What Is A Supplier, And What Is Their Role In Business?
by Abdul Aziz Mondal Business 06 January 2023
Having efficient suppliers is key to running a well-sort out supply chain company. Additionally, having a long-standing proper relationship with suppliers is vital to the success of your business. For instance, if you are looking for a supplier of plastic injection molding in Singapore? You’d better work with a reliable one, like Beyonics Advanced Precision Manufacturing, which is a leading engineering and manufacturing solution provider that will cater to all your business needs. But first, let’s look at how the right supplier benefits any business, and what is their role in business processes overall.
What Is A Supplier
A supplier is an individual or a business that provides services or goods to another company or business. They can either be manufacturers of a product or a distributor who purchases the products from a manufacturer. As intermediaries, suppliers will sell the products at a lesser price to the retailer for sale.
Types Of Suppliers
One could need one to a hundred suppliers depending on their business scale. Once a retailer has established itself, it is natural for suppliers to reach out and inquire about business. However, for someone who is starting out, you will have to build your supply chain.
You can source your suppliers online, at trade fairs, or through referrals. Here are the types of suppliers you may come across.
- Wholesalers: Product distributors purchase large quantities of goods from manufacturers and sell them to retailers. Wholesalers may have a markup added to the products, making them not the cheapest option. However, you will benefit from wholesalers if you purchase in small quantities as a retailer.
- Manufacturers: As a retailer, you may purchase your products directly from factories. You are guaranteed negotiable, low prices, and exclusivity on raw materials there. Salespeople present manufacturers within organizations or an agent who presents several other factories.
- Importers and Exporters: Similar to wholesalers, importers, and exporters get their products from manufacturers but have a more complex business operation. Importers and exporters will pay to have the products exported to other countries, or purchase products overseas and import them into their country.
- Independent artisans: There is nothing more exciting than selling handmade and exclusive products to your business. A retailer can use craftspeople or artisans as suppliers if they fit their business. However, you may have challenges when defining supplier terms and prices, since the artisans often work with very small quantities. Luckily, these suppliers are a great way of adding context to your product offers.
The Roles Of A Supplier In Business
Retailers want to sell quality products to their consumers. And because of this, they expect a certain quality and quantity of services and products from suppliers. A supplier and retailer relationship should be flexible and comfortable to ensure they both meet their needs. Other than stock selling supplies have other roles in business such as:
They Bring The Best Prices
Suppliers are directly in contact with the market and demands, and this guarantees that they will provide the best prices and quality products to retailers. Through this, they also build trust and chances of increased sales and references for more contracts.
Compliance With Laws And Jurisdictions
For a successful business, suppliers must learn and abide by various laws and jurisdictions relevant to trade. They should be able to respect rules such as child labor and human rights protection and avoid indulging in illegal or unfair trade practices.
Suppliers should be able to premeditate and avoid situations that could cause conflicts. Additionally, they should be honest with manufacturers or retailers whenever they feel they won’t be able to commit to ongoing engagements as a supplier and avoid doing favors to old colleagues, family, or friends to decrease the chances of unfair treatment and conflict.
Suppliers will work with various manufacturers and retailers, whether small or large. They should be able to ensure honesty and equitability to everyone they transact business with. Suppliers shouldn’t reject them because of location or other unsubstantial reasons.
A business will require an efficient operational cycle to meet its needs and that of its consumers. Getting the right supplier for your products and services ensures a smooth flow of business operations and even higher profit margins. Research your suppliers beforehand and create a solid relationship with them to help you get the best for your business.