BROWSE

Vendor

Definition

In a supply chain, a vendor, or a seller, is an enterprise that contributes goods or services. Generally, a supply chain vendor manufactures inventory/stock items and sells them to the next link in the chain. Today, these terms refer to a supplier of any good or service.

What is a 'Vendor'

A vendor is a party in the supply chain that makes goods and services available to companies or consumers. The term "vendor" is typically used to describe the entity that is paid for goods that are provided, rather than the manufacturer of the goods itself. It is possible, however, for a vendor to sometimes operate as both a supplier (or seller) of goods and a manufacturer.

Explaining 'Vendor'

A vendor, also known as a supplier, is a person or a business entity that sells something. Large retail stores such as Target, for example, generally have a list of vendors from which they purchase goods at wholesale that they sell at retail to their customers. Vendors can also sell directly to the customer, as seen with street vendors and food trucks. In addition, a vendor can act as a business-to-business (B2B) sales organization that provides parts for another business to make an end product.

Vendors as Part of the Supply Chain

A supply chain is the summation of all individuals, organizations, resources, activities and technologies used in the manufacturing and selling of a good or service. The supply chain starts with the production and delivery of raw source material, and it ends with the sale and delivery of the end product. Vendors are found all throughout the supply chain. For example, a manufacturer that turns raw material into a finished good is a vendor to wholesalers and retailers that sell the product to a consumer. In turn, retailers are a vendor for the end customer. For example, Target is a vendor for a person looking for home appliances. A vendor, therefore, is a general term used to describe any supplier of a good or service.

An Example of Vendors

Large corporate events are good examples of times when vendors are needed. If, for example, the human resources department of a large company plan a holiday party for its employees, it seeks to hire outside vendors to supply the event. First, the department has to choose a location, and the owner of the event space itself becomes a vendor when the date is reserved and the contract signed.


Further Reading


Operational decisions, capital structure, and managerial compensation: A news vendor perspective
www.tandfonline.com [PDF]
… Scholar]), we described a simplified model of production and financing decisions based on an extension of the news vendor model … Journal of Financial Economics, 4: 305–360 … Many others in the finance literature have followed JM in investigating such effects of agency costs …

Vendor–buyer inventory models with trade credit financing under both non-cooperative and integrated environmentsVendor–buyer inventory models with trade credit financing under both non-cooperative and integrated environments
www.tandfonline.com [PDF]
… Scholar]), we described a simplified model of production and financing decisions based on an extension of the news vendor model … Journal of Financial Economics, 4: 305–360 … Many others in the finance literature have followed JM in investigating such effects of agency costs …

The impact of switching costs on vendor financingThe impact of switching costs on vendor financing
www.sciencedirect.com [PDF]
… Scholar]), we described a simplified model of production and financing decisions based on an extension of the news vendor model … Journal of Financial Economics, 4: 305–360 … Many others in the finance literature have followed JM in investigating such effects of agency costs …

Enterprise risk management: a DEA VaR approach in vendor selectionEnterprise risk management: a DEA VaR approach in vendor selection
www.tandfonline.com [PDF]
… Scholar]), we described a simplified model of production and financing decisions based on an extension of the news vendor model … Journal of Financial Economics, 4: 305–360 … Many others in the finance literature have followed JM in investigating such effects of agency costs …

Business e-books: what can be learned from vendor supplied statistics?Business e-books: what can be learned from vendor supplied statistics?
www.tandfonline.com [PDF]
… Scholar]), we described a simplified model of production and financing decisions based on an extension of the news vendor model … Journal of Financial Economics, 4: 305–360 … Many others in the finance literature have followed JM in investigating such effects of agency costs …

Coordination Mechanism Designing for Vendor Managed Inventory under Asymmetric Information <span style=[J]' src='/thumbnails/?img=http%3A%2F%2Fen.cnki.com.cn%2FArticle_en%2FCJFDTotal-GCXT200411006.htm' />Coordination Mechanism Designing for Vendor Managed Inventory under Asymmetric Information [J]
en.cnki.com.cn [[J]' href='https:/api.miniature.io/pdf?url=en.cnki.com.cn%2FArticle_en%2FCJFDTotal-GCXT200411006.htm'>PDF]
… Scholar]), we described a simplified model of production and financing decisions based on an extension of the news vendor model … Journal of Financial Economics, 4: 305–360 … Many others in the finance literature have followed JM in investigating such effects of agency costs …

Analyzing the Impacts of Vendor Management Inventory on Market Competition <span style=[J]' src='/thumbnails/?img=http%3A%2F%2Fen.cnki.com.cn%2FArticle_en%2FCJFDTotal-XCXB200610003.htm' />Analyzing the Impacts of Vendor Management Inventory on Market Competition [J]
en.cnki.com.cn [[J]' href='https:/api.miniature.io/pdf?url=en.cnki.com.cn%2FArticle_en%2FCJFDTotal-XCXB200610003.htm'>PDF]
… Scholar]), we described a simplified model of production and financing decisions based on an extension of the news vendor model … Journal of Financial Economics, 4: 305–360 … Many others in the finance literature have followed JM in investigating such effects of agency costs …

A simple integrated production policy of an imperfect item for vendor and buyerA simple integrated production policy of an imperfect item for vendor and buyer
www.tandfonline.com [PDF]
… Scholar]), we described a simplified model of production and financing decisions based on an extension of the news vendor model … Journal of Financial Economics, 4: 305–360 … Many others in the finance literature have followed JM in investigating such effects of agency costs …

A system dynamic model of vendor managed inventory and third party logisticsA system dynamic model of vendor managed inventory and third party logistics
en.cnki.com.cn [PDF]
… Scholar]), we described a simplified model of production and financing decisions based on an extension of the news vendor model … Journal of Financial Economics, 4: 305–360 … Many others in the finance literature have followed JM in investigating such effects of agency costs …

An integrated single-vendor single-buyer inventory system with shortage derived algebraicallyAn integrated single-vendor single-buyer inventory system with shortage derived algebraically
www.tandfonline.com [PDF]
… Scholar]), we described a simplified model of production and financing decisions based on an extension of the news vendor model … Journal of Financial Economics, 4: 305–360 … Many others in the finance literature have followed JM in investigating such effects of agency costs …



Q&A About Vendor


What does it mean when something is said to be traded on the open market?

When something is said to be traded on the open market it means that anyone can buy it at any time during trading hours. The price will vary depending on supply and demand.

What does it mean for a vendor to operate as both a supplier and manufacturer?

It means that the vendor can sometimes be both the seller of goods and the manufacturer of those same goods.

Where are vendors found throughout the supply chain?

Vendors are found all throughout the supply chain, from raw material suppliers to retailers selling products directly to end customers.

Why do large corporate events require so many vendors?

Large corporate events require many vendors because they need outside help with planning, organizing, staffing, etc.

What is a vendor?

A vendor is a party in the supply chain that makes goods and services available to companies or consumers.

What are the different types of markets?

There are many different types of markets. Some examples include labor markets, financial markets and commodity markets.

Are markets spontaneous or constructed?

Markets may be either spontaneous or constructed.

How do you define a market?

A market can be defined as an institution that allows buyers and sellers to trade rights (or goods) for money or other rights (or goods).