Supplier is? Definition & Tips for Choosing a Reliable Supplier

The term supplier is generally well-known among the public, especially among entrepreneurs. In operating their business, the role of suppliers often becomes a key factor in maintaining stock (inventory) and determining selling prices. So, what exactly is a supplier and how do you choose the right supplier for your business? Let's take a look at the following discussion for more information!

What is a Supplier?

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In general, a supplier is an individual (person) or company that provides or sells raw materials to other parties, whether individuals or companies, for use in producing finished goods or services. 

However, there is often confusion between the concepts of supplier and distributor. Distributors focus on selling or distributing products to retailers for distribution to end consumers. 

Meanwhile, suppliers are responsible for providing raw materials to companies in need, so they can be processed into finished goods ready for sale. Clearly, these are distinct entities. Essentially, suppliers play a very important role in the supply chain of products to consumers. 

First, suppliers are responsible for ensuring the availability of raw materials to those in need. 

Second, suppliers must ensure that all of their raw materials can be received by buyers in good condition. 

Third, suppliers are also responsible for storing raw materials before they are distributed to those in need. Lastly, suppliers are responsible for delivering raw materials to companies in need on time. 

Now that you understand the definition of a supplier and the role and function of a supplier for your business, it's time to understand how to choose a quality supplier. Choosing the right supplier is very important for your future business. Here are some tips to consider when choosing a supplier as your business partner!

Tips for Choosing a Reliable Supplier

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Be Professional

The professionalism of a supplier can be seen from how they present information and data about the products they offer. In today's digital age, the presence of social media and websites is an important indicator of whether a supplier is running their business professionally or not. 

Through social media and websites, suppliers can display comprehensive and reliable information about the products they offer, including specifications, prices, customer testimonials, and ordering procedures. Thus, having a strong online presence and the ability to provide clear and accurate information can be a key characteristic of a professional supplier.

Prioritize Quality

When choosing a supplier, it is important to prioritize quality as the main basis for decision-making. Although cheap prices may seem attractive, you should also consider whether the quality of the products offered meets your business needs. 

For example, you can also assess the quality of a supplier by examining their track record of working with other clients. If they have worked with reputable clients and have a good reputation, this can be an indication that the supplier can be relied upon to provide quality products.

Consider the Supplier's Capacity

It is very important for you to consider the supplier's capacity to fulfill orders accurately. If the supplier's capacity is equal to the number of products you will order, this could be a sign of risk. Instead, look for suppliers with production capacities that exceed your needs, so you don't have to worry about shortages in the future.

Review Return Policies and Procedures

In some situations, product returns are often necessary. This can be due to various reasons, from defective products upon receipt to discrepancies in quality with the desired order. 

Therefore, it is important for you to understand in detail the return policies implemented by the supplier. This step aims to avoid confusion and save time and effort if you ever need to make a return. By understanding the return policy, you can anticipate the return process more effectively and ensure that your rights as a customer are well protected.

Pay Attention to Consistency in Service Quality

The consistency of suppliers in fulfilling orders has a significant impact on the availability of stock in your business. Therefore, it is important to choose suppliers who offer consistent and reliable services. 

With a consistent supplier, you can ensure that stock is always available according to your business needs. Additionally, consistent service quality also helps maintain the credibility of your business in the eyes of customers and other business partners.

Know the Supplier's Track Record

Another way to evaluate the quality of a supplier is to review the track record of buyers who have transacted with the supplier. If the supplier has a good track record, this indicates that they have proven to be able to fulfill orders effectively. 

Indications of a good track record include timely delivery and product quality that meets expectations.

Choose a Fast and Responsive Supplier

You certainly don't want to have a supplier that is difficult to reach or slow to respond to communication, even in urgent situations. Therefore, look for suppliers who have the ability to communicate effectively and responsively to ensure the smooth operation of your business. 

Responsive suppliers are not only responsive at the beginning of transactions, but also in urgent situations or when problems arise. By having a responsive supplier, you can address problems or changes in situations quickly and efficiently.

Request Product Samples

Not all suppliers are willing to provide product samples, as it depends on the type and volume of orders. If you doubt the credibility and professionalism of a supplier, requesting product samples upfront is a wise step. This way, you can ensure before moving forward.

Seek Direct Manufacturers

The last tip you can do is to find suppliers who directly manufacture the products. This will certainly provide you with a much larger profit margin compared to working with suppliers who are already second, third, and so on. 

From all the tips mentioned above, not all of them can be absolutely applied or used as indicators in assessing potential suppliers that you will choose. There are still many other factors and indicators that you can consider, but the 9 points above should help guide you in selecting suppliers. So always make sure to be thorough, careful, and wise in choosing suppliers!