Green sourcing in the era of industry 4.0: towards green and digitalized competitive advantages

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alireza Fallahpour ◽  
Morteza Yazdani ◽  
Ahmed Mohammed ◽  
Kuan Yew Wong

PurposeIn the last decade, sustainable sourcing decision has gained tremendous attention due to the increasing governmental restrictions and public attentiveness. This decision involves diverse sets of classical and environmental parameters, which are originated from a complex, ambiguous and inconsistent decision-making environment. Arguably, supply chain management is fronting the next industrial revolution, which is named industry 4.0, due to the fast advance of digitalization. Considering the latter's rapid growth, current supplier selection models are, or it will, inefficient to assign the level of priority of each supplier among a set of suppliers, and therefore, more advanced models merging “recipes” of sustainability and industry 4.0 ingenuities are required. Yet, no research work found towards a digitalized, along with sustainability's target, sourcing.Design/methodology/approachA new framework for green and digitalized sourcing is developed. Thereafter, a hybrid decision-making approach is developed that utilizes (1) fuzzy preference programming (FPP) to decide the importance of one supplier attribute over another and (2) multi-objective optimization on the basis of ratio analysis (MOORA) to prioritize suppliers based on fuzzy performance rating. The proposed approach is implemented in consultation with the procurement department of a food processing company willing to develop a greener supply chain in the era of industry 4.0.FindingsThe proposed approach is capable to recognize the most important evaluation criteria, explain the ambiguity of experts' expressions and having better discrimination power to assess suppliers on operational efficiency and environmental and digitalization criteria, and henceforth enhances the quality of the sourcing process. Sensitivity analysis is performed to help managers for model approval. Moreover, this work presents the first attempt towards green and digitalized supplier selection. It paves the way towards further development in the modelling and optimization of sourcing in the era of industry 4.0.Originality/valueCompetitive supply chain management needs efficient purchasing and production activities since they represent its core, and this arises the necessity for a strategic adaptation and alignment with the requirement of industry 4.0. The latter implies alterations in the avenue firms operate and shape their activities and processes. In the context of supplier selection, this would involve the way supplier assessed and selected. This work is originally initiated based on a joint collaboration with a food company. A hybrid decision-making approach is proposed to evaluate and select suppliers considering operational efficiency, environmental criteria and digitalization initiatives towards digitalized and green supplier selection (DG-SS). To this end, supply chain management in the era of sustainability and digitalization are discussed.

Author(s):  
Rubén Medina Serrano ◽  
Wanja Wellbrock ◽  
María Reyes González Ramirez ◽  
José Luis Gascó

The supplier selection process has become an important area of research and professional activity, and it is fundamental to understand the types and trends of research in this field. The appropriate supplier selection decision is a fundamental strategic process and plays an important role in supply chain management. In the last decade, academic research on sustainability has evolved rapidly in the supply chain literature. However, there has been scant opportunity for the research community to complete a global assessment of sustainable supplier selection activities to date. This paper seeks to address this need by exploring sustainability in supply chain management, developing a sustainable supplier selection framework with a tool for its operationalization to help managers evaluate supplier selection decisions. Our proposed model is based on the TOPSIS concept as a multiple criteria decision-making (MCDM) model and is validated through a case study. This research work follows the best-in-class approach to comply with all applicable environmental regulations and laws in the supplier selection process.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manju Saroha ◽  
Dixit Garg ◽  
Sunil Luthra

PurposeCircular supply chain management (CSCM) is proving to be a strong contributor towards sustainable development. The purpose of this study is to analyse the circular practices in CSCM implementation towards sustainability in the Indian auto sector; these practices are at the initial stage in a developing economy.Design/methodology/approachIn this research work, a framework has been developed to enrich understanding of various CSCM practices for sustainability. To develop a causal framework, a Fuzzy Decision-Making Trial and Evaluation Laboratory (F-DEMATEL) methodology has been adopted.FindingsThe results produce 32 practices with cause and effect groups and their importance/priorities. Based on F-DEMATEL, these 32 practices are grouped into cause and effect groups based on R + C and R − C values.Research limitations/implicationsThe findings will help managers and decision-makers to gain a deeper understanding of the practices and their nature; the governmental and financial practices are identified as the most critical factors that need more attention. The results will help strategy makers to plan accordingly.Originality/valueThis research has identified and analysed 32 basic practices and their interrelationships to achieve sustainability in CSCM.


2013 ◽  
Vol 3 (2) ◽  
pp. 1-8
Author(s):  
Monica Singhania ◽  
Gagan Gandhi

Subject area Supply chain management and particularly the significance of vendors as a strategic decision making tool. Study level/applicability The case is suitable for use in the following courses: MBA programs with specialisation in operations management where it can be used to teach students the significance of vendor selection and vendor rating in supply chain management (SCM); marketing research in management where it can be used to highlight the concept of multi attribute utility theory (MAUT) and its application; advanced statistics for multi criteria decision making (MCDM); and MBA/post graduate programs in management in strategic management where it can be used to introduce the concept of SWOT analysis and Porter's five forces model. An understanding of business process improvement will enable students get a comprehensive view about the case. Case overview This case showcases the concepts of MCDM and SCM in manufacturing industry. The company wanted to select vendors and rate them in each category of raw materials in order to have a competitive advantage over competitors. Since there are multiple attributes (often contradictory in nature) based on which the vendors would be selected Kaul, Vice-President, Commercial uses multi-attribute utility theory (MAUT) to help solve the problem. The case has implications for manufacturing industry in selecting vendors to meet a raw materials need. Expected learning outcomes The case can be used to understand management concepts such as market research, supply chain management and multi criteria decision making. It can be used to: teach complexities involved in identifying attributes for vendor selection and vendor rating; help understand supply chain management in business process improvement; help students understand the application of MCDM; and help MBA students studying marketing research. The case will also be useful to students in understanding the application of MCDM in operations management. Some knowledge about cigarette manufacturing will help students to realize the depth of the case. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes.


2019 ◽  
Vol 25 (2) ◽  
pp. 323-346 ◽  
Author(s):  
Lorenzo Ardito ◽  
Antonio Messeni Petruzzelli ◽  
Umberto Panniello ◽  
Achille Claudio Garavelli

PurposeThe purpose of this paper is to present a comprehensive picture of the innovative efforts undertaken over time to develop the digital technologies for managing the interface between supply chain management and marketing processes and the role they play in sustaining supply chain management-marketing (SCM-M) integration from an information processing point of view.Design/methodology/approachPatent analysis and actual examples are used to carry out this study. In detail, first, the authors identify the subset of enabling technologies pertaining to the fourth industrial revolution (Industry 4.0) that can be considered the most relevant for effective SCM-M integration (i.e. Industrial Internet of Things, Cloud computing, Big Data analytics and customer profiling, Cyber security). Second, the authors carry out a patent analysis aimed at providing a comprehensive overview of the patenting activity trends characterizing the set of digital technologies under investigation, hence highlighting their innovation dynamics and applications.FindingsThis research provides insightful information about which digital technologies may enable the SCM-M integration. Specifically, the authors highlight the role those solutions play in terms of information acquisition, storage and elaboration for SCM-M integration by relying on illustrative actual examples. Moreover, the authors present the organisations more involved in the development of digital technologies for SCM-M integration over time and offer an examination of their technological impact in terms of influence on subsequent technological developments.Originality/valueSo far, much has been said about why marketing and supply chain management functions should be integrated. However, a clear picture of the digital technologies that might be adopted to achieve this objective has yet to be revealed. Thus, the paper contributes to the literature on SCM-M integration and Industry 4.0 by highlighting the enabling technologies for the Industry 4.0 that may particularly serve for managing the SCM-M interface from an information processing perspective.


2014 ◽  
Vol 20 (3/4) ◽  
pp. 178-190
Author(s):  
Ana Shetach

Purpose – This paper aims to draw on know-how from the study of Team and Project Management, to seek insights into enhancing the effectiveness of supply chain management (SCM) ventures, with the aim of contributing to their effective and efficient decision-making and operation processes. Design/methodology/approach – Based on an analysis of the obstacles that may stand in the way of the efficient implementation of SCM processes, six specific conditions for such mega-projects’ success are proposed. A couple of practical tools for their attainment are presented. Findings – The article suggests that the construction of the teams involved, as well as the working procedures that may render their work effective, should be flexible and made adaptable to the specific assignment or case, which is handled by each team, at the time; and that the optimal set of procedures to adopt, throughout the working sessions of the teams, which are involved in the process, are those which will gear the team with the means to contribute to the eventual materializing and finalization of a quality and practical set of decisions for the benefit of the overall SCM process. Practical implications – The article offers a practical step-by-step set of six guidelines to lead executives and managers of SCM processes toward a relatively high level of control in the establishment of effective and efficient team-decision-making and implementation processes within SCM inter-and intra-organizational teams. Originality/value – Limited attention has been given in the literature to the studying of practical and applicable managerial techniques for successful decision-implementation processes in SCM teams. This article focuses on this neglected domain, proposing a solution, in the form of an integrative micro-level SCM operational strategy.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sachin Yadav ◽  
Surya Prakash Singh

PurposeThe main objective of this paper is to justify the implementation of blockchain (BC) over the traditional method deployed in the supply chain (SC) after using the fuzzy–analytic network process (fuzzy-ANP) application. Over the past two decades, the overall product cost is affected by the SC at a global level. Organizations are working on their existing SC for improving their performance. BC technology is a newly emerging technology and magnetizes the attention of researchers and industrialists. This technology is still at the initial stage, and only little investigation is available in the literature and it has not been much investigated by researchers.Design/methodology/approachLiterature and expert opinion interpretation in BC characteristics are further analyzed and modeled using fuzzy–interpretive structural modeling (fuzzy-ISM), fuzzy-MICMAC and fuzzy-ANP. The combined approach of both fuzzy-ISM and fuzzy-MICMAC is applied to identify the common drivers to integrate the BC technology in the light of efficient supply chain management (SCM).FindingsComparative analysis between traditional and BC-based supply chain (BCSC) using fuzzy-ANP is carried out, considering the common driving characteristics. The proposed integrated (combined) approach of fuzzy-ISM, fuzzy-MICMAC and Fuzzy-ANP found that integration of BC with SCM is better prioritized than traditional supply chain management (TSCM). The findings in the article endorse that the TSCM can be made efficient by integrating the BC technology considering five most driving characteristics, namely, data safety and decentralization, accessibility, documentation, data management and quality.Originality/valueThe current proposed research work identifies 12 characteristics after studying numerous literature reviews and having a discussion with SC experts with knowledge of BC. The integrated approach of fuzzy-ISM and fuzzy-MICMAC is implemented here. After that, fuzzy-ANP is used to give ranking among BCSCM and TSCM. The study carried out in this article motivates industries to implement BC in their SC system. It will reduce the transaction cost, documentation work, save time and eliminate human error at the national and international levels. The common characteristics identified in this proposed work would help in managerial decisions for the adoption of BC to ensure that the system becomes more transparent, easily traceable and finally improve the performance.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ali Ihsan Ozdemir ◽  
Ismail Erol ◽  
Ilker Murat Ar ◽  
Iskender Peker ◽  
Ali Asgary ◽  
...  

PurposeThe objective of this study is to investigate the role of blockchain in reducing the impact of barriers to humanitarian supply chain management (HSCM) using a list of blockchain benefits.Design/methodology/approachA decision aid was used to explore the suitability of blockchain in humanitarian supply chains. To achieve that, first, a list of barriers to HSCM was identified. Then, the intuitionistic fuzzy decision-making trial and evaluation laboratory (IF–DEMATEL) method was utilized to determine the relationships and the level of interdependencies among the criteria. Finally, the intuitionistic fuzzyanalytic network process (IF–ANP) technique was employed, as it successfully handles dependencies among the criteria.FindingsThe findings of this study suggest that interorganizational barriers are the most suitable ones, the impacts of which blockchain may alleviate. This study further suggests that trust turned out to be the most significant benefit criterion for the analysis.Research limitations/implicationsThe readers should construe the findings of this study with caution since it was carried out using the data collected from the experts of a particular country. Moreover, the proposed decision aid contemplates a limited set of criteria to assess a possible role of blockchain in overcoming the barriers to HSCM.Practical implicationsThe findings of this study can assist humanitarian supply chain managers to make more judicious assessments on whether they implement the blockchain in humanitarian supply chain operations. Specifically, this research may help decision makers to identify the certain barriers, the impact of which may be reduced by using the blockchain. The findings of this research will also help various decision makers make more rational decisions and allocate their resources more effectively.Originality/valueTo the best of authors’ knowledge, no single study exists to investigate the role of blockchain in reducing the impact of barriers to HSCM using an intuitionistic fuzzy multi-criteria decision-making approach.


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