Supplier vs. Distributor: Know the Difference
By Shumaila Saeed || Updated on December 25, 2023
A supplier provides resources or products to a business, while a distributor buys products from suppliers and sells them to retailers or end consumers.
Key Differences
A supplier is an entity that provides, or supplies, goods or services, often as a primary source. Suppliers are crucial for providing the raw materials or products that businesses need. Distributors, however, operate in the supply chain by purchasing goods from suppliers and selling them to retailers or directly to consumers.
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Dec 20, 2023
Suppliers typically focus on manufacturing or procuring goods and may sell to various distributors. Their role is to ensure the availability and quality of products or raw materials. Distributors, on the other hand, are intermediaries who focus on the logistics of getting these goods from suppliers to the market, often adding value through services like marketing and sales support.
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Dec 20, 2023
The relationship with customers is different for suppliers and distributors. Suppliers may have limited direct interaction with the end consumer, focusing instead on B2B (business-to-business) relationships. Distributors are more involved in the B2C (business-to-consumer) aspect, often building relationships with retailers and sometimes directly with consumers.
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Dec 20, 2023
In terms of scale, suppliers can range from small, specialized companies to large multinational corporations. They are integral in the production process. Distributors, although they can also vary in size, are key in the distribution chain, ensuring that products reach a wider market.
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Dec 20, 2023
Comparison Chart
Role in Supply Chain
Provides raw materials or products
Buys products from suppliers, sells to retailers
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Focus
Manufacturing/procuring goods
Logistics of distribution, marketing, and sales
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Relationship with Customers
Primarily B2B
Both B2B and B2C, closer to market
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Value Addition
Ensuring availability and quality
Adding services like marketing, sales support
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Dec 20, 2023
Interaction with End Consumer
Limited direct interaction
Often directly involved
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Dec 20, 2023
Supplier and Distributor Definitions
Supplier
An entity that sells goods to businesses.
The supplier agreed to deliver the products monthly.
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Distributor
An agent who supplies goods to stores and other businesses.
The distributor played a key role in getting the products to retailers.
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Dec 09, 2023
Supplier
A manufacturer or wholesaler.
The supplier was responsible for the initial stages of production.
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Dec 09, 2023
Distributor
A business that buys from manufacturers and sells to retailers.
The distributor expanded its network to cover more regions.
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Dec 09, 2023
Supplier
A provider of specific resources.
The local farm acts as a supplier of organic vegetables.
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Distributor
An entity handling the logistics of product distribution.
The company's main distributor handles both national and international shipments.
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Supplier
A party that provides goods or services.
The company relied on its supplier for quality raw materials.
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Distributor
A marketer of products to the public or retailers.
The distributor organized a marketing campaign to increase product awareness.
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Dec 09, 2023
Supplier
A source in the supply chain.
Our main supplier for electronics components is based overseas.
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Dec 09, 2023
Distributor
One that distributes, especially a device that applies electric current in proper sequence to the spark plugs of an engine.
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Dec 08, 2023
Distributor
One that markets or sells merchandise, especially a wholesaler.
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Dec 08, 2023
Supplier
To provide something necessary or desired to; furnish or equip
Supplied the players with uniforms.
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Dec 08, 2023
Supplier
To have as a necessary or desirable feature
A crime scene that supplied valuable evidence.
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Dec 08, 2023
Distributor
A device that distributes electric current, especially to the spark plugs in an internal combustion engine.
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Dec 08, 2023
Distributor
An appliance, such as a roller, in a printing press, for distributing ink.
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Dec 08, 2023
Supplier
An amount available or sufficient for a given use; stock
Our supply of milk is low.
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Dec 08, 2023
Supplier
Often supplies Materials or provisions stored and dispensed when needed.
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Dec 08, 2023
Supplier
(Economics) The amount of a commodity available for meeting a demand or for purchase at a given price.
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Dec 08, 2023
Distributor
A company that markets merchandise;
His company is a large distributor of software products
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Dec 08, 2023
Distributor
Electrical device that distributes voltage to the spark plugs of a gasoline engine in the order of the firing sequence
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Dec 08, 2023
Distributor
An intermediary in the supply chain.
Our distributor ensures timely delivery of goods to the market.
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Dec 09, 2023
Supplier
Someone whose business is to supply a particular service or commodity
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Dec 08, 2023
Repeatedly Asked Queries
Can a supplier sell directly to consumers?
While possible, suppliers typically sell to businesses or distributors, not directly to consumers.
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Dec 20, 2023
Do distributors manufacture products?
No, distributors do not manufacture; they buy from manufacturers (suppliers) and sell to other businesses.
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Dec 20, 2023
What is a supplier in business?
A supplier is an entity that provides goods or services to another business.
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Dec 20, 2023
How does a distributor function?
A distributor buys products from suppliers and sells them to retailers or directly to consumers.
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Dec 20, 2023
What is the main role of a supplier?
The main role of a supplier is to provide the necessary goods or services for other businesses.
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Dec 20, 2023
How do distributors add value to products?
Distributors add value through services like storage, transportation, marketing, and sales support.
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Dec 20, 2023
Is a distributor considered a middleman?
Yes, a distributor acts as a middleman between suppliers and the market.
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Dec 20, 2023
Can a business be both a supplier and a distributor?
Yes, some businesses function as both suppliers and distributors.
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Dec 20, 2023
Do distributors interact with end consumers?
In some cases, especially in B2C, distributors interact directly with end consumers.
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Dec 20, 2023
What factors are important in choosing a supplier?
Key factors include product quality, reliability, cost, and delivery times.
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Dec 20, 2023
What is the significance of a local supplier?
Local suppliers are important for businesses looking to reduce transportation costs and support local economies.
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Dec 20, 2023
Can distributors influence product pricing?
Yes, distributors can affect pricing, especially in how they mark up products for resale.
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Dec 20, 2023
What type of relationship do suppliers have with businesses?
Suppliers have a B2B relationship, supplying goods to other businesses.
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Dec 20, 2023
What's a wholesale supplier?
A wholesale supplier sells large quantities of goods, typically to distributors or retailers.
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Dec 20, 2023
How do suppliers impact the quality of final products?
Suppliers influence the quality as they provide the raw materials or components for the final products.
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Dec 20, 2023
How does technology impact suppliers and distributors?
Technology aids both in streamlining operations, improving communication, and managing inventory and logistics.
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Dec 20, 2023
What is a direct supplier?
A direct supplier provides goods or services directly to the business using them.
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Dec 20, 2023
Are distributors responsible for product promotion?
Yes, distributors often handle product promotion and marketing.
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Dec 20, 2023
How do distributors influence the supply chain?
Distributors play a key role in the supply chain by ensuring efficient product flow from suppliers to the market.
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Dec 20, 2023
Do distributors need to have a wide network?
A wide network is beneficial for distributors to ensure broader market reach and efficient distribution.
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Dec 20, 2023
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About Author
Written by
Shumaila SaeedShumaila Saeed, an expert content creator with 6 years of experience, specializes in distilling complex topics into easily digestible comparisons, shining a light on the nuances that both inform and educate readers with clarity and accuracy.
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