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In a supply chain, avendor,supplier,provider or aseller, is an enterprise that contributes goods or services. Generally, a supply chain vendor manufactures inventory/stock items and sells them to the next link in the chain. Today, these terms refer to a supplier of any goods or service. Inproperty sales, the vendor is the name given to the seller of the property.
A vendor is asupply chain management term that means anyone who provides goods or services of experience to another entity. Vendors may sell B2B (business-to-business; i.e., to other companies), B2C (business to consumers ordirect-to-consumer), or B2G (business to government). Some vendors manufactureinventoriable items and then sell those items tocustomers, while other vendors offer services or experiences. The term vendor and the term supplier are often used indifferently. The difference is that the vendorssells the goods or services while the supplierprovides the goods or services.[1] In most business contexts, except retail, this difference has no impact and words are interchangeable.[2]
Typically vendors are tracked in either afinance system or awarehouse management system.
Vendors are often managed with a vendor compliance checklist or vendorquality audits, and these activities can be effectively managed by software tools.[citation needed]
Purchase orders are usually used as a contractual agreement with vendors to buy goods or services.
Vendors may or may not function asdistributors ormanufacturers of goods. If vendors are also manufacturers, they may eitherbuild to stock orbuild to order.
"Vendor" is often a generic term, used for suppliers of industries fromretail sales to manufacturers to city organizations. The term generally applies only to the immediate seller, or the organization that is paid for the goods, rather than to the original manufacturer or the organization performing the service if it is different from the immediate supplier.[3]
There are four basic sorts of vendors in the supply chain, and the companies and business owners play diverse responsibilities.[4]
Manufacturers:raw materials are transformed in a series of steps into finished goods bymanufacturers.
Retailers: A retailer is a reseller who sells things in a store or online, such as apparel or office supplies. The term may includestreet vendors selling hot dogs, and so on. In a retail context, those companies who provide goods for the retailer to sell may be referred to as their suppliers.[5]
AService Provider provides a service, such as maintenance or labour, to customers. Examples include consulting and janitorial services.
AWholesaler sources products from manufacturers and resells them to retail establishments, distributors, and other buyers. They serve as a crucial intermediary in the supply chain, offering competitive pricing and convenient purchasing options.
There must be a vendor relationship with a supplier if a small firm or a major organization wants to resell a product. Vendor registration entails several steps in the process, including completing a credit application, placing a company credit card on file for payments, giving them your company phone number, and establishing payment terms.
A further distinction is sometimes made between domestic and international or foreign suppliers, e.g. in the United States,Buy American rulings refer to "domestic suppliers".[6] Foreign supplies may retain contacts in countries in which they wish to develop sales: Robi Bendorf notes that the sales contacts of foreign suppliers covering the United States "exist in all traditional supplier forms includingsales representatives,agents, distributors,importers, direct sales offices, trading companies [and] brokers".[7]
In theautomotive industry, a "directed-buy" supplier is a component supplier whose use by vendors is mandated by the client.[8]
Selection of vendors or suppliers is a key function within aprocurement organization. Bailyet al. refer to a number of information sources typically used by buyers to help them select suppliers, including suppliers' reputation, their ownsupplier evaluation processes, records of suppliers used previously, and approved lists of suppliers.[9]
De-listing refers to withdrawal of a supplier or their products from a company's supply chain. The UK'sGroceries Supply Code of Practice also includes "significant" reductions in volumes purchased and supplied within its definition of "de-listing",[10] and sets out good practice to be followed when de-listing occurs. At theGroceries Code Adjudicator's annual conference with suppliers and retailers in 2024 detailed discussions took place about best practice and "fair and reasonable timeframe[s]" for issuing and implementing de-listing notifications.[11]
In property sales, the vendor is the name given to the seller of a property, while the buyer is referred to as the "purchaser".[12][13]
The "purchaser" and "vendor", in relation to a land transaction, are ... the person acquiring and the person disposing of the subject-matter of the transaction
