Difference Between Vendor and Manufacturer

The creation and sale of a product or service involve various stakeholders who ensure that the creation and availability of the final consumer are carried out smoothly. Among the parties involved in the supply chain include raw materials suppliers, manufacturers, distributors, retailers, vendors, and consumers. Each of these parties has different roles in the supply chain.

What is a Vendor?

This is a person who deals with the purchase and distribution of goods to the consumers and is the final person in the supply chain. Vendors have more interaction with consumers and are hence important persons in any product life cycle.

What is a Manufacturer?

This is a person who is involved in the transformation of raw materials into finished products for the purposes of selling. Tools, chemicals, machines and even biological processing may be used in the manufacturing process. The manufacturing process begins with product design, material specification and finally, the final product is produced.

Similarities between Vendor and Manufacturer

• Both play a huge role in a product supply chain

Differences between Vendor and Manufacturer

Definition

A vendor is a person who deals with the purchase and distribution of goods to the consumers. On the other hand, a manufacturer is a person who is involved in the transformation of raw materials into finished products for the purposes of selling.

Objective

While a vendor’s objective is to supply products to the consumers, a manufacturer’s objective is to manufacture products.

Product quantity

A vendor supplies products based on market demand. On the other hand, a manufacturer manufactures goods in bulk.

Business relations

A vender specializes in the B2C market relation while a manufacturer specializes in the B2B market relation.

Risks involved

While the risks involved in vending are less due to the fact that vendors buy products on customer demand, a manufacturer has more risks involved as the products are manufactured first.

Relation to consumers

A vendor has close relations with the consumers. On the other hand, manufacturers have distant relations with consumers.

Vendor vs. Manufacturer: Comparison Table

Summary of Vendor vs. Manufacturer

Although the two terms are used in the supply chain context, it should be noted that while a vendor is a person who deals with the purchase and distribution of goods to the consumers, a manufacturer is a person who is involved in the transformation of raw materials into finished products for the purposes of selling. Without these two, an economy cannot thrive.

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