Difference Between Vendor and Customer

The management of the flow of services and goods from a producer to a consumer, commonly known as supply chain management is the most important aspect in a business. This is because it involves the constant flow of funds, information, and products among the parties involved. Among the parties involved include producers, distributors, retailers, vendors, and consumers. Each of these plays an important in ensuring there is a balance in the supply chain.

What is a Vendor?

This is a person in a supply chain that supplies goods to consumers. A vendor has a business to consumer (B2C) relationship with consumers and is also the last person that sells goods or services to a consumer. The objective of a vendor is to provide goods with the aim of making a profit. Vendors are important in a supply chain as they provide important information to the manufacturers or distributors in terms of consumer needs and product feedback hence enjoys a close relationship with both manufacturers and consumers.

What is a Customer?

Also referred to as a consumer, this is a person or an organization that purchases a product with a consumption motive and is the final party in the supply chain. A consumer may be:

• Direct- This is a consumer who buys a product for immediate use
• Indirect consumer- This is a person who buys a product with the intention of modifying and reselling it.

A customer is the last person in the supply chain, whose needs, opinions and values largely affect manufacturers’ decisions. 

Similarities between Vendor and Customer

• Both are important parties in the supply chain

Differences between Vendor and Customer

Definition

Vendor refers to a person in a supply chain that supplies goods to consumers. On the other hand, a customer refers to a person or an organization that purchases a product with a consumption motive and is the final party in the supply chain.

Supply chain link

A vendor is the second last person in the supply chain while a customer is the last person in the supply chain.

Aim of purchase

A vendor purchases products to resell while a customer purchases products to consume.

Relationship to the producers

While a vendor has a direct relationship with the producers, a customer has an indirect relationship with the producers.

Vendor vs. Customer: Comparison Table

Summary of Vendor vs. Customer

A vendor refers to a person in a supply chain that supplies goods to consumers and is the second last person in the supply chain. A customer, however, refers to a person or an organization that purchases a product with a consumption motive and is the final party in the supply chain. Both remain important parties in the supply chain.

Sharing is caring!