Procurement and RFQs
Vendor
A business that sells goods or services to another organization. In maritime procurement, the concept helps buyers and providers define, price, compare and authorize operational requirements.
What the term covers
- Vendor is a relative term. A company is a vendor only in relation to a buyer.
- It says nothing about what is sold. Goods, services, or both.
- In maritime it is heard most from the buying side, particularly agents and purchasing departments settling local costs.
- In finance systems it is also a record, not only a description.
Vendor is a term used in maritime business and operations.
A business that sells goods or services to another organization.
In maritime procurement, the concept helps buyers and providers define, price, compare and authorize operational requirements. The exact meaning may vary with the contract, jurisdiction, port practice or workflow in which it is used.
Vendor and the words used alongside it
Term
How it is used
Vendor
The party being paid. Common from the buyer’s or agent’s side, and the usual word in finance and accounts payable.
Supplier
Preferred when what is bought is goods rather than work.
Service provider
Preferred when what is bought is work rather than goods.
Contractor
Used where work is performed under a defined scope, often over a longer engagement.
Counterparty
Either side of a deal, used when the buying and selling distinction is not the point.
Vendor as a word compared with vendor as a record
The word
The record
Any business you buy from, used loosely.
A company set up in the buyer’s finance system with an account, terms and tax details.
Applies from the moment a purchase is contemplated.
Applies only once the company has been onboarded and approved.
Carries no status.
Carries status: approved, blocked, or pending checks.
Anyone can be described as one.
Payment usually cannot be made to a company that is not one.
FAQ
FAQ
The most common questions we get about Vendor.
What does Vendor mean?
A business that sells goods or services to another organization.
Is a vendor the same as a supplier?
In everyday use, yes. Where a distinction is drawn, supplier leans towards goods, while vendor covers whoever is being paid, whatever they sold.
What is an approved vendor?
A company that has passed a buyer’s onboarding checks and been added to its vendor list, which is usually what allows it to be paid.