What comes to mind when you think of a Vendor . . . a coin-operated snack dispenser, a sidewalk food service, or perhaps someone selling flowers or handmade jewelry on the corner? In fact, these are all vendors, as well as the local bakery, the service station or corner store, and the door-to-door vacuum salesperson. Read on to get our definition of a vendor as it relates to purchasing.
A Vendor is defined as a company which supplies parts, materials or services to another company or individual, also referred to as a supplier. This includes all companies that you do business with and help you bring your project to completion or provide you with a service to help you accomplish your tasks. They may provide uniforms or a cleaning service, prepare payroll, accounting or financial statements, deliver office/shop supplies, produce graphic layouts or manufacture tools, parts and equipment, provide transportation of goods or international relations assistance. Some Vendors you may deal with on a daily, weekly or monthly basis others you may do business with only once a year.
Vendors can and do many things which can make your business successful. These are the persons that introduce us to new products and services to improve productivity, they can offer advice or recommendations to help address a current need or fulfill a requirement. They can be an excellent resource when researching solutions to an unfamiliar request and help keep our product knowledge current.
In this post we have touched on a wide range of various vendor types. RFQPro’s main focus is on vendors which warrant performing a Vendor Performance Review or Supplier Evaluation on. Our focus is on the strategic vendors vital to an organization’s long-term viability. Their products and services support businesses, regardless of industry.
You’re not going to worry too much about the vendor that sells you a hot dog or that cup of Joe, but if you are a purchasing manager, then you work for a company that likely has many vital vendor relationships. These vendors help your business remain profitable, they are paid by your company, and they make money from your business or orders.
So, our definition of a Vendor is one that is, in fact, a partner in our business. They are within the top 20% of all suppliers we do business (spend) with, and warrant spending hundreds, if not thousands, of dollars auditing, evaluating and providing feedback to on an annual basis. RFQPro has a first-rate Vendor Performance Review (RFQ30), available in both our Premium Pack and our Performance Pack. We are also the group behind the RFQ Software which has a built in Supplier Evaluation Tool. This on-line vendor performance tool is part of the Pro Version subscription of our RFQ Software.
Note: Our Software Business sold in 2024.