Case study and Supplier Business Reviews (SBR)
Objective: Analyse a concrete supplier-segmentation case and master the Supplier Business Review format for strategic suppliers.
Case study: Manufacturing company
A manufacturer (EUR 200M revenue, EUR 100M procurement spend) launches a 3-year supplier segmentation programme:
Initial situation (Year 0):
- 350 active suppliers
- No formal segmentation
- 70% of buyer time in operational management
- Annual savings: 2.5% (below the 5% target)
Results after 3 years:
| Indicator | Before | After 3 years | Change |
|---|---|---|---|
| Active suppliers | 350 | 102 | -71% |
| Strategic suppliers | Undefined | 12 | Identified and managed |
| Annual savings | 2.5% | 5.8% | +132% |
| Buyer time on strategic | 15% | 45% | x3 |
| Average OTD | 87% | 94% | +7 points |
| Cumulative savings over 3 years | - | EUR 12M | 12% of spend |
The Supplier Business Review (SBR)
The SBR is the steering ritual for strategic suppliers. It is a structured quarterly meeting of 3 hours between the Category Manager and the supplier's teams.
Typical SBR format (3 hours):
| Block | Duration | Content |
|---|---|---|
| 1. Performance | 45 min | KPI review (quality, OTD, complaints), incident analysis, improvement plan |
| 2. Commercial | 30 min | Volume evolution, pricing, contract terms, savings achieved |
| 3. Innovation | 30 min | New technologies, co-development projects, market intelligence, technical roadmap |
| 4. Risks | 30 min | Supply chain risks, capacity, compliance, CSR, mitigation plan |
| 5. Roadmap | 30 min | Upcoming projects, evolution of the relationship, next quarter's objectives |
| 6. Actions | 15 min | Summary of decisions, action plan with owners and deadlines |
SBR golden rules
- Prepare: Send performance data 1 week ahead so the supplier can prepare its answers
- Balance: The SBR is not a tribunal. It is a constructive dialogue. Start with successes before problems
- Engage leadership: Involve C-levels at least once a year to show the relationship matters
- Document: Minutes with actions, owners and dates sent within 48 hours
- Follow up: Actions decided in one SBR are reviewed at the next. No follow-up = no credibility
💡 Key takeaway: Supplier segmentation delivers spectacular results when executed well: 71% fewer suppliers, savings doubled, time on strategic suppliers tripled. The SBR is the key ritual of the strategic relationship: quarterly, structured, balanced and followed up.