3.6 Performance Evaluation of Sustainable Suppliers
In the last phase of supplier segmentation, the supplier performance is evaluated
from sustainability perspective. The results of this stage can serve as a feedback for
previous stages of sustainable supplier segmentation. Supplier evaluation is an
independent process in relation to previous processes of sustainable suppliers’
relationship management. This evaluation, which is performed after supplier segmentation, serves as a basis for alternative suppliers, a stimulator of supplier
development and improvement activities, as well as a tool for continuous monitoring
of the progress of supplier improvement plans. At this stage, supplier efficiency can
be determined from sustainability perspective by using mathematical models such as
DEA, and consequently the inefficient suppliers can also be determined. As stated
Table 7.2 (continued)
Segment
Description
The performance of each dimension
Economic Social Environmental
Economicsocial
(equitable)
Suppliers of socioeconomic segment,
which are also referred to as equitable
suppliers, focus on supplying raw
materials with minimum cost, considering the social needs of society by
promoting business ethics, ensuring fair
trade and business, and protecting
employees’ and customers’ rights
High
High
Low
Social-environmental
(bearable)
In the socio-environmental segment,
the emphasis is on having a fair share of
natural resources at the national and
international levels. Suppliers in this
segment pay more attention to the noneconomic aspects of business, and to
them, people and the environment have
higher priority, for which they are also
called bearable. From sustainability
perspective, paying attention to these
suppliers without considering financial
and economic outlook would be an
irresponsible act (Carter and Rogers
2008), since focusing on environmental
and social programs entails some costs
Low
High
High
Sustainable
Sustainable suppliers improve the
quality of the end product, thereby
enhance people’s quality of life,
enhance customer satisfaction, provide
flexible solutions for future changes,
support desired natural and social environments, and lead to the maximum use
of the resources with the least costs
(Carter and Rogers 2008)
High
High
High
130
H. F. Lajimi
In the last phase of supplier segmentation, the supplier performance is evaluated
from sustainability perspective. The results of this stage can serve as a feedback for
previous stages of sustainable supplier segmentation. Supplier evaluation is an
independent process in relation to previous processes of sustainable suppliers’
relationship management. This evaluation, which is performed after supplier segmentation, serves as a basis for alternative suppliers, a stimulator of supplier
development and improvement activities, as well as a tool for continuous monitoring
of the progress of supplier improvement plans. At this stage, supplier efficiency can
be determined from sustainability perspective by using mathematical models such as
DEA, and consequently the inefficient suppliers can also be determined. As stated
Table 7.2 (continued)
Segment
Description
The performance of each dimension
Economic Social Environmental
Economicsocial
(equitable)
Suppliers of socioeconomic segment,
which are also referred to as equitable
suppliers, focus on supplying raw
materials with minimum cost, considering the social needs of society by
promoting business ethics, ensuring fair
trade and business, and protecting
employees’ and customers’ rights
High
High
Low
Social-environmental
(bearable)
In the socio-environmental segment,
the emphasis is on having a fair share of
natural resources at the national and
international levels. Suppliers in this
segment pay more attention to the noneconomic aspects of business, and to
them, people and the environment have
higher priority, for which they are also
called bearable. From sustainability
perspective, paying attention to these
suppliers without considering financial
and economic outlook would be an
irresponsible act (Carter and Rogers
2008), since focusing on environmental
and social programs entails some costs
Low
High
High
Sustainable
Sustainable suppliers improve the
quality of the end product, thereby
enhance people’s quality of life,
enhance customer satisfaction, provide
flexible solutions for future changes,
support desired natural and social environments, and lead to the maximum use
of the resources with the least costs
(Carter and Rogers 2008)
High
High
High
130
H. F. Lajimi