Who is a Supplier?

A supplier is an entity or individual that provides goods or services to another party. Suppliers play a crucial role in the supply chain by sourcing and delivering the necessary materials, components, or finished products required for production, distribution, or resale. Suppliers can be local or global, depending on the nature and scope of the business.

For example, In the context of a bakery, suppliers could include farmers who supply wheat for flour, distributors who provide sugar and other baking ingredients, and manufacturers who produce packaging materials.

Features of Suppliers are:

• Provision of Goods or Services: Suppliers supply goods or services that meet the needs of their customers or clients. These goods or services range from raw materials, components, and equipment to specialized services or expertise.
• Business Relationships: Suppliers often establish customer relationships based on mutual trust, reliability, and value. These relationships may vary in intensity and duration, ranging from one-time transactions to long-term partnerships.
• Responsibility for Quality and Performance: Suppliers are typically responsible for delivering goods or services that meet specified quality standards, performance requirements, and delivery schedules. They may be accountable for ensuring the reliability, durability, and functionality of their offerings.

Suppliers and Vendors are two terms, that are often used interchangeably, but they can have slightly different meanings depending on the context. A supplier is a broader term that refers to any entity or individual that provides goods or services to another party. Suppliers can include manufacturers, wholesalers, distributors, and service providers; whereas, a vendor, usually refers to a specific type of supplier that sells products or services directly to customers or end-users.