A supplier is an external organization or person that provides goods or services to the buying enterprise. In procurement, the relationship can involve discovery, qualification, due diligence, onboarding, sourcing, contracting, ordering, delivery, invoicing, performance, risk, and renewal. Approval is normally scoped by category, entity, location, status, or other criteria rather than assumed to be universal.
In plain English
It is the party that provides the organization with goods or services.
Illustrative example
At Northstar Industrial Systems, a manufacturer supplies critical control components under an approved scope, contract, order, delivery, and performance process.
- Related terms
- Supplier onboarding; Supplier qualification; Preferred supplier; Vendor
- Lifecycle stages
- All stages
- Stakeholders
- Supplier; Procurement; Finance; Operations