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Vendor

Definition​

A Vendor is a supplier who provides goods or services to a business or organization. Vendors play a key role in the supply chain by ensuring that materials, products, or services are delivered to support business operations such as production, sales, and administration.

Key Characteristics​

  • Can be individuals, companies, or agencies
  • Provide raw materials, finished products, utilities, or professional services
  • Often have contractual agreements or purchase orders
  • May offer pricing tiers, delivery schedules, and support terms

Types of Vendors​

  • Manufacturers: Produce and supply their own goods
  • Wholesalers: Distribute goods in bulk from manufacturers
  • Service Providers: Offer consulting, IT, logistics, or maintenance services
  • Freelancers: Independent professionals contracted for specific tasks
  • Retailers: Sell products that businesses purchase for resale or use

Importance in Business​

  • Operational Continuity: Ensure availability of essential supplies
  • Cost Control: Impact profitability through pricing and payment terms
  • Quality Assurance: Affect the quality of finished products and services
  • Partnerships: Build long-term strategic relationships to support growth

Vendor Management in PrismERP​

In PrismERP, vendors are managed through the Party Management module. Key functionalities include:

  • Adding and updating vendor information
  • Recording purchases, payments, and liabilities
  • Maintaining account and contact details
  • Tracking transaction history and outstanding balances
  • Linking with inventory and procurement modules
  • Vendor Ledger: Track all financial transactions with a specific vendor
  • Purchase Management: Manage purchase orders, goods receipts, and bills
  • Accounts Payable: Handle vendor payments and due tracking
  • Budget Control: Monitor spending against planned vendor expenses