Sustainable Supplier Selection Criteria for HVAC Manufacturing Firms: A Multi-Dimensional Perspective Using the Delphi–Fuzzy AHP Method

Background: The supplier selection process (SSP) has grown as a crucial mechanism in organizations’ supply chain management (SCM) strategies and as a foundation for continuously gaining a competitive advantage. The concept of the circular economy has garnered significant interest due to its ability to address both environmental and social criteria. It is highly important to carefully choose suppliers across all industries that take into account circular and sustainability issues, as well as traditional criteria. There is very limited research involving the supplier selection process in the Indian HVAC manufacturing sector. Design/Methodology/Approach: Thus, this study aimed to determine the critical factors for sustainable supplier selection for HVAC manufacturing firms using a mixed research method with three stages: a secondary study, the Delphi method, and the fuzzy analytical hierarchy process (FAHP). Thirty-two critical sub-factors were identified and grouped into eight major factors: delivery, economic, environmental, social, management and organization, quality, services, and supplier relationship. Results/Conclusions: For HVAC manufacturing firms, the major factors of delivery, quality, and economics were found to be top-ranked among the factors, followed by environmental factors. Studies in developing countries using sustainable factors are still nascent, especially in India. Originality/Value: This study’s novelty lies with the proposed eight major factors, comprising all facets of organizations, including sustainability factors. Supplier selection in HVAC manufacturing firms is exhaustively dealt with in this study, filling a gap in the existing literature. This is important because HVAC products are high-energy-consuming, high-energy-releasing, and costly.