Chapter 7
Sustainable Supplier Segmentation:
A Practical Procedure
Hamidreza Fallah Lajimi
Abstract Sustainability of supply chain is determined by the sustainability performance of each partner in the chain. The relationship between buyer and supplier has
an important role in improving the sustainability of supply chain. The purpose of this
chapter is to explain the process of segmenting the sustainable suppliers and
presenting strategies for collaboration and improvement of the suppliers. In this
chapter, a six-step process is suggested in which the output of one step is considered
as the input of the other step. At first, the performance indicators in each dimension
of sustainability are introduced, and then given the performance indicators in the
segmentation model, the sustainable suppliers are assigned into seven segments
(three main segments, economic, social, and environmental; three balancing segments, bearable, viable, and equitable; and supplementary segment, sustainable).
Finally, some supplier development strategies appropriate to each dimension of
sustainability are suggested. The present study is beneficial for the researchers and
companies’ executive managers. By a deeper understanding of this process,
researchers can benefit from the proposed process for sustainable supplier segmentation, and the corporate executives and experts can have the opportunity of using the
supplier collaboration and development strategies in the supply chain.
Keywords Sustainable supply chain · Sustainable supplier · Supplier development
1 Introduction
Until the 1960s, the companies’ efforts focused on the economic aspects of business,
and after this period, companies’ attention was directed toward noneconomic aspects
of developmental activities such as social and environmental activities. The issue of
H. F. Lajimi (*)
Department of Industrial Management, Faculty of Economics and Administrative Sciences,
University of Mazandaran, Babolsar, Iran
e-mail: h.fallah@umz.ac.ir
© Springer Nature Switzerland AG 2021
J. Rezaei (ed.), Strategic Decision Making for Sustainable Management of Industrial
Networks, Greening of Industry Networks Studies 8,
https://doi.org/10.1007/978-3-030-55385-2_7
119
Sustainable Supplier Segmentation:
A Practical Procedure
Hamidreza Fallah Lajimi
Abstract Sustainability of supply chain is determined by the sustainability performance of each partner in the chain. The relationship between buyer and supplier has
an important role in improving the sustainability of supply chain. The purpose of this
chapter is to explain the process of segmenting the sustainable suppliers and
presenting strategies for collaboration and improvement of the suppliers. In this
chapter, a six-step process is suggested in which the output of one step is considered
as the input of the other step. At first, the performance indicators in each dimension
of sustainability are introduced, and then given the performance indicators in the
segmentation model, the sustainable suppliers are assigned into seven segments
(three main segments, economic, social, and environmental; three balancing segments, bearable, viable, and equitable; and supplementary segment, sustainable).
Finally, some supplier development strategies appropriate to each dimension of
sustainability are suggested. The present study is beneficial for the researchers and
companies’ executive managers. By a deeper understanding of this process,
researchers can benefit from the proposed process for sustainable supplier segmentation, and the corporate executives and experts can have the opportunity of using the
supplier collaboration and development strategies in the supply chain.
Keywords Sustainable supply chain · Sustainable supplier · Supplier development
1 Introduction
Until the 1960s, the companies’ efforts focused on the economic aspects of business,
and after this period, companies’ attention was directed toward noneconomic aspects
of developmental activities such as social and environmental activities. The issue of
H. F. Lajimi (*)
Department of Industrial Management, Faculty of Economics and Administrative Sciences,
University of Mazandaran, Babolsar, Iran
e-mail: h.fallah@umz.ac.ir
© Springer Nature Switzerland AG 2021
J. Rezaei (ed.), Strategic Decision Making for Sustainable Management of Industrial
Networks, Greening of Industry Networks Studies 8,
https://doi.org/10.1007/978-3-030-55385-2_7
119