Using a “balanced approach” to measure merchandising supplier performance

Purpose – Aims to verify the usefulness of a “balanced approach”. Design/methodology/approach – This study examined 236 small manufacturers that had attempted to become suppliers to the mass merchandiser market. Each firm was asked to complete a self‐assessment instrument and allow its product to be independently evaluated by a trained marketing professional. Findings – The results suggest that, while the balanced approach is useful in evaluating small suppliers, the reliance on only firm‐related items is not as effective as an approach using an instrument that also includes product‐specific measures. Firms with superior management and products were more successful in reaching a merchandiser's shelves than those with poor ratings in each area. Originality/value – This study not only evaluated management areas similar to the ones recommended by Kaplan, Norton, and Kanji, but also included an assessment of product attributes. The study suggests that a balanced approach to performance assessment includes both firm and product measures. Buyers and suppliers in the mass merchandising industry could use this approach to more accurately assess the strengths and weaknesses of a potential relationship.