Key Supplier

A key supplier is a company that provides goods or services to another company in a way that is essential to the first company’s operation. A key supplier relationship is typically characterized by one or more of the following features:

-The supplier provides a unique product or service

-The supplier has significant market share

-The supplier is essential to the buyer’s brand

-There are few substitutes for the supplier’s product or service

-The buyer is heavily reliant on the supplier

A key supplier relationship can be beneficial for both parties involved. The buyer gets access to a necessary good or service, while the supplier gets a stable customer base and predictable revenue stream. However, there can also be downsides to being a key supplier, such as being at the mercy of the buyer’s whims and having little negotiating power.