Supplier vs. Distributor — What's the Difference?
By Fiza Rafique & Urooj Arif — Updated on May 13, 2024
Suppliers produce or provide goods, focusing on raw materials or manufactured products; distributors act as intermediaries, selling these goods to retailers or end-users.
Difference Between Supplier and Distributor
Table of Contents
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Key Differences
Suppliers are entities that produce or procure goods, often directly from manufacturing processes or farms. On the other hand, distributors purchase these goods from suppliers to resell them.
Suppliers often sell in large, bulk quantities to businesses, streamlining the production supply chain. Whereas distributors typically break down bulk purchases to provide smaller, more manageable quantities to retailers or directly to consumers.
The relationship with customers varies significantly; suppliers generally have limited interaction with end consumers, focusing on B2B (business-to-business) transactions. Conversely, distributors often engage more directly with both B2B and B2C (business-to-consumer) markets, providing critical customer service and support.
Suppliers are primarily concerned with the manufacturing, harvesting, or procurement of products, ensuring quality and availability. Distributors, however, focus on the logistics of getting these products to market, including storage, transportation, and inventory management.
In terms of market influence, suppliers have significant control over the production and initial pricing of goods. Distributors influence the availability and accessibility of products within different markets, often shaping product pricing through supply chain efficiencies.
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Comparison Chart
Primary Role
Produces or procures products
Sells products to retailers or end-users
Sales Focus
Bulk quantities, mainly B2B
Smaller quantities, B2B and B2C
Customer Interaction
Limited, mostly with businesses
More direct, includes end consumer support
Core Concern
Production, quality, and availability of goods
Logistics, storage, and distribution of goods
Market Influence
Controls production and initial product pricing
Influences product availability and final pricing
Compare with Definitions
Supplier
A source for raw materials or finished goods.
We need a new supplier for our coffee beans to improve quality.
Distributor
Engages in both B2B and B2C transactions.
The company started as a B2B distributor but now sells directly to consumers online.
Supplier
An entity involved in the manufacturing or production phase.
The supplier increased its steel output to meet growing demand.
Distributor
A business that purchases products from suppliers and sells them to retailers or consumers.
The distributor handles several beauty brands, supplying local salons.
Supplier
Can be a wholesaler or manufacturer.
Our key supplier for electronic parts is based in Taiwan.
Distributor
Operates warehouses and transportation networks to manage product flow.
The distributor's new warehouse significantly cuts down on delivery times.
Supplier
Primarily operates in a B2B framework.
The supplier has an exclusive contract with a large automotive manufacturer.
Distributor
Provides value-added services like marketing and customer support.
Our distributor offers training sessions on new products.
Supplier
A person or organization that provides something needed such as a product or service
The company has to pay suppliers within 90 days of purchase
Suppliers of health care
Every major energy supplier upped their prices
Distributor
Often responsible for a product’s market reach and availability.
The distributor expanded its network, allowing for faster product delivery.
Supplier
To make available for use; provide
Does the hotel supply towels?.
Distributor
A distributor, also commonly known as a dizzy, is an enclosed rotating shaft used in spark-ignition internal combustion engines that have mechanically timed ignition. The distributor's main function is to route secondary, or high voltage, current from the ignition coil to the spark plugs in the correct firing order, and for the correct amount of time.
Supplier
To provide something necessary or desired to; furnish or equip
Supplied the players with uniforms.
Distributor
An agent who supplies goods to retailers
A sports goods distributor
Supplier
To have as a necessary or desirable feature
A crime scene that supplied valuable evidence.
Distributor
A device in a petrol engine for passing electric current to each spark plug in turn.
Supplier
To fill sufficiently; satisfy
Supply a need.
Distributor
One that distributes, especially a device that applies electric current in proper sequence to the spark plugs of an engine.
Supplier
To make up for (a deficiency, for example); compensate for.
Distributor
One that markets or sells merchandise, especially a wholesaler.
Supplier
The act of supplying
Funds for the supply of the expedition.
Distributor
One who or that which distributes.
Supplier
An amount available or sufficient for a given use; stock
Our supply of milk is low.
Distributor
A device that distributes electric current, especially to the spark plugs in an internal combustion engine.
Supplier
Often supplies Materials or provisions stored and dispensed when needed.
Distributor
A machine for distributing type.
Supplier
(Economics) The amount of a commodity available for meeting a demand or for purchase at a given price.
Distributor
An appliance, such as a roller, in a printing press, for distributing ink.
Supplier
One who supplies; a provider.
Distributor
One that distributes; a distributer;
Supplier
(soccer) Someone who assists (sets up) a goal.
Distributor
Someone who markets merchandise
Supplier
One who supplies.
Distributor
A person with authority to allot or deal out or apportion
Supplier
Someone whose business is to supply a particular service or commodity
Distributor
A company that markets merchandise;
His company is a large distributor of software products
Supplier
A party that provides goods or services to another entity.
A local farm supplies organic vegetables to regional supermarkets.
Distributor
Electrical device that distributes voltage to the spark plugs of a gasoline engine in the order of the firing sequence
Common Curiosities
What are the key differences in customer interaction between suppliers and distributors?
Suppliers typically deal directly with businesses and have minimal consumer interaction, while distributors often support and interact with both businesses and consumers.
What is a supplier?
A supplier is an entity that provides goods or services, usually directly from production or manufacturing processes.
How do suppliers and distributors interact?
Suppliers sell products in bulk to distributors, who then market these products to smaller businesses or end-users.
Can a company be both a supplier and a distributor?
Yes, some companies handle both supplying raw materials or products and distributing them to other businesses or consumers.
hy do businesses prefer buying from distributors rather than directly from suppliers?
Businesses often prefer buying from distributors because they offer smaller quantities, broader product ranges, and additional services like after-sales support and quicker delivery times.
What are the benefits of being a supplier?
Being a supplier has benefits such as establishing long-term B2B relationships, potentially larger bulk orders, and direct influence over the manufacturing and quality control processes.
What does a distributor do?
A distributor buys products from suppliers and sells them to retailers or directly to consumers, managing logistics like storage and transportation.
How do suppliers impact the pricing of products?
Suppliers impact product pricing by setting the initial cost of goods based on production expenses, which influences the entire supply chain pricing.
What are the challenges faced by distributors?
Distributors face challenges such as managing logistics efficiently, keeping inventory costs down, and adapting to changes in demand and market conditions.
How do distributors influence market trends?
Distributors can influence market trends by deciding which products to distribute more widely, thereby affecting their availability and popularity in the market.
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Written by
Fiza RafiqueFiza Rafique is a skilled content writer at AskDifference.com, where she meticulously refines and enhances written pieces. Drawing from her vast editorial expertise, Fiza ensures clarity, accuracy, and precision in every article. Passionate about language, she continually seeks to elevate the quality of content for readers worldwide.
Co-written by
Urooj ArifUrooj is a skilled content writer at Ask Difference, known for her exceptional ability to simplify complex topics into engaging and informative content. With a passion for research and a flair for clear, concise writing, she consistently delivers articles that resonate with our diverse audience.