Supplier
In procurement, a supplier is a person or company that provides goods,
services, or materials to another organization.
Suppliers play a crucial role in the supply chain as they are responsible for delivering the
necessary resources that organizations require
to produce their own products or operate efficiently.
Here are some key points about suppliers in procurement:
-
Goods and Services: Suppliers can offer physical products (like raw
materials, equipment, or finished goods) or services
(like consulting, transportation, or IT services).
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Contractual Relationship: Organizations often enter into formal agreements
or contracts with suppliers, outlining the terms
and conditions such as price, quality standards, delivery timelines, payment terms, and
warranties.
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Quality and Reliability: A good supplier is one that provides high-quality
products or services consistently and meets the
organization’s needs in terms of reliability, lead time, and cost-effectiveness.
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Supplier Management: Effective procurement involves managing relationships
with suppliers, ensuring they comply with the
terms of the contract, and maintaining good communication to resolve any issues that might
arise.
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Types of Suppliers:
- Direct suppliers: Provide materials or components that are directly
used in manufacturing or the production process.
- Indirect suppliers: Provide goods or services that support the
business but are not part of the core production
process (like office supplies or IT services).
In short, suppliers are vital partners in the procurement process, helping ensure the
organization can operate smoothly and meet its objectives.
