DEVELOPING SUSTAINABLE SUPPLIER SELECTION CRITERIA: A CASE STUDY OF AN AUTOMOTIVE PARTS MANUFACTURER

Abstract

The purpose of this research is to analyze priorities to develop criteria for sustainable supplier selection of an auto parts manufacturer. This research uses the Analysis Hierarchy Process (AHP) theory to evaluate of supplier selection criteria from an economic aspect, environmental aspect, and social aspect. The priorities of the main criteria for selecting sustainable suppliers are: 1) Economic aspect, comprising main criteria: price (36.1%), quality (23.3%), service (14.3%), and reliability (10.3%); 2) Environment aspect: The main criteria consisted of pollution management (5.5%) and environmental management (4.2%); 3) Social aspect: The main criteria were employment practices (3.4%) and stakeholder responsibility (2.9%) In addition, the priority analysis of the 24 comprehensive criteria found that the criterion with the priority weighting was product price (30.17%), followed by correct Specification (16.54%), and payment terms (5.91%). Furthermore, the most weighted by the case study of the overall economic aspect (84%), environmental aspect (10%), and social aspect (6%) respectively. The criteria from this research it's according to business practices of sustainability and to improve the evaluation of supplier selection more efficiently.