What is the Difference Between Supplier and Distributor?

The main difference between a supplier and a distributor lies in their role in the supply chain and their relationship with manufacturers and retailers. Here are the key differences:

• Supplier: A supplier is a company that provides products or services to other businesses, including manufacturers, processors, and packagers. They can work directly with manufacturers or sell raw materials to them. Suppliers may also work with distributors and wholesalers to provide them with the necessary goods.
• Distributor: A distributor is a company that sells products or services to the end user or other businesses. They typically work with larger companies and help them reach new markets. Distributors often have a direct relationship with manufacturers and may have exclusive agreements with certain retailers. They store products in a warehouse and ship them to customers.

In summary, suppliers generally supply goods and services to other businesses, while distributors handle the sale of products to the end user or other businesses. Suppliers often work directly with manufacturers, while distributors work with retailers or end consumers.

Comparative Table: Supplier vs Distributor

Here is a table summarizing the differences between suppliers and distributors:

Suppliers are the source of goods or services in the supply chain, while distributors act as intermediaries, purchasing goods from suppliers and selling them to retailers or end-customers. Suppliers have limited customer interaction, focusing on supplying products to the next link in the supply chain, whereas distributors have a higher level of customer interaction, managing logistics, transportation, and sales to retailers or end-customers.