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Types of suppliers, the nuances of processing transactions and settlements with them

It is difficult to imagine a successfully developing business in any field without a network of suppliers. However, to establish a long and profitable partnership is not always possible. The formation of a clear and productive cooperation with counterparties depends not only on the entrepreneurial abilities of the entrepreneur, but also on his tactfulness, competent actions, responsibility and other equally important personal qualities. To make the right choice, first of all, it is necessary to determine the types of suppliers.

The main types of suppliers of goods Manufacturers Most owners of the retail business prefer to purchase the necessary goods from the official representatives of the manufacturer or sales agents. In this case, prices are usually minimal, however, the associated costs of transporting the purchased products are also possible with a large distance from the supplier. Craftsmen Kustari make exclusive goods that can be purchased at industrial exhibitions or through sales representatives. Distributors As a rule, distributors purchase products from manufacturers and store them in wholesale warehouses for further sale to a retail network. Of course, their prices are higher, but these agents can deliver small quantities of goods of different brands, while the manufacturers themselves prefer to sell only large wholesale. Importers Many entrepreneurs interested in supplying resources from abroad, cooperate with importers.

Types of suppliers of various classifications All suppliers are classified by category, although this concept is very conditional. Let us refer to the criteria for the distribution of suppliers into groups, which are often cited in the literature: The suppliers are differentiated according to the type of relationship as follows: Traditional. These include suppliers who have previously worked with the contracting enterprise, they have sufficient information about them (including the manufacturer’s ability to manufacture products in accordance with the requirements of its customer), as well as an established delivery system. Random. These are the suppliers with whom the contracting enterprise has only once come into contact, and the choice of those was caused by tensions with supply issues. Suppose the manufacturer has a deadline for the delivery of a certain project, and the regular supplier violated the delivery time under the contract. Therefore, in order to avoid a breakdown of the contract (losses on possible fines) and a significant undermining of its business reputation, the company is forced to take advantage of the supplier’s “first available” offer, who promised to complete the required amount of work in a short time. Potential.

This type of product supplier includes entrepreneurs who have never worked with the client enterprise, but who have a chance at any time to become one of its partners. Before moving the supplier from the category of “potential” to “traditional”, the process of “evaluating and selecting a supplier” by the contractor itself is carried out. Read also the article on how to find a supplier who will offer you favorable terms. On the scale of their own business, suppliers are large, medium, small. The distribution of suppliers in these categories is based on the legislation of the country, taking into account the number of full-time employees, production capacity and cash turnover of the enterprise itself. In addition, from the standpoint of the contractor, such a classification of suppliers indicates the level of their reliability, the degree of risk of “violation of delivery dates”, which threatens the customer in cooperation with the supplier of any of these categories.

At the same time, it must be remembered: the smaller the supplier, the greater the likelihood of delivery failure. Basically, medium-sized enterprises (even more so) use almost closed production cycles, which means they also have resources of finished products, components, necessary raw materials, related materials, etc., which help them to hold out for a while and deliver to force. -major situations (disruptions in the supply of raw materials, equipment failure, etc.). Small enterprises do not have this opportunity (neither financial nor some other), so we can confidently say that in the event of a similar sudden situation they will not fulfill their contractual obligations on delivery dates. By geographic location, the types of suppliers in commerce are local (local), located within the geographic area of ​​a province, region or city; regional, located within the country; foreign (foreign). Contracting enterprises of modern world have to equal themselves with foreign suppliers who have long confirmed their reliability, stable ability to produce high-quality products, and loyalty to consumers.

Our domestic entrepreneurs are forced to regain lost positions in the market, raise credibility and even win the right to work. Relations with Asia subcontractors are usually built on the principle of “lower prices, then take”, which forces suppliers to cut costs at the expense of quality. There are even “reverse auctions” when the right to supply goods passes to the one who offers the lowest price. But do not forget that in some cases, foreign suppliers are not the best option for a local contractor. Therefore, today, sometimes (taking into account strategic goals), it is much easier and more rational to “create”, promote your own, domestic supplier, focusing on a sustainable future.

Sales receipt or invoice As mentioned earlier, sales receipts are issued when goods are delivered by individuals or directly to individuals. Invoices are mainly practiced by legal entities when registering the fact of the sale of goods. They are written out in duplicate, the first of which is stored at the supplier and documents the transfer of products, the second is handed over to the buyer. Note that the information in the invoice must match the data from the invoice. Employees authorized to release the goods, personally sign invoices and stamp the company. The party receiving the goods also signs in the document and assures its autograph with the seal. The use of a facsimile signature is possible, but this should be included in the contract in advance.

The act of the performance of works or the provision of services. This is a primary bilateral document proving the fact of the transaction, the price and the timing of the works (services). The client receives an act from the contractor on the results of the work or services. This initial document view from the supplier also serves as actual confirmation of the compliance of the completed works (services) with the conditions of the signed contract. Invoice. A document whose purpose is to control the deduction of VAT. As a rule, invoices are filled at the same time with invoices or acts. Sometimes they write out invoices for the advance payment. This primary document with strict regulation contains data on the amounts of money and the textured segment. The invoice serves as the motive for taking to deduct the specified amounts of VAT. It must be issued by all enterprises that are payers of this tax. In recent years, the universal transfer document (DFC), which replaced the two invoices – the invoice and the invoice act – has been increasingly used.