Suppliers are often referred to as the first link in a supply chain, existing strictly in a B2-B relationship. By contrast, a vendor is a business or person who purchases products from a company, then sells them to someone else. Though both suppliers and vendors serve similar roles, they differ in two major ways: scope and intent. In this article, we’ll examine how vendor vs supplier differ by examining their differences in scope and intent. Afterward, we’ll discuss how the success of your supply chain can benefit from having both suppliers and vendors on board.

Confusing Reasons to Use One Word Over Another

In business, the terms vendor and supplier are often used interchangeably, but there is a difference. A supplier is a company that provides goods or services to another company, while a vendor is a person or company that sells goods or services to customers. Vendor vs supplier can often be confusing because both terms are used to describe people or companies that purchase from others and sell to customers.

• While these definitions may seem similar, it’s important to understand that suppliers act in a strictly business to business relationship, while vendors may operate in both business to business and business to consumer environments.
• One reason why people get confused is because of logistics: For example, if you have an order placed directly with your company, you’re technically acting as a vendor in that case rather than as a supplier.

However, in that example, you would still be acting as a supplier because your company is providing a service to another business. Likewise, a vendor is someone who sells directly to consumers as well, but they’re considered suppliers because they’re selling services rather than goods.

Choosing the Right Word When Referring to Vendor Vs Supplier

In the business world, the terms vendor and supplier are often used interchangeably. However, there is a big difference between vendor vs supplier. A supplier is a company or person who provides goods or services to another company. They exist strictly in a B2-B relationship.

• A vendor, on the other hand, is a business or person who purchases products from a company and then sells them to someone else.
• When referring to either word, it’s important to choose the right one.
• If you’re referring to a company that provides goods or services to another company, then you should use the word supplier.

If you’re referring to a business or person who purchases products from a company and then sells them to someone else, then you should use the word vendor.

How Are Vendors and Suppliers Different?

In the business understanding of the meaning of vendor vs supplier, the terms vendor and supplier are often used interchangeably. However, they refer to two different types of businesses. A vendor, on the other hand, is a business or person that purchases products from a company and then sells them to someone else. While both a vendor and a supplier may provide products or services to another business, vendor vs supplier differ in their roles and requirements. Suppliers offer products that are generally essential to running a business. Vendors, on the other hand, are businesses or individuals who purchase products from a company and then sell them to someone else. For example, if you’re an e commerce retailer, your suppliers would include companies that provide raw materials for your products as well as vendors such as affiliate networks that connect you with marketing affiliates.

Vendor vs Supplier Example

In the business world, the terms vendor vs supplier is often used interchangeably. However, there is a big difference between the two. A supplier is a company or person who provides goods or services to another company. A vendor, on the other hand, is a company or person who buys goods or services from a company and then sells them to someone else. As a business owner, it’s important to understand the term vendor vs supplier. Each time you enter into a new business relationship with another company, it’s useful to figure out whether you’re dealing with a vendor or a supplier. Understanding their function and knowing how each type of company works will give your insight into your supply chain the resources and people necessary to keep your business running smoothly and profitably. It can also help you gauge your risk level as a buyer or seller in any given transaction.