Inventory glossary

What is Supplier?

Supplier is the business you buy stock from, whether that is a manufacturer, wholesaler, or distributor who sends you finished goods to sell.

Your supplier's lead time and reliability shape almost every reorder decision you make. If a supplier takes four weeks to ship, you need to order four weeks before you run out, not four days. Late or inconsistent suppliers force you to carry more safety stock, which ties up cash.

Track each supplier's lead time, minimum order quantity, and case pack size separately, since these vary a lot even within the same store. A candle store might have one supplier who ships jars in two days and another who takes six weeks for wax, and treating them the same way leads to stockouts on the slow one.

Example

A candle store buys wicks from Supplier A, who ships in 5 days with no minimum order, and glass jars from Supplier B, who ships in 30 days and requires a minimum order of 500 units. The store must plan jar reorders a month ahead while wicks can be ordered almost on demand.

Common mistakes

  • Treating all suppliers as having the same lead time when planning reorders.
  • Not recording changes when a supplier's lead time or minimum order quantity shifts.
  • Relying on one supplier for a best-selling SKU with no backup plan if they run late.

Supplier and SteadyShelf

SteadyShelf stores each supplier's lead time and case pack size so it can calculate an order-by date and suggested quantity for every SKU tied to that supplier.

SteadyShelf is launching on the Shopify App Store. Join early access to get the install link first.

Related terms

Lead time · Purchase order · Case pack · Minimum order quantity · Reorder point

Full inventory glossary

FAQ

How many suppliers should a small Shopify store use per product?

There is no fixed number. Many small stores use one supplier per SKU to keep things simple, but having a backup supplier for your best sellers protects you if the main one runs late or runs out.

What is the difference between a supplier and a manufacturer?

A manufacturer makes the product, while a supplier is anyone you buy from, which could be the manufacturer directly or a wholesaler or distributor in between.

Let SteadyShelf do this math for every SKU

Order-by dates per supplier, seasonal forecasts and draft POs for your Shopify store. $29/month after a 30-day free trial.

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