Green Supplier Selection using MCDM: A Comprehensive Review of Recent Studies

Green Supplier Selection using MCDM: A Comprehensive Review of Recent Studies

1 January 2024 | Sushil Kumar Sahoo, Shankha Shubhra Goswami
This study provides an extensive analysis of current research on green supplier selection using multi-criteria decision-making (MCDM) methods. The assessment and choice of environmentally conscious suppliers have become essential in modern business operations due to growing environmental concerns and the need for sustainable supply chain management. The paper highlights the advantages, disadvantages, and new directions of various MCDM techniques used in green supplier selection. Through the synthesis and analysis of multiple recent studies, the review advances our understanding of the evolving environment surrounding green supplier selection and offers valuable insights to practitioners and scholars. The introduction emphasizes the importance of sustainable and green practices in supply chain management (SCM), highlighting environmental conservation, regulatory compliance, cost reduction, resilience, brand reputation, supply chain transparency, talent attraction, and innovation. The literature review discusses the environmental, economic, and social sustainability dimensions of SCM and the factors influencing green supplier selection, such as environmental performance, regulatory compliance, resource efficiency, ethical and social responsibility, and innovation and collaboration. The paper identifies and analyzes the criteria and sub-criteria used in green supplier selection, including environmental, economic, and social performance. It also provides specific case studies from industries like automotive, electronics, food and beverage, and technology to illustrate the application of MCDM methods in green supplier selection. Challenges in adopting green supplier selection in SCM are addressed, including limited data availability, complexity of multi-criteria evaluation, balancing economic and environmental goals, supplier resistance, supply chain complexity, regulatory compliance issues, lack of standardization, cost of green technologies, resistance to change, and the need for long-term commitment. Solutions to these challenges are proposed, emphasizing the importance of strategic approaches and a commitment to sustainability. The conclusions stress the crucial significance of sustainability in SCM, the effectiveness of MCDM methods in evaluating and selecting green suppliers, and the need for organizations to integrate sustainability into their supply chain plans. Future research should focus on developing standardized criteria, integrating real-time data and analytics, and enhancing supplier engagement and compliance. The review underscores the need for organizations to embrace sustainability principles and employ MCDM methodologies in selecting green suppliers to contribute to a greener and more sustainable future.This study provides an extensive analysis of current research on green supplier selection using multi-criteria decision-making (MCDM) methods. The assessment and choice of environmentally conscious suppliers have become essential in modern business operations due to growing environmental concerns and the need for sustainable supply chain management. The paper highlights the advantages, disadvantages, and new directions of various MCDM techniques used in green supplier selection. Through the synthesis and analysis of multiple recent studies, the review advances our understanding of the evolving environment surrounding green supplier selection and offers valuable insights to practitioners and scholars. The introduction emphasizes the importance of sustainable and green practices in supply chain management (SCM), highlighting environmental conservation, regulatory compliance, cost reduction, resilience, brand reputation, supply chain transparency, talent attraction, and innovation. The literature review discusses the environmental, economic, and social sustainability dimensions of SCM and the factors influencing green supplier selection, such as environmental performance, regulatory compliance, resource efficiency, ethical and social responsibility, and innovation and collaboration. The paper identifies and analyzes the criteria and sub-criteria used in green supplier selection, including environmental, economic, and social performance. It also provides specific case studies from industries like automotive, electronics, food and beverage, and technology to illustrate the application of MCDM methods in green supplier selection. Challenges in adopting green supplier selection in SCM are addressed, including limited data availability, complexity of multi-criteria evaluation, balancing economic and environmental goals, supplier resistance, supply chain complexity, regulatory compliance issues, lack of standardization, cost of green technologies, resistance to change, and the need for long-term commitment. Solutions to these challenges are proposed, emphasizing the importance of strategic approaches and a commitment to sustainability. The conclusions stress the crucial significance of sustainability in SCM, the effectiveness of MCDM methods in evaluating and selecting green suppliers, and the need for organizations to integrate sustainability into their supply chain plans. Future research should focus on developing standardized criteria, integrating real-time data and analytics, and enhancing supplier engagement and compliance. The review underscores the need for organizations to embrace sustainability principles and employ MCDM methodologies in selecting green suppliers to contribute to a greener and more sustainable future.
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