Track: Supply Chain Management

Abstract

Suppliers have an important role in the flow of goods and services in supply chain. The demand for a sustainable supply chain encourages companies to choose suppliers who have sustainable criteria, namely economic, social and environmental. This study aims to design sustainability criteria that are important for the performance of seed suppliers for companies engaged in organic agriculture. The design of sustainable key performance indicators (KPI) begins with a literature study and is followed by interviews and validation from experts to formulate KPIs. Valid indicators are then weighted using the Analytical Hierarchy Process (AHP) to determine the level of importance of these indicators. This study found 29 indicators of sustainability, consisting of 16 economic indicators, 7 social indicators and 6 environmental indicators. The most important indicator is economy with weight (0.724), followed by social (0.193) and environment (0.083). This key performance indicator can be used as a reference for seed suppliers to manage their performance.