Supplier

What is a supplier?

A company is referred to as a supplier if it supplies raw materials or parts for the production of another company. This therefore only includes companies that do not produce goods or raw materials that are suitable for end consumers.

The entirety of all suppliers and their own suppliers is called the supply chain. As parts from countless different suppliers are often used in modern production, the logistical processes surrounding the supply chain are of great importance for all companies involved. This is why supply chain management was developed, which deals exclusively with the smooth flow of supplies.

Who is considered a supplier?

The main suppliers are:

  • Producers of raw materials and semi-finished products
  • Manufacturers of small parts or individual parts
  • Producers of assemblies
  • Producers of complete products that are recycled by other companies

However, not only the producers themselves are considered suppliers. Trading companies that only sell such products and do not manufacture them themselves are suppliers as well.

Images:

Suppliers

Image: pluie_r / Shutterstock

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