What is Vendor? What is Supplier? Distinguishing Vendor and Supplier

In the modern economy, concepts such as Vendor and Supplier play a central role in supply chain management. Although often confused, these two terms have clear differences and important implications for businesses. Let's learn more about Vendor , how to classify them, and how to choose the right Vendor in the article below.

What is a vendor?

A vendor is an individual or organization that provides goods or services directly to consumers or businesses. In the supply chain, a vendor is usually at the final stage, acting as a bridge between the manufacturer and the customer.

Vendor's main role:

1. Distribution of goods and services : Selling products from manufacturers to end customers.
2. Customer relationship management : Consulting, answering questions and maintaining long-term relationships with consumers.
3. Business Performance Evaluation : Analyze and improve services to better meet market needs.

Vendor Example:

• Street Vendor: A person who sells goods in public areas.
• Food Vendor: People who sell food at fairs and events.

What is Supplier?

Supplier is a business partner that provides raw materials or finished products to another business. In the supply chain, Supplier is usually at the first stage, providing raw materials or products for production.

Main role of Supplier:

1. Supply of input materials : Ensure raw materials meet production standards.
2. Business Operation Support : Providing necessary services such as transportation or equipment maintenance.
3. Strategic cooperation : Developing new products or improving production processes.

Supplier example:

• Samsung is a supplier of electronic components to other smartphone brands.
• A plastic manufacturing company that supplies raw materials to the packaging industry.

Vendor Classification

Vendors can be classified based on their role and scope of operations in the supply chain. Here are the common types:

1. Manufacturer

Provide products that they manufacture themselves. They can sell directly or through agents.
For example: A pharmaceutical company manufactures drugs and sells them to pharmacies.

2. Wholesaler

Buy products from manufacturers in bulk, then resell them to retailers.
For example, a food distribution business supplies goods to supermarkets.

3. Retailer

Buy products from manufacturers or wholesalers and sell directly to consumers.
For example: Retail supermarket chains like Coop Mart.

4. Service Provider

Provide services instead of products, such as transportation, maintenance, or cleaning.
For example: A logistics company provides freight services.

5. Independent Vendor

Individual businesses sell goods/services directly to customers.
Example: Fruit stall at the local market.

Distinguish between Vendor and Supplier

Below is a table to help clarify the difference between Vendor and Supplier :

Criteria	Vendor	Supplier
Position in the supply chain	Near the end, provide to the end customer	First, provide raw materials for production
Target	Sell ​​products/services directly to customers	Provide raw materials for production
Relationship with the manufacturer	Indirect	Directly or indirectly
Main customers	Business, consumer	Manufacturing businesses
Scope	Small, focused on the end consumer	Large, enterprise focused

Distinguish Vendor from other concepts

1. Vendor and Seller

• Vendor: Providing goods/services on a large scale.
• Seller: Sell directly to consumers on a small scale.

2. Vendor and Manufacturer

• Vendor: Can sell products that you manufacture or import from elsewhere.
• Manufacturer: Focuses on manufacturing products, usually not selling directly.

3. Vendor and Distributor

• Vendor: Sells directly to consumers or businesses.
• Distributor: Distributes products only to retailers or other distributors.

How to choose an effective Vendor

1. Needs and requirements analysis

• Clearly define product/service requirements.
• Assess scale and supply capacity.

2. Review the list of potential Vendors

• Research the market to find out about Vendors.
• Compare the pros and cons of each Vendor.

3. Conduct evaluation and selection

• Analyze Vendor quality and performance.
• Consider cost and long-term viability.

How to do marketing to approach Vendor effectively

To effectively approach Vendors , businesses can apply the following strategies, with specific illustrative examples:

• Build a reputable brand: Ensure a professional logo, website and promotional materials.
  For example, a fashion company could create a high-quality brochure introducing its product line and partnership policies to send to potential vendors.
  
• Take advantage of communication channels: Use email marketing, social networks like LinkedIn, Facebook to connect.
  For example, a logistics business might run LinkedIn ads to promote its transportation services to vendors.
  
• Participate in industry events: Register to exhibit at trade shows, exhibitions or host webinars.
  For example, a food company may attend an F&B fair to meet with suppliers of ingredients.
  
• Offer attractive policies: Offer discounts, financial support or separate service packages.
  For example, a management software vendor might offer a 30-day free trial to attract potential vendors.
  
• Use technology: Manage Vendor information through CRM systems and analyze data to optimize processes.
  For example, an electronics manufacturing company might use software to evaluate the performance of each vendor and seek new partners.
  

These strategies not only help businesses approach Vendors easily but also create a foundation for long-term cooperation.

FAQs - Frequently Asked Questions

1. What is vendor in logistics?

Is a provider of services or products that serve the process of transporting, storing, and distributing goods.

2. What is a street vendor?

Is a street vendor in public areas.

3. What is vendor code?

Is an identifier used to manage suppliers in the enterprise system.

4. What is a Vendor Business?

Is a business that provides goods or services to partners or customers.

5. What is Vendor in import and export?

Is a supplier responsible for providing products/services in import and export activities.

6. What is Vendor Samsung?

Are suppliers of components, services or products serving Samsung's manufacturing operations.

Brand Manager – Specializing in Providing Comprehensive Marketing Services for Brands

Brand Managers act as a bridge between the business and the Vendor , ensuring that marketing services from the Vendor meet the brand standards. They work closely with Vendors in designing packaging, producing promotional materials, or implementing communication campaigns, thereby maintaining a consistent and professional image for the business.

By managing the overall marketing strategy, the Brand Manager works with Vendors to optimize distribution, promote products, and create sustainable value for the brand. This role not only helps the brand grow, but also increases the effectiveness of cooperation with Vendors in all areas.