Supplier vs. Manufacturer — What's the Difference?
By Tayyaba Rehman — Updated on September 22, 2023
Supplier is an entity providing goods or services. Manufacturer is an entity producing goods from raw materials. Suppliers can distribute manufactured products, but manufacturers specifically produce them.
Difference Between Supplier and Manufacturer
Table of Contents
ADVERTISEMENT
Key Differences
The business world differentiates between various entities based on their roles, and two of these are suppliers and manufacturers. A supplier is an entity that provides or supplies goods and services. They might not necessarily create the products they supply but can be instrumental in ensuring these products reach the end consumer or other businesses. For example, a supplier might provide retailers with products from various manufacturers.
On the other hand, a manufacturer is an entity that produces goods from raw materials through various processes. They take base components, be it raw materials like iron ore or semi-finished products, and turn them into finished goods. This transformation process is what differentiates a manufacturer from a supplier.
It's crucial to understand that while all manufacturers can be suppliers, not all suppliers are manufacturers. A supplier could merely be a middle entity, procuring products from the manufacturer and supplying them to retailers or consumers. They might handle logistics, distribution, and sales without ever producing a product themselves.
One might find situations where a single company acts as both the supplier and manufacturer. This happens when manufacturers sell their products directly to the end consumer or retailer, eliminating any middle agents. Such setups can offer advantages like reduced costs and better quality control for the manufacturer.
Comparison Chart
Primary Role
Provides or supplies goods and services.
Produces goods from raw or semi-finished materials.
ADVERTISEMENT
Involvement in Production
Not necessarily involved.
Directly involved in production.
Position in Supply Chain
Can be in the middle or at the end.
Usually at the start of the supply chain.
Relation to Finished Goods
Can distribute or sell finished goods.
Produces the finished goods.
Inventory
Might hold goods from various manufacturers.
Holds primarily their own produced goods.
Compare with Definitions
Supplier
A distributor or wholesaler of products.
The local supplier offers a wide range of electronics.
Manufacturer
A creator of tangible products.
The toy manufacturer ensures safety in all its products.
Supplier
An intermediary in the supply chain.
The company chose a new supplier for its packaging needs.
Manufacturer
An entity that produces goods on a large scale.
The car manufacturer launched a new model this year.
Supplier
One who fulfills a demand or requirement.
We need a reliable supplier for our office supplies.
Manufacturer
One who processes raw materials into finished products.
The manufacturer turns raw cotton into clothing.
Supplier
A source from which something can be procured.
The library is a supplier of knowledge and resources.
Manufacturer
An originator of a product or goods.
The electronics manufacturer is known for its innovative designs.
Supplier
An entity that provides goods or services.
The grocery store is a supplier of fresh produce.
Manufacturer
A person or company that makes goods for sale
The manufacturers supply the goods to the distribution centre
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
Manufacturer
A person, an enterprise, or an entity that manufactures something.
Supplier
To make available for use; provide
Does the hotel supply towels?.
Manufacturer
A person or company that manufactures.
Supplier
To provide something necessary or desired to; furnish or equip
Supplied the players with uniforms.
Manufacturer
One who manufactures.
Supplier
To have as a necessary or desirable feature
A crime scene that supplied valuable evidence.
Manufacturer
A business engaged in manufacturing some product
Supplier
To fill sufficiently; satisfy
Supply a need.
Manufacturer
Someone who manufactures something
Supplier
To make up for (a deficiency, for example); compensate for.
Manufacturer
An entity specializing in production processes.
The furniture manufacturer employs skilled craftsmen.
Supplier
The act of supplying
Funds for the supply of the expedition.
Supplier
An amount available or sufficient for a given use; stock
Our supply of milk is low.
Supplier
Often supplies Materials or provisions stored and dispensed when needed.
Supplier
(Economics) The amount of a commodity available for meeting a demand or for purchase at a given price.
Supplier
One who supplies; a provider.
Supplier
(soccer) Someone who assists (sets up) a goal.
Supplier
One who supplies.
Supplier
Someone whose business is to supply a particular service or commodity
Common Curiosities
Are all suppliers also manufacturers?
No, while manufacturers can be suppliers, not all suppliers are manufacturers.
Can a company be both a manufacturer and supplier?
Yes, some companies manufacture their products and supply them directly to consumers or retailers.
Does a supplier produce the goods they sell?
Not necessarily; suppliers might procure goods from manufacturers to sell.
Who is responsible for product quality?
The manufacturer is primarily responsible for production quality, though suppliers ensure product condition during distribution.
What's the main difference between a supplier and manufacturer?
A manufacturer produces goods, while a supplier provides or distributes them.
Can a manufacturer supply services?
While manufacturing typically refers to goods, some use the term metaphorically for "producing" services.
What role does a manufacturer play in the supply chain?
Manufacturers produce goods, typically starting the supply chain process.
Do suppliers have a say in product design?
Typically, suppliers don't influence product design; that's the manufacturer's domain.
Do manufacturers deal with end consumers?
Some do, especially those that have direct-to-consumer sales channels.
Can a manufacturer sell directly to consumers?
Yes, some manufacturers sell directly to end consumers.
Who typically holds more inventory?
Suppliers might hold more diverse inventory, while manufacturers have more volume of specific items they produce.
How do suppliers add value in the supply chain?
Suppliers manage logistics, distribution, and often offer varied product assortments from different manufacturers.
Which entity typically has a broader product range?
Suppliers might have a broader product range if they source from multiple manufacturers.
Can a supplier influence product pricing?
Yes, suppliers can influence retail pricing based on their distribution costs and margins.
Share Your Discovery
Previous Comparison
Shall vs. May
Next Comparison
Regeneration vs. FibrosisAuthor Spotlight
Written by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
