A vendor is an individual or organization that sells goods or services to another individual or organization through a stable economic supply distribution system or chain. Vendors are typically saddled with the responsibility of ensuring that raw materials get to the producers and finished goods to the final consumers. Vendors are available in all businesses and professions like finance, investments, engineering, technology, etc.
In this definition...
Vendors are resilient and want their goods or services to be at the forefront of the market. Features of vendors include:
There are three primary types of vendors in the economic distribution supply chain:
Most retail shops that sell finished products such as consumer electronics, dresses, body products, etc., fall under B2C vendors. Many online stores like Amazon, Walmart, eBay, etc., are considered B2C vendors.
Examples of a B2G vendor are Raytheon and Lockheed Martin, which provide military systems to the governments of the US and other countries.
Finally, Intel functions as a B2B vendor that sells its components to the producers of personal computers.
Manufacturers use B2B vendors to get raw materials, parts, and subassemblies that will be transformed into finished products. Governments get products from trusted B2G vendors and use them for improved governmental administration by channeling them into different government parastatals.
Vendors buy raw materials or finished products from manufacturers and put them up for sale using the predominant supply chain. Individuals or companies can buy through direct purchases or indirectly through a third party. Most vendors are registered with organizations that utilize Customer Relationship Management (CRM). Sometimes, the CRM may require that the vendor and purchaser sign a Master Purchasing Agreement.
Vendors help organizations reduce the stress, risks, and financial burden accompanying sales of their products (e.g., online vendors such as eBay, Amazon, Aliexpress, etc.). They make such products available to many buyers and communicate any difficulties the buyer experiences back to the manufacturing company. Besides this, companies that use vendors have ample time to focus on their production business and hasten quick delivery of such products.