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In a supply chain, a vendor, supplier, provider or a seller, 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.
In a supply chain, a vendor, supplier, provider or a seller, 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.
Description
A vendor is asupply chain management
In commerce, supply chain management (SCM) is the management of the flow of goods and services including all processes that transform raw materials into final products between businesses and locations. This can include the movement and st ...
term that means anyone can sell at events and provides goods or services of experience to another entity. Vendors may sell B2B (business-to-business
Business-to-business (B2B or, in some countries, BtoB) is a situation where one business makes a commercial transaction with another. This typically occurs when:
* A business is sourcing materials for their production process for output (e.g., a ...
; i.e., to other companies), B2C (business to consumers or Direct-to-consumer
Direct-to-consumer (DTC) or business-to-consumer (B2C) is the business model of selling products directly to customers and thereby bypassing any third-party retailers, wholesalers, or any other middlemen. Direct-to-consumer sales are usually tr ...
), or B2G (business to government). Some vendors manufacture inventoriable items and then sell those items to customer
In sales, commerce, and economics, a customer (sometimes known as a client, buyer, or purchaser) is the recipient of a good, service, product or an idea - obtained from a seller, vendor, or supplier via a financial transaction or exchan ...
s, while other vendors offer services or experiences.
The term vendor and the term supplier are often used indifferently. The difference is that the vendors ''sells'' the goods or services while the supplier ''provides'' the goods or services. In most of business context, except retail, this difference has no impact and words are interchangeable.
Typically vendors are tracked in either a finance system or a warehouse management system.
Vendors are often managed with a vendor compliance checklist or vendor quality audits, and these activities can be effectively managed by software tools
Purchase order
A purchase order is a commercial document and first official offer issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services. It is used to control the purchasing of products and services from exte ...
s are usually used as a contractual agreement with vendors to buy goods or services.
Vendors may or may not function as distributors
A distributor is an enclosed rotating switch used in spark-ignition internal combustion engines that have mechanically timed ignition. The distributor's main function is to route high voltage current from the ignition coil to the spark plugs ...
or manufacturers
Manufacturing is the creation or production of goods with the help of equipment, labor, machines, tools, and chemical or biological processing or formulation. It is the essence of secondary sector of the economy. The term may refer to ...
of goods. If vendors are also manufacturers, they may either build to stock or build to order.
"Vendor" is often a generic term, used for suppliers of industries from retail sales
Retail is the sale of goods and services to consumers, in contrast to wholesaling, which is sale to business or institutional customers. A retailer purchases goods in large quantities from manufacturers, directly or through a wholesaler, and t ...
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.
Types
There are four basic sorts of vendors in the supply chain, and the companies and business owners play diverse responsibilities. Manufacturers: A raw material, when transformed into finished goods, is with the help of the manufacturers. Retailer: A retailer is a reseller who sells things in a store or online, such as apparel, office supplies, street vendors selling hot dogs, and so on. A service provider provides a service, such as maintenance or labour, to customers. Consulting and janitorial services and many other such are two examples. 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.See also
*Peddling
A peddler, in British English pedlar, also known as a chapman, packman, cheapjack, hawker, higler, huckster, (coster)monger, colporteur or solicitor, is a door-to-door and/or travelling vendor of goods.
In England, the term was mostly used f ...
* Retailer
Retail is the sale of goods and services to consumers, in contrast to wholesaling, which is sale to business or institutional customers. A retailer purchases goods in large quantities from manufacturers, directly or through a wholesaler, and ...
* Wholesaler
Wholesaling or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional or other professional business users; or to other wholesalers (wholesale businesses) and related subordinated services. In ...
References
Supply chain management {{business-stub