It would be a LOT easier if you could post ddl and sample data.
if OBJECT_ID('tempdb..#Something') is not null
drop table #Something
create table #Something
(
VendID char(3),
Type int
)
insert #Something
select 'ABC', 1 union all
select 'ABC', 0 union all
select 'ABC', 0 union all
select 'XYZ', 1 union all
select 'XYZ', 0 union all
select 'XYZ', 0 union all
select 'XYZ', 0;
Ok now that we have something start with let's look at how you could code this.
with NumberedVals as
(
select *, ROW_NUMBER() over(partition by VENDID, Type order by (select 0)) as RowNum
from #Something
)
select VendID, Type, case Type when 1 then VendID else VendID + '-0' + CAST(RowNum as varchar(4)) end
from NumberedVals
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Understanding and Using APPLY (Part 2) - http://www.sqlservercentral.com/articles/APPLY/69954/