New Framework Reshapes How Companies Choose Suppliers for Sustainability
Researchers have developed a decision-making system that evaluates suppliers on six criteria—from resilience and worker welfare to circular economy practices—rather than cost alone. The approach, tested on Malaysian construction firms, reveals that traditional supplier selection overlooks critical factors that affect long-term competitiveness and regulatory compliance.
Originaltitel: A multi-criteria analytics approach for circular supplier selection in sustainable and human-centric supply chains
<p>This study integrates circular economy principles and Industry 5.0 dimensions into the supplier selection problem, introducing the concept of "Circular Supplier 5.0" selection within an analytics-driven supply chain context. A novel multi-criteria decision-making approach is developed by integrating the general best–worst method (GBWM), interval numbers, and a Supermatrix structure. Six main factors (resiliency, human-centricity, economic, circular, social, and Industry 4.0), along with 27 sub-factors, are proposed to evaluate Circular Supplier 5.0 performance in the construction industry. In the proposed framework, interval GBWM is used to determine the independent weights of factors and sub-factors, capture interdependencies among factors, and assess the relative performance of suppliers across sub-factors. A Supermatrix-based structure is then employed to compute the final dependent weights and overall supplier rankings. To demonstrate applicability, six suppliers from a Malaysian construction company are evaluated. The results show that, compared with traditional approaches that overlook Industry 5.0 and circularity considerations, the proposed model highlights the importance of incorporating these dimensions into supplier evaluation. The findings indicate that security, cost, quality, capability, information sharing, and traceability are the most influential sub-factors. Expert validation further supports the robustness of the results and confirms the practical relevance of the proposed framework for real-world supply chain analytics and supplier selection decisions.</p>