Strategic Suppliers Definition

A strategic supplier is a company that provides goods or services to another company in a way that creates value for the customer and a competitive advantage for the supplier. In some cases, a strategic supplier may be a sole source supplier, meaning that the customer cannot obtain the same goods or services from another company.

A strategic supplier relationship is one in which both parties work together to create value. The relationship is built on trust and mutual understanding, with both parties working towards common goals. The customer must see the supplier as an integral part of their business, and the supplier must be able to provide the customer with what they need, when they need it.

There are many benefits to having a strategic supplier, including:

-Improved quality: When both parties are working together towards common goals, the quality of the product or service improves. This can lead to increased sales and happier customers.

-Reduced costs: By collaborating closely, both parties can identify ways to reduce costs without compromising quality. This can lead to significant savings for both parties over time.

-Increased innovation: Strategic suppliers are often more innovative than traditional suppliers. They are constantly looking for ways to improve their products and services, which can lead to new and improved offerings for the customer.