The strategic supplier-related activity of supplier segmentation focuses on the evaluation of suppliers, identifying different approaches, identifying the most suitable criteria and proper methods to segment the suppliers. The main aim of the evaluation suppliers is to form different groups from the selected suppliers to create different supplier management strategies for segments involved. Supplier development is another strategic supplier-related activity designed to upgrade the performance level of suppliers in order to create and maintain a network of competent suppliers, which has a major influence on the competitive advantages of a buying company. To allocate scarce resources more efficiently, we should design different supplier development strategies for different supplier segments. This is where we actually use the evaluation suppliers. This paper proposes an integrative approach that includes capabilities and willingness as two dimensions for evaluating and subsequently segmenting suppliers. The results of that segmentation are then used as the main basis for supplier development. The integrative approach proposed in this paper is of significant importance, as it helps companies apportion their managerial resources more efficiently. We use a new multi-criteria decision-making method called Best Worst Method (BWM) to segment suppliers. A supplier development conceptual model is proposed to develop the suppliers in the different segments. The proposed framework is further applied to a medium-sized high-tech company as input to validate the model.
Supplier selection is a strategic decision that significantly influences a firm's competitive advantage. The importance of this decision is amplified when a firm seeks new markets and potentially a new supplier base. Recognizing the importance of these decisions, an innovative three-phase supplier selection methodology including pre-selection, selection, and aggregation is proposed. Conjunctive screening is used for pre-selection, the best worst method (BWM), a novel multiple criteria decision-making method is introduced for the selection phase. Material price and annual quantity are integrated with the decision at the aggregation phase. Qualitative, quantitative, traditional business, and environmental criteria are incorporated. The proposed methodology is applied within a food supply chain context, the edible oils industry. In this illustration the focal organization faces a global entry decision in a new international market. An extensive search is completed to identify the potential suppliers. Through initial screening a sub-set of qualified suppliers is identified. BWM is then used to find the best suppliers from among the qualified suppliers. Eventually the significance of the supplies in the aggregation phase is determined. The outcome is a relatively meaningful ranking of suppliers. The paper provides insights into the methodology, decision, and managerial implications. Study and model limitations, along with future research directions are described.
A truly sustainable organization needs to take the economic, environmental and social dimensions of sustainability into account. Although the economic and environmental dimensions of sustainability have been examined by many scholars and practitioners, thus far, the social dimension has been received less attention in literature and in practice, in particular in developing countries. Social sustainability enables other sustainability initiatives and overlooking this dimension can have a serious adverse impact across supply chains. To address this issue, this study proposes a framework for investigating the social sustainability of supply chains in manufacturing companies. To show the applicability and efficiency of the proposed framework, a sample of 38 experts was used to evaluate and prioritize social sustainability criteria, using a multi-criteria decision-making method called the ‘best worst method’ (BWM). The criteria are ranked according to their average weight obtained through BWM. The respondents view ‘contractual stakeholders influence’ as the most important social sustainability criterion. The results of this study help industry managers, decision-makers and practitioners decide where to focus their attention during the implementation stage, to increase social sustainability in their organizational supply chain and move towards sustainable development.
Every company will largely depend on other companies. This will help unite a large business process. Risks that arise from other companies will affect the business performance of a company. Because of this, the right choice for suppliers is crucial. Each vendor has different characteristics. Everything is not always suitable basically the selection process is quite complex and risky. This has led to a new case study which has been studied for years by researchers known as Supplier Selection Problems. Selection of vendors with multi-criteria decision making has been widely studied over years ago. The Best Worst Method is a new science in Multi-Criteria Decision Making (MCDM) determination. In this research, taking case study at XYZ company is in Indonesia which is engaged in mining and industry. The research utilized the transaction data that have been recorded by the XYZ company and analyzed vendor valuation. The weighting of Best Worst Method is calculated based on vendor assessment result. The results show that XYZ company still focuses on Price as its key criteria.
Since research and development (R & D) is the most critical determinant of the productivity, growth and competitive advantage of firms, measuring R & D performance has become the core of attention of R & D managers, and an extensive body of literature has examined and identified different R & D measurements and determinants of R & D performance. However, measuring R & D performance and assigning the same level of importance to different R & D measures, which is the common approach in existing studies, can oversimplify the R & D measuring process, which may result in misinterpretation of the performance and consequently fallacy R & D strategies. The aim of this study is to measure R &D performance taking into account the different levels of importance of R & D measures, using a multi-criteria decision-making method called Best Worst Method (BWM) to identify the weights (importance) of R&D measures and measure the R & D performance of 50 high-tech SMEs in the Netherlands using the data gathered in a survey among SMEs and from R & D experts. The results show how assigning different weights to different R & D measures (in contrast to simple mean) results in a different ranking of the firms and allow R & D managers to formulate more effective strategies to improve their firm's R &D performance by applying knowledge regarding the importance of different R & D measures.
One of the major factors in the success of renewable energy is finding a proper location for production facilities. At a national level, different parts of a country (e.g. provinces) can be seen as alternatives that can be assessed based on a set of criteria, and ranking them to identify the best location. The focus in this paper is on identifying the best location for the production of bioethanol. After a comprehensive literature review, an evaluation framework is proposed based on the three dimensions of sustainability (economic, environmental and social). Using data provided by a sample of experts in a developing country – Iran – and applying the best-worst method (BWM), a number of decision-making criteria are evaluated. Performance data involving the various provinces of Iran are collected from different sources. The performance data and the weights identified through BWM are used to calculate an overall score for each province, which is then used to rank the provinces, with the province of Khuzestan (closely followed by Tehran) being identified as the most suitable province for bioethanol production in Iran.
This paper studies the technology battle for biomass conversion in the Netherlands. Three types of technologies are currently fighting the battle for standard dominance: combustion, pyrolysis, and gasification. Twelve relevant factors for standard dominance were found: ‘financial strength’, ‘operational supremacy’, ‘learning orientation’, ‘technological superiority’, ‘compatibility’, ‘flexibility’, ‘pricing strategy’, ‘distribution strategy’, ‘previous installed base’, ‘regulator’, ‘effectiveness of the format development process’, and ‘network of stakeholders’. Applying expert opinions and the Best-Worst Method (BWM), the relative importance (weights) of these factors were calculated. The weights were then used to evaluate and rank the technologies. The results show that biomass gasification has the highest chance of achieving standard dominance and that technological superiority is the most important factor affecting standard success. The weights per factor were explained and theoretical contributions and areas for future research were discussed.
Sustainable manufacturing is an assimilation of triple bottom line (economic, environmental, and social) approach of the manufacturing business. In such a complex system, decision making becomes clumsy in terms of selecting and prioritizing the different aspects of the triple bottom line. The multi criteria decision making techniques can facilitate the selection and prioritization in a complex system. The present study prioritizes the sustainable manufacturing barriers by calculating their weights through the application of Best Worst Method in one of the manufacturing organizations of India. The barriers were identified through a review of the peer-reviewed articles and expert's opinion. These identified barriers were categorized into six major criteria. For prioritization, the final intensities (weights) of 39 barriers were calculated through the application of Best Worst Method. The findings of the present study enlighten economical & managerial barriers as the most obstructive barriers among the major criteria of sustainable manufacturing barriers followed by organizational barriers, social & environmental barriers, technological barriers, knowledge & learning barriers, and independent barriers. The practitioners of the case organization will be facilitated in selecting the most significant barriers and developing strategic plans to diminish or eliminate the barrier's intensity for successful adoption of sustainable manufacturing. However, opinions of the experts were utilized for the present study which can be driven by subjective inputs. The present work can be further extended by including more barriers through conducting the large-scale survey of manufacturing organizations.