Supply chain participants
Revision as of 19:09, 9 November 2024 by Stefanseiler (talk | contribs) (Stefanseiler moved page Upstream SCM partners - Vendors and suppliers to Supply chain participants without leaving a redirect)
A vendor refers to an individual or entity purchasing products from manufacturers and then selling them directly to customers. By contrast, a supplier is a person or business that provides raw materials, parts, and machines to manufacturing units. Both of them play a significant role in supply chain management (SCM).
| Particulars | Vendors | Suppliers |
|---|---|---|
| Meaning | Purchase goods and services from manufacturers and directly distribute or sell them to consumers | Provide products and services to manufacturing units to produce finished goods |
| Objective | To meet the market demand by selling a wide variety of products to end-users for consumption | To provide processed or unprocessed primary commodities to businesses that manufacture or produce finished products for sale |
| SCM Link | Make a final link in the SCM connecting with customers | Form the first link in the SCM connecting to manufacturers, who connect with distributors and then with vendors |
| Business Relationship | Establish business-to-customer (B2C) and/or business-to-business (B2B) relationship | Maintain business-to-business (B2B) relationship only |
| Supply Volume | Sell small quantities of required products | Supply essential raw materials, tools, etc. to manufacturers in bulk |
| Relationship With Consumers | Direct | Indirect |
| Relationship With Manufacturers | Indirect | Direct |
| Level of Risk | Low due to on-demand supply | High due to bulk supply |