Posted in Marketing and Strategy Terms, Total Reads: 2291

Definition: Vendor

A person who contributes goods or services in a supply chain is called a vendor. The job of a supply chain vendor is to manufacture goods and be the link between it and the next step. The vendor usually has intimate knowledge and understanding of the dynamics involved in the strategies that works in his field. In the real estate business it is mostly the person who sells the property. It mostly defines the person who is paid for the goods that he is providing, rather than the manufacturer of the goods. But the vendor can often act as both the supplier as well as a manufacturer. A vendor is an entity who can sell things.

Large retail stores often depends on the vendors and has a list of vendors from which they purchase goods at wholesale rate and sells them to retail customers. Vendors can even directly sell items to the customer’s .For example Street Selling. Vendors also can provide parts for another business which can be used for the manufacturing of the end product. A marketing vendor helps in gaining deep industry experience, access new technologies and save money. Even a marketing vendor helps to focus on other things, making the company more productive.

In order to ensure the best out of vendors, it is important to follow certain steps for vendor selection:

• Define the need for your business, the initial budget and setup a timeline accordingly to meet all the deadlines

• Use web as a reference to get the best referral in order to find a list of qualified marketing vendors

• Create a Request for Proposal (RFP) when the vendor is providing a comprehensive service, project is intangible, requires a specific evaluation criteria and large number of bidders are being evaluated.

• After narrowing down to a few vendors it is important to rate them and negotiate the pricing.

Hence, this concludes the definition of Vendor along with its overview.

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