Do we need to have multiple permission schemes for multiple vendors?

Do we need to have multiple permission scheme for multiple vendors so that they cant access each other projects?

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No.

You can have a permission scheme that says "Project Browse:  Role of users".

Then you create one project per vendor, and only put the vendor in the role of "user" in their project.

Thanks a lot for the reply. 

One more question ?So you make group of users, vendor wise?

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