What is a supplier?
A company is called 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 suitable for end consumers.
The totality of all suppliers and their own suppliers is called the supply chain. Since parts from countless different suppliers are often installed in modern production, the logistical processes surrounding the supply chain are of great importance for all companies involved. Therefore, supply chain management was also developed, which deals exclusively with the smooth flow of supply.
Who is considered a supplier?
Suppliers are mainly:
- Producers of raw materials and semi-finished products
- Manufacturer of small parts or individual parts
- Producers of assemblies
- Producers of complete products that are recycled by other companies
But not only the producers themselves are considered suppliers. Trading companies that only sell such products and do not manufacture them themselves are also suppliers.