A decision model to support sustainable procurement in trading industry Online publication date: Tue, 16-Jun-2015
by Janiz Hau Yi Heung; T.N. Wong
International Journal of Supply Chain and Operations Resilience (IJSCOR), Vol. 1, No. 2, 2015
Abstract: The majority of Hong Kong's trading companies' involvement in the supply chain is to bid orders from global distributors and retailers, and then search for appropriate contract manufacturers to produce the goods. This paper is on the establishment of a sustainable procurement model for trading companies. The model is defined with a hierarchy of sustainable procurement criteria with the incorporation of economic, environmental and social aspects. A two-stage ranking and selection approach is implemented in the proposed sustainable procurement model. The pre-screening mechanism is to shortlist suppliers to enter the second stage which is the conventional AHP-based selection process. The original list of criteria is also consolidated into a refined criteria hierarchy after pre-screening. The tedious pairwise comparisons in the AHP-based final selection stage are reduced significantly as only a few shortlisted suppliers are to be evaluated, while the performance indicators are also reduced in the refined criteria hierarchy.
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