7 thoughts on “Is it Called Vendor or Supplier?

  1. theslowdiyer 11th September 2021 / 11:06

    I’ve never before seen anyone use the term “vendor” to represent an entity on the demand-side of a business – only on the supply side. Demand-side parties are called dealer/distributor/reseller/retailer etc. depending on the industry. As for supplier/vendor I’ve seen some companies follow the goods vs. invoices convention or they use one term in general as a company/industry practice.

    In theory I guess the demand-side use of vendor is correct, but why the h*** anyone would invent more problems in this space than we already have completely beyond me 😀

    • Henrik Gabs Liliendahl 11th September 2021 / 11:17

      Thanks for commenting and we are on the same page and I think we agree that demand-side and sell-side is the same and supply-side and buy-side is the same.

      • theslowdiyer 11th September 2021 / 11:29

        Yes, we do agree on that 🙂

  2. Gino Fortunato 12th September 2021 / 14:42

    I have to agree with THESLOWDYIER on both counts: I have never seen the term used on the demand side and why would anyone try to make this more complicated!? For practical purposes I find most of the distinctions that might exist relevant for ERP applications and not Master Data Management. For example, a distinction between a bill-to and a ship-to is (in my mind) transactional, not master data. One can see this by thinking about a different transaction where the ship-to and bill-to the same entities but are the reverse of the first transaction. Even if it does not happen for a particular entity today, you are just one reorganization away from it being so.

    • Henrik Gabs Liliendahl 12th September 2021 / 16:04

      Thanks for adding in Gino. I have also noticed that ERP solutions – as for example SAP S/4 HANA – have adopted the business partner view which means that you have the same repository for any entity despite being on the supply/buy-side or the demand/sell-side. MDM implementations will have to follow that path too – and should in my view have done that long ago.

  3. Ron Paro 13th September 2021 / 17:07

    In the organizations I have worked with, “Vendor” tends to be used when referring to the abstracted entity, where it becomes “Supplier” in the context of ship from-ship to locations and things like that. Even that has been very inconsistent and often confusing to people. We have adopted the term “Business Partner” to be able to talk about any entity that we are paying or being paid by for any goods or services.

    • Henrik Gabs Liliendahl 13th September 2021 / 17:38

      Thanks for commenting, Ron. I think it will become best practice to do so.

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