Vendor Types List: Which Categories Fit Your Suppliers?

The Vendor Types List is used to manage and classify the various suppliers (vendors) from which you buy goods and services.

Examples of vendor types include:

• Equipment
• Parts
• Computer Repair
• Office Supplies
• Advertising
• Bank/Financial
• Professional
• Government
• Communications

Vendors supply both physical goods and services, so vendor types should account for both. A business might classify a parts supplier under “Parts” and a computer repair company under “Computer Repair.” Stanford University’s purchasing categories guide provides additional examples of how purchases can be grouped by type.

Organizing vendors by type makes it easier to identify the suppliers your business works with and keep purchasing information organized.

Creating Vendor Types and Subtypes

You can organize vendor types into parent categories and subtypes when more detailed classification is useful.

For example, a computer service company may create a parent vendor type called Hardware and set up subtypes for Cabling/Wiring and Components.

This approach allows you to group related suppliers under a broader category while distinguishing the specific goods or services they provide.

When establishing vendor types, choose categories that reflect how your business purchases goods and services. A field service contractor, for example, might separate parts suppliers, equipment vendors, subcontractors, advertising providers, and office supply companies.

Consistent vendor classifications can help keep purchasing organized, especially when used alongside a clearly defined purchase order process for managing supplier transactions.

Vendor types are only one part of managing supplier information. Keeping vendor records and bills organized also helps maintain accurate accounts payable and track outstanding obligations. Learn more about accounts payable software for field service contractors.