In today’s competitive business environment, supply chain management (SCM) has become a critical factor for organizations seeking to increase market share and enhance customer satisfaction. The nature of competition has shifted from being limited to individual companies to encompassing entire supply chains. Consequently, supply chain evaluation has emerged as one of the most vital elements in SCM, requiring continuous refinement of assessment methods and criteria. Previous studies have introduced a variety of models and approaches to evaluate supply chains; however, many of these frameworks lack comprehensiveness and fail to adequately address the evolving needs of organizations, particularly regarding environmental considerations. This study aims to fill this gap by employing Shannon’s entropy technique to evaluate and rank companies operating within the automotive industry, with a specific focus on environmental performance indicators. By integrating environmental factors into the assessment process, this research contributes to a more sustainable and holistic evaluation of supply chain effectiveness. The findings indicate that Company A3 outperforms other firms in the sample, positioning itself as the most effective organization according to the selected criteria. The results provide both theoretical insights and practical implications, highlighting the importance of adopting integrated evaluation models to strengthen competitive advantage and promote sustainable practices across supply chains.