A firm or an individual that sells goods or provides a service to another company is called a supplier. A supplier’s duty in a firm is to offer top-quality goods from a manufacturer to a distributor or retailer for reselling at a reasonable price. In a business, a supplier is somebody who works as a middleman between the retailer and the manufacturer, assuring that communication is timely and that inventory is of high enough quality.
Suppliers are a vital aspect of a company’s supply chain, as they deliver the majority of the value in its products. Dropshipping, in which suppliers send items directly to the buyer’s customers, is a possibility for some of them. At each stage of the product lifecycle, suppliers play a critical role. Firms must communicate closely with their suppliers to take full advantage of their products, from raw material acquisition to helping with production ramp-up and identifying better raw material alternatives as the market becomes saturated.
A supplier’s role in a firm can be challenging, as retailers demand a specific degree of quality from suppliers, and manufacturers want suppliers to sell a large amount of stock. As a result, suppliers must be adaptable and know how to manage relationships.
Roles of a supplier:
- Suppliers must ensure the lowest possible price and quality to keep a retailer’s trust.
- Suppliers should abide by all applicable laws and policies, particularly those pertaining to human rights and child labor.
- Suppliers should avoid doing business with persons with whom they may have a conflict of interest.
