We already know that in commerce, it is often divided into two parties, clearly buying – selling, providing – receiving. For this process to go smoothly and smoothly, an extremely important link called Vendor is indispensable. Vendor has a very wide range of uses from individuals, small individual units but also medium to large organizations.
Watching: What is Vendor?
What is a Vendor
?Vendor is a pure English word that is used a lot in economic and commercial activities and is quite popular in the Vietnamese market. Originally Vendor was used to refer to small retailers, street vendors or street vendors. However, in today’s broad economic and commercial environment, vendor no longer means that, but vendor is used in a broader sense to refer to parties acting as a supplier.
With B2C, these organizations and individuals will buy products and services from the original manufacturer or from the factory and then resell those products and services to customers. It can be said that Vendor plays the most important intermediary role between the production and consumption of goods.
You are a company that manufactures products and designs services, you want your products to be sold a lot, introduced to many users? So what is certain is that you must have an extremely wide network of vendors, reaching out to Vendors is the way to get closer to regular customers.
A specific example of Vendor is the current system of supermarkets. All supermarkets from large supermarkets such as Big C, Vinmart to mini supermarkets and local convenience stores act as a Vendor.
They import goods and products that they consider good and suitable for consumers from manufacturers and then sell them to consumers. The fact that some big brands link up with supermarket chains, chain stores and reap significant increases in revenue every day shows the appreciation and importance of Vendor today.
Supplier: is a supplier, providing products to the market, often meaning more company. For example, a company that directly manufactures and supplies products – Vendor or Seller will sell Supplier supplied products on a partnership basis.
Difference Between Vendor and Supplier
What is the difference between Vendor and Supplier
Difference Between Vendor and Supplier
Although vendor and supplier, when translated, can be understood as a supplier, but in the supply chain management process and the role of vendor and supplier is completely different.
Supply chain process diagram
Distinguish Vendor and Supplier based on the following criteria
Vendor Supplier Criteria Vendor means an individual or an organization that sells goods at a specific price to customers. Supplier refers to an individual or organization that provides materials, goods or services at the request of the business. Link position in the supply chain Last First Objective Sales to end consumer To produce goods Sales purpose Use Resell Supply Quantity Small Large
Difference Between Vendor and Supplier
It can be seen that Vendor or Supplier both have an intermediary role in the supply chain. However, the main difference of Vendor and Supplier lies in the purpose of selling. When goods are sold to another party for the purpose of resale, it is called a Supplier, and goods directly to the end consumer are called a vendor.
How important is Vendor in the supply chain?
Vendor (Supplier) in the supply chain
In business activities from traditional to modern, the concept “Customer is God” exists in the minds of businesses quite a lot. However, on the other hand, there are also many large manufacturers who have an extremely potential customer base, they are willing to spend money to buy products of the business, it seems that businesses no longer have any worries. .
But it is precisely because of the lack of preparation for product supply, the lack of focus on linking with suppliers and the lack of strong and planned cohesion that providing products to customers. goods are prone to many problems.
Production activities are sometimes halted but sometimes overloaded, output is not absolutely guaranteed, leading to a decline in quality leading to customers abandoning products to find new things in the rich and diversified capital market. this form.
As for businesses who know how to link with suppliers, which are Vendors, the risks in product supply are reduced to a minimum. An entire chain of organization and activity in which the Vendors are closely linked.
Manufacturers provide products periodically and Vendors is responsible for arranging the supply process of goods in a reasonable way to consumers. This reduces a relatively large burden on manufacturers, saves time and money, and helps businesses invest in developing better product quality.
Any Every Vendors plays a role in the large supply wagon, and as long as one Vendor gets into trouble, one can easily see fluctuations in the whole chain and the unfavorable things that can come to both sides. : both businesses and consumers.
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What criteria should Vendors be selected based on?
As a customer, everyone psychologically wants to choose clean, hygienic products, good service, and comfort. Therefore, it is not difficult to understand that product quality is set as the first criterion. A supplier that recognizes and adheres to the product quality assessment regimes and criteria is the object that both businesses want to associate with and people also trust. Typically, clean food sales systems are increasingly favored by people because they have full certifications to ensure hygiene and product quality, and customers are satisfied with their purchase.
Rate of damaged goods
Enterprises especially must pay attention and monitor the chart of damaged goods when delivered to suppliers or return suppliers, from there to choose the right Vendors. Suppliers who do not have qualified facilities or do not have a legitimate commitment to preserve the delivered goods or often damage or reduce the quality of goods before being delivered to users. should be worthy of being a reliable bonding partner.
In order for a production line to go smoothly, all stages must be carried out on schedule. In order for the company’s production activities to always run well, the delivery time must be arranged in a planned way. Managers should make a statistical table of actual and expected delivery times of the Vendors, thereby making correct assessments of their capacity and credibility, thereby selecting future partners. suitable, avoiding damage to future orders, especially large orders.
Quality of customer service
As mentioned, in the supply chain, the Vendors play an extremely important role. Therefore, in addition to the warranty support and product return process, the manufacturer always creates favorable conditions for the Vendors and as a criterion to evaluate the service quality of Vendors.
How to effectively market to Vendor
?Marketing to a Vendor is not the same as marketing to the public in the hope of attracting regular customers. Vendors will not care about the quality of the product or how beautiful or convenient it is when you present it to them, because they do not use that product or service. When Marketing to Vendor, it’s important to create a deal that’s appealing to both parties.
Here are some suggested approaches to Vendor:
1. Attend all major national trade shows to meet Vendors in your industry. With the mindset of looking for partners when participating in trade shows, attracting and persuading Vendors will become much simpler.
2. Offer incentives to the Vendors. When you are a supplier (supplier) and want Vendor to take more of your products to sell, creating an offer that stands out for them over other Suppliers is quite important to retain Vendor. First of all, there are some incentives when signing a partnership, as a welcome incentive to create a relationship. Then, after a few months, you offer another package of incentives as a reward for a certain amount of sales. This offer is usually a higher profit margin to drive Vendor to sell more of your products. Thus, this preference has created a win-win relationship for both parties.
3. Compare directly with Vendor’s current product lines. Show Vendors that their operations will be better, their revenue will be better, and what their customers will get by using their products instead of current Suppliers. If you can offer better, more profitable products for the same price, it will definitely have a big impact on your partners.
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Understanding what a vendor is, you can also see today, besides the battle for market share, the story around the Vendor’s booth occupancy is also a big concern of businesses. As a Supplier, you not only need to cooperate with many Vendors, but it is also important to find the right Vendor for your products and services and retain Vendor for a long time.