Thanks for stopping by to learn about the difference between a vendor and a supplier. In the business world, we often hear the terms vendors and suppliers. They are both important links in the supply chain process.
If you’re not familiar with a supply chain, it is the convergence of all people, entities, resources, processes, and technologies which participate in the production and distribution of goods and services. Delivering them to the final customer.
A good example of a supply chain is manufacturing, let’s say a clothing manufacturer for instance. Sourcing quality fabrics, creating the clothing, and finally the distribution of sending the garments to stores.
All of the components that go into crafting and delivering clothing to stores are a supply chain.
What is a Vendor?
Let’s talk about a vendor, they are an entity that offers a product to customers for sale — they are the final link in the production chain. They are the business that sells the product to a consumer.
Going back to our clothing example, they are the store or entity that will sell the garments to the customer. Sometimes that is a brick-and-mortar store or an online clothing store.
What is a Supplier?
Now that we explained the vendor definition let’s move on to the supplier. A supplier is a person or business that provides goods and services to the consumer.
In our case, they are the ones who are providing the clothing to the store. If you go into Target, they’re the vendor.
The supplier will be the companies they receive their merchandise from. Brands like Cat and Jack and Levi’s Denizen supply the store with the product that the customer is looking for.
The definitions can be difficult to understand so here is a comparison chart to help you know the difference between a supplier vs. a vendor.
Comparison Chart
| Â | Vendor | Supplier |
| Â | The person or business, who sells goods (i.e. clothing, food, building materials, etc) or services (i.e. barbers, massage therapists, pet sitters, etc) in exchange for money to the customer, is the vendor. | A supplier is a person or business, who is the source of products and services to the company. |
| Business Relationship |
B2C (Business to Consumers) |
B2B (Business to Business) |
| Supply chain link | Last |
First |
In summary, suppliers supply types of goods to manufacturers in bulk quantities. While the vendor keeps a large variety of goods and provides the consumer products that they buy in small quantities.
The Importance of a Supplier For Your Business
We hope that helps you to better understand the differences between the vendor vs. supplier. Finding a great supplier or vendor can be difficult, depending on what your business is, this will be a huge part of your growth plan. You will need to have a positive relationship with them as they’ll be a large part of your business.
If you’re in the clothing business read our article on 5 Tips to Find The Best Clothing Wholesalers. One of the most important reasons to collaborate effectively with suppliers is because they are a wealth of knowledge. They can recommend products that will be best for your store and customer. They can also track what your competition is doing and assist you with potential opportunities to stay ahead of them. We highly recommend The Laughing Giraffe® as a top tier vendor for baby, toddler, kids and adult clothing blanks.
The Importance of a Supplier Relationship
Your supplier relationship is a partnership that isn’t just based on transactions but on mutual respect and loyalty. Finding a high-quality supplier will help your business not only succeed but also grow.
Another important tip is making your suppliers feel like they’re part of your business. Inform them of your processes and what you would like to carry in the future. They will start to look out for your company and find products they don’t currently carry if they know you are interested.
Vendors can also be a potential partner too. They are great at helping cut costs, finding ways to improve product designs and help with new marketing efforts.
Pro tip: Having fewer vendors can be better than having a lot of vendors because it keeps your administrative costs down and you can form closer relationships with them. This allows you to collaborate to control costs.
Conclusion
Both suppliers and vendors should be part of the team. Communicating often and building that relationship will lead to more efficiency in your business.
Being upfront and transparent with suppliers and vendors allows them to understand your needs and expectations. Maintaining a business relationship with them will give your business a competitive advantage in the long run.
If you are looking for a supplier of baby, toddler, kids’ and adult clothing we would love to work with you!
We have been in the business for over 2 decades with exceptional customer service. Offering a large variety of children’s clothing that are high quality with a proven track record of being high quality, reliable shipping and helping businesses thrive.
We also offer dropshipping and no minimum printing services. Check us out or call us at (888) 529-3883 and ask about our DISCOUNT for NEW customers. We look forward to hearing from you!