Businesses need to work with organizations that provide different sources of goods, such as supplies, equipment, labor, and finance. The selection of suppliers is based on the analysis data of the seller. It is necessary to analyze each supplier organization according to the factors that are important to each enterprise. So how do you choose a suitable supplier? Goose Content will help you distinguish between Vendor and Supplier for you to choose for yourself a suitable supply organization.
You are viewing: What is a Supplier?
What is a Supplier?
What is a Supplier?
A supplier is simply defined as a party (can be an organization or individual) that provides a product or service. In the modern commercial service market, there are relatively many suppliers (Supplier) involved in the supply chain.
Basic Features Superlier
These suppliers form markets that provide inputs for businesses, such as machinery, equipment, raw materials, capital, financial services, and labor.
– The nature of different supply markets will affect to a different extent on business activities of enterprises.
A competitive, imperfectly competitive or monopolistic market will affect to a different extent on the procurement, storage and recruitment activities of each enterprise.
What Supperlier Suppliers Mean for Businesses
Suppliers can be considered as a threat to businesses when they have the ability to increase input prices or reduce the quality of products and services they provide, or do not meet requirements. Enterprise’s demand for quantity and supply time directly affects the operation and reduces the profit of the business.
– The pressure of suppliers on businesses often manifests in the following situations:
+ The number of suppliers is small, even if there is only one enterprise providing exclusive rights.
+ Substitutability of input factors is difficult.
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+ Enterprises buying inputs are not important and priority customers of the supplier.
+ Importance of input factors for buying enterprises
+ Raw material suppliers have a vertical integration strategy
So what is Ventor?
So what is Ventor?
Vendor (supplier) – is an individual/organization that sells goods and services to other individuals or organizations in the economic production chain; with the purpose of the product or service provided by Vendor is for consumption. Vendor can sell goods in the form of B2B (business to business), B2C (business to consumer) or B2G (business to government). This is a term in the supply chain management process.
For example, a manufacturer of motorcycle parts and accessories is a vendor that supplies goods to other manufacturers, assembles the parts to become motorcycles – and then sells them to wholesalers or retailers. a type of vendor that buys products from manufacturers and sells them to consumers.
Distinguish Vendor from Supplier
In fact, Vendor and Supplier, when translated into Vietnamese, are both understood as a supplier – however, in the supply chain management process, the roles of Vendor and Supplier are completely different.
The supply chain process diagram includes:
Supplier -> Manufacturer -> Distributor -> Vendor -> Customer
(Suppliers -> Manufacturers -> Distributors -> Suppliers -> Customers)
We can distinguish Vendor and Supplier based on the following criteria:
|Meaning||Vendor is an individual/organization that sells goods and services at specific prices to customers.||Supplier is an individual/organization that provides materials, goods or services at the request of the business.
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|Link position in the supply chain||Final||First|
|Target||Sales to the end consumer||To serve the production of goods|
Both Vendor and Supplier act as an intermediary in the supply chain. The main difference between Vendor and Supplier lies in the purpose of sale, that is, when goods are sold to another party for the purpose of resale – it will be called a Supplier. Likewise, when supplying goods directly to the end consumer, that supplier is called a vendor.