What is a Supplier? Differences Between Vendor And Supplier

Businesses need to deal with organizations that provide different sources of goods, such as supplies, equipment, labor and finance. The selection of suppliers is based on analytical data about the seller. Analyze each supplier organization according to the factors that are important to each business. So how to choose yourself a suitable supplier. Content creation will help you distinguish between Vendor and Supplier so that you can choose a suitable supplier organization.

What is a Supplier?

Supplier is simply defined as a party (which can be an organization or individual) providing a product or service. In the modern service trade market, there are relatively many suppliers (suppliers) participating in the supply chain.

Basic Features Supperlier

- These suppliers form markets that provide inputs for businesses, such as providing machines, equipment, raw materials, providing capital, financial services, labor supply, etc.

- The nature of different supply markets will affect to different degrees on your business.

Competitive, imperfect or monopolistic markets will have different impacts on procurement and storage as well as labor recruitment of each enterprise.

What Does Supperlier Mean For Businesses

- Suppliers can be seen as a threatening pressure on businesses when they have the ability to raise input prices or reduce the quality of products and services they provide, or they do not meet requirements. The demand of an enterprise in terms of quantity and time of supply directly affects its operation and reduces its profit.

- Supplier pressure on enterprises often manifests itself in the following situations:

+ The number of suppliers is small, even only an exclusive enterprise provides.

+ The substitution nature of the inputs is difficult.

+ Enterprises buying inputs are not important customers and priority of suppliers.

+ Importance of the input to the buying business

+ Raw materials and materials suppliers have a vertical integration strategy

So, what is Ventor?

Vendor - an individual / organization that sells goods and services to another person or entity in the economic production chain; with the purpose of products - services offered by Vendor is for consumption. Vendor can sell goods in the form of B2B (business to business), B2C (business to consumer) or B2G (business to government). This is a term in the supply chain management process.

For example, motorcycle parts manufacturers are vendors that supply goods to other manufacturers, assemble parts that become motorcycles - then sell them to wholesalers or retailers. A vendor that buys products from manufacturers and sells them to consumers.

See also: Vendor- The Importance of Vendor Vendors in the Supply Chain

Differentiate Vendor from Supplier

In fact, when translated into Vietnamese Vendor and Supplier are understood as the supplier - however, in the supply chain management process, the roles of Vendor and Supplier are completely different.

Supply chain process diagrams include:

Supplier -> Manufacturer -> Distributor -> Vendor -> Customer

(Suppliers -> Manufacturers -> Distributors -> Suppliers -> Customers)

We can distinguish Vendor and Supplier based on the following criteria:

Comparison criteria	Vendor	Supplier
Meaning	Vendor is an individual / organization that sells goods and services at specific prices to customers.	Supplier is an individual / organization that provides materials or goods or services required by the business.
Linking position in the supply chain	Final	Firstly
Target	Sales to final consumers	For the production of goods
Sales purpose	Use	Resell
Quantity provided	Small	Big

Both Vendor and Supplier play an intermediary role in the supply chain. The main difference between Vendor and Supplier lies in selling purpose, ie when goods are sold to another party for the purpose of reselling - will be called Supplier. Likewise, when supplying goods directly to the end consumer, that vendor is called a vendor.

Thu Ngann- General meeting and edit

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