Supplier Group

Supplier Groups help businesses categorize vendors based on pricing, purchase terms, type of products supplied, or other business needs. Instead of managing each supplier individually, Supplier Groups allow shared settings such as price lists, conditions, or reporting filters to apply to multiple suppliers at once.

Creating Supplier Groups makes supplier management more organized, consistent, and scalable especially when handling many suppliers.

Why Supplier Groups Are Important

As a business grows, it often deals with different types of suppliers:

  • Wholesale suppliers
  • Manufacturers
  • Retail partners
  • Seasonal vendors
  • Regional suppliers

Managing each supplier separately can become time-consuming and prone to data inconsistencies. Supplier Groups solve this by:

  • Allowing shared pricing or commercial rules
  • Making reporting and analysis easier
  • Helping categorize suppliers based on business requirements
  • Reducing repetitive manual tasks
  • Ensuring consistent application of company policies

For example:

  • A Bulk Supplier group may offer lower costs and longer credit periods
  • A Local Vendor group may have different logistics charges
  • A Seasonal Supplier group may be activated only during specific seasons

So instead of issuing separate rules for every supplier, you can apply one group rule in a single step.

Where Supplier Groups Are Managed

Supplier Groups are available in:

Back Office – Parties – Supplier Groups

From this section, you can:

  • View existing supplier groups
  • Create new groups
  • Edit or update group details
  • Assign price lists
  • Enable or disable groups
  • Delete unnecessary groups

How to Create a Supplier Group

Follow the steps below to create a new Supplier Group:

  1. Open the Back Office.
  2. Go to Parties.
  3. Select Supplier Groups.
  4. Click Create Supplier Group at the top right.
  5. Enter the following details:

Fields Explained

Group Name A unique name for identifying this group. Example: Bulk Supplier, Domestic Vendor, Manufacturer – A Category.

Description Add detailed notes explaining why this group exists, its purpose, or business logic. Example: Suppliers who provide products in minimum order volume of 500 units.

Price List If the group should follow a predefined purchase rate list, select it here. Any supplier assigned to this group will automatically follow this list.

Active Status Enable or disable the group. When disabled, it will not show up while assigning suppliers.

  1. Click Save to store the group.

Once saved, the group becomes available for supplier assignment.

How to Assign a Supplier to a Group

After creating a Supplier Group:

  1. Open Parties.
  2. Go to Suppliers.
  3. Select the supplier you want to edit.
  4. Locate the Supplier Group field.
  5. Select the appropriate group.
  6. Save the supplier record.

The supplier will now inherit any linked configurations such as purchase price list or rules defined for that group.

Use Cases of Supplier Groups

Supplier Groups are beneficial in several practical scenarios.

1. Pricing Management

If some suppliers offer different purchase prices, tax rules, or discounts, price lists can be applied through groups.

Examples:

  • Premium Vendor – Standard price list
  • Bulk Supplier – Special discounted price list

2. Seasonal Vendor Control

For suppliers active only during certain months, groups help disable this set easily without editing each supplier one by one.

3. Purchase Order Optimization

Reports can be filtered group-wise to analyze:

  • Purchase amount per group
  • Profit contribution
  • Supplier performance
  • Supply chain distribution

4. Business Segmentation

Examples:

  • Categorizing suppliers by product category (Textile, Electronics, Raw Materials)
  • Grouping domestic and international suppliers
  • Classifying suppliers based on payment cycles

5. Faster Supplier Setup

Instead of configuring rates and terms repeatedly for each supplier:

  • Create a supplier group
  • Apply rules once
  • Add suppliers into the group

This reduces repetitive work and avoids data inconsistencies.

Advantages of Using Supplier Groups

  • Centralized configuration for multiple suppliers
  • Consistent purchase rules and business logic
  • Cleaner data management
  • Easier filtering in reports
  • Reduced manual setup errors
  • Faster bulk configuration
  • Better visibility in supply chain operations

Practical Example

A company deals with 150 suppliers:

  • 50 provide raw materials
  • 70 provide finished products
  • 10 offer premium goods
  • 20 are seasonal suppliers

Instead of managing settings individually:

  • Create four Supplier Groups
  • Assign required price lists and terms once
  • Add suppliers to appropriate groups

Now pricing, reporting, and supplier management become faster and more structured.

When Not to Use Supplier Groups

Supplier Groups may not be necessary if:

  • You have only 1–2 suppliers
  • Each supplier requires unique individual rules
  • You prefer managing supplier settings separately

Even then, creating groups can still help later if supplier count increases.

Summary

Supplier Groups help businesses:

  • Categorize suppliers
  • Apply shared pricing and settings
  • Improve reporting and organization
  • Reduce repetitive work
  • Maintain consistent purchasing data

By using Supplier Groups effectively, large supplier lists become easier to manage, maintain, analyze, and grow.