Parkinson 2003), and many studies have considered the optimal design of the supply
chain from the economic perspective (Chaabane et al. 2012). Economic sustainability is the interaction between social and environmental sustainability factors that are
essential for the organization’s long-term life and economic growth (Yusuf et al.
2013). The goal of economic sustainability, in addition to increasing profitability, is
to perform processes that do not interfere with environmental and social activities
(Adetunji et al. 2003). Financial performance, economic crisis management, financing of key economic and community infrastructures, and supporting the long-term
economic development in the society are considered as important components in
assessing economic sustainability (Wu and Shen 2013).
Large companies adjust their performance criteria based on sustainable supply
chain to gain competitive advantage over other competitors. For example, Deutsche
Bahn is one of the leading companies in the domain of travel and logistics which is
active in 130 countries of the world. In 2018, this company adjusted its business plan
based on sustainability and 17 goals for supply chain sustainability development.
Moreover, performance criteria were presented to achieve sustainability goals in the
economic (punctuality, high) and social dimensions. Performance criteria were also
presented to achieve sustainability goals in economic (punctuality, highperformance infrastructure, profitability, digitalization and innovation, financial
stability, performance capability, etc.), social (customer satisfaction, employee satisfaction, employer attractiveness, etc.), and environmental (climate protection,
noise reduction, etc.) dimensions. Concurrent with adopting sustainability strategies,
much research had been conducted in this area as well. Carter and Rogers (2008)
introduced the concept of sustainability in supply chain management through the
comprehensive review of literature and use of conceptual theory and explored the
relationship among environmental, social, and economic performance in the area of
supply chain management. They presented a supply chain sustainability framework,
based on resource dependence theory, transaction cost economics, population ecology, and the resource-based view of the firm.
2 Importance of Supplier Segmentation and Its Role
in Overall Supply Chain Performance
Supplier relationship management involves activities related to buyer-producer
interaction. In recent years, many researchers investigated different areas of supplier
relationship management, and it has not yet been investigated as a whole (Glock
et al. 2017). Evaluating suppliers in the supply chain is one of the crucial and vital
elements in the overall performance of the chain and in improving the competitiveness of the supply chain which is essential for establishing a sustainable relationship
between the manufacturer and customer needs (Xu et al. 2019; Jin et al. 2013).
Important processes in supplier evaluation include selection, segmentation, monitoring, and control of suppliers that are qualified (Segura and Maroto 2017). Supplier
7 Sustainable Supplier Segmentation: A Practical Procedure
121
chain from the economic perspective (Chaabane et al. 2012). Economic sustainability is the interaction between social and environmental sustainability factors that are
essential for the organization’s long-term life and economic growth (Yusuf et al.
2013). The goal of economic sustainability, in addition to increasing profitability, is
to perform processes that do not interfere with environmental and social activities
(Adetunji et al. 2003). Financial performance, economic crisis management, financing of key economic and community infrastructures, and supporting the long-term
economic development in the society are considered as important components in
assessing economic sustainability (Wu and Shen 2013).
Large companies adjust their performance criteria based on sustainable supply
chain to gain competitive advantage over other competitors. For example, Deutsche
Bahn is one of the leading companies in the domain of travel and logistics which is
active in 130 countries of the world. In 2018, this company adjusted its business plan
based on sustainability and 17 goals for supply chain sustainability development.
Moreover, performance criteria were presented to achieve sustainability goals in the
economic (punctuality, high) and social dimensions. Performance criteria were also
presented to achieve sustainability goals in economic (punctuality, highperformance infrastructure, profitability, digitalization and innovation, financial
stability, performance capability, etc.), social (customer satisfaction, employee satisfaction, employer attractiveness, etc.), and environmental (climate protection,
noise reduction, etc.) dimensions. Concurrent with adopting sustainability strategies,
much research had been conducted in this area as well. Carter and Rogers (2008)
introduced the concept of sustainability in supply chain management through the
comprehensive review of literature and use of conceptual theory and explored the
relationship among environmental, social, and economic performance in the area of
supply chain management. They presented a supply chain sustainability framework,
based on resource dependence theory, transaction cost economics, population ecology, and the resource-based view of the firm.
2 Importance of Supplier Segmentation and Its Role
in Overall Supply Chain Performance
Supplier relationship management involves activities related to buyer-producer
interaction. In recent years, many researchers investigated different areas of supplier
relationship management, and it has not yet been investigated as a whole (Glock
et al. 2017). Evaluating suppliers in the supply chain is one of the crucial and vital
elements in the overall performance of the chain and in improving the competitiveness of the supply chain which is essential for establishing a sustainable relationship
between the manufacturer and customer needs (Xu et al. 2019; Jin et al. 2013).
Important processes in supplier evaluation include selection, segmentation, monitoring, and control of suppliers that are qualified (Segura and Maroto 2017). Supplier
7 Sustainable Supplier Segmentation: A Practical Procedure
121