Vendor

Suppliers & Vendors

Definition

A seller of goods or services; in procurement, usually a synonym for supplier.

Explanation

Some organisations distinguish 'vendor' (transactional seller of goods) from 'supplier' (broader, including services and partners), but the terms are largely interchangeable. Vendor management covers onboarding, performance and risk.

Example

The new vendor is added to the system with its bank and tax details before its first PO.

Related terms

Supplier — An organisation that provides goods or services to a buyer in exchange for payment.
Supplier Management — The discipline of selecting, onboarding, evaluating and developing suppliers to maximise value and minimise risk over time.
Vendor Master Data — The authoritative record of each supplier's key details — legal name, addresses, tax IDs, bank and payment terms.
Supplier Onboarding — The process of setting up a new supplier to trade — collecting details, verifying compliance and adding it to systems.

Frequently Asked Questions

What is Vendor?

A seller of goods or services; in procurement, usually a synonym for supplier. Some organisations distinguish 'vendor' (transactional seller of goods) from 'supplier' (broader, including services and partners), but the terms are largely interchangeable. Vendor management covers onboarding, performance and risk.

Can you give an example of Vendor?

The new vendor is added to the system with its bank and tax details before its first PO.

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