Supply chain redesign for lead-time reduction through Kraljic purchasing portfolio and AHP integration

A Hesitant Fuzzy Linguistic TOPSIS Model to Support Supplier Segmentation

ABSTRACT Objective: this study proposes a hesitant fuzzy linguistic TOPSIS model for supplier segmentation based on economic, environmental, and social criteria. Proposal: the model classifies suppliers in a segmentation matrix considering their capabilities and willingness to collaborate. It was implemented using Microsoft Excel© and applied to a hydropower plant. Two employees of the company chose a set of segmentation criteria, assigned weights to these criteria, and evaluated the performance of suppliers. In the pilot application, the performance of six suppliers was analyzed and ranked according to 28 criteria. The classification results were endorsed by the decision-makers involved. Conclusion: the model provides consistent results and can assist managers in designing development programs aimed at improving the economic, environmental, and social performance of suppliers. Additionally, it can support group decisions under uncertainty and hesitation, allows the use of linguistic expressions, and does not limit the amounts of criteria or alternatives.

Proposta de um Modelo Hesitant Fuzzy Linguistic TOPSIS para Segmentação de Fornecedores

RESUMO Objetivo: este estudo propõe um modelo hesitant fuzzy linguistic TOPSIS para segmentação de fornecedores baseado em critérios econômicos, ambientais e sociais. Proposta: o modelo classifica os fornecedores em uma matriz de segmentação considerando suas capacidades e a disposição para colaborar. Foi implementado usando Microsoft Excel© e aplicado em uma usina hidrelétrica. Dois funcionários da empresa escolheram um conjunto de critérios de segmentação, atribuíram pesos a estes critérios e avaliaram o desempenho de alguns fornecedores. A aplicação-piloto permitiu analisar o desempenho de seis fornecedores e classificá-los de acordo com 28 critérios. Os resultados da classificação foram endossados pelos decisores envolvidos. Conclusão: o modelo apresenta resultados consistentes e pode auxiliar gestores na elaboração de programas de desenvolvimento visando a melhorar o desempenho econômico, ambiental e social dos fornecedores. Também é capaz de apoiar decisões em grupo sob incerteza e hesitação, habilita o uso de expressões linguísticas e não limita a quantidade de critérios e alternativas.

Overcoming the Main Barriers of Circular Economy Implementation through a New Visualization Tool for Circular Business Models

There is a huge gap between the broad concept of circular economy (CE) and its practical implementation in the industrial sector due to several types of barriers, which shall be led back to the lack of consistent and precise information about resources, products, and processes. Without a proper information flow, it is impossible to quantify circular initiatives, both in comparison with the actual linear situation or with circular alternative opportunities. A proper quantification of circular initiatives allows the assessment of economic, environmental and social benefits and the preventative identification of potential barriers and relative solutions, monitoring the risk associated with circular investments and supporting the decision-making process. This paper describes a new tool to ensure the quantification of circular initiatives and the method to define it. It is a new Circular Business Model (CBM) visualization tool, which overcomes the main limitations of the existing models able to explain CE concepts but not to boost its practical implementation in industry. The new CBM visualization tool can be adopted in every industrial sector to highlight circular opportunities that are still hidden or unexploited or to select the best CE strategy. The proposed CBM visualization tool differs from the previous diagrams in two main characteristics: (i) the possibility to quantify resource flows and important indicators representing energy consumption, environmental and social impact, and (ii) the focus, which is not only on the product, but on the whole system, involving also the process, the company and the entire supply chain. The methodology to adopt and adapt the proposed model to different scales is described in detail. To provide a practical example, the model was qualitatively applied to a generic technical product to highlight its potential in the identification and quantification of circular activities.

Identification and causal assessment of supply chain flexibility

Purpose

The purpose of this paper is to map the causal relations among various supply chain flexibility (SCF) dimensions having significant impact on the Indian personal hygiene industry.

Design/methodology/approach

The author(s) have gone through extensive literature review and extracted 22 SCF dimensions. After conducting field visits and expert interaction in the firm related to case industry, 11 major SCF dimensions that seem to have a significant amount of influence on supply chain performance of the firms were retained for further consideration. The author(s) have used decision making trial and evaluation laboratory (DEMATEL) to establish initial causality and structural equation model (SEM) to investigate the contribution of different flexibility dimensions on overall SCF.

Findings

After DEMATEL analysis, three major SCF dimensions were considered for SEM modeling. The result shows that product flexibility and physical distribution flexibility have favorable influence on the SCF, while the demand management flexibility adversely impacts overall SCF.

Practical implications

The approach adopted in the study can help firms to determine and exercise the flexibility dimensions of a particular supply chain. The DEMATEL and SEM offer a facilitation to explain the causal relationship between the different dimensions to take long-term decisions and address the uncertainty in the demand and supply side.

Originality/value

This paper has made an attempt to evaluate the supply chain flexibilities, prioritize them and evaluate the relationship amongst these flexibilities and the degree to which they affect or are affected by one another in the Indian personal hygiene industry.