Ghee suppliers are one of the most important and active entities in the ghee supply chain and like any other suppliers in the market.
They ensure regular supply of this dairy product to the retail points for consumer purchase. The role of a supplier in business is to offer good quality products from a producer at a good price to a distributor or retailer for resale. The supplier works for the source of goods or services.
Who is a good quality supplier?
Product quality, price, accessibility, dependability and customer service are all important factors for checking before identifying a good supplier. A solid reputation is a good indicator of these qualities and the willingness to work with the manufacturer’s business by selling more products is another practical impetus of a dependable supplier.
The Importance of a Supplier in the Product Life Cycle
Suppliers have an enormously vital role at every stage of a product life cycle, grass-fed ghee suppliers are no exception. From sourcing raw materials to helping in smooth production, and to find better options for raw materials as the market may get saturated, manufacturing units need to work thoroughly with their suppliers to get the best out of their products.
The role of a competent supplier
The role of a supplier in a business can be a challenging one as retailers consistently expect a certain level of quality, and manufacturers mostly expect suppliers to sell a considerable amount of stock. In the dairy ghee industry, a ghee manufacturer expects ghee suppliers to be flexible enough and are capable to maintain professional relationships in the market. Other important elements of a supplier’s role include:
- Obedience with local laws: Suppliers should obey all pertinent laws and standards, including human rights protection and sensitive issues like child labor.
- Impartial dealings from all retailers: Suppliers should provide equal opportunities for all retailers to do business with them. Ghee suppliers should place their products in all marketing territory so that a product can reach to consumers.
- Best price potential: Suppliers should guarantee the best price and quality to retailers to keep trust among them. This will confirm repeat business in the same area successfully.
- No clash of interest for suppliers: Suppliers should not do business with the people with whom a conflict of interest may come up. This may include family members, friends, and new or old colleagues. This is to reduce the risk of unfair dispute, however, sometimes it is allowed to expand the business under a strong flagship brand.
What Is the Difference between a Suppliers vs. distributor?
A supplier supplies a product or service to another business entity, usually to a distributor who can further sell it to a wholesaler or retailer. Suppliers can also be the manufacturer of a product as well as the distributor of the product. More often they don’t want to take the additional workload of distribution so they subcontract this activity to another business unit. This applies to the ghee suppliers as well.
A distributor, on the other hand, sources products from suppliers and sells them to a wholesaler or retailer at a slightly higher price to make a bit of profit for themselves. The main difference between these two groups is that one works more closely with the manufacturer (the supplier), and the other works closely with the retailer (the distributor).
Criteria of a professional supplier
The standards of a professional supplier are one of the main criteria for the selection. Besides professional reputation in the market, a supplier is expected to have some infrastructure about the supply business.
- Realistic lead times from the receipt of the product order to delivery and adequate marketing experience in the dairy ghee business.
- Minimum and maximum order quantities to receive.
- Storage and handling facilities of sensible products like ghee.
- Ability to follow specific methods of ghee delivery.
- Quality assurance processes for a product delivered in retailers’ place.
- Payment terms and conditions with the manufacturer/distributor.
- Return policy of the product, for ghee suppliers, it is ghee product.
- Contactable references for expanding the ghee business.
Different types of suppliers
Different types of suppliers are found in the market. In the dairy industry, ghee suppliers are mostly categorized into four distinct classes.
Manufacturers and Vendors are the companies that research, conceive, and produce the finished product, which is ready for purchase. Ghee Manufacturers and vendors are the sources of the ghee clarified butter supply chain. Distributors, wholesalers, resellers, etc. purchase ghee from manufacturers and vendors under the cheapest prices because of their bulk purchase.
Wholesalers and Distributors are the business units that may buy in bulk from several manufacturers or vendors. They warehouse the purchased goods for reselling to the smaller local distributors, wholesalers, and retailers. Distributors and wholesalers may also supply bulk quantities to an institution or government departments directly.
Importers and exporters – These suppliers will buy products (ghee) from manufacturers in one country and either export them to a wholesaler in a different country or import them from an exporter into their country.
Ghee Drop-shippers are suppliers of ghee from a specific supplier or multiple suppliers that will deliver the product directly to the buyer once they have made the purchase. This can be cost-effective as it excludes the necessity for storage of the item for sale.
Milkio Food is the manufacturer and wholesale ghee suppliers of organic grass-fed ghee. Based in New Zealand, the company exports its products all around the world.
Presently Milkio products are available in the USA, Australia, Taiwan, Saudi Arabia, UAE, Egypt, Singapore, Thailand, Japan, and in New Zealand itself.