How does a supplier differ from a vendor?

A supplier is primarily defined as an entity that provides materials or components that are necessary for the production of goods or services. This role is crucial in the supply chain, as suppliers ensure that manufacturers have the raw materials they need to create their products. By providing these essential inputs, suppliers help maintain the production flow and ultimately support the end products' availability in the market.

In contrast, a vendor is typically more focused on selling finished goods or products directly to consumers or retailers. While vendors may also source products from suppliers, their main function is not necessarily to provide raw materials but rather to offer the finished products to the end user. Hence, the distinction lies in the role each plays within the supply chain—suppliers supply necessary materials for production, while vendors sell those products directly. This understanding is vital for managing relationships and operations within supply chains effectively.