A vendor is a company that supplies goods and/or services to other companies and individuals. In a traditional agricultural supply chain, for example, a corn farming and harvesting operation might work with various farm equipment vendors. An automotive maintenance franchise likely uses various vendors for common items such as brake pads, tires, and filters.
How are Vendor Relationships Managed?
Although fundamentally transactional, vendor relationships can be enhanced by personalization, vendor relationship management solutions, and close collaboration. Companies and vendors can work together to find efficient, mutually beneficial solutions that save money, time, and resources. This is often the responsibility, in part, of the Accounts Payable department.