Supplier Is: Definition, Characteristics, Functions, Duties, Types, Examples and How to work

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Supplier Is: Definition, Characteristics, Functions, Duties, Types, Examples and How to work– In this review, about knowledge.co.id will discuss suppliers. In order to have a better understanding and understanding, let's follow the discussion below.

Supplier Is: Definition, Characteristics, Functions, Duties, Types, Examples and How to work


Definition of Supplier Universally is the "individual/industry" party that sells or supplies sources energy in the form of raw materials to other parties "individuals/industry" to be processed into goods or services certain.

Another opinion is people or industries that sell raw materials needed by other industries to be processed into a product ready for sale. Such as a supplier of palm oil that supplies palm oil in large quantities to certain industries to be processed into cooking oil.

So the definition of Supplier is a provider of products for relatively large needs for resale by small entrepreneurs or traders.


Supplier Characteristics

Following are some supplier identities, consisting of:

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  • Acting as a supplier of raw materials or raw materials to other industries.
  • The products sold are still raw "vegetables, fruit, soil, gold, metals and others" or semi-finished goods "paper, plastic and others".

Supplier Functions and Duties

Suppliers themselves have very significant functions and tasks in the product supply chain to consumers, be it goods or services. There are also some functions and duties of suppliers, namely as follows:

  • Like a party that justifies the availability of raw materials or raw materials for "people or industries" who need them.
  • Ensuring that the raw materials supplied are still in good condition when received by the buyer.
  • Controlling the process of storing raw materials before they are sent to industries that need them.
  • Controlling the delivery of raw materials on time to those who need them.

Types of Suppliers

In general, suppliers can be distinguished based on the products to be produced, namely goods and services. Referring to suppliers, there is also a brief description of the types of suppliers, namely as follows:

Goods Product Supplier

This is a type of supplier that supplies raw materials to make products in the form of objects. In this case the supplier only supplies raw materials to be processed by other parties into finished goods.

As an example, for example an industry engaged in the manufacture of written novels. So that this industry requires paper, plastic and other raw materials in order to produce written novels. The industry then cooperates with suppliers who can supply the raw materials needed "paper, plastics and other materials”, cooperation can be carried out with several parties that provide raw materials that are different.

Service Product Suppliers

This is a type of supplier that supplies raw materials to create products in the form of services. In this case the supplier only supplies raw materials which are then processed by other parties into service products that can be sold to consumers.

For example, a financial services industry requires a special application or application to help their clients monitor and manage their company's finances. Service product suppliers then provide the application or application with the specifications required by the financial services industry.

Supplier Is: Definition, Characteristics, Functions, Duties, Types, Examples and How to work

How Suppliers Work

In today's digital era, there are various methods that are tried by suppliers in their operational activities. But in short there are several things that are done by the supplier in carrying out its business, namely:

Procurement of raw materials, in the process of procuring raw materials can be tried alone by suppliers or in collaboration with other parties.

  • Creating data on raw materials, before being sold to other parties so that suppliers are required to prepare data overriding the raw materials being sold.
  • Carry out marketing, the marketing process can be done offline or online. Online for example by creating websites and advertisements to sell certain raw materials.
  • Collaborating with businessmen, in this session suppliers must be committed to being able to supply quality raw materials to business people on a regular basis.
  • Protecting quality, in this case the quality of service and quality of raw materials greatly affect the success of suppliers in carrying out their business.

Supplier Assessment or Evaluation

  • Supplier assessment is tried periodically every 6 (6) months by the Purchasing Manager.
  • Assessments were attempted on suppliers recorded in the Supplier Records by looking at records of purchases and receipt of goods from existing suppliers.
  • Evaluation is attempted against the criteria:
  • The quality of the products/services received is in accordance with the specifications, originating from the results of checks made by the appointed party or other facts.
  • The price proposed by the supplier is still suitable and can be agreed by the industry.
  • Delivery Time, which matches the agenda.
  • Payment Terms, which are agreed upon by both parties.
  • Services, provided by the supplier.
  • K3L (as well as other) aspects, which match the nature of the goods/services (L- PRC- 01)
  • Assessment is attempted by distributing evaluations of the criteria mentioned above with a score of VERY GOOD (A) or GOOD (B) or Fair (C) or LESS (K) (observed description of subject. 3), and after that add up the scores of each evaluation.
  • The supplier is declared to have passed the assessment/fulfilled the conditions if the results of the assessment do not have a LESS score for all of the criteria contained.
  • The evaluation will be recorded on the Supplier Assessment Results sheet which includes the supplier's data as well as the evaluation results and conclusions drawn.
  • Suppliers who can fulfill the evaluation results in point 1. 5. will be reused for the next period and entered in the Supplier Records.
  • Conversely, suppliers who cannot meet these requirements will not be used for the next period and will be removed from the Supplier Records.
  • Based on the results of this supplier assessment, a new Supplier Note will be issued that has passed the assessment.

Selection of New Suppliers

  • Each new supplier must be selected to ensure that the supplier can meet the requirements that have been set.
  • The Purchasing Manager wants to find information about the supplier regarding the quality of the products/services produced, selling prices, delivery times, HSE aspects (L-PRC-01) and others.
  • Based on the information available, the Purchasing Manager together with other parties/sections those involved will review to ensure compliance with the existing requirements inaugurated.
  • If needed, the Purchasing Manager will request product samples from the supplier to be tested by the designated party first.
  • The review was attempted to match the application of the supplier assessment above. The quality of the product/service to be provided is based on written specifications and/or product samples
  • The promised delivery time matches the needs of the industry and the fulfillment of the K3L aspect matches the legal and/or industry requirements (L- PRC- 01).
  • The results are recorded on the Supplier Assessment sheet by including the supplier data reviewed and the conclusions from the review that was attempted.
  • Based on the results of this review, the Purchasing Manager wants to make sure whether the supplier can meet the requirements that have been set.
  • The Purchasing Manager will notify the selected Supplier and then carry out the purchasing process match the existing Purchasing Procedures and enter the supplier's information into the Records Suppliers.

Thus the review from About the knowledge.co.id about Suppliers, Hope it is useful.

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