With QBRs failing to meet expectations, buyers are now feeling disappointed and disillusioned about the state of their supplier relationships in general. Alarmingly, more than half (60%) believe that most of their suppliers are getting by on delivering the bare minimum.
Indeed, research uncovers a deep sense of scepticism among buyers about the commitment and ability of suppliers to deliver on their promises. And, unfortunately, this mood is now clouding the entire picture for B2B relationships, even for those suppliers that are doing a good job in delivering value and upholding their KPIs. We’ve reached a stage where the majority of buyers no longer feel that suppliers will live up to the promises they made when they first signed the contract, putting client retention at risk.
Significantly, as their expectations of suppliers rise, and their frustrations around broken promises and poor QBRs grow, buyers are running out of patience and are taking decisive action against suppliers who don’t deliver.
Across a wide range of industries, suppliers are now losing clients and revenue because they’re not using QBRs as an effective way to demonstrate value and innovation, strengthen relationships, and address client concerns and challenges in a timely way.
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James Ward, Managing Director, Clientshare
"Outsourcing is no longer just about cost cutting; buyers need suppliers to help them navigate a rapidly evolving business landscape by providing strategic insight and advice. Suppliers need to think beyond operations. They should be focusing on value creation beyond their contractual obligations – whether that’s innovation, sustainability, AI, risk or compliance. And the QBR has to be the vehicle to showcase this."
Jon Boden, Business Unit Director, CEVA Logistics
"The key to ensuring that relationships and programmes stay on course is to have joint stakeholder assignment on all outputs and actions. Progress usually stalls either because the customer’s priorities are confusing or misunderstood by the supplier, or because the buyer is unable or unwilling to engage with the supplier on a strategic basis. The buyer often doesn’t initially think beyond immediate cost savings. If we want the buyer to see past short-term tactical savings, partnership is a must. So having joint stakeholders assigned to every action – whether that is operational or strategic – is essential."
Final thoughts
Ineffective QBRs are eroding trust and damaging supplier relationships, leading to contract churn and lost revenue. As buyers demand more than just operational efficiency, suppliers must shift their focus from transactional reviews to strategic, value-driven engagements. Demonstrating innovation, addressing challenges proactively, and ensuring joint accountability for actions are key to maintaining strong, long-term partnerships. The QBR must evolve into a platform that reinforces trust, showcases value, and fosters deeper collaboration or risk becoming an obsolete exercise in frustration.
