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Supplier Type vs. Products and Services Category

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Is there a simple explanation of the use of Supplier Type vs. the Products and Services Category?

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ESS is looking into using Qualification Management where it seems that one can only use the Products and Services Category to add suppliers to initiatives. That being said, there's already a lot of granularity in the Supplier Type so we'd like to avoid redundancy in these to areas of classification. Does anyone have guidelines as to what to use in Supplier Type vs. in the Products and Services Category?

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