting the optimal sustainable circular supplier (SCS) in the manufacturing sector is important for organizations to persuade SSCM, as specified in various research. However, corresponding to the subjectivity of human behavior, the selection of the best SCS often involves uncertain information, and the PFSs have a huge capability to tackle strong vagueness, uncertainty and inaccuracy in the MCDM procedure. Hence, manufacturing companies' administrators can implement the developed method to assess and establish suitable suppliers in the SCSS process in the circular economy.


2014 ◽  
Vol 29 (5) ◽  
pp. 417-426
Author(s):  
M. Tawfik Mady ◽  
Tarek T. Mady ◽  
Sarah T. Mady

Purpose – The purpose of this study is to report and contrast manufacturer–supplier relationships, supplier selection and procurement performance of two manufacturing sectors in Kuwait. The effect of supplier relationship and selection on the performance of the procurement function was also investigated. Design/methodology/approach – Surveys of supplier selection, supplier relationship and procurement performance are taken from 62 plants operating in 2 competitive manufacturing sectors in Kuwait (foods industry and refractors industry). The study utilizes multivariate and multi-regression analyses in understanding the effect of supplier relationship and selection on the performance of the procurement function. Findings – Findings indicate a significant effect of supplier relationship and supplier selection on a plant’s procurement performance. However, variance in plant size and/or industrial sector was found to not affect this relationship. Originality/value – Despite the significance of the Gulf states and the growing importance of the manufacturing sector in these countries, relatively little is known about how buyers and suppliers within this sector interact. This study is the first to document supplier relationships and selection processes in this area of the world. The study also provides a reliable and valid scale for measuring the performance of the procurement function in the Kuwaiti manufacturing sector. Furthermore, the postulated impact of supplier–buyer relationships on the performance of the procurement functions was investigated in a newly emerging economy in the Gulf.


2008 ◽  
Vol 1 (3) ◽  
pp. 252-267 ◽  
Author(s):  
Xiaohong Li ◽  
Ian Barnes

PurposeThis paper aims to identify proactive supply risk management methods which can be used to reduce or remove risk sources during the supplier selection process, in the context of Western‐based manufacturing companies that source from emerging markets.Design/methodology/approachLearning from the literature and conducting multiple‐case study analyses of five Western‐based manufacturing companies' sourcing experiences from emerging markets.FindingsThe experiences of five Western‐based manufacturing companies suggested that applying the risk management process into supplier selection was particularly important and effective for supply risk reduction when sourcing from emerging markets. Supply risk sources must be identified and proactive supply risk management methods must be used to remove or reduce risk sources for effective supply risk management. The proactive risk management methods discovered in this research are: conducting a supplier questionnaire covering a wide range of business dimensions of the supplier; performing a technical review; negotiating a risk mitigation plan; employing local‐based procurement staff; using a total cost estimate; applying a strict part qualification process.Research limitations/implicationsA multiple‐case study methodology employs a limited number of case studies and therefore may restrict the generalisation of research findings. Manufacturing companies are used as case study organisations for this research. Therefore, the research findings are particularly applicable and useful to manufacturing companies but might not be valid for other types of company. The research focuses on supply risk reduction during the supplier selection process, while further research into other stages of the supply management process is desirable.Practical implicationsThe generated proactive supply risk management methods are useful to manufacturing companies looking to source or aiming to improve their sourcing experiences from emerging markets.Originality/valueThe literature provides valuable contents in terms of concepts but lacks proactive supply risk management methods for supply risk management when sourcing from emerging markets. The generated proactive supply risk management methods based on first‐hand information are valuable both to academics and practitioners in this field.


Author(s):  
Gavin Meschnig ◽  
Lutz Kaufmann

Purpose – A key driver of procurement effectiveness is the alignment of the procurement function with interlinked functions, such as R & D, engineering, production, and marketing. In the strategic management literature, the degree of alignment of individual team members on strategic objectives is termed “consensus.” The purpose of this paper is to investigate antecedents of consensus on objectives in cross-functional sourcing teams, the relationship between the degree of consensus and supplier performance, and moderators of the consensus-performance relationship. To do so, it ties strategic management literature to SCM and supplier selection research. As a result of these investigations, this research holistically introduces the concept of consensus to the discipline. Design/methodology/approach – The study analyzes a sample of 88 sourcing teams (233 team members) from three manufacturing companies using regression analysis and moderated regressions. Findings – Consensus on objectives for supplier selection among sourcing team members is positively related to the selection of higher performing suppliers. Sourcing team member experience is positively related to the level of consensus, and formalization of the selection process positively moderates the consensus-performance relationship. Team demographic diversity does not affect consensus among team members or supplier selection effectiveness. Research limitations/implications – This study investigates consensus on objectives as a state within the sourcing team; it does not analyze how decision-making processes unfold in situations of low- or high-initial consensus among sourcing team members. Practical implications – This paper provides insights into the drivers and effects of consensus on objectives and formalization of supplier selection in cross-functional setups. Originality/value – This research addresses a gap in the SCM literature by investigating the role of consensus on objectives and thereby contributes to a better understanding of cross-functional sourcing team setups and effectiveness. The study introduces a key construct from the strategic management literature to supply management research, and empirical evidence shows how consensus can improve supplier selection performance.


2020 ◽  
Vol 13 (2) ◽  
pp. 195-210 ◽  
Author(s):  
Avanish Singh Chauhan ◽  
Gaurav Kumar Badhotiya ◽  
Gunjan Soni ◽  
Prem Kumari

Purpose Because of the increased global competition and the need for environment consciousness, organisations have started focusing on incorporating sustainability dimensions into suppler selection criteria. In the past decade, sustainable supplier selection has received much attention from researchers as well as industry practitioners. The purpose of this paper is to identify various sustainable supplier selection criteria (SSSC) and underlying interdependencies among prominent selection criteria to develop a framework for sustainability dimensions. Design/methodology/approach The sustainable criteria for supplier selection were established through comprehensive literature review. An interpretive structural modelling (ISM) approach is used to investigate the interrelationships among these criteria. Findings A total of 21 SSSC under 3 dimensions (social, environmental and economic) are established. Ten criteria related to quality, capability, flexibility, waste management, pollution prevention, local community, employment practice, labour, etc. are exhibiting strong driving as well as dependence power, as demonstrated through ISM and matriced’ impacts croises-multiplication applique’ and classement (MICMAC) analysis. The findings show that delivery/service, eco design and rights of stakeholders are the “key” criteria having a high-driving and low-dependence power. These criteria require high attention from managers, while other criteria having low-driving and high-dependence power require secondary actions. Research limitations/implications The inter-relations for the development of ISM model and MICMAC analysis were obtained through the opinion of industry experts and academicians, which may tend to be subjectively biased. Further exploration is proposed to statistically validate the developed interdependency model. Practical implications This paper might act as a reference for the supplier development managers of organisations by providing an appraisal of various SSSC based on their interdependencies. Originality/value This study contributes to the knowledge base by proposing a framework of the interrelationships of the SSSC and also provides an additional perspective for managing these criteria based on ISM.


Kybernetes ◽  
2016 ◽  
Vol 45 (3) ◽  
pp. 474-489 ◽  
Author(s):  
Moloud sadat Asgari ◽  
Abbas Abbasi ◽  
Moslem Alimohamadlou

Purpose – In the contemporary global market, supplier selection represents a crucial process for enhancing firms’ competitiveness. This is a multi-criteria decision-making problem that involves consideration of multiple criteria. Therefore this requires reliable methods to select the best suppliers. The purpose of this paper is to examine and propose appropriate method for selecting suppliers. Design/methodology/approach – ANFIS and fuzzy analytic hierarchy process-fuzzy goal programming (FAHP-FGP) are new methods for evaluating and selecting the best suppliers. These methods are used in this study for evaluating suppliers of dairy industries and the results obtained from methods are compared by performance measures such as Mean Squared Error, Root Mean Squared Error, Normalized Root Men Squared Error, Mean Absolute Error, Normalized Root Men Squared Error, Minimum Absolute Error and R2. Findings – The results indicate that the ANFIS method provides better performance compared to the FAHP-FGP method in terms of the selected suppliers scoring higher in all the performance measures. Practical implications – The proposed method could help companies select the best supplier, by avoiding the influence of personal judgment. Originality/value – This study uses the well-structured method of the fuzzy Delphi in order to determine the supplier evaluation criteria as well as the most recent ANFIS and FAHP-FGP methods for supplier selection. In addition, unlike most other studies, it performs the selection process among all available suppliers.


2018 ◽  
Vol 25 (5) ◽  
pp. 1528-1547 ◽  
Author(s):  
Anil Kumar ◽  
Amit Pal ◽  
Ashwani Vohra ◽  
Sachin Gupta ◽  
Suryakant Manchanda ◽  
...  

Purpose Supplier selection for capital procurement is a major strategic decision for any automobile company. The decision determines the success of the company and must be taken systematically with the utmost transparency. The purpose of this paper is to construct capital procurement decision-making model to optimize supplier selection in the Indian automobile industry. Design/methodology/approach To achieve the stated objective, a combined approach of fuzzy theory and AHP-DEMATEL is applied. Evaluation parameters are identified through an extensive literature review and criteria validation has been introduced through a Fuzzy Delphi method by using fuzzy linguistic scales to handle the vagueness of information. AHP is employed to find the priority weight of criteria, although an inter-relationship map among criteria is not possible through AHP alone since it considers all criteria as independent. To overcome this, DEMATEL is used to establish cause-effect relationships among criteria. Findings The results show that the total cost of ownership (TOC) is the first weighted criterion in supplier selection for capital procurement, followed by manufacturing flexibility and maintainability, then conformity with requirement. The cause-effect model shows that supplier profile, TOC, service support and conformity with requirement are in the cause group and are considered to be the most critical factors in selecting the supplier. Originality/value The study’s outcome can help the automobile industry to optimize their selection process in selecting their suppliers for capital procurement; the proposed model can provide guidelines and direction in this regard.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Oran Doherty ◽  
Simon Stephens

PurposeThis paper explores the implications for higher education of the rapid development in technology used by the manufacturing sector. Higher education programmes change or new courses are introduced in attempts to match labour market demands. However, the pace of change in the manufacturing industry challenges the authors to reconceive how programmes and modules can and should be designed and delivered.Design/methodology/approachThis study is based on interviews with 26 senior management representatives from manufacturing companies in Ireland. The 26 senior managers and their companies represent the wide diversity of Ireland's manufacturing sector. All the interviews were face to face, complimented by a short questionnaire. Follow-up interviews focussed on the emergent findings were carried out to aid the writing of recommendations for the best practice in programme design and delivery.FindingsWhat emerges from this study is that the manufacturing industry needs skills at three distinct levels. The authors define and classify the skill requirements at entry, competent and expert level. The authors place an emphasis on upskilling as an aid to movement between the three levels. In addition, and significantly, the desired time frame for delivery of these skills and/or upskilling is very short.Originality/valueAccelerated reskilling programmes with faster, shorter bursts of work-based learning (WBL) and experiential training are required. With a growing demand for those at competent and expert level, it is necessary to promote WBL to facilitate the upskilling of those employed in manufacturing roles, particularly in small and medium-sized enterprises (SMEs).


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Huay Ling Tay ◽  
Hui Sen Aw

Purpose Outsourcing logistical activities have become a widely used approach for firms to avoid high fixed costs and heavy investment requirements and to achieve competitive advantages. Lean six sigma (LSS) has been accepted globally across sectors as a management strategy for achieving process excellence. The purpose of this paper is to feature the application of LSS for improving the supplier selection process (SSP) of outsourced logistics services in a multinational health-care company. Design/methodology/approach This study is based on an action research case study conducted on the SSP of the freight and distribution department in a multinational health-care company. This paper reports on the application of the LSS define-measure-analyze-improve-control (DMAIC) approach for reducing supplier selection lead time. Findings The study features a real-world case study of the LSS DMAIC application to improve the supplier selection process of a large health-care company. The key issues that were identified are lack of information visibility, top-down changes and unclear communication lines. To counteract these three root causes, the lean six sigma techniques that are implemented are the 5S, stakeholder analysis and standard operating procedure. Research limitations/implications This research provided empirical evidence of how practical challenges in SSP can be managed with the use of LSS. It further proposed plausible solutions for reducing and sustaining improved outcomes. As the study is limited to one case, the validity of the results can be improved by including more organisations and more case studies from other similar organisations. Originality/value Research in supplier selection processes rarely links continuous improvement ideology such as LSS to support strategic selection and procurement of logistics services. This paper could serve as a resource for both practitioners to derive useful implications and to academicians as it contributes to the LSS body of knowledge for further theory testing.


2018 ◽  
Vol 204 ◽  
pp. 02013
Author(s):  
Fatkhor Rozi ◽  
Evy Herowati

Raw materials are basic need for manufacturing companies to facilitate the production process. Therefore, supplier selection process is an important process for the company, because by choosing the right suppliers of raw materials will benefit the company. To choose the right supplier is also determined by the decision taken by the decision maker (DM). In addition, the weight of DM assessment will differ on different criteria because DM experts in a particular field are not necessarily experts in other fields. Therefore, in this paper is discussed about the measurement of the weight of each criterion and alternative to choose the best supplier alternative using AHP method. In addition, this paper also measures the consistency of DM in making decisions using expertise level models.


Sign in / Sign up

Export Citation Format

Share Document