Vendor
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In a supply chain, a vendor, supplier, provider or a seller, is an enterprise that contributes goods or services. Generally, a supply chain vendor manufactures inventory/stock items and sells them to the next link in the chain. Today, these terms refer to a supplier of any goods or service. In property sales, the vendor is the name given to the seller of the property.
Description
[edit]A vendor is a supply chain management term that means anyone who provides goods or services of experience to another entity. Vendors may sell B2B (business-to-business; i.e., to other companies), B2C (business to consumers or direct-to-consumer), or B2G (business to government). Some vendors manufacture inventoriable items and then sell those items to customers, while other vendors offer services or experiences. The term vendor and the term supplier are often used indifferently. The difference is that the vendors sells the goods or services while the supplier provides the goods or services.[1] In most business contexts, except retail, this difference has no impact and words are interchangeable.[2]
Typically vendors are tracked in either a finance system or a warehouse management system.
Vendors are often managed with a vendor compliance checklist or vendor quality audits, and these activities can be effectively managed by software tools.[citation needed]
Purchase orders are usually used as a contractual agreement with vendors to buy goods or services.
Vendors may or may not function as distributors or manufacturers of goods. If vendors are also manufacturers, they may either build to stock or build to order.
"Vendor" is often a generic term, used for suppliers of industries from retail sales to manufacturers to city organizations. The term generally applies only to the immediate seller, or the organization that is paid for the goods, rather than to the original manufacturer or the organization performing the service if it is different from the immediate supplier.[3]
Types
[edit]There are four basic sorts of vendors in the supply chain, and the companies and business owners play diverse responsibilities.[4]
Manufacturers: A raw material, when transformed into finished goods, is with the help of the manufacturers.
Retailer: A retailer is a reseller who sells things in a store or online, such as apparel or office supplies. The term may include street vendors selling hot dogs, and so on. In a retail context, those companies who provide goods for the retailer to sell may be referred to as their suppliers.[5]
A Service Provider provides a service, such as maintenance or labour, to customers. Examples include consulting and janitorial services.
A Wholesaler sources products from manufacturers and resells them to retail establishments, distributors, and other buyers. They serve as a crucial intermediary in the supply chain, offering competitive pricing and convenient purchasing options.
There must be a vendor relationship with a supplier if a small firm or a major organization wants to resell a product. Vendor registration entails several steps in the process, including completing a credit application, placing a company credit card on file for payments, giving them your company phone number, and establishing payment terms.
Vendor selection
[edit]Selection of vendors or suppliers is a key function within a procurement organization. Baily et al. refer to a number of information sources typically used by buyers to help them select suppliers, including suppliers' reputation, their own supplier evaluation processes, records of suppliers used previously, and approved lists of suppliers.[6]
Vendor de-listing
[edit]De-listing refers to withdrawal of a supplier or their products from a company's supply chain. The UK's Groceries Supply Code of Practice also includes "significant" reductions in volumes purchased and supplied within its definition of "de-listing",[7] and sets out good practice to be followed when de-listing occurs. At the Groceries Code Adjudicator's annual conference with suppliers and retailers in 2024 detailed discussions took place about best practice and "fair and reasonable timeframe[s]" for issuing and implementing de-listing notifications.[8]
Property sales
[edit]
In property sales, the vendor is the name given to the seller of a property, while the buyer is referred to as the "purchaser".[9][10]
See also
[edit]References
[edit]- ^ Oxford Advanced Learner's Dictionary, Vendor, accessed on 8 September 2024
- ^ Coution, Philippe (16 July 2022). "Vendor vs. Supplier". BizToolCase.
- ^ Skjott-Larsen, Tage; Philip B. Schary; Juliana H. Mikkola; Herbert Kotzab (2007). Managing the Global Supply Chain. Copenhagen Business School Press DK. p. 20. ISBN 978-87-630-0171-7.
- ^ "Difference Between Vendor and Distributor". Diffzy.com. Diffzy.com. Retrieved 11 April 2022.
- ^ Groceries Code Adjudicator, About us, accessed on 15 October 2024
- ^ Baily, P., Farmer, D., Jessop, D. and Jones, D. (1998), Purchasing Principles and Management, 8th edition, London: Pitman Publishing, pp. 146-147, quoted by Bell, S., in Established Buying Theory, archived on 18 December 2007, accessed on 6 September 2024
- ^ UK Government, Groceries Supply Code of Practice, published on 4 August 2009, accessed on 15 October 2024
- ^ Belser, T., Groceries Code Adjudicator Conference 2024: Suppliers Should Find Their Voice (and Do GSCOP Training), Haddleton & Co Ltd., published on 29 October 2024, accessed on 31 October 2024
- ^ "Who is the Vendor in a House Sale?". tulia group. Retrieved 26 August 2024.
- ^ Finance Act 2003. 10 July 2003. 43. Retrieved 6 September 2024.
The "purchaser" and "vendor", in relation to a land transaction, are ... the person acquiring and the person disposing of the subject-matter of the transaction
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