Difference Between Vendor and Supplier

The difference between a vendor and a supplier exists in their roles and responsibilities. Vendor and supplier in a supply chain are words that are encountered in the world today, and it is natural to see the words being used interchangeably to refer to a person who supplies goods or services to an organization. A supplier may be the manufacturer of goods, while a vendor is rarely a manufacturer. Whatever their differences may be, it is common to see people confusing between vendors and suppliers because of many similarities between their roles. This article attempts to highlight the differences between a vendor and a supplier based upon their roles and responsibilities.

Who is a Vendor?

A vendor is one who vends products to customers and thereby maintains a close relationship with the customers. He or she is the last person involved in the supply chain that obtains goods on a consignment basis from the supplier or the manufacturer and sells them to the clients. A vendor, when returning certain products, clears his account when paying for the products that have been sold while retaining his commission or profit percentage as has been fixed beforehand.

Difference Between Vendor and Supplier

Who is a Supplier?

A supplier is the person who supplies goods or services to a company or a person and is, in most instances, also the manufacturer. A supplier may also be a vendor in certain cases, where the supplier directly supplies goods to the client. He or she is often a middleman functioning between the manufacturer and the customer, deriving his commission from both the parties at the selling of the products.

Vendor vs Supplier

What is the difference between Vendor and Supplier?

Definitions of Vendor and Supplier:

Vendor A vendor sells the goods to the consumer and is the last person involved in the supply chain.
Supplier A supplier is mostly a middleman who supplies goods or services to the vendor.

Vendor vs. Supplier

Role Mix:

Vendor A vendor is rarely a supplier of goods or services.
Supplier A supplier is also a vendor in certain cases, where he or she supplies certain goods or services direct to the consumer.

 Access to Products:

Vendor A vendor is rarely a manufacturer and gets products on a consignment basis from the manufacturers. 
Supplier A supplier, in most instances is also the manufacturer, but sometimes he procures products from the manufacturer and sells to retailers.

 Relationship to Consumer:

Vendor A vendor is more close to the end consumer than a supplier as he is the last person involved in the supply chain.
Supplier  A supplier is at a distant to the end consumer as his presence is felt earlier in the supply chain.

 Usage of the Terms:

Vendor Vendor is a generic term that can be applied to anybody supplying goods and services.
Supplier You cannot apply the term supplier to just anyone.


Vendor The risk of being a vendor is less as he buys the goods on a consignment basis from the supplier and obtains a commission by selling the items. He can return the unsold items to the supplier.
Supplier The risk of being a supplier or a manufacturer is more compared to a vendor.

Though a vendor and a supplier may be the same in certain contexts, it can be stated that a vendor is the closest and the last link in the supply chain whereas the supplier is mostly a middleman who obtains goods or services from the manufacturer to supply them to the vendor.

Images Courtesy:

  1. by  ()
  2. by  ()

About the Author: admin

Leave a Comment

Related pages

what is chemosynthesis what types of organisms carry out chemosynthesisbemused dictionarydifference gram positive and gram negative bacteriadifference between pneumonia and pleurisydifference between xylem and phloemchemotrophdiethyl ether usessn2 vs sn1monomer of polystyreneprotostome vs deuterostomeenglish mastiff factsovule in flowerdefine homologous seriesmarxism literary criticismrealism naturalismdefine osmolalitybaking soda vs bread sodaadages and proverbs examplesconcrete diction examplesdifference between proofreading and copyeditingare alligators bigger than crocodileswhat is the difference between ionic and covalent bonddistinguish between conductors semiconductors and insulators with exampleskinds of adjectives with examplesimperialism colonialismpositive economics and normative economics definitioncomedy of manners characteristicshunan vs szechuanlabrador vs golden retriever differenceavalanche breakdown in zener diodeindian flag colour meaningsfacetious meanexternal combustion enginesidioms and phrases sentenceswhat was abe lincoln known foris mars inner or outer planetgrandad funeral speech examplesspectrophotometer vs spectrometerdifference between behaviourism and cognitivismosmolarity and tonicitydifference between valency and valence electronsgrammar vs punctuationstructure of lysosomeswhat is a consonant sound with examplesmodernism and postmodernism comparisondefine acquaintanceslaw of conservation of momentum formulazener diode constructiondifference between coyote and wolfwhats the difference between calzone and stromboliacculturation examplesdefine hemostatisdefinition for round characteruse restraint in a sentencedefinition of insulator and conductordifference between screw gauge and vernier caliperdefine blank verse poemforgo meaningdifference between retinol and retin athe difference between hyperthyroidism and hypothyroidismbi annually meanswhat are some examples of a heterogeneous mixturewhat is the difference between a prokaryote and eukaryotewhat is verisimilitude in literaturefunctionalism in psychology pptdifference between micrometer and caliperwhat protons neutrons and electronscolloid and crystalloidfunction of a colorimeterrebond hair straighteningfractional distillation vs simple distillationaristotelian tragedywhat is the difference between typical and atypical antipsychoticschemical formula for guar gumexamples of thermosetsocean descriptive essaynickname for washington dcvernier caliper and micrometer screw gaugedifferences between cities and villagesdifference between rna and dna nucleotidesmadame define