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 AnotherIn 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.
Choosing the Right Word When Referring to Vendor Vs SupplierIn 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.