Browse Definitions :
Definition

vendor

A vendor, also known as a supplier, is an individual or company that sells goods or services to someone else in the economic production chain. 

Vendors are a part of the supply chain: the network of all the individuals, organizations, resources, activities and technology involved in the creation and sale of a product, from the delivery of source materials from the supplier to the manufacturer, through to its eventual delivery to the end user.

Parts manufacturers are vendors of parts to other manufacturers that assemble the parts into something sold to wholesalers or retailers. Retailers are vendors of products to consumers. In information technology as well as in other industries, the term is commonly applied to suppliers of goods and services to other companies.

A tier 1 vendor is a large and well-known vendor, often enjoying national or international recognition and acceptance. Tier 1 vendors may be both manufacturers and value-added resellers (VARs). A tier 2 vendor is a smaller and less well-known provider that is often also limited in its geographic coverage as well. As a consequence, a tier 2 vendor is generally regarded as a secondary source rather than the preferred source.

Some organizations implement internal units known as vendor management offices (VMO) dedicated to evaluating third-party providers of goods and services, supervising day-to-day interactions and managing longer-term relationships.

The word vendor comes from the French verb vendre, meaning to sell.

This was last updated in March 2015

Continue Reading About vendor

Networking
Security
CIO
HRSoftware
  • talent pipeline

    A talent pipeline is a pool of candidates who are ready to fill a position.

  • recruitment process outsourcing (RPO)

    Recruitment process outsourcing (RPO) is when an employer turns the responsibility of finding potential job candidates over to a ...

  • human resources (HR) generalist

    A human resources generalist is an HR professional who handles the daily responsibilities of talent management, employee ...

Customer Experience
  • outbound marketing

    Outbound marketing is a traditional form of marketing in which an organization initiates contact with potential customers, or ...

  • churn rate

    Churn rate is a measure of the number of customers or employees who leave a company during a given period.

  • marketing campaign management

    Marketing campaign management is the planning, executing, tracking and analysis of direct marketing campaigns.

Close