Why do companies perform site visits during the supplier selection process?

Performing site visits during the supplier selection process allows companies to assess processes and technology in a real-world setting. This firsthand evaluation enables the purchasing organization to gain insights into the supplier's operational capabilities, quality control measures, and adherence to industry standards. Observing these elements on-site helps ensure that the supplier can meet the requirements of the company and maintain the desired level of service and product quality.

While evaluating employee satisfaction, negotiating contracts, and finalizing payment terms are important aspects of supplier management, they are not typically the primary focus of a site visit. The main goal is to have a comprehensive understanding of the supplier's processes and technology, ensuring that they align with the company's expectations and requirements. This assessment is critical in making informed decisions on supplier selection, ultimately contributing to the overall efficiency and effectiveness of the supply chain.