Supplier - Term Overview

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Supplier is the person or company that supplies something to another company or a community. The term comes from the verb supply which means provide (that's why a supplier known also as a provider), and which refers to supplying what is necessary for a purpose.

For example: "We are running out of leaves: please call the supplier and order several reams", "Juan is looking for a new supplier of supplies since he isn't satisfied with the current one", "The water supplier has not arrived yet, so that I can't offer you something fresh for the moment ”.

It's important to establish that there are basically two clearly differentiated types of suppliers. On the one hand, there are those of goods, which are those that contribute, sell and supply objects or tangible items. Examples of them are the suppliers of drinks for bars and restaurants or those of wood for carpentry.

On the other hand, there are those of services that, as their name indicates, do not offer something material but a performance that allows their clients to develop their activity with total satisfaction.

That is, it's known as a service provider to the company that provides services to other companies. The most common business of service providers is the offer of subscriptions or contracts. The mobile telephony, the Internet and website hosting are some of the business of service providers.

Suppliers must comply with the terms and conditions of delivery of their products or services to avoid conflicts with the company they supply. In many cases, these companies have to have a technical support or attention department, since service interruptions cause big problems for the customer.

Any company that needs suppliers is essential to take into account two essential aspects when working with them:

- When paying for items and services to these suppliers, it can be done in cash. However, the most common is that those are paid within a minimum period of 30 days and a maximum of 90 days.
- It's essential when carrying out the accounting of any business, to take a seat of all the economic transactions that are carried out with the aforementioned "suppliers" of products or benefits.

The internet service provider also known as ISP for Internet Service Provider, is the company responsible for providing Internet access to their customers. The ISP allows users to connect through different technologies, such as cable modem, DSL or WiFi. It's common for ISPs to offer other technology services related to the Internet, such as hosting sites or registering domains.

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