When it comes to sourcing scientific products, should biotech companies buy directly from lab suppliers or go through lab distributors? The answer isn’t always clear, especially when the stakes include research delays, regulatory risk, and budget overages.
In this guide, we’ll unpack the key differences between distributors and suppliers, the tradeoffs of each, and why many biotech teams are moving to centralized procurement platforms that provide access to both, with more control and less chaos.
Let’s start with the basics.
Think of it like this: If you’re buying a pipette made by Brand X, the supplier is Brand X itself. A distributor might carry Brand X’s pipettes alongside several others, but charge a markup on each.
Lab Supplier
|
Lab Distributor
|
|
---|---|---|
Product expertise |
✔ Direct from the source |
⚠️ Varies by rep |
Breadth of catalog |
❌ Brand-specific |
✔ Multiple brands |
Availability |
⚠️ Can have longer lead times |
✔ Often in stock |
Price transparency |
⚠️ May be fixed or negotiated |
⚠️ Markups likely |
Ease of purchasing |
⚠️ One more vendor to manage |
⚠️ Still requires multiple portals |
Control & compliance |
⚠️ Manual tracking |
⚠️ Limited control |
Time savings |
⚠️ Labor intensive |
⚠️ Some savings |
In short: suppliers offer deeper product knowledge, while distributors offer more convenience. But both options still require time-consuming procurement processes and may leave savings opportunities on the table.
For R&D-driven teams, lab procurement isn’t just about getting the cheapest option, it’s about getting the right item, from a trusted source, at the right time.
Biotech adds layers of complexity:
Procurement delays can be extremely costly: on average, clinical trial expenses run $40,000/day, and each day of delay may incur up to $500,000 in lost drug sales, according to Applied Clinical Trials. Further, a study published in JAMA revealed that over 70% of trials finish more than a year behind schedule, driven largely by bottlenecks in equipment acquisition and approvals.
Instead of choosing between managing supplier and distributor relationships separately, many biotech companies are turning to biotech procurement solutions that do both, such as ZAGENO.
Here’s how procurement platforms compare when added to the mix:
Feature
|
Supplier
|
Distributor
|
Procurement Platform (ZAGENO)
|
---|---|---|---|
Product expertise |
✔ Direct from brand |
⚠️ Varies by rep |
✔ Access to supplier data, SLAs, specs, and white-glove customer service team |
Breadth of catalog |
❌ Brand-specific |
✔ Multiple brands |
✔ 5,300+ suppliers and 40M+ SKUs |
Availability |
⚠️ Longer lead times |
✔ Often stocked |
✔ Real-time availability and lead times |
Price transparency |
⚠️ May vary or be opaque |
⚠️ Markups possible |
✔ Side-by-side price comparisons |
Ease of purchasing |
⚠️ Manual, one-by-one |
⚠️ Still multiple vendors |
✔ Single-entry point to marketplace and nonmarketplace purchases, one cart, one invoice, all vendors |
Control & compliance |
⚠️ Manual tracking |
⚠️ Limited control |
✔ Smart routing, supplier controls, audit trail |
Time savings |
⚠️ Labor intensive |
⚠️ Some savings |
✔ Significant time savings for lab & finance teams |
Read more: Biotech Procurement Solution Comparison: What to Look for and What to Avoid
The supplier vs. distributor question used to define how biotech labs operated. But in today’s environment, with supply chain volatility, and growing regulatory pressure, it’s no longer a binary choice.
Instead, the smartest teams are building procurement strategies that combine the reach of distributors with the reliability of suppliers, all managed through a flexible, centralized platform.