What is the Difference Between Vendor and Supplier?
🆚 Go to Comparative Table 🆚The main difference between a vendor and a supplier lies in the purpose of sale and their position in the supply chain. Here are the key differences between the two:
- Vendor: A vendor is an individual or business entity that sells goods or services to customers, often on a smaller scale and directly to individual consumers. Vendors can operate online or through a physical storefront, and they may offer a broad range of products or specialize in specific categories. Unlike suppliers, who typically sell their products in bulk to other businesses, vendors often sell directly to the end-user, leveraging various marketing channels to reach customers.
- Supplier: A supplier is a business entity that provides specific goods, services, or raw materials to another organization, commonly for manufacturing purposes. Suppliers usually offer one specific type of goods in bulk quantities and are considered the first link in the supply chain. They typically engage in business-to-business (B2B) relationships, providing goods or services to the companies that require them for their operations.
In summary, suppliers typically supply raw materials or goods in bulk to manufacturers or other businesses, while vendors sell finished products or services directly to consumers or businesses.
On this pageWhat is the Difference Between Vendor and Supplier? Comparative Table: Vendor vs Supplier
Comparative Table: Vendor vs Supplier
Here is a table highlighting the differences between a vendor and a supplier:
| Feature | Vendor | Supplier |
|---|---|---|
| Definition | A vendor is an individual or business entity that sells goods or services to customers, often on a smaller scale and directly to individual consumers. | A supplier is a business that provides raw materials, parts, and machines to manufacturing units. |
| Role in Supply Chain | Vendors are at the end of the supply chain, selling finished products or services to consumers or businesses. | Suppliers are at the beginning of the supply chain, providing raw materials for manufacturing products or services. |
| Types of Goods | Vendors typically sell finished products directly to end-users, leveraging various marketing channels to reach customers. | Suppliers make large quantities of specific materials or services available to other companies. |
| Business Relationships | Vendors can operate online or through a physical storefront, and they may offer a broad range of products or specialize in specific categories. | Suppliers usually establish a business-to-business (B2B) connection with their clients, engaging in business with another organization instead of catering to individual consumers. |
| Source of Goods | Vendors may acquire different types of products from multiple suppliers to cater to their customers. | Suppliers can provide raw materials for manufacturing products or services. |
In summary, vendors are responsible for selling finished goods or services to end-users, while suppliers provide raw materials, parts, and machines to manufacturing units. Vendors typically establish business-to-consumer (B2C) relationships, whereas suppliers engage in business-to-business (B2B) relationships.
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- Supplier vs Distributor
- Procurement vs Purchasing
- Wholesaler vs Distributor
- Supply vs Demand
- Purchase vs Procurement
- Sourcing vs Procurement
- Dealer vs Distributor
- Consignor vs Consignee
- Contract vs Purchase Order
- Invoice vs Purchase Order
- Supply Chain vs Value Chain
- Consumer vs Customer
- Producer vs Consumer
- Demand Curve vs Supply Curve
- Consultant vs Contractor
- Buyer vs Consignee
- Product vs Service
- Acquisition vs Procurement
- Purchase vs Buy