In a large supply chain, a manufacturer, or a distributor, is a business that brings together raw materials/goods and products/services. In general, a manufacturing supply chain distributor supplies stock items to the next stage in the supply chain and makes them available to the end users. In short, these terms now refers to a distributor of any good or service. In a large manufacturing supply chain, there are two key players: the manufacturer who designs, develops and produces the product, and the distributor who bring the products and supplies to the market. In most cases, the manufacturer is located in a country such as China, the second player would be in an offshore country like Hong Kong or Taiwan, while the third player would be in a European nation.
The main role of the manufacturer is to design the product or deliver the final version to the distributors. On the other hand, the distributors are responsible for sourcing the raw materials from countries like China, Malaysia, and Vietnam and then bringing them to the market. It should be noted that in most cases the distributors belong to developing countries, so they are not fully responsible for selling raw materials to the end consumers. These days, many B2G companies exist who are willing to act as middlemen between the manufacturers and the distributors.
A B2G vendor refers to any company or agent that sells goods and services belonging to a manufacturer and then acts as a facilitator or agent between the manufacturers and consumers. At the end of the chain, these are the entities that make up the supply chain and therefore, it is important that the vendor network is made of strong and credible entities. Typically, when a B2G company refers to itself as a “vendor of last resort”, this typically indicates that the organization has no intent of staying long in a particular distribution network. Hence, it is important for buyers to conduct due diligence on vendors before handing over complete control of their companies to them. By doing so, buyers can ensure that the manufacturer they choose will continue to support the brand for years to come.