Evaluating buyer performance through supplier satisfaction: a balanced scorecard and fuzzy logic approach

Abstract

PurposeThis study develops and validates a comprehensive framework integrating the balanced scorecard (BSC) and fuzzy logic to evaluate supplier satisfaction in the Indian power sector.Design/methodology/approachA mixed-methods approach, including the literature review, expert consultations and a survey of 300 suppliers, was employed. The BSC categorized supplier satisfaction across financial, purchasing, coordination and corporate perspectives. Fuzzy set theory and fuzzy logic converted qualitative data into quantitative measures.FindingsKey areas for improvement across financial, purchasing, coordination and corporate perspectives were identified. The developed Supplier Satisfaction Index offers a nuanced tool for benchmarking and enhancing supplier relationships.Research limitations/implicationsWhile the study provides a comprehensive framework for evaluating supplier satisfaction, it is limited to the context of the Indian power sector. Future research could extend the application of this framework to different industries and geographical contexts to assess its generalizability.Practical implicationsThe findings offer actionable insights for practitioners to improve supplier satisfaction through targeted strategies in financial interactions, purchasing clarity, coordination efficiency and corporate practices. Implementing these strategies can enhance supplier relationships and overall supply chain performance.Originality/valueThis research extends the BSC’s applicability to external supplier relationships. It demonstrates robustness when integrated with fuzzy logic and offers a multidimensional approach to supplier satisfaction evaluation, addressing the inherent ambiguities and subjectivities in traditional assessments.