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8.3 Supplier Business Reviews

A Business Review is not a social visit. It is a control mechanism. If the agenda focuses on "relationship building" rather than performance data, the meeting is a waste of engineering time. The goal is to align the supplier's trajectory with your requirements. Differentiate sharply between Strategic Alignment (Quarterly) and Tactical Correction (Monthly) to avoid administrative bloat.

Cadence & Format Logic

Do not treat all suppliers equally. Allocate management bandwidth based on the nature of the interaction, not just spend.

1. The Strategic QBR (Quarterly Business Review)

  • Target: Top 10% Strategic Partners (Critical Tech / High Spend).
  • Format: Formal Presentation (Slides allowed). 60–90 Minutes.
  • Attendees: Commodity Manager, Quality Manager, Engineering Lead + Supplier Executives.
  • Focus: The Future (60%) + The Past (40%).
    • Roadmap alignment (NPI).
    • Contract/Pricing negotiation.
    • Long-term capacity planning.

2. The Monthly Pulse (MBR)

  • Target: Key Operational Suppliers (High Friction / High Volume).
  • Format: No Slides. Spreadsheet Review Only. 20 Minutes Max.
  • Attendees: Buyer + Supplier Account Manager.
  • Focus: The Now (100%).
    • Rule: This is not a "meeting." It is a standing sync to review the Scorecard and Open Order Report.
    • Goal: Catch OTD slips and Quality trends before they ruin the quarter. If the supplier brings a PowerPoint, cancel the meeting.

3. The Transactional (No-Touch)

  • Target: Catalog / C-Items / Low Risk (e.g., DigiKey, Fastener Disty).
  • Cadence: None.
  • Logic: Manage via "Management by Exception."
    • If Scorecard is Green → Then Silence. Do not schedule "check-ins."
    • If Scorecard is Red → Then Issue SCAR (email). Only schedule a meeting if the SCAR response is rejected.


The Input Data Package

Send the data deck to the supplier 3 days before the meeting. The meeting is for discussing the data, not reading it.

  • The Scorecard: The non-negotiable truth of their performance (OTD, DPPM).
  • The Claims Log: Open SCARs, unpaid Debit Notes, and RMA aging.
  • The Forecast: A 12-month rolling outlook. This is the "carrot" to balance the "stick" of the scorecard.
    • Constraint: Clearly mark as "Forecast Only - Not a Commitment to Buy."

The Standard QBR Deck Outline

Enforce a standardized template for the Quarterly review. Do not let the supplier control the narrative with marketing fluff.

Slide 1: Executive Summary

  • "Green/Yellow/Red" health status.
  • Top 3 achievements vs. Top 3 critical failures.

Slide 2: Performance (The Past)

  • OTD and DPPM graphs vs Target.
  • Requirement: If a target is missed, the next slide must be "Root Cause & Recovery Plan."

Slide 3: Commercial & Operations (The Present)

  • Cost reduction progress.
  • Lead time trends (Market vs. Actual).
  • Capacity utilization warnings.

Slide 4: The Forward Look (The Future)

  • Forecast Review: Buyer presents 12-month demand.
  • Technology Roadmap: Supplier presents new tech relevant to Buyer's roadmap.
  • Risk Radar: PCN/EOL alerts.

Action Tracking to Closure

Minutes are a legal record of commitments. Do not rely on memory or email threads.

The Rolling Action Log (RAL)

Create a shared "Live Document" (Excel/Cloud Sheet) that persists from meeting to meeting.

  • ID: Unique Identifier (e.g., Q3-05).
  • Task: Specific Verb + Noun (e.g., "Submit Root Cause for Fan Failure").
  • Owner: Single Name (No "Team").
  • Due Date: Specific Date.
  • Status: Open / In-Progress / Overdue / Closed.

Closure Rules

  • The "First Item" Rule: Any "Overdue" action from the RAL must be the first item discussed at the next meeting.
  • Escalation: If a critical action is missed twice, it triggers a Level 2 (Managerial) escalation.
  • Verification: An action is only "Closed" when the evidence (photo, doc, credit memo) is linked in the sheet.

Final Checklist

Parameter

Standard / Rule

Critical Value / Limit

QBR Format

Strategic / Formal

Slides allowed

MBR Format

Tactical / Raw Data

NO SLIDES (20 mins max)

Transactional

Exception Only

NO MEETINGS

Preparation

Send Data Pre-Read

3 Days prior

Agenda Control

Buyer Template

Reject Marketing Decks

Output

Rolling Action Log

Distributed within 24 hours

Forecast

Shared Visually

12-Month horizon (Non-binding)

Focus

Performance vs. Plan

Data over Emotion

Closure

Evidence Based

"Closed" requires proof


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