Key difference between vendor and supplier is that the Vendor is an individual or an entity/company who provides products or services to the customer directly for a price. while on the other hand supplier is a person or business that supply goods or product from the company to the vendor and fulfill their demand.
Who is a Vendor?
In supply chain management, a vendor is an individual or legal entity like a business or company who deals in buying and distribution of the goods from manufacturer to the other businesses or an individual. In simple words the vendor who sell the goods.
Sometimes vendors can also be a manufacturer who distributes goods to other businesses. we can understand the Vendor with a simple example, an ice cream seller who sells ice cream at a different point in the city is a vendor.
A shopkeeper who sell daily life product is vendor. if we go broad scale we can see that big online business like Amazon, eBay, OLX, etc. are also the vendors who connect with the third party manufacturer and provide goods to the customers.
Who is a Supplier?
A Supplier in supply chain management is considered is a business that provides goods and services to another entity. in simple words supplier provides the goods to a business/vendor that is required. supplier plays the role of middle man who connects with the final consumer and the manufacturer who provide the required goods and charge his commission from both parties.
Comparison Chart
| Vendor | Supplier |
| A vendor is a person or a company that sells the goods acquired from the manufacturers via the supplier. | A supplier is a person or company that provides goods and services needed by the vendor or manufacturers. |
| Sort of Business | |
| The vendor is classified as B2C. it means the vendor is directly associated with the business-to-consumer | suppliers are generally classified as B2B. it means Supplier take goods from one business and sell to another. |
| Supplying Order | |
| in supply chain management the vendor is the last person that sells the product to the customer. | The supplier is the considered first person who supplies products to the vendors. |
| Objective | |
| A vendor who connect to the public and sells the product directly. | Suppliers do business with an objective to provide the products needed and demanded by the people |
| Aim of sale | |
| Vendors who purchase the product for selling purposes only. | The supplier’s aim of sales is to provide the product to the vendor or other manufacturer to fulfill their need. |
| Quantity | |
| Usually, vendors have a small selling scale | Suppliers are directly related to manufacturers therefore get order in bulk. |
| Relation to the Manufacturer | |
| Manufacturers have a direct link with Vendors through the suppliers. | Manufacturers and Suppliers are dependent on each other |
Summary of Vendor vs. Supplier
In final thought, we can describe a supplier is a person or entity who obtains goods and services from the manufacturer and sell to the vendor, while on the other hand supplier who works as a middle man who supplies goods purchased from the manufacturer to the vendor or directly sells to the final customer. So vendors and suppliers are the most important factor for the economy without which the economy cannot thrive. These two both act as a link in the supply chain.