A supplier may be distinguished from a contractor or subcontractor, who
commonly adds specialized input to deliverables. A supplier is also known as a
vendor. There are different types of suppliers based on their goods and
products.

ERPNext allows you to create your own categories of suppliers. These
categories are known as Supplier Type. For Example, if your suppliers are
mainly pharmaceutical companies and FMCG distributors, You can create a new
Type for them and name them accordingly.

Based on what the suppliers supply, they are classified into different
categories called Supplier Type. There can be different types of suppliers.
You can create your own category of Supplier Type.

> Buying > Setup > Supplier Type > New Supplier Type

<img class="screenshot" alt="Supplier Type" src="{{docs_base_url}}/assets/img/buying/supplier-type.png">

You can classify your suppliers from a range of choice available in ERPNext.
Choose from a set of given options like Distributor, Electrical,Hardware,
Local, Pharmaceutical, Raw material, Services etc.

Classifying your supplier into different types facilitates accounting and
payments.

Type your new supplier category and Save.

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