Business is an activity in which involves buying and selling various products and services for the purpose of making a profit.
Vendor vs Manufacturer
The difference between Vendor and Manufacturer is that manufacturer processes raw materials into finished goods and services. And the vendor sells the finished goods and services to the consumers. There are various other differences between a vendor and a manufacturer, including their objective, quantity of products, business relations, risks, and consumer relations.
A vendor is a person who is involved in the process of purchase and distribution of goods and services to the consumers. He acts as an intermediary between the manufacturer and the consumer.
A manufacturer is a person who is involved in the process of converting raw materials into finished goods and services. He may sell his products directly to the consumers or indirectly through vendors.
Comparison Table
| Parameters of Comparison | Vendor | Manufacturer |
|---|---|---|
| Objective | The objective is to sell the products and services to the consumers. | The objective is to sell products and services to vendors. |
| Quantity | A small number of goods and services are sold. | A large number of goods and services are sold. |
| Market Relations | A vendor maintains B2C market relations. | A manufacturer maintains B2B market relations. |
| Risks | There is less risk involved as goods and services are sold on consumer demand. | There is a greater risk involved as goods and services are manufactured first. |
| Consumer Relations | A vendor has close relations with the consumers. | A manufacturer has distant relations with the consumers. |
What is Vendor?
In a supply chain, the products and services are produced, manufactured into a finished product or service, and sold to the next member in the chain and finally to the consumer.
A vendor buys different finished products and services from different manufacturers. These products are then stored in a storage unit or directly sent to a shop.
A vendor maintains close relations with the consumers, because of which he knows the demands of the consumers. The products and services which are purchased by the vendor are based on these demands.
What is Manufacturer?
The process of converting raw materials into finished goods and services to meet consumers’ demands is known as a manufacturing process.
A manufacturer buys the raw materials from the producers or even produces them on his/her own. Once the raw materials are brought in, they are sent for manufacturing.
A manufacturer sells its products to vendors. However, he can choose to sell his products directly to the consumers in person or on the internet.
Main Differences Between Vendor and Manufacturer
- A vendor faces less risk as the goods and services sold are based on consumer demand. Whereas a manufacturer faces more risk as the goods and services are produced first.
- A vendor has close relations with the consumer. On the contrary, a manufacturer has distant relations with the consumer.
References
- https://www.sciencedirect.com/science/article/pii/037722179190033R
- https://journals.sagepub.com/doi/abs/10.1177/002224298404800407
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