Sustainability multicriteria decision-making in the automotive supply chain: a case study

Abstract

The continuous improvement and development of industry have led to an increasing focus on sustainability, as resources are limited and adverse effects such as pollution and waste have grown exponentially in recent decades. An important role in this scenario is played by the structure of the supply chain. The organization and strategy applied to a company’s supply chain reflect the characteristics of the company and its vision in terms of sustainability. Nowadays, sustainability is becoming a central concept in supply chain management, and sustainable practices as a fundamental part of supply chains in various sectors. Companies can improve their contribution to sustainable development in various ways. Considering only the supply chain, various sustainable strategies may be applied. Many industries apply circular economy principles to supply chain management in different ways, improving their contribution to reducing the environmental impact of economic activities. Currently, a new sustainable practice called reverse logistics is spreading, although its full implementation is still far off as there are many limitations. Entrepreneurs are implementing reverse logistics procedures by which end-of-life or end-of-use products are reintroduced in different steps of the supply chain in various ways: recycling, reuse, remanufacturing, and so on. However, other sustainable practices exist which are less complex to implement and consequently more widely used such as the recycling and reuse of waste materials, these scraps are recycled and then reintroduced into the supply chain and the reduction of waste or the use of more sustainable raw materials. The plastic production industry is one of the most criticized industries due to its environmental impact. Many restriction policies were introduced in order to reduce polymer wastes and their impact on the ecosystem. In recent years, there has been a significant transformation in polymer supply chain management. Companies move through a more sustainable process by reducing waste, recycling and reusing as much waste as possible, and using biopolymers. However, changes like these are not easily applicable within a short time and without financial and human resources. They require effort in terms of resources and time, so using mathematical methods guides decision-makers in their decision process to find the best solution. Implementing an understandable decision-making process for all is fundamental to reaching the best solution for a given industry, sector, or supply chain. Multi-Criteria Decision Making (MCDM) is a widely used method for solving important decision issues. It can be applied to many fields and it is composed of many methods. The aim of this thesis is to determine which sustainable practice is more appropriate for the INEVO SRL supply chain. INEVO SRL is based in San Polo di Piave (TV), it works with polymers and produces for different sectors, this work analyses their automotive supply chain to find the best sustainable alternatives. It already applies sustainable practices, but this work proposes further alternatives that can be applied according to the sector's characteristics. Analytic Hierarchy Process (AHP) is implemented to find the best sustainable alternative. The application of this method requires the contribution of a decision-maker. In this case, INEVO SRL’s quality manager provided its contribution by approving and adding some criteria and alternatives. The quality manager replied to the structured interview which then allowed the execution of AHP. This work considers six main alternatives and nine criteria according to the literature and the consideration made by the decision-maker. The application of the AHP method helped to structure and make the problem understandable for the quality manager and finally, the method has made it possible to determine the best choice for this company.