Meaning of Suppliers

What are Providers:

Suppliers are those companies that supply others with goods or services necessary for the proper functioning of the business.

The word supplier derives from the verb provide which means to supply, supply, deliver.

In the business environment, the administrators or procurement department must negotiate delivery times and payment terms with their suppliers to strengthen a long-term relationship.

For the contracting company or institution, there are two types of providers: internal and external:

  • Internal suppliers: refer to the company's workers who must deliver a certain product or service within a certain period. An internal vendor, for example, is the departments that create financial reports or market research.
  • External providers: are institutions or companies that supply what is necessary for the proper functioning of the "buyer" company. External suppliers would be, for example, companies that sell raw materials for a factory.

Suppliers are considerate stakeholders of a company, that is, interest groups related to the company. The importance of this lies in the fact that they are factors that must be taken into account when planning strategic objectives.

See also:

  • Stakeholders
  • Strategic objectives

Suppliers can also be classified according to the type of good and service they offer, generally divided into 3 categories:

  • Suppliers of goods: they are those that offer specific tangible products necessary for the market. Among the suppliers of goods we can find, for example, companies that manufacture objects, furniture, merchandise for resale, among others.
  • Service providers: defined as companies or individuals that supply intangible products. Among the service providers, we can find: internet providers, telephony, cleaning, legal services, etc.
  • Resource providers: refers to economic resources, specifically credits, capital and partners. Among the resource providers we can find: banks, lenders, the government, among others.
Tags:  General Technology-E-Innovation Expressions-In-English