Business

Difference between Supplier and Distributor

Main difference

The main difference between Supplier and Distributor is that the Supplier is a company, organization or individual that provides its services to the consumer through the distributor, while the Distributor is an intermediary between the supplier and the consumer with a distribution force in an area. in particular.

Provider vs Distributor

The supplier and the distributor are two important points in a supply chain that play a very important role in marketing. Both of them work hard to ensure that the products are either easily available to the consumers without letting the shortage of the required products and keep the market flowing smoothly. Both are interconnected with each other. A supplier is the one that provides the products, commodity or service to the consumer, on the other hand, a distributor is the one that is intermediate between the supplier and the consumer with a large storage capacity and with a sales and delivery force that attends the stores. in a specific area. A supplier does not resell the product, while a distributor can resell the product because it is their job. The supplier sells goods to the distributor, on the other hand, Distributors sell the products or goods that they obtain from suppliers. Sometimes a supplier may sell products directly to the consumer. A supplier is one that produces and imports products while distributors do not produce or manufacture the products, but rather sell the products that have been imported from suppliers. A provider can provide both services and products. On the other hand, a distributor can only provide products, not services because it cannot be separated from a service provider. Therefore, neither the supplier nor the distributor can work separately. They both need to work together to achieve their goals and make products available to customers. Therefore, suppliers and distributors are the parts of an interconnected supply chain. A supplier is the one that produces and imports products while the distributors do not produce or manufacture the products, but rather sell the products that have been imported from suppliers. A provider can provide both services and products. On the other hand, a distributor can only provide products, not services because it cannot be separated from a service provider. Therefore, neither the supplier nor the distributor can work separately. They both need to work together to achieve their goals and make products available to customers. Therefore, suppliers and distributors are the parts of an interconnected supply chain. A supplier is one that produces and imports products while distributors do not produce or manufacture the products, instead they sell products that have been imported from suppliers. A provider can provide both services and products. On the other hand, a distributor can only provide products, not services because it cannot be separated from a service provider. Therefore, neither the supplier nor the distributor can work separately. They both need to work together to achieve their goals and make products available to customers. Therefore, suppliers and distributors are the parts of an interconnected supply chain. a distributor can only provide products, not services because it cannot be separated from a service provider. Therefore, neither the supplier nor the distributor can work separately. They both need to work together to achieve their goals and make products available to customers. Therefore, suppliers and distributors are the parts of an interconnected supply chain. A distributor can only provide products, not services because it cannot be separated from a service provider. Therefore, neither the provider nor the distributor can work separately. They both need to work together to achieve their goals and make products available to customers. Therefore, suppliers and distributors are the parts of an interconnected supply chain. not services because it cannot be separated from a service provider. Therefore, neither the provider nor the distributor can work separately. They both need to work together to achieve their goals and make products available to customers. Therefore, suppliers and distributors are the parts of an interconnected supply chain. not services because it cannot be separated from a service provider. Therefore, neither the provider nor the distributor can work separately. They both need to work together to achieve their goals and make products available to customers. Therefore, suppliers and distributors are the parts of an interconnected supply chain.

Comparison chart

Supplier Distributor
A company, organization or individual that provides its services or goods to the consumer or customer through a distributor or directly is known as a supplier. An intermediary between the supplier and the retailers or consumers, with a large storage capacity and with a sales and delivery force serving stores in a specific area, is known as a distributor.
Paper
A Supplier is the one who sells goods to the distributor. A distributor sells the products or goods to the consumers that they obtain from the suppliers.
reselling products
. A supplier does not resell the product. A distributor can resell the product because it is his job.
Production
A supplier is the one that produces and imports products. The distributors do not produce or manufacture the products, but sell the products that have been imported from the suppliers.
Function
A provider can provide both services and products. A distributor can only provide products, not services because it cannot be separated from a service provider.

What is Provider ?

Suppliers can be defined as a party, organization, company or individual that is the source of goods or services. A supplier is someone who provides a product, service or merchandise to consumers, usually through a distributor. Suppliers can also be producers, packers, wholesalers, traders, processors, and traders who deal in certain products and merchandise. Providers can interact directly with customers; this is what happens, especially in commercial cases, with commercial products and industrial supplies. For example, vendors directly supply wind turbines to customers. Middlemen are not present in the business.

What is a distributor ?

Distributors are intermediaries who resell products obtained from suppliers. They are designated for business-to-customer marketing where high-volume transactions are taking place. One-third of the price of the product can be attributed to the distributor because the distributor stocks the product, advertises it to retailers, and gives the supplier an advance. Due to this factor, suppliers offer substantial discounts to dealers. Suppliers and distributors sign a contract and the supplier does not receive refunds if the product expires. Thus, a distributor can be defined as an organization that purchases a product from a supplier under contract, stores it, and then sells it to the retailer. Distributors do not directly approach end users because they promote products to retailers. Distributors are highly influential parties in the supply chain due to their cash resources and special distribution skills. They can be a competitive advantage for on-time providers. Distributors are widely used in fast-moving consumer goods due to the complexity of distribution channels and large volumes.

Key differences

  1. A supplier is known as a company, organization or individual that provides its services or goods to the consumer or client through a distributor or directly as a supplier, while an intermediary between supplier and retailers or consumers, with a large storage capacity and with a sales and delivery force serving stores in a specific area is known as a distributor.
  2. A Supplier is the one who sells goods to the distributor; on the other hand; A distributor sells the products or goods to the consumers that they obtain from the suppliers.
  3. A supplier does not resell the product conversely, a distributor can resell the product because it is their job.
  4. A supplier is the one that produces and imports products on the other hand; the distributors do not produce or manufacture the products, but rather sell the products that have been imported from the suppliers.
  5. A provider can provide services and products on the other side; a distributor can only provide products, not services because it cannot be separated from a service provider.

Final Thought

The above discussion summarizes that both supplier and distributors are part of a supply chain. A supplier is the one that manufactures the products and supplies them to the distributor. A distributor with a large storage capacity in a specific region supplies these products to the customer or consumer.

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