Supplier Meaning

A provider is a third party that is dedicated to providing or supplying another person (which may be physical or legal) with the materials, products or other supplies necessary for a particular purpose, necessary for its operation and development The supplier is the one who provides resources such as equipment, raw materials, tools, gas, electricity or water.

All economic activity, whether it is a business or a company, needs a variety of elements to be able to operate daily.Each provider will be chosen according to the relevance of their characteristics to meet the needs, whether they are delivery times, availability, prices, or the quality of services and products.

The recipient of the merchandise or stock of the supplier can sell them directly to the consumer market (final consumer), or transform these resources obtained (the most common case is the raw material) forming part of another link in the distribution chain.

If the activity in question is a link or intermediary of the distribution chain, the provider will have a double function : on the one hand it will be a client of the manufacturer, and on the other it will be a supplier of the trade or business it provides.

Types of providers

Depending on the type of service or merchandise provided by the supplier, three types of suppliers may be distinguished:

• Supplier of goods


• Resource provider


• Service provider

The supplier of goods is responsible for providing items , tangible goods or objects.For example, in a furniture factory, the supplier of goods is the one who supplies the wood.

Service providers are those who instead of providing tangible material directly attend activities or services that allow customers to perform their functions in the company, for example, generic telephone service providers, electricity , gas or water.

While the resource providers are the ones that meet the economic or financial needs of the company, such as credit institutions or banks.

Supplier usage examples

• "The husband is the economic provider of the traditional family."


• "Wheat supplier is the most important in the flour industry."


• "It is necessary to consult the supplier in case of damage to the artifacts."


• «The supplier of raw materials is foreign, since the country does not have such basic material for industrialization.»

Provider synonyms

supplier, supplier, supplier, distributor, supplier, consignee