An ex-supplier is a company or individual that previously provided goods or services to a customer or client but no longer does so. This cessation of the business relationship can result from various factors, including contract termination, dissatisfaction with the services or products, competitive pricing from alternative providers, financial instability of either party, or a strategic shift in business focus. The term emphasizes the past relationship, highlighting the previous dependence or interaction between the entities involved. The reasons for the separation are often complex and can be a matter of strategic concern for the former client and the former supplier.
Ex-supplier meaning with examples
- After years of consistently high prices and late deliveries, the manufacturing company decided to switch to a new supplier for their raw materials. The ex-supplier, initially surprised by the contract termination, attempted to negotiate better terms, but the client was resolute in their decision. The new agreement offered better prices, improved lead times and greater quality assurance, making it a better business decision for the manufacturing plant.
- The software company's client decided to end its contract with the ex-supplier of their cloud infrastructure. The ex-supplier had difficulty keeping up with the ever-changing needs of the clients. The decision to seek alternative vendors stemmed from the need for more scalable and reliable solutions. Several factors, including higher costs and poorer technical support led to the migration of the client to a different provider who met the current and growing expectations of the client.
- Following a management shakeup, the retail chain terminated its agreement with an ex-supplier of its seasonal inventory. The ex-supplier, heavily reliant on this major client, was forced to restructure its operations. The retailer sought to consolidate its supply chain and secure better discounts with a new supplier for improved profit margins. The change also reflected the retailer's desire for a more flexible supply chain.
- Due to a change in company strategy the start-up tech company decided to cut ties with its ex-supplier of its logistics and delivery service. The ex-supplier's service, although satisfactory, had limitations that did not align with the company's new direction. To enter the new market and scale up the business the client chose to move to an in-house delivery solution. The former supplier’s services became incompatible with the company’s strategic evolution.