Can a Manufacturer Also be a Distributor?
Today, a distinction is typically made between vendors who deal with consumers and manufacturers who deal with end users. However, that’s not always true. A major difference between vendor and manufacturer is worth considering. A vendor can also be a distributor if they deal directly with end users. A good example of this would be an ice cream shop. The shop isn’t making its ice cream; it’s buying it from a manufacturer or distributor. As long as it sells its goods to consumers, then even if they don’t make them themselves, they are still considered vendors in business terms.
While manufacturers typically sell goods directly to consumers, there are plenty of cases where they sell their products through distributors. An example would be automobile manufacturers who sell their cars to dealerships. As you can see, sometimes it can be a bit confusing how to label certain companies since they may fit into multiple categories depending on how you look at them.
Difference Between Vendor and Manufacturer with ExampleA vendor is a person who sells goods to the consumers, while a manufacturer is a person who produces goods from raw materials. For example, a vendor may sell apples at a fruit stand, while a manufacturer may produce apple juice from apples. There is some key difference between vendor and manufacturer while both vendors and manufacturers are involved in the sale of goods. Vendors typically sell finished products, while manufacturers sell raw materials or unfinished products this is the major difference between vendor and manufacturer. Manufacturers usually produce goods in large quantities, while vendors typically sell smaller quantities.
- Additionally, manufacturers typically sell to vendors, who then sell to consumers. Finally, vendors are typically located near the end of the supply chain, while manufacturers are located near the beginning.
- Different types of manufacturing include turning, weaving, casting, and building. When making a product using one of these processes, a manufacturer typically needs to do more than just buy supplies.
- He or she may need to install equipment, train employees, or invest in technology to produce goods at a larger scale.