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What is a vendor?

A vendor is a person or business that sells something. If you run a distribution business, this would be the person you purchase finished goods from. If you are a manufacturer, this would be the person you buy raw materials from. To make a purchase from a vendor, you will create a purchase order, and they will then send you an invoice. This helps streamline the returns process and protects both you and the vendor. 

Because vendors play such an essential role in your ability to obtain and/or manufacture your products, their performance can make or break your business. Therefore, using a vendor and procurement management system will help ensure you get the best goods, on time and on budget. Procurement and vendor management will track historical and current lead times, allowing you to analyze trends and purchase at the right time. You'll also be able to follow prices and buy from the vendor offering goods at the right price for you.


Helpful resources:

The better way to run your business