In a small, bustling city, there lived a retired procurement executive named Per-Erik. Per-Erik had seen it all in his long and successful career. From managing complex global supply chains to negotiating multi-million dollar contracts, he had accumulated a wealth of wisdom and expertise. After retiring, he decided to share his experiences with young, up-and-coming buyers, to help shape them into the procurement professionals of the future, among other things about visiting a supplier. One sunny morning, Per-Erik was invited to a training session for a group of eager buyers. As he entered the room, he could feel the energy of the participants, each one eager to learn and grow in their profession. Per-Erik decided to share a story from his own career, one that perfectly illustrated the importance of visiting a supplier on site.

In my younger years..

“In my younger years,” Per-Erik began, “I was a procurement manager for a large automotive company. One of our critical components was sourced from a supplier located in a remote part of the country. We had been working with this supplier for years, but only through phone calls, emails, and occasional video conferences. One day, my boss asked me to visit the supplier on site, to get a better understanding of their operation.”

The young buyers leaned in, their eyes wide with curiosity.

Per-Erik continued, “I was initially reluctant, as I thought it would be a waste of time. After all, we had been working with them for years, and everything seemed to be running smoothly. But my boss insisted, so I packed my bags and traveled to their facility.”

Upon arriving at the supplier’s location, Per-Erik was immediately struck by the vastness of the facility and the level of activity that was taking place. He was greeted by the supplier’s management team, who gave him a tour of the entire operation. As they walked through the facility, Per-Erik began to understand the true complexity of their manufacturing process.

“I was amazed by the level of detail and care that went into producing each component,” Per-Erik shared with the young buyers.

Seeing the production line in person

“Seeing the production line in person, I realized how difficult it would have been to understand the intricacies of their operation through a call. The sheer scale and complexity of the machinery, the expertise of the workers, and the dedication to quality were all factors that could only be truly appreciated in person.”

During his visit, Per-Erik also discovered several opportunities for improvement. He noticed that the supplier was using an outdated method for inventory management, which led to inefficiencies in their production process. Additionally, he observed that the facility was not utilizing the most advanced technologies in their manufacturing process, leading to higher costs and longer lead times.

“After spending a few days on site, I worked with the supplier’s management team to implement new inventory management practices and explore opportunities for technology upgrades. These improvements led to a significant reduction in production costs and improved lead times, ultimately benefiting our company’s bottom line.”

Per-Erik paused, allowing the young buyers to absorb the lessons from his story.

The take away why visiting a supplier

“What I want you all to take away from this story,” Per-Erik said, “is that there is no substitute for experiencing a supplier’s operation firsthand. While technology has made it easier for us to communicate and collaborate with suppliers remotely, there are certain aspects of a business that can only be truly understood by being physically present. Visiting a supplier on site allows you to build stronger relationships, identify opportunities for improvement, and gain a deeper understanding of their capabilities.”

The young buyers listened intently, taking Per-Erik’s words to heart. They knew that the wisdom he shared was invaluable, and they were grateful for the opportunity to learn from someone with such vast experience.

As the training session drew to a close, the young buyers left the room, their minds buzzing with excitement and new ideas. Per-Erik smiled, knowing that he had imparted a valuable lesson to the next generation of procurement professionals regarding the Importance of visiting a supplier on site.

Learn More about visiting a supplier from The Real Life Buyer, Dave Barr in his course: Ensuring Effective Supplier Meetings. Understand the necessary homework you should conduct before arriving to the supplier’s site, considerations during the meeting, then follow up post visit. Learn the benefits of a structured process when visiting suppliers. From the perspective of a procurement professional within the manufacturing sector, Dave Barr will provide you with the knowledge, experience and structure to ensure you get the best out of the meetings you have with your suppliers, particularly when you are investing in time, expense and travel to the location of operations.

This course will explain and present how to; 

• Prepare and communicate prior to leaving the office.
• The benefits of having a structured and repeatable process when visiting suppliers.
• How to ensure the supplier is practicing what they preach.
• How to capture the real culture, behaviours and activities that will deliver to your bottom line, increase supplier performance and deliver supplier compliance.
• Ensure actions are agreed and delivered in a timely manner that holds all parties to account.

Dave has over 25 years purchasing, procurement and supply chain experience and has worked in global manufacturing, service and retail environments.

EFFSO can tell you more about Relation Development and the importance of visiting a supplier on site in the course Supplier Development. A part of a strategic role is creating a supplier development program.

• But how do you align the program with your company’s strategy?
• How do you focus the program on your key development areas?
• How do you even get started?

Answers to these questions are key to your success and are answered in this basic level course and learn more About the importance of visiting a supplier on site.

Note: Illustration to the blogpost “Importance of visiting a supplier on site” was created with DALL-E on May 9, 2023.

At Utbildning Inköp you can learn in Swedish about LHTS’ courses.