What Do You Mean By Supplier In The Task Environment Of Organizational Management?

Suppliers are individuals and organizations who provide the resources used as inputs to produce goods and services. Suppliers are a critical part of the task environment because organizations must have a continuous source of resources in order to serve their customers. A good working relationship with suppliers can also help an organization achieve its goals. For example, when Mazda introduced the wildly popular Miata model, it was able to launch the product early because Mazda's suppliers cooperated with the designers to ensure that all parts fit correctly without the time and the expense of making prototypes.

Moreover, suppliers provide nonphysical resources such as funding, information, and employees. Banks, stockholders, and private investors are some sources of capital for the organization. Magazines, newspapers, and researchers are among the organization's information sources. Employment agencies and college placement offices are two suppliers of human resources.

When organizations such as Maxtor, a computer diskdrive manufacturer in San Jose, California, require sophisticated parts, they may buy from four or five suppliers so that they can be assured of a constant supply. On the other hand, Maxtor buys some customized parts from just one supplier. Dealing with a single source allows the organization to have more control over its materials and may even lower the cost. But when an organization relies on a single source, it can face several risks. If the supplier does not deliver on time, suffers from a shortage of materials, or goes out of business, the organization could have a hard time meeting the needs of its own customers.