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What is a supplier?

Supplier is an individual or organization that provides goods, services, or materials to another organization. Suppliers play a crucial role in the procurement and supply chain processes of businesses and can be categorized as primary, secondary, or tertiary suppliers based on their relationship with the buyer.

Primary suppliers are directly involved in the production of goods or the provision of core services and have a significant impact on the final product or service quality. Secondary suppliers provide components or services that support the primary production process, and tertiary suppliers offer goods or services that are not directly integrated but are essential for the organization's operations.

Supplier management involves tasks such as supplier selection, performance evaluation, contract negotiation, and ongoing collaboration to ensure that suppliers meet the organization's quality, cost, and delivery requirements.

Effective supplier management contributes to a resilient supply chain, cost control, and the ability to meet customer demands.