Integrating Strategic Carbon Management into Formal Evaluation of Environmental Supplier Development Programs

Increasing global environmental pressures from regulators, markets and communities have caused focal companies in supply chains to recognize the significance of environmentally conscious management. Greener supply chains are part of this recognition. Environmental supplier development is a valuable and viable strategy for greening supply chains. However, low carbon management is rarely explored in supplier development. Further, formal tools and models for focal companies to evaluate environmental supplier development programs (ESDPs) considering low carbon management and their effect on supplier performance improvement are limited. To help address these gaps in the literature, this paper proposes a portfolio evaluation model for ESDPs that consider three types of supplier performance: traditional operational factors, traditional environmental factors and low carbon management factors. This model applies the fuzzy scoring method to measure the effect of ESDPs on supplier performance, and uses fuzzy DEMATEL to examine the cause–effect interrelationships among the ESDPs. Subsequently, a real world example is used to demonstrate the application of the portfolio model and provide insights into environmental supplier development evaluation, followed by discussions of case application results. This paper concludes with directions for further research. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment