6 Differences of Distributor VS Supplier

There are many terms that you can find in business, especially in the manufacturing industry. It is not only about seller and buyer but also distributor vs supplier that sound similar. They are different parties and work with different tasks. Both have important responsibilities in business on a mid-to-big scale.

The business that operates with other vendors and partnerships, these two terms will always be included. Therefore, understanding the terms will help you know their roles in businesses. Get to know more about their differences here.

Definition Distributor VS Supplier

Before knowing about their function in business, you have to understand the meaning behind every role. The supplier is the party who will supply the raw materials or goods from manufacturers to the distributor. They do not use them themselves because they intend to profit from them.

The main task is maintaining good relationships and communication between the producers of the goods and the distributor. They should make sure that the stock is available for the distributor. This is why their communication skills should be excellent.

It is different from the distributor as the party that will distribute the goods to the resellers or retailers. They can be a partner of the brand, yet they should keep communicating with the supplier and talk about demand in the market. However, distributors can act as suppliers as well.

Quality Control Responsibility

This is the responsibility that is only done by a supplier. They should make sure the goods or raw materials are not damaged. When they find out the quality is bad, they cannot distribute it to the distributors. They may supervise the production process in the factory.

A distributor does not have to take care of this responsibility. They only accept the final output after communicating with the supplier. They can file a complaint when the quality of the goods is damaged. This is the main difference between distributor vs supplier.

Distributing Goods or Products

A supplier cannot distribute the goods to the retailers. Distribution is the distributor's responsibility, where they have to send the goods to resellers, wholesalers, and retailers. They also ensure the goods should be secured and safe while shipping to their respective areas.

The types of products or materials to distribute are also different between the distributor and supplier. The supplier usually supplies raw materials, either to the manufacturers or to the distributors. Meanwhile, the distributors only distribute the final output to the smaller-scale like retailers and resellers.

Profit Margin

The profit margin between distributor vs supplier has different levels. This is because the profit comes from different tasks. Suppliers will only get profit from selling the raw materials to the industry. They cannot get profit from direct selling to the customers or end-consumers because they cannot sell them directly.

The profit that distributor gets is lower because they sell it to resellers with a certain price net to be competitive in the market. Even so, they can buy the goods or products from the manufacturers directly with discounts and far cheaper. This is how distributors can determine their prices.

The Output to Sell in The Business

The output that distributors and suppliers work on is different. The distributor only distributes the final output from suppliers or manufacturers. They do not QC the items one by one because their task is selling the products to retailers or resellers in many areas.

The suppliers only sell the raw materials to the manufacturers or distributors, yet they should keep the quality excellent for the customers. Once they supply raw materials, they have responsibility for the quality. This is why they have to make sure that the quality is good.

Selling Pattern

The selling pattern of distributor vs supplier is different, The supplier should continue supplying the materials to the manufacturers or distributors. As the supplier, they have a responsibility to ensure that the stock is available for further selling.

However, both suppliers and distributors have legal agreements for partnership. This is tying them into the business, so they can work according to their tasks and responsibilities. Once the contract is over, they may renew as long as the clauses can benefit each other.

Either distributor vs supplier that will work the best for your business, it is better to communicate with the parties in your business using an SMS broadcaster. The device will help you to broadcast messages to customers or partner businesses fast and efficiently because it only needs one click to send to all.