A supplier database is essential for businesses that rely on multiple vendors to provide goods or services.

It keeps track of supplier details, contract terms, and order histories, serving as the central source of truth for managing supplier relationships.

If you're unsure where to begin, this guide will walk you through the process of creating an efficient supplier database, helping you avoid issues like missed orders and unreliable supplier tracking.

Let's dive in and learn how to develop a supplier database.

Why Build a Supplier Database?

A good supplier database is key to smooth purchasing. It helps you:

Keep an eye on how suppliers are doing
Follow up on orders
Handle contracts
Make sure orders arrive on time

Having all your supplier info in one place means everyone's on the same page. This lets you make smarter choices about who to buy from and how to work with them.

What Is a Supplier Database?

A supplier database stores detailed information or attributes about your vendors, such as supplier name, contact details, contract terms, pricing agreements, minimum order quantities, delivery schedules and payment terms.

Depending on your industry, you might also track attributes like compliance certifications (e.g., "ISO-certified," "fair trade",) product quality ratings, lead times, and any specific conditions or agreements (e.g., "exclusive supplier," "preferred vendor").

Let's say you're in charge of buying items for a factory. Your main computer system might handle the basics, like who your suppliers are and what you've ordered. But it might not be great at keeping track of all the nitty-gritty details like contract specifics or supplier performance metrics.

That's where a proper supplier database comes in handy. It's like a one-stop shop for everything about your suppliers. You can search it easily, and it keeps all the important info in one place. This makes it much easier to keep an eye on how things are going with all your vendors.

Why Spreadsheets Fall Short for Supplier Databases

Let's face it, many of us start out tracking our suppliers in Excel or Google Sheets. It seems easy at first, especially when you're just starting out. But as your business grows, these spreadsheets can cause some real headaches:

Version Chaos: Before you know it, everyone's got their own copy. You end up with a mess of files like "SupplierList_LATEST," "Vendor Database – Updated," "Old Supplier List – IGNORE," and so on. Who knows which one's right?
No Clear History: Without a proper system, it's hard to keep track of who changed what and when. If the person in charge of updates leaves, you might be left scratching your head about why certain changes were made.
Data Gets Messy: People start adding their own notes, highlighting things, and making manual tweaks. Soon enough, you've got a rainbow of colors and comments that don't make sense to anyone else. For example, someone might mark a supplier in red to show they're unreliable, but others might miss it or misunderstand.

Using spreadsheets for your supplier info goes against the whole point of having one trustworthy source of data. Instead of smoothly managing your suppliers, you end up playing detective with a bunch of conflicting spreadsheets.

Building a real supplier database with a proper tool can solve these problems. It gives you one central place for all your supplier info that everyone can rely on.

How to Create a Supplier Database in 3 Steps

Five makes it easy to create a supplier database

Five makes it easy to create a supplier database.

Let's be real - if you're running a business, you probably don't have time to become a database expert. Normally, you'd need to fully understand concepts like SQL and how to build user interfaces. That's a lot to ask when you're busy keeping your business running.

This is why many small businesses put off creating a proper supplier database. It just seems too complicated and time-consuming.

But here's where tools like Five come in handy. It's an online database builder that makes creating a supplier database way simpler.

Now, I won't lie - it's not as easy as snapping your fingers. But it's a whole lot easier than spending weeks learning to code from scratch.

With Five, you can:

Quickly set up your supplier database and get a user-friendly interface without any extra work. It's easy to import your existing supplier data from Excel or other spreadsheets, so you don't have to start from scratch.

You can also add custom features like detailed reports about your suppliers and set up charts to help you visualize your data at a glance. One of the handiest features is the ability to set up alerts that let you know when it's time to reorder from a supplier, helping you stay on top of your inventory needs.

Plus, you can use it on any device. So whether you're at your desk or on the go, you can always check your supplier info.

Want to give it a shot? Here's how to get started:

Sign up for free
Make your own supplier database (or use a template to get started)
Add forms to collect the info you need
Set up logins for your team, and even for suppliers if you want

Create a Supplier Database 
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Step 1: What You Need to Know About Your Suppliers

First things first, think about what info you really need about your suppliers. What matters to your business? What do your team and customers care about? You want your supplier database to be the go-to place for all this info, so make it as complete as you can.

Here's a list of things you might want to keep track of:

Supplier ID and Name
What they provide (products or services)
Their prices
Any special deals or discounts
How to contact them
How long they take to deliver
Minimum order amounts
Their location
Any certifications they have
How reliable they've been
Payment terms
Contract details

Step 2: Think About How You Work with Suppliers

Your supplier database isn't just a list - it should help you manage how you work with suppliers day-to-day. Think about things like:

When you place orders: Keep track of order dates, what you ordered, and when it's supposed to arrive.
When items come in: Note down when deliveries arrive, if everything was there, and if it was all okay.
How you pay: Record when invoices come in, when you pay them, and any issues that come up.
How well they're doing: Keep notes on quality, if they deliver on time, and how easy they are to work with.

The more info you keep, the more useful your database will be. For example, if you want to see which suppliers are the most reliable or give the best prices over time, you'll need to have been recording that info all along.

Remember, a good supplier database grows with your business. Start with the basics, and you can always add more detail as you go along.

Step 3: Creating Your Supplier Database

With your list of supplier attributes and additional information ready, it's time to move all of this into a proper database.

To do so, sign up for Five, an online database builder that comes with a simple point-and-click interface for creating relational databases.

Follow our video tutorial to build your database tables, forms, and reports, and start managing your suppliers efficiently.

https://www.youtube.com/watch?list=PLerqEA4wsHa2vY5vW3fK1Nkl4Npxn5MKQ&v=jcRAhyw9rmI

The Supplier Database Schema

Here’s the database schema for our application:

Product Table: At the core of the database, this table stores information about products and their attributes.
Category Table: This table helps classify products into their respective categories, making it easier to organize and retrieve items.
Supplier Table: A critical component of the schema, this table links products to their suppliers and enables us to notify suppliers when inventory levels are low.

Each table holds specific information, such as product details, reorder levels, supplier contact information, and product categories, ensuring a comprehensive and organized structure. The relationships between these tables facilitate efficient supplier management.

The Supplier Database Schema in Five

The Supplier Database Schema in Five

Get Started with Five Today

To build your supplier database with Five, sign up for free access and start the process. If you need assistance, visit our forum to get help from our application development experts as you add more features to your database application.

By following the steps mentioned above, you can create robust and scalable supplier software tailored to your needs, all while using the tools provided inside of Five.

Create a Supplier Database In 3 Steps