<p>Due to resource scarcity and increased consumer demand, manufacturing organizations are optimizing their natural resource expenditure and reducing waste to achieve sustainability in their supply chain operations. In this sense, establishing strong partnerships with prospective sustainable-circular suppliers may be critical for purchasing enterprises seeking to mitigate ecological pollution while reaping financial and social advantages via a circular movement of resources, thereby maintaining a competitive edge over their competitors. Therefore, this study contributes to the literature by designing a novel three-phase decision-support framework for supplier assessment and order allocation, which not only effectively segregates incompetent suppliers from a large supplier pool but also generates efficient outcomes in uncertain environments to address business dynamicity. The recommended methodology’s first phase focused on identifying pertinent factors based on sustainability and circular economy principles and establishing their relevance using the fuzzy full consistency method (FFUCOM). The second phase employed a novel amalgamation of data envelopment analysis (DEA) and fuzzy mixed aggregation by comprehensive normalization technique (FMACONT) to identify unskilled suppliers and rank competent ones using three normalization approaches. Subsequently, the third phase focused on developing a novel multi-objective model that incorporates the financial assistance factor for suppliers requiring development support. To solve the developed model, this study proposed the improved multi-choice goal programming (IMCGP) method for allocating order quantities across incumbent suppliers. The practicability of the framework is manifested using a case study of the food and beverage processing sector. Finally, extensive sensitivity and comparison analyses were conducted to confirm the success of the suggested approach. The main findings of the proposed research reveal that carbon emissions control (K₁₆), quality (K₂₁), and environmental management system (K₁₃) factors are critical for the food and beverage industries that intend to accomplish sustainable development objectives within their firms. On the other hand, supplier S₁₀ acquired order allocation quantity after receiving development support from the selected organization. The proposed study’s findings outline the key factors that manufacturing sectors can adopt to enhance the socio-economic impact of their supply chain operations and aid organizational managers in maintaining a potential supplier pool for procurement, thereby minimizing fiscal expenditure and carbon footprint.</p>