A supplier quarterly business review (QBR) is a scheduled meeting, usually 60 to 120 minutes, where you and a key supplier go through the last quarter's scorecard, agree on the causes of any gaps, check the actions from last time and plan the next two quarters. A good QBR produces three things: a scored scorecard, a written list of actions with owners and dates, and a clear view of where the relationship goes next (grow it, keep it, or put it on an improvement plan).
It is not a sales meeting for the supplier and not a complaints session for you. Both sides arrive having read the same data.
Which suppliers need a QBR
Not every vendor needs a quarterly meeting. Segment first, then set the cadence.
| Segment | Who | Review format | Cadence |
|---|---|---|---|
| Strategic | High spend, critical parts or services, single or sole source | Full QBR with scorecard; executive sponsors at least once a year | Quarterly |
| Important | Meaningful spend, alternatives exist | Shorter review, scorecard sent in advance | Twice a year |
| Routine | Low spend, easy to replace | Scorecard by email, meeting only if a metric falls below target | Yearly |
| Under watch | Any supplier missing targets two quarters running | Focused review of the failing metrics | Monthly until back on target |
For most small and mid-sized teams the quarterly list is short: the suppliers that together make up most of your spend, plus any single-source supplier whose failure would stop production or service.
QBR preparation timeline
| When | What | Owner |
|---|---|---|
| 3 weeks before | Pull delivery, quality, invoice and quote data for the quarter; ask the supplier for their own data and an update on open actions | Buyer |
| 2 weeks before | Draft the scorecard and trend charts; agree the two or three topics that matter most with quality, operations and finance | Buyer |
| 1 week before | Send the agenda, scorecard and open action list to the supplier | Buyer |
| 2 days before | Internal pre-brief: what you want from this meeting and what you will accept | Buyer, executive sponsor if attending |
Send the scorecard ahead. A supplier who sees a bad number for the first time in the room spends the meeting defending it instead of fixing it.
Pre-read email template
Subject: [Supplier] Q[n] business review, [date]: agenda and scorecard
Hi [name], attached are the agenda and scorecard for our Q[n] review on [date]. Three things we would like to focus on: [topic 1, e.g. on-time delivery on part family X], [topic 2], [topic 3]. Please come ready with your view on the gaps, an update on the open actions from Q[n-1], and anything coming in the next two quarters that could affect supply. If any of our numbers differ from yours, send your data by [date] so we can reconcile before the meeting.
Who attends
Keep it to six to eight people in total. From your side: the buyer or category manager (runs the meeting), quality and operations when their metrics are on the agenda, and an executive sponsor for strategic suppliers or escalations. From the supplier: the account manager, someone from operations and quality, and an executive at the same level as yours.
Supplier QBR agenda template (90 minutes)
| Time | Topic | Led by |
|---|---|---|
| 5 min | Objectives for this meeting | Buyer |
| 10 min | Actions from the last QBR: done, late, dropped | Buyer |
| 20 min | Scorecard: target, actual and trend for each metric | Buyer |
| 10 min | Supplier business update: capacity, staffing, material supply, investments | Supplier |
| 20 min | Gaps and root causes for the metrics below target | Both |
| 10 min | Forward look: forecast, specification changes, new products, contract renewal date | Buyer |
| 5 min | Improvement and cost ideas | Supplier |
| 10 min | Read back actions with owners and dates | Both |
For a strong performer, shorten the gap discussion and spend the time on the forward look and joint improvement ideas.
The QBR scorecard: metrics, formulas and scoring
Pick six to eight metrics that matter for this supplier. Define each one so both sides calculate it the same way.
| Metric | How to calculate | Example target |
|---|---|---|
| On-time in-full (OTIF) | PO lines delivered on time and in full ÷ PO lines due | 95% |
| Lead time variance | Average of (actual lead time − quoted lead time) | Within 2 days |
| Defect rate (PPM) | Rejected units ÷ units received × 1,000,000 | Set per part |
| Corrective action closure | Days from problem report to verified fix | 30 days |
| Price adherence | Invoice lines at contract price ÷ invoice lines | 100% |
| Invoice accuracy | Invoices matching the PO without correction ÷ invoices received | 98% |
| Quote response rate | RFQs quoted ÷ RFQs invited | 90% |
| Quote turnaround | Median hours from RFQ invite to quote | 48 hours |
| Price position | Supplier's quote ÷ median quote on the same RFQ − 1 | Within 5% of median |
Measure delivery by order line, not by shipment. A shipment that arrives on the date with half the quantity is not on time.
Turning metrics into a score
Agree score bands for each metric in advance. Example for on-time delivery against a 98% target: 5 = 98% or better, 4 = 96 to 97.9%, 3 = 93 to 95.9%, 2 = 90 to 92.9%, 1 = below 90%.
Example (illustrative) scorecard for one quarter:
| Metric | Weight | Target | Actual | Score (1 to 5) | Weighted |
|---|---|---|---|---|---|
| On-time delivery | 30% | 98% | 94% | 3 | 0.90 |
| Defect rate | 25% | 0.5% | 0.8% | 3 | 0.75 |
| Price competitiveness | 20% | Within 5% of market | At market | 4 | 0.80 |
| Quote response time | 15% | 48 hours | 36 hours | 5 | 0.75 |
| Invoice accuracy | 10% | 99% | 97% | 3 | 0.30 |
| Total | 100% | 3.50 |
Weighted score = sum of (weight × score) = 0.90 + 0.75 + 0.80 + 0.75 + 0.30 = 3.50 out of 5.
Set the weights by what hurts you most. A manufacturer running lean inventory might put delivery at 40%; a regulated business might put quality at 50%.
Read the trend, not the quarter
| Quarter | Q1 | Q2 | Q3 | Q4 |
|---|---|---|---|---|
| Supplier A | 3.0 | 3.2 | 3.4 | 3.5 |
| Supplier B | 4.0 | 3.8 | 3.6 | 3.5 |
Both score 3.5 this quarter. Supplier A is improving and needs encouragement. Supplier B has fallen four quarters running and needs a root-cause conversation now, before the score drops below target. Show four to eight quarters on every scorecard.
Running the meeting
Be direct about gaps, specific about numbers, and fair about what went well. For each metric, walk through the same five points: target, actual, trend, gap, and the supplier's explanation. Then stop talking and let them answer.
Get to the real root cause
"We had a production issue" is not a root cause. Ask why until you reach something that can be fixed.
Example (illustrative): on-time delivery fell to 88%. Why? Orders shipped four days late. Why? Production slots were missed. Why? Resin arrived late. Why? The supplier's resin source was on allocation. Why did that hit us? Resin is single sourced and they hold no safety stock. The fix is a second qualified resin source by a set date, with two weeks of safety stock in the meantime, not "we will try harder".
For recurring problems with several causes, a fishbone diagram (people, process, equipment, materials, environment) or a Pareto chart of defect types helps the group focus on the few causes behind most of the misses.
When the conversation is difficult
Prepare what you need, what you will accept and what happens if it does not improve. Then say it plainly:
"On-time delivery has been below the 95% target for three quarters: 91%, 89% and 88%. That caused two expedited shipments and one line stop. We need 95% by the end of next quarter. Please send a corrective action plan by [date], and a weekly OTIF report until we are back on target. If we are not at 95% by [date], we will move this supplier onto a formal improvement plan and start qualifying a second source."
Listen to the answer. The supplier may have a real constraint, such as a forecast you changed late, that is partly yours to fix.
Capture actions as you go
| Action | Owner | Due | Done when | Status |
|---|---|---|---|---|
| Qualify second resin source | Supplier quality manager | [date] | First approved lot received | Open |
| Share a rolling 13-week forecast | Buyer | [date] | Sent every Monday | Open |
| Weekly OTIF report | Supplier account manager | Weekly | Report received for 8 weeks in a row | Open |
Read the list back before the meeting ends. Every action needs one named owner and a date.
After the QBR: minutes, follow-up and escalation
Send minutes within 48 hours: attendees, scorecard summary, decisions, the action table and the next QBR date. Copy the internal stakeholders who were not in the room.
Do not wait three months to check progress:
- Week 2: short email check on each action.
- Week 6: status review of the major actions, by call if anything is slipping.
- Week 10: data request for the next QBR, including action status.
Define escalation levels in your supplier management procedure before you need them:
| Trigger | Level | Who acts | What happens |
|---|---|---|---|
| Below target for one quarter | 1 | Buyer | Root cause and corrective action agreed in the QBR |
| Below target for two quarters | 2 | Procurement lead | Monthly reviews, written improvement plan with dates |
| Below target for three quarters | 3 | Executive sponsor | Formal performance improvement plan, second source qualified, share of business reviewed |
Recognize strong performance too: say it in the meeting, put it in the minutes, and offer new business or longer terms to suppliers who earn it. Suppliers put their best people on the customers who notice.
Common QBR mistakes and fixes
| Mistake | Fix |
|---|---|
| Scorecard first seen in the meeting | Send it a week ahead and reconcile data differences before the day |
| Every supplier gets a quarterly meeting | Segment; most suppliers need a yearly scorecard, not a meeting |
| Metrics defined differently by each side | Write the formula for each metric on the scorecard |
| Same issues every quarter | Actions with one owner, a date and a "done when"; escalate after two quarters |
| All backward-looking | Reserve time for forecast, spec changes and renewal |
| Only bad news | Note what improved and say so |
| Too many people in the room | Six to eight people total, with the people who own the numbers |
Bringing RFQ data into the QBR
Delivery and quality data come from receiving and inspection records. Commercial behavior comes from your quotes: does this supplier respond to RFQs, how quickly, and how do their prices sit against the other bids?
If you run quotes in AuraVMS, its supplier performance comparison and side-by-side quote comparison show how each supplier's quotes stack up across RFQs. On the Medium Team plan you can export the complete data to Excel and calculate the quarter's response rate, turnaround and price position for the scorecard.
Frequently asked questions
How often should supplier QBRs be held?
Quarterly for strategic suppliers: often enough to catch a trend, with enough time between meetings for actions to show results. Monthly for suppliers under an improvement plan. Twice a year or yearly for everyone else.
What should be on a supplier QBR agenda?
Last quarter's actions, the scorecard with trends, the supplier's business update, root causes for any gaps, a forward look at demand and specifications, improvement ideas, and a read-back of new actions. The 90-minute template above covers all of these.
What metrics should every supplier QBR include?
On-time in-full delivery, defect rate, price adherence to contract and responsiveness (to quotes and to problem reports). Add category-specific metrics such as service level credits for services, or lead time variance for long-lead parts.
What if a supplier will not take part in QBRs?
Write QBR participation into contracts for strategic suppliers. If a supplier you consider strategic still will not engage, treat that as a performance issue in itself and reconsider how much business you give them.
Do strong performers still need a QBR?
Yes, but a different one. Spend less time on the scorecard and more on the forward look, joint cost ideas and whether to expand the relationship.
How do you measure the value of a QBR program?
Track the scorecard metrics over time and put a cost on the improvements. Example (illustrative): a supplier ships 200,000 units a year and the defect rate falls from 0.8% to 0.4%. That is 800 fewer defective units. If each defect costs you $25 in inspection, rework and admin, the improvement is worth 800 × $25 = $20,000 a year, before counting expedite fees and line stops avoided.
Should QBRs be virtual or in person?
Virtual works for most quarterly reviews. Hold at least one in-person review a year with strategic suppliers, ideally at their site so you see the operation behind the numbers.
How can a small procurement team run QBRs?
Limit full QBRs to the few suppliers that carry most of your spend and risk. Reuse one scorecard template and one agenda. A focused 60-minute review with the scorecard sent in advance is far better than no review.
A one-page QBR checklist
- Segment suppliers and confirm who gets a quarterly review.
- Pull the data three weeks out and send the scorecard one week out.
- Use the same agenda and the same metric formulas every quarter.
- Walk each metric through target, actual, trend, gap and supplier view.
- Push for root causes that can actually be fixed.
- Leave with actions that have one owner, a date and a "done when".
- Send minutes within 48 hours and check actions at weeks 2, 6 and 10.
- Escalate on schedule and recognize strong performers.
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