Vendor & Supplier: Differences and Integration of Retail Business Solutions

Semantics of supply chain can be found in the background of any product or services be it a bottle of soft drinks to software. In every sense supply chain sees through the process of production to delivering the product or services to the end-consumer. It is a vital part of supply chain to keep the movement of consumerism going without any major setbacks. Thus vendors and suppliers partake in supply chain to assist the process in being smooth and seamless.

Vendor

Vendors are a part of the supply chain where they hold a role of selling goods and services to a consumer or to a business. The word vendor comes from the Latin word “Vendere” which means “to sell”. Vendors can act as both a supplier and a manufacturer. The vendor does not necessarily make their own goods and does not have to be a manufacturer. Instead, a vendor can resell goods they purchased from another vendor and mark up their price accordingly. Some businesses that sell directly to consumers are also considered vendors, like restaurants or retailers.

Supplier

A supplier is part of the supply chain for providing goods or services to another business or company. Usually a supplier does not work with a consumer directly but more with distributors and vendors. The word supplier derives directly from the Latin word “Supplere” meaning to fill up, make full or complete”. A supplier deals in large quantities with retailers or distributors hence, offering high discounts to suppliers and distributors. Wholesale supplier are very popular in the industry of retail and they sometimes do manufacture and deliver the needed products or services to the client. A supplier also takes care of the shipment and delivery to the vendor for an easier upcoming process in the supply chain. A supplier tries to help the businesses by arranging the necessary materials and requirements from the business on time to not hamper or put negative effect on the working of a business.

Differences between Vendor & Supplier

Some paramount differences between the vendor and supplier are as follows.

1. A person who sells goods or services to a customer or consumer for money is known as a vendor. Whereas, a person or a business entity who is the source of products or services is called a supplier.
2. When dealing with business to consumer, we associate a vendor. But when dealing with business to business, we associate a supplier.
3. In a supply chain, the first link is the supplier while the second last link is the vendor. The last link being the consumer.
4. Supplier provides goods and services to a business while the vendor provides for a customer.
5. Supplier supplies a specific type of goods while a vendor keeps a variety of goods.

    Integration of Retail Business Solutions with Regards to Vendors & Suppliers

In a business, vendor and suppliers provide good solutions to help the business run smoothly. In retail business solutions and strategies need to materialize into optimal outputs for the benefit of the business. Supplier and vendors contribute by helping the business expand quickly and keeping production issues sorted for the business to focus on other aspects. In business, such retail business solutions bring forth more quality and trust which is reflected by the consumer in repurchases and word-of-mouth. Thus, vendors and suppliers are a major component in retail.

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Created on Apr 7th 2022 02:32. Viewed 376 times.

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