Showing: 1 - 2 of 2 RESULTS

How to Get Involved in B2G Networking

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.

What Types of Vendors Are There?

In a distribution network, a distributor, or a reseller, is a business that brings supplies or products to the actual end users. In most cases, a distribution network vendor designs and sells products to the final link in the distribution chain. Today, these terms often refer to a distributor of any product or service. The distributors in distribution networks usually receive orders from the manufacturers or companies who own the products. They then transport the products to the end user, where they are used or stored until the customer makes a purchase.

In contrast, the relationship between a supplier and a distributor is much more intimate. In a distribution network, the two parties directly interact with one another. Distributors use their data management systems to keep track of orders for goods and services that they have signed up to sell to other companies. A supplier on the other hand, uses his own data management system to track orders from different customers and generate reports, calculating discounts for volume purchases. Both types of vendors work together to make sure that their company remains profitable.

In raw materials, the relationship between a vendor and a supplier is more intimate. In raw materials, a vendor locates the best sources for raw materials such as oil, aluminum, or steel, and then finds a way to sell these raw materials to companies that need them. In this process, the vendor not only works with a single supplier, but he or she works with several suppliers. This type of vendors is referred to as “multi-vendor distributors.” They buy raw materials from several different suppliers, and then package and deliver products to customers.