Role of Suppliers in the Manufacturing Industry
Suppliers: An Important Cog in the Wheel
Whenever we buy a product or use a service, we might not think about how it is produced, what materials were used in making it and how much time and how many people worked continuously to make that product. While we are consuming a good, we might not think about these things but that doesn’t mean it is not important. Manufacturing is one of the important stages where a product is manufactured, assembled, and designed. Manufacturing industry too is dependent on suppliers to provide them with raw materials for producing finished goods. For example, if a semiconductor supplier, do not supply raw materials to the semiconductor industry on time then it will affect the supply chain of the semiconductors. Thus, the role of suppliers is very important in the manufacturing industry.
Role of Suppliers in Manufacturing of Various Products:
Manufacturing process for each product and service is different and hence the role of suppliers too changes with it. In manufacturing of some product, the role of suppliers would be to supply the raw materials, while in manufacturing of some other product they may have some extra roles. It is too be understood that suppliers is not a term that is used just for those group of people who supply raw materials, the ones who supply finished goods are also known as suppliers.
Following are some of the most common role of suppliers:
Providing Raw Material on Time: Suppliers provide raw materials that is obvious, but they should provide it on time. For example, in the electronics industry, there are several suppliers involved. Such as semiconductor supplier, camera & sensor equipment supplier, screen supplier, etc. Thus, it is necessary that all of these supplies should reach on time to the manufacturer otherwise it will disrupt the production cycle.
Checking quality of Raw Materials: Though it is advisable that manufacturer should check the raw material before using it in the manufacturing process sometimes that is not possible as it consumes a lot of time, especially when there are many different raw materials in huge quantities. Thus, it is the job of supplier to check the quality and efficiency of the raw material before supplying it.
Cutting Distribution Costs: This will benefit to both supplier and manufacturer. A supplier should try to cut the cost of distribution as much as possible. As it will increase its own profit and manufacturers prefers such suppliers who spends less behind distribution costs. Distribution costs can be slashed by localizing the raw material unit near the manufacturing plant, using bulk supply and time efficiency, using optimum utilization methods, and using fuel-efficient vehicles.
BOTTOMLINE:
Thus, the role of suppliers are many and quite significant in nature. Suppliers not only provide raw materials from producers to manufactures but they also supply the manufactured goods many times. In many cases, the supplier & manufacturer of the good is same. Many companies today manufacture the raw materials by themselves before manufacturing the final good. Thus, it can be said that in today’s world the dynamics of suppliers have changed. The dependence of the manufacturing industry on suppliers is visible clearly. There is no doubt that suppliers are an important cog in the wheel of the manufacturing process of every industry.
