Procurement Glossary
Quarterly Business Review (QBR): Strategic business evaluation in Procurement
November 19, 2025
The Quarterly Business Review (QBR) is a structured evaluation process conducted quarterly between purchasing organizations and strategic suppliers. This systematic business relationship analysis makes it possible to evaluate performance, review targets and develop joint improvement measures. Find out below what a QBR involves, which process steps are required and how you can successfully implement this strategic evaluation.
Key Facts
- Quarterly strategic evaluation between Procurement and key suppliers
- Focus on key performance indicators, target achievement and potential for improvement
- Structured dialog to strengthen the business relationship
- Basis for strategic decisions and supplier development
- Documented results as a basis for follow-up activities
Contents
What is a Quarterly Business Review (QBR)?
A Quarterly Business Review is a systematic approach to the regular evaluation and optimization of supplier relationships.
Core elements of the QBR process
The QBR comprises a comprehensive analysis of the business relationship between the purchasing organization and the supplier. The central evaluation criteria are
- Key performance indicators and target achievement
- Quality and delivery performance
- Cost development and pricing
- Innovation and technology development
- Risk assessment and compliance
QBR vs. other evaluation formats
In contrast to monthly status meetings or annual supplier meetings, the QBR focuses on strategic issues and medium-term developments. It supplements continuous supplier evaluations with a structured dialog level.
Importance of QBR in Procurement
Quarterly Business Reviews strengthen supplier relationship management through regular, structured communication. They create transparency about expectations and promote continuous improvements in cooperation.
Process steps and responsibilities
The successful implementation of a QBR requires a structured approach with clearly defined steps and responsibilities.
Preparation and data collection
QBR preparation begins with the systematic collection of relevant performance data. The purchasing team analyzes KPIs, quality indicators and cost data from the past three months. At the same time, the supplier prepares a self-assessment of its performance and identifies improvement measures.
Implementation of the review meeting
The actual QBR meeting follows a structured agenda with defined time blocks. Typical content includes
- Performance review based on agreed key figures
- Discussion of critical topics and challenges
- Presentation of innovations and suggestions for improvement
- Agreement on concrete measures and goals
Follow-up and follow-up
After the meeting, all results are documented and action plans with responsibilities and deadlines are drawn up. The agreed measures are incorporated into ongoing supplier development and are continuously monitored.
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Important KPIs for QBRs
Meaningful key figures form the foundation of successful QBRs and enable objective performance assessments.
Key performance indicators
Key performance indicators include delivery reliability, quality rates and response times. Typical metrics are:
- On-time delivery rate (OTDR) in percent
- Quality rate and complaint rate
- Throughput times and flexibility
- Service level fulfillment
Key financial figures
Cost transparency and price development are the focus of financial QBR assessments. Relevant KPIs include cost savings, price index development and total cost of ownership. The supplier scorecard clearly summarizes these key figures.
Strategic indicators
Long-term success factors are measured by innovation rate, technology development and market positioning. Supplier risks and compliance status supplement the strategic evaluation and are included in the overall assessment.
Risks, dependencies and countermeasures
Various risks can arise during the implementation and execution of QBRs that jeopardize the success of the process.
Incomplete database
Poor data quality or incomplete information can lead to incorrect assessments. Companies should establish robust data collection processes and regularly check data integrity. Close coordination with supplier management ensures consistent information bases.
Superficial discussions
QBRs can degenerate into mere formalities if they are not strategically oriented. Clear objectives, structured agendas and qualified moderators prevent superficial discussions. The involvement of top management underlines the strategic importance.
Lack of tracking
Without consistent implementation of agreed measures, QBRs lose their effectiveness. Established follow-up processes, regular status updates and clear responsibilities ensure implementation. Supplier Corrective Action Requests can be used for critical issues.
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Practical example
An automobile manufacturer conducts QBRs with its strategic component suppliers. In the Q3 review with an electronics supplier, delivery reliability (95%), quality rate (99.2%) and cost savings (3.5%) are evaluated. Critical issues such as semiconductor availability and new environmental regulations are discussed. As a result, both parties agree on a technology roadmap workshop and the implementation of an early warning system for supply bottlenecks.
- Structured agenda with performance dashboard
- Joint problem solving for critical issues
- Concrete measures with deadlines and responsibilities
Current developments and effects
Digitalization and new technologies are changing the way QBRs are conducted and evaluated.
Digital QBR platforms
Modern purchasing organizations are increasingly relying on digital platforms for QBR implementation. These enable automated data collection, interactive dashboards and virtual meetings. Supplier portals integrate QBR functionalities and create end-to-end transparency.
AI-supported analysis and insights
Artificial intelligence is revolutionizing QBR preparation through automated data analysis and pattern recognition. AI systems identify trends, risks and optimization potential that could be overlooked in traditional assessments. This enables more focused and data-driven discussions.
Sustainability integration
Sustainability aspects are becoming increasingly important in QBRs. Environmental, social and governance (ESG) criteria are systematically evaluated and integrated into the supplier strategy. This requires new key figures and evaluation approaches.
Conclusion
Quarterly Business Reviews are establishing themselves as an indispensable tool for strategic supplier management. They create structured communication, promote continuous improvement and strengthen long-term business relationships. Digitalization opens up new opportunities for data-driven assessments and efficient process design. Successful QBR implementation requires clear structures, qualified moderation and consistent follow-up of agreed measures.
FAQ
How often should QBRs be carried out?
QBRs take place quarterly by default, but can be adjusted depending on supplier importance and business criticality. Strategic A-suppliers receive more frequent reviews, while less critical partners can receive semi-annual reviews.
Which participants should be involved in the QBR?
Typical participants are purchasing managers, category managers, quality managers and, in the case of strategic suppliers, C-level representatives. On the supplier side, account managers, management and relevant specialist departments take part. The number of participants should remain manageable.
How are QBR results documented?
All discussion points, assessments and agreed measures are recorded in a standardized protocol. Action plans with responsibilities, deadlines and success criteria form the basis for follow-up. Digital systems enable automated tracking.
What distinguishes QBRs from regular supplier meetings?
QBRs are strategically oriented and follow a structured evaluation methodology with defined KPIs. They focus on medium-term developments and potential for improvement, while operational meetings deal with day-to-day issues. The results are incorporated into strategic decisions.
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