What is a supplier?

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When starting a business we must take into account many aspects, and one of the most important is to acquire products or raw materials to develop our own products. Companies, due to their nature, need a great amount of materials to carry out the different product processes in a complete way, in this way they will be able to create a sales proposal and, in the long run, obtain benefits.

The suppliers become, in this way, a fundamental part of our business. Thanks to them, and because of them, we can advance in the business world. That is why it is extremely important to be able to manage them properly, as with Innovacommerce’s ERP. Read on and you will see.

What is a provider?

Whether it is a person or a company, a supplier is one who is responsible for supplying other companies with goods, articles, raw materials that will be transformed for sale. Similarly, a supplier can offer services such as consulting hours, training or of any kind. When you have a business, the choice of your supplier will be crucial for the operation of all the machinery.

As time goes by you will be able to negotiate, improve prices, payment conditions and exclusivity; this in order to improve the relationship and give a guarantee of improvement for both parties. Especially if we understand that the proper functioning of our company depends on the constant flow of materials and services,

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For this reason it is important to have tools that manage all aspects with suppliers as a priority. In doing so, we seek to ensure that the procurement of goods flows properly and this limits financial, business or reputation risks.

Types of suppliers

Supplier of goods

Suppliers of goods are those companies or persons who manufacture some kind of product, which has a market price, for example furniture, computers or vehicles. These types of suppliers satisfy a specific market need and are very important for the proper functioning of most businesses.

Service providers

Service providers are those individuals or companies that seek to respond to their client’s needs. Their services, in many cases, are intangible but they use different goods to achieve their goal. For example, in this group we can include Internet providers, transportation of goods, public services, maintenance services and entertainment.

These types of suppliers are vital for every company, because through them you can establish long-lasting commercial relationships that, in the long run, will mean great benefits for both parties.

Resource Providers

These types of providers are companies or individuals, who meet the economic needs of different businesses. Through credits, economic resources, capital for the company, associations etc. Some examples of this type of supplier are: banks, capital partners, financial entities, cooperatives, lenders.

Similarly, our company can become a supplier for others, depending on their nature. This is a very common issue, especially if we understand that businesses are dynamic and in many cases, with growth and transformation, we will come to offer services or products to others.

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Conclusion

We must be very clear about the type of supplier we have in each case and how to manage it. Therefore, if you still do not have it, we recommend you to take a look at both our POS and our ERP Software, because they are designed to provide global solutions to your business. Do you need help? Do you have any questions? The comments are yours!

 

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