# Supplier types

Supplier types provide a method of arbitrarily grouping each of your Suppliers into one or more customisable categories. Each supplier that you create must be assigned as a supplier type, but there are no restrictions on which supplier type you assign to each supplier.

Allowing users to define their own supplier types ensures that suppliers can be grouped by any criteria in order to meet your requirements. Some common examples of supplier types may include Local and Import, Wholesalers and Retailers or suppliers of different product types.

Regardless of the methodology you choose to implement with your supplier types, you will now have the ability to quickly and easily differentiate between your suppliers on both the supplier form and in any supplier based reports.