What is a vendor? The vendor is a party that acts as a provider of raw materials to meet the needs of other companies. Raw materials supplied by vendors will be reprocessed by the company into semi-finished goods and finished goods. Therefore, vendors play an important role for a company engaged in product or service.
In this case, vendors can be individuals or institutions and play a role in improving company performance and maintaining the smooth production process within a company. In addition, vendors also play a role in running business-to-business or B2B. A more detailed explanation of the vendor has been compiled from various sources.
What is A Vendor?
Within the scope of the supply chain, a vendor can be defined as a third party that connects products from the manufacturers to get into the hands of customers who sell goods to companies for resale or use by users of the company.
Vendors can also be interpreted as supply chain management that provides goods or services to companies or individuals. Vendors also have the meaning as partners of institutions or individuals or third parties who provide materials, products, or services for companies to be used by companies to improve the company’s performance.
A vendor is a person who sells houses, land, and so on. Vendors play an important role in supporting the company’s activities in the process of transporting and distributing goods to their destination on time.
In addition, companies also need to pay attention to the type of transportation used by vendors to anticipate delays in the delivery of goods. In the business industry, vendors are also often referred to as suppliers or distributors.
A company engaged in the processing of raw goods into finished goods is in dire need of vendors. The reason is, there are several companies that cannot meet their own raw material needs of the production process so they require the services of a vendor as a provider of raw materials. The existence of a vendor in a company is important because it functions to maintain the smooth production and operational processes of a company or business.
In addition to playing a role in maintaining the smooth production process, vendors are also tasked with ensuring that every product sold to consumers is a quality product and provides the best service and competitive product prices to consumers.
Types of vendors
In general, vendors can be divided into two types, namely vendors providing goods and service providers.
1. Vendors providing goods
Vendor providing goods are an entity, institution, or individual who provides or sells goods for a company to support the production process in the company.
2. Service provider vendors
This type of vendor specifically provides products in the form of services under institutions or individuals to be distributed to companies that need them. An example is an expedition service in an institution assigned as an officer who sends products produced for retail companies or to consumers directly.
How vendors work with companies
As mentioned above, vendors play an important role in maintaining the smooth production process of goods within a company.
Currently, many companies are inviting vendors to become part of the company, there are even some companies that involve vendors in the ranks of the company’s top brass. This is because of the mutualistic relationship that exists between the two parties.