An integrated multi-criteria decision-making approach for sustainable supply chain performance evaluation from a manufacturing perspective

Abstract

Purpose

Over the last 2 decades, supply chain sustainability research has become a highly dynamic and fruitful study area. This field has garnered significant attention due to its potential to reshape decision-making processes within supply chains. At the same time, the practical side of supply chain operations remains intensely competitive in today’s business landscape. Furthermore, the current academic research aims to outline effective strategies for achieving sustainability across supply chains, particularly in the manufacturing sector. In response to these challenges, this research has conducted an integrated multi-criteria decision-making approach to evaluate sustainable supply chain performance from the triple bottom line perspective, including financial, environmental, and social performance.

Design/methodology/approach

The initial stage involves selecting the crucial criteria (short-term and long-term) and alternatives for sustainable supply chain performance (SSCP) from experts and conducting an in-depth literature review. Initially, there were 17 criteria, but after a pilot test with co-authors and online discussions with experts, the number of criteria was subsequently reduced to 9. In the second phase, the Best-Worst Method (BWM) was applied to rank and prioritize the criteria. The third and final stage examined the causal relationship between the identified criteria, utilizing the Decision-Making Trial and Evaluation Laboratory (DEMATEL) technique.

Findings

Based on BWM analysis results, the top three criteria in terms of prominence are: (1) return on investment (ROI), (2) product quality, and (3) manufacturing lead time. Out of the three alternatives, financial performance (FP) is the most crucial dimension for SSCP, followed by environmental performance (ENP) and social performance (SP). On the other hand, the DEMATEL approach showed that work health and safety (short-term criterion), asset utilization (long-term criterion), energy consumption (long-term criterion), waste disposal (long-term criterion), manufacturing lead time (short-term criterion), and on-time delivery (short-term criterion) are categorized within the cause group, while criteria such as return on investment (ROI) (long-term criterion), customer-service level (short-term criterion), and product quality (long-term criterion) fall into the effect group.

Research limitations/implications

The proposed study has certain drawbacks that pave the way for future research directions. First, it is worth noting the need for a larger sample size to ensure the reliability of results, the potential inclusion of additional criteria to enhance the assessment of sustainability performance, and the consideration of a qualitative approach to gain deeper insights into the outcomes. In addition, fuzziness in qualitative subjective perception could be imperative when collecting data to ensure its reliability, as translating experts’ perceptions into exact numerical values can be challenging because human perceptions often carry elements of uncertainty or vagueness. Therefore, fuzzy integrated MCDM frameworks are better suited for future research to handle the uncertainties involved in human perceptions, making it a more appropriate approach for decision-making in scenarios where traditional MCDM methods may prove insufficient.

Practical implications

The proposed framework will enable decision-makers to gain deeper insights into how various decision criteria impact SSCP, thus providing a comprehensive evaluation of SSCP that considers multiple dimensions, such as financial, environmental, and social performance within the manufacturing sector.

Originality/value

The proposed study is the first empirical study to integrate both BWM and DEMATEL approaches to evaluate sustainable supply chain performance in the manufacturing context.