Transforming Indonesia’s Cocoa Industry: Achieving Sustainability through Strategic Supplier Selection with AHP

The rapid advancement of technology in the globalization era has made sustainability a vital aspect of business operations. A sustainable supply chain is crucial for long-term corporate performance, environmental well-being, and societal health. Sustainable supply chain strategies integrate environmental, social, and economic considerations, enhancing business performance through cost reduction, increased efficiency, and fostering innovation. Indonesia’s cocoa industry, a significant export commodity, faces sustainability challenges such as environmental degradation, social inequality, and economic vulnerability. Addressing these challenges requires a robust sustainable supply chain strategy, including meticulous supplier selection. Due to the multidimensional nature of sustainability, the Analytical Hierarchy Process (AHP) offers a systematic and effective method for evaluating suppliers. AHP enables companies to consider various criteria—environmental impact, social responsibility, and economic performance—leading to more informed decisions that enhance supply chain sustainability. This study applied AHP to the Indonesian cocoa industry for sustainable supplier selection. It emphasized selecting suppliers who adhered to sustainable practices, thus strengthening the supply chain’s integrity. By prioritizing suppliers employing environmentally friendly farming methods, providing fair wages, and supporting community development, companies can significantly reduce their ecological footprint and promote social equity. The findings showed that AHP is a valuable tool in implementing sustainable supply chain strategies, improving performance and sustainability in the Indonesian cocoa industry.