A preferred supplier is an approved source that an organization directs eligible demand toward based on defined commercial, performance, risk, capability, or relationship criteria. Preferred status should have a stated scope, owner, review date, and exception path. It does not necessarily mean sole-source status, suitability for every need, or permanent approval across all categories and locations.
In plain English
It is a supplier the organization wants users to choose for a defined type of purchase.
Illustrative example
At Northstar Industrial Systems, the guided-buying path directs standard electrical supplies to a preferred supplier while specialized items follow a separate sourcing review.
- Related terms
- Guided buying; Supplier qualification; Catalog; Supplier segmentation
- Lifecycle stages
- Request; Source; Execute
- Stakeholders
- Requester; Procurement; Supplier