Which suppliers are referred to as strategic suppliers?

Strategic suppliers are those who contribute beyond just the provision of goods or services. This means they play a critical role in the organization’s overall strategy and objectives. These suppliers often engage in deeper partnerships and collaboration that add value through innovation, sharing of best practices, and alignment with the buyer's long-term goals.

Their contributions may include improvements in efficiency, access to new technologies, insights into market trends, or support in developing new products. This strategic alignment can lead to enhanced competitiveness and success in meeting the needs of the business in a dynamic market. Such a relationship contrasts with a purely transactional approach, where the focus is primarily on short-term cost savings without considering the overall value contributed by the supplier.