Difference between Vendor and Manufacturer

The production of a good or the provision of service requires the participation of a number of different stakeholders. These individuals are responsible for ensuring that the processes of production and delivery to the end user go without a hitch. Those who provide the raw ingredients, those who produce the product, those who distribute it, those who sell it at retail, and those who buy it from vendors and retailers are all participants in the supply chain. In the context of the supply chain, each of these partners fulfills a unique function.

Who is a Vendor?

This individual is the last link in the supply chain and is in charge of the purchasing and distribution of products to end users. They are also known as retailers. Because of the greater amount of engagement, they have with customers, vendors are crucial participants in the life cycle of any product.

Who is a Manufacturer?

A person who is involved in the process of transforming raw materials into completed goods for the purpose of selling those products is referred to as a person who is involved in the transformation. In certain cases, the manufacturing process will involve the use of tools, chemicals, machinery, and even biological operations.

The process of manufacturing starts with the design of the product, continues with the specification of the materials, and ends with the production of the finished product.

Differences − Vendor and Manufacturer

Both Vendors and Manufacturers play a significant role in the distribution of a product. The following table highlights how a Vendor is different from a Manufacturer −

Characteristics Vendor Manufacturer


A person who is involved with the procurement and distribution of commodities to end users is referred to as a vendor.

A person who engages in the process of transforming raw materials into completed items for the goal of selling those finished products is known as a manufacturer.


The purpose of a vendor is to provide items to the end users of those things.

Products are what a manufacturer strives to produce as its end goal.

Product quantity

When there is a demand for a product on the market, a vendor will supply that thing.

A manufacturer creates a large quantity of a product.

Business relations

A vendor is an expert in business-to-customer market interaction.

When it comes to business-to-business market relations, a manufacturer is an expert.

Risks involved

Because suppliers only purchase things in response to requests from customers, the industry is subject to fewer risks overall.

Because the items are made first, the manufacturer is subject to a greater number of hazards.

Relation to consumers

The relationship between a vendor and its customers is quite close.

The relationship between manufacturers and customers is not very close.


Despite the fact that these two terms are used interchangeably in the context of the supply chain, it is important to note that a vendor is a person who is responsible for the purchase and distribution of goods to consumers, whereas a manufacturer is a person who is involved in the transformation of raw materials into finished products for the purpose of selling those products. Without one of these two, economic growth is impossible.

Updated on: 16-Dec-2022


Kickstart Your Career

Get certified by completing the course

Get Started