Supplier Definition: What Makes a Good Supplier?

The role of the supplier in the supply chain

Suppliers are at the center of every supply chain: they provide the required goods or services and sell them to companies that need them for their own products and production processes. In doing so, they have a significant influence on quality, availability and costs along the entire value chain. A reliable supplier base contributes to improved planning security for your own business processes and enables on-time production. In addition, reliable service providers minimize delivery failures and provide business partners with a consistent quality of their goods and services - an essential prerequisite for the competitiveness and innovative strength of companies in global markets.

Difference between supplier and manufacturer

There are differences betweensuppliers and manufacturers. Suppliers can also be intermediaries, wholesalers or resellers, while manufacturers produce the goods themselves. Here are the most important differences between producers and suppliers:

Manufacturer:
Manufacturesthe goods itself

Supplier:
Does not necessarily produce itself - can also be a dealer or intermediary
Obtains its products from the manufacturer or third parties
Focuses on logistics, sales and procurement
Often supplies or represents several manufacturers

Strategies for an effective supplier search

As a buyer, a checklist is helpful, which contributes to the detailed determination of requirements. What are the exact requirements in terms of products, quantities, quality and delivery times? As soon as the requirements have been determined, the performance, cost-effectiveness and reliability of suppliers can be objectively included in the evaluation using ABC analysis, utility value analysis or scoring models .

Resources and web links for the supplier search

Digital marketplaces, B2B platforms, industry directories, trade fairs, evaluation portals as well as internal company tools and ERP systems support the comparison of suppliers and replacement suppliers.

The six-R rule when selecting suppliers

The six-R rule helps companies to identify the right source of supply: A first-class supplier ensures that the right goods are delivered at the right time, in the right quantity, to the right place, in the right quality at the right price. These characteristics are the foundation for reliable, efficient delivery and prevent delivery failures.