The short answer
A supplier usually provides the goods or materials your business needs in an ongoing relationship, often as part of a supply chain. A vendor is any business that sells to you, and the word is often used for one-off or service purchases. Many companies use the words interchangeably, so check the context.
Vendor vs supplier at a glance
| Supplier | Vendor | |
|---|---|---|
| Typical meaning | Provides goods or materials you use or resell, often repeatedly. | Any business that sells goods or services to you. |
| Relationship | Often long term and strategic. | Often transactional or short term. |
| Examples | A factory supplying components, or a manufacturer supplying finished goods. | An office supplies seller, a software provider, a catering service. |
| Where you hear it | Manufacturing, supply chain, sourcing. | Accounting, IT, retail, general purchasing. |
These are tendencies, not rules. Always check how the other company uses the word, especially in contracts and purchase orders.
What is a third-party vendor?
A third-party vendor is an outside company that provides goods or services to your business, as opposed to your own staff or a direct partner. The term is common in risk management, where businesses assess whether an outside vendor handles data, quality or delivery safely. On online marketplaces it can also mean an independent seller who is not the marketplace itself.
What is vendor sourcing?
Vendor sourcing, or supplier sourcing, is the process of finding, evaluating and selecting the businesses you will buy from. It covers defining your needs, searching, shortlisting, requesting quotes, verifying, negotiating and placing the first order.
Our guide on how to find suppliers walks through each step with a request-for-quotation template.
What is a purveyor?
A purveyor is a supplier, usually of food or specialised goods, who provides them to customers such as restaurants, hotels and shops. The word is older than vendor or supplier and is most common in food and hospitality. In practice a purveyor is a supplier.
Reseller, merchant wholesaler and middleman
- Reseller. Buys finished goods and sells them on, usually to end customers.
- Merchant wholesaler. Buys goods in bulk, takes ownership of them, and resells in smaller lots to retailers or businesses.
- Middleman. Any intermediary between a producer and a buyer. The word is neutral in trade, but buyers use it for intermediaries who add cost without adding value.
If you want to cut out intermediaries, buy from a manufacturer. If you want smaller orders and faster delivery, a wholesaler is the right choice even though the unit price is higher.
Vendor and supplier in purchase orders and accounting
In accounts payable and purchasing systems, businesses usually keep one list of everyone they buy from, often called the vendor list or vendor master. Whether the company calls a seller a vendor or a supplier matters less than getting the legal name, tax details, payment terms and delivery terms right on the purchase order.
Which word should you search for?
On Baramdat you can browse Pakistani manufacturers and exporters by product, or send a sourcing request and let our team build a vetted shortlist.
- Want factory price? Search for manufacturer or supplier, plus the product name.
- Want small quantities? Search for wholesaler or distributor.
- Want a service or software? Search for vendor.
- Want help doing the search? Work with a sourcing agent.
Want a shortlist of Pakistani suppliers?
Tell us the product, quantity and destination. We match your request with suppliers we have checked, compare their quotes, and reply within one business day. You pay suppliers directly, and any fee is agreed in writing first.
Request sourcing helpFrequently asked questions
What is the main difference between a vendor and a supplier?
A supplier typically provides the goods or materials a business uses or resells, often in a long-term relationship. A vendor is any business that sells to you, and the word is more common for one-off purchases or services. Many companies use them interchangeably.
Is a supplier the same as a distributor?
Not always. A supplier can be a manufacturer, a distributor or a wholesaler. A distributor specifically holds stock from brands and sells on to businesses or retailers, often with territory rights.
What are vendors in business?
Vendors are the companies that sell goods or services to a business. Examples include a cleaning service, a software provider or a seller of office furniture.
What is a third-party vendor?
It is an outside company that provides goods or services to your business. In risk management, businesses assess third-party vendors to make sure they handle quality, delivery and data safely.
Should I buy from a manufacturer or a wholesaler?
Buy from a manufacturer for factory prices, customisation and larger volumes. Buy from a wholesaler for smaller quantities and faster delivery, accepting a higher unit price.
What is a purveyor?
A purveyor is a supplier, usually of food or specialised goods, who provides them to customers such as restaurants, hotels and shops. The word is more common in food and hospitality than in general business.
What is a merchant wholesaler?
A merchant wholesaler buys goods in bulk, takes ownership of them, and resells them in smaller lots to retailers or other businesses. They set their own prices, unlike an agent who only arranges a sale.
Is a vendor the same as a seller?
Often, yes. A vendor is a business that sells goods or services, and a seller is the everyday word for the same role. Supplier is more often used for businesses that provide goods or materials in an ongoing relationship.
Should I write vendor or supplier on a purchase order?
Use whichever your own system and the other business use. What matters is the correct legal name, tax details, payment terms and delivery terms.