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
Vendor
How it is used
The party being paid. Common from the buyer’s or agent’s side, and the usual word in finance and accounts payable.
Term
Supplier
How it is used
Preferred when what is bought is goods rather than work.
Term
Service provider
How it is used
Preferred when what is bought is work rather than goods.
Term
Contractor
How it is used
Used where work is performed under a defined scope, often over a longer engagement.
Term
Counterparty
How it is used
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
Any business you buy from, used loosely.
The record
A company set up in the buyer’s finance system with an account, terms and tax details.
The word
Applies from the moment a purchase is contemplated.
The record
Applies only once the company has been onboarded and approved.
The word
Carries no status.
The record
Carries status: approved, blocked, or pending checks.
The word
Anyone can be described as one.
The record
Payment usually cannot be made to a company that is not one.
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