Vendor or supplier. We often hear the word vendor is referred to in various articles about businesses, including manufacturing. It's just, often hear does not mean we really understand what is a vendor that actually. Because of that, this article will discuss about the vendors in General and what does it do in the world of manufacturing.
As we know, the vendor is the term commonly used in a variety of discussions about the business. As it turns out, in terms of languages, the Vendor is very simple: the seller. Yes, the definition of a large Indonesian Language Dictionary according to vendors is the seller. As simple as that. Unfortunately, in the process of business, the term the seller alone is not enough. Because as we know, manufacturing is the business of the seller. All companies must have a seller. So if we were discussion of vendors on the definition as the party that sells, it will be very less once the understanding we get. To deepen our understanding of this vendor said, let us work to function in the world of manufacturing.
The function of the Vendors in the world of manufacturing
Before discussing about the function of a vendor, it's good we understand the manufacturing business in a simple first. Manufacturing business is the business of creating/producing raw materials purchased by the company for making it so valuable goods higher. That is, each process must have manufacturing business buy (procurement) to then sell it (sales and marketing). See process flow in the manufacturing business in the above, we can pull a simple conclusion, that the vendor function lies in the business processes of procurement/purchasing/procurement in the factory. When a company purchases an item, whether it is the raw material (raw material), spare parts, auxiliary materials, or even intermediate goods (Work In Process/WIP), the vendor is a term that is often used. In fact, other than the word vendor, a term often used is the supplier. So when the company needed vendors will look for items that are not manufactured, factory and needed to do the production process. Once again, purchased items from the vendor can be either raw materials, spare parts, auxiliary materials, and even intermediate goods. Typically, each company will be a vendor or supplier to other companies. Then the company who bought it would produce the goods, which goods would (finished good) needed by other companies, so he became the vendor of such companies. So keep turnover occurs. In fact, there is rarely a single company be vendors at the same time the consumer to other companies. Because, as we know, the main activity of a company is selling and buying instead? That's a bit of an overview about the sense a vendor or supplier. May be useful.