What is a supplier?

A supplier is a person or company that supplies another person or company with goods or services. A supplier may provide different products or services such as raw materials, finished products or professional services. Companies typically maintain close relationships with a large number of different suppliers in order to source the raw materials and finished products needed for their operations.

What are the principal missions of a supplier?

The main missions of a supplier are to provide products or services that meet the needs and requirements of customers, to deliver them according to the announced deadlines and to invoice them at appropriate rates. A supplier can also get involved in researching new products, as well as in setting up loyalty programs to preserve a relationship of trust with its customers.

How does the supplier provide its products or services?

Direct delivery

A supplier can ship its products or services directly to the end customer, most often to the address specified by the customer.

Delivery to a depot

A supplier can also deliver products to a depot or warehouse: the customer can then collect or ship the product or service.

Wholesale

A supplier can sell its products to a company which will then resell them to end customers.

Remote service

A supplier can provide services online or remotely: for example, maintenance or consultation. On the other hand, these services will never be physically present at the end customer.

Dropshipping

A supplier can finally ship products directly to the end consumer, but under the name of the company where the customer placed their order.

How does he get his supplies?

Direct purchase

A supplier can obtain its supplies by purchasing products or raw materials directly from a producer or manufacturer.

Bulk purchase

A supplier can purchase products in large quantities at a lower price from a wholesaler, for example.

In-house manufacturing

A supplier can also manufacture its own products or raw materials itself which it will later sell.

Subcontracting

A supplier can opt to have its products or raw materials manufactured by a third party company, before reselling them on its own.

Import-export

A supplier can import products or raw materials from a foreign country in order to subsequently resell them in its local market.