A portfolio‐based analysis for green supplier management using the analytical network process

The purpose of this paper is to present the development of a methodology to evaluate suppliers using portfolio analysis based on the analytical network process (ANP) and environmental factors.

The authors develop a three‐step process, first by evaluating influence/power and performance scores of suppliers using ANP. They include environmental dimensions in this analysis, then map these suppliers onto a portfolio grid. Recommendations are also made on how to manage suppliers depending on what part of the portfolio they appear based on the scores.

The technique is useful and versatile. The paper clearly discerns various characteristics of the suppliers and produced recommendations on supplier management for an exemplary case scenario.

The technique was applied for an illustrative example. Validation and application in a real world setting is required. There are many additional opportunities to further integrate other modeling tools into this process.

Managers can use this technique to help them more effectively deal with suppliers. The portfolio is a good tool for operational and strategic management of suppliers.

This tool is the first to apply ANP to supplier portfolio analysis. It is also the first tool to integrate and apply the portfolio supplier management approach to an environmentally oriented decision environment.