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The Quarterly Business Review (QBR) is an important part of the Supplier Relationship Management process. It is a quarterly meeting between the client and a critical supplier partner in order to review a variety of performance metrics and service level satisfaction. As referenced in the previous Keeping it SiMMPle issue, ideally there would be predetermined Service Level Agreements (SLAs) and Key Performance Indicators (KPIs) that performance metrics would be measured against. Additionally, volume data, effectiveness and satisfaction survey results from internal clients and meeting participants would be included in the review. The outcome of the meeting is to agree on current performance levels and any needed improvement areas. This is also an opportunity to settle on the priorities for the upcoming quarter and to review new business directions for the company, as well as share best practices.
Who would attend the QBR? From the supplier side it would usually be the Account Executive or Managing Director and the Program Manager. From the client side, there could be a number of participants based on the significance of the supplier to their business. The list of attendees could be as short as the meeting director and procurement manager, or can include an expanded team including meeting managers/planners, the key internal client(s), and the Chief Procurement Officer or Chief Financial Officer.
The best option is to conduct the QBR in person, but because of costs and time out of office, I have seen hybrid solutions where there might be a face to face meeting both in Quarter 1 and Quarter 3, and conference calls in Quarter 2 and Quarter 4. Keep in mind that the data and metrics being reviewed in the quarter are from the previous quarter. So the QBR scheduled in Q1 would actually be the review of the last quarter of the year, and in fact, is usually a comprehensive review of full year results.
It is important to note that not all suppliers require a Quarterly Business Review. You can manage many of your principal suppliers with 2 reviews per year, and for less critical suppliers, an annual business review can be sufficient.
If you feel you are a key supplier to your client and you are not participating in some type of periodic review process, proactively reach out to ask to see if you can institute one. The benefits are that you will know exactly where you stand in the mind of your client, and your client should see you as more of a trusted advisor than simply another one of many suppliers.
Below is an example of topics for a QBR agenda :
- Review of volume data (number of programs, amount of spend/by program, staff dedicated to account)
- Review of SLA and KPI metrics
- Customer service, effectiveness, and satisfaction survey results
- Issues, concerns, improvement opportunities
- Best practices
- Industry trends
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