Difference Between Vendor and Distributor

The supply chain in an organization directly affects its overall performance. For this reason, a good supply chain should be established that is efficient to both the producers and consumers. While supply chains can be long and complex, a smooth one can be achieved by engaging processes, people and technology in the supply chain. Among the players include wholesalers, distributors, suppliers, vendors, and retailers whereby each plays a specific role in the process.

Vendor

This is a person who purchases products and services to resell, usually to the final consumer. Because the vendors have direct contacts with consumers, they are useful in relaying market dynamics information to the manufacturers as well as other players. They are the last persons in the supply chain and have a business to consumer (B2C) relationship.

Distributor

This is an intermediary in the supply chain between the manufacturer and the vendor. They have much more complex roles including carrying out educative programs such as demos, presale training, and roadshows while also providing services around contract negotiation, warranties, and procurement processes.   

Similarities between Vendor and Distributor

• Both are important players in the supply chain process

Differences between Vendor and Distributor

Definition

A vendor is a person who purchases products and services to resell, usually to the final consumer. On the other hand, a distributor is an intermediary in the supply chain between the manufacturer and the vendor.

Objective

The objective of a vendor is to avail products to the final consumer. On the other hand, the objective of a distributor is to avail products to other resellers who then sell to the final consumer.

Major focus

While a vendor is more focused on the final customer, a distributor is more focused on other resellers.

Business relationship

A vendor has a business to customer (B2C) relationship. On the other hand, a distributor has a business to business (B2B) relationship.

Supply chain link

While a vendor is last in the supply chain link, a distributor is in the middle of the supply chain link.

Relationship with manufacturers

While vendors have a distant relationship with manufacturers, distributors have a close relationship with manufacturers.

Market roles

Vendors are useful in relaying market dynamics information to the manufacturers as well as other players as they have close contact with consumers. Distributors assist in carrying out educative programs such as demos, presale training, and roadshows while also providing services around contract negotiation, warranties and procurement processes.   

Vendor vs. Distributor: Comparison Table

Summary between Vendor and Distributor

The absence of vendors or distributors in a supply chain can hugely impact business operations. While a vendor is a person who purchases products and services to resell, usually to the final consumer, a distributor is an intermediary in the supply chain between the manufacturer and the vendor. Both, however, are useful in relaying market dynamics information to the manufacturers as well as other players as they have close contact with consumers. Distributors assist in carrying out educative programs such as demos, presale training, and roadshows while also providing services around contract negotiation, warranties and procurement processes.

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