Meaning of Supplier: Definition, Tasks, Types, and How to Work Supplier

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Meaning of Supplier: Definition, Tasks, Types, and How to Work Supplier

The meaning of suppliers or suppliers in general is the individual or company that supplies or sells raw materials to other parties, both to individuals or companies so that they can be used as a product of goods or services.

Experts argue that the understanding of suppliers is a company or individual who sells raw materials needed by other companies so that they can be processed into a product that is ready for sale.

However, there are currently many people who equate suppliers with distributors, even though they are clearly both of them are different entities. Distributors only focus on selling or channeling their products to retailers to be channeled to the final consumer, while suppliers sell raw materials to companies that require raw materials so that they can be processed into ripe goods that are ready for sale.

Supplier Functions and Tasks

Basically, suppliers have a very important task and role in the product supply chain distributed to consumers. First, suppliers must ensure the raw material is available for those who need it. Second, suppliers must turn off all raw materials can be accepted by buyers with good conditions.

Third, they must also regulate the process of storing the raw material properly before it is channeled to the party that requires. Finally, the suppliers also arrange the delivery of raw materials in a timely manner to companies that require.

Types of suppliers

Based on the products produced, in general suppliers are divided into suppliers of goods and services products. The following is the explanation:

1. Supplier of service products

The meaning of the Supplier of Services Products is a supplier that is able to supply raw materials to be processed into a service product. So, the supplier will only supply raw materials so that they can be processed by other parties to be a service product to be channeled to consumers.

2. Supplier of goods products

The meaning of supplier of goods products is a type of supplier that supply raw material products to be processed in the form of finished products. So, the supply will only supply raw materials so that they can be processed by those in need.

For example, there are writing book-making companies that require raw materials in the form of paper, plastic and other supporting materials in order to be able to produce notebooks. Then the company cooperates with suppliers capable of supplying the necessary raw materials. This form of cooperation can be established with several parties who are able to provide different raw materials.

Well, it is assessed based on its type, the supplier is divided into two parts, namely supply material material fabrication, and non-fabricated material suppliers.

3. Supplier of fabrication material material

The meaning of supplier of material fabrication material is a supplier capable of providing materials or materials ordered by the company, but must be processed first at the place of supply according to the agreement with the required parties.

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4. Supplier of non-fabricated material materials

The meaning of the supply of non-fabricated material materials is a supplier that supplies production material or material without having to go through a special manufacture process at the place of supplier for the needs of the party requires.

How Supplier Works

In addition to the sophisticated ones like today, there are many activities run by suppliers to meet their customer needs. Briefly, there are five main things to do by the supplier. First, suppliers must fulfill the procurement of raw materials. Second, provide information related to raw materials. Third, do a powerful marketing process. Fourth, cooperate with business people. Last time, maintain the quality of the raw material.

How to choose quality suppliers

There are several minimum criteria commonly used to have suppliers capable of supplying quality production materials. First, the quality of the product must be in accordance with the specifications previously determined.

Second, the time of delivery of raw materials must be fast and precise. That is, the production material sent must be in accordance with the request of the party in need of quickly. Finally, the supply must provide a reasonable price for the raw material.

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In addition, quality suppliers must also be honest in informing the factory facilities and technology, so that it is able to meet the needs of parties that require materials, suppliers must also have strong financial capabilities, aware of increasing the needs of the material, and must serve its customers well.

How to Become a Success Supplier

Well, if you are interested in being a successful supplier, you can follow the ways below.

1. Have your own raw material stock

You must realize that the supplier is the first party in an industry. For that, you must have the stock of raw materials themselves and do not buy materials on the other party. That way, the advantages you will get will also be more because they don’t take from other parties. In fact, the benefits that can be obtained from a supplier have a high value.

2. Looking for a company to cooperate

After being able to ensure that you have your own raw material, then then you have to find a company that wants to cooperate with you. So, later your profit will be more stable.

3. Study the product channeled

Finally, you must master the product information that you will channel. For this reason, try to explore information about how good ways to maintain product quality so that production activities can run continuously. In addition, also get information about good product marketing so that later you can get the right advantage.

For example, as a supplier of chicken meat, you must know how to produce good quality chicken meat to be liked by the producers and also the consumer. In addition, you must also know the right target marketing of chicken meat. Like restaurants or restaurants that need chicken meat as the mainstay menu.

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Supplier relationship with the company

As we discussed together, suppliers are the main chains that have an important role for the continuity of a company. In fact, today there are many large companies that include suppliers as part of the organization chart.

The large company realizes the importance of lugging suppliers in the structure of the company’s organization’s organization. Of course this is related to the reciprocal relationship needed by the company so that suppliers are able to fulfill their needs and be able to develop a better way to meet the company’s needs.

The company must also be aware that the quality of the products and services they provide directly related to the quality of products and services disbursed by suppliers. For this reason, a company that is able to think forward will determine a broad system of organizational systems.

Usually, they will include all suppliers and sub-suppliers in the company organization chart. That is, the company will position the supplier as an important colleague in the future of the company. This is certainly very good for both parties.

Cooperation between suppliers and producers is also important to improve service to customers, minimize the existence of product companies, and improve product efficiency or improve the company’s product capabilities.

The company’s main task in maintaining its relationship with suppliers is like the following:

  • Identify and determine the good product quality requirements.
  • Carry out evaluations related to alternative suppliers that are able to supply production material properly
  • Choose suppliers that have the best quality.
  • Planning product quality planning along with the supplier.
  • Doing good cooperation with suppliers during the contract period.
  • Documentation of Proof of Production Complity
  • The Quality Control Department (QC) in producer companies must provide a good certificate for companies that are able to meet the requirements.
  • Conduct a program to improve the quality of basic commodities from suppliers through a questionnaire related to customer satisfaction and the expectations of customers who are able to be produced by the company.

Various components related to customer satisfaction are very important to understand because the main objectives of the collaboration between the supplier and the company, one of which is to increase customer satisfaction.

Conclusion

That is a complete explanation of the understanding of suppliers and various things related to suppliers. It is very important for you to understand as the manufacturer to maintain business continuity and maintain your customer satisfaction.

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