Categories of supplier

Suppliers can be categorized in several ways, depending on the criteria used. Here are some common categories of suppliers:

Strategic suppliers: These are suppliers who are critical to the organization’s operations and success. They may supply unique or specialized products or services that are essential to the organization’s competitive advantage. The organization may have a long-term relationship with strategic suppliers and may work closely with them to develop new products or improve processes.

Preferred suppliers: These are suppliers who are selected based on their quality, reliability, and cost. They may have a good track record of delivering products and services on time and meeting the organization’s requirements. Preferred suppliers may receive preferential treatment in terms of pricing, delivery, and other terms.

Approved suppliers: These are suppliers who have met the organization’s basic criteria for quality, reliability, and financial stability. They may be included in a list of approved suppliers that the organization uses when selecting suppliers for specific projects or orders.

Commodity suppliers: These are suppliers who provide standard products or services that are widely available in the market. They may compete on price and may not have a unique or specialized offering.

Local suppliers: These are suppliers who are located in the same geographic area as the organization. They may be preferred for their ability to provide fast delivery and reduce transportation costs.

International suppliers: These are suppliers who are located outside the organization’s home country. They may be preferred for their ability to provide specialized products or services that are not available locally or for their lower costs.