Tag: supply chain
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Tier 1 Suppliers
Tier 1 Suppliers Tier 1 suppliers are key business partners that directly provide critical inputs, materials, or services to a company. They are the closest link in the supply chain to production and operations, playing an essential role in ensuring product quality and operational continuity. These suppliers often represent a significant portion of procurement expenditure…
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Single-source suppliers
Single-source suppliers Suppliers that provide key materials or services for your production, for which your company does not contract with other suppliers. These suppliers represent a higher risk due to dependency, but they often ensure specialized or proprietary supply critical to business operations.
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Transactional suppliers
Transactional suppliers Transactional suppliers are suppliers with numerous alternatives, each offering products or services with limited impact on the value chain. These suppliers usually provide commodities or low-value items, and the relationship is typically short-term or transactional, focused on cost and convenience.
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Important suppliers
Important suppliers Important suppliers are operational or core suppliers, but supply alternatives exist. While these suppliers contribute meaningfully to business operations, their role is less critical compared to strategic suppliers. The availability of alternatives provides flexibility, but maintaining a stable relationship is still beneficial.
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Strategic supplier
Strategic supplier Strategic suppliers are core suppliers with limited supply alternatives. These suppliers are critical to the business’s operations and competitiveness, often providing unique or highly specialized products or services. A strong, long-term partnership with these suppliers is essential due to their significant impact on the company’s success.
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Supply Chain Transparency
Supply Chain Transparency Supply chain transparency refers to the practice of openly sharing detailed information about the entire supply chain, including the sourcing of raw materials, production processes, and distribution methods. It involves providing visibility into each stage of the supply chain, from suppliers to manufacturers, and even down to labor practices and environmental impacts.…