This should be fairly straight forward if you want to automate it.
Lookup the man pages for crontab and have it launch a php script. The script can use cURL to download the txt version and then use built in functions to parse the file if you can get a CSV version. Most places use CSV these days as opposed to TSV but if it is TSV a quick google searched turned up a ready to go class to parse it:
http://enarion.net/programming/php/csv-import/
I assume you have a spot in your products table where you are storing their part #? If so simply run an update query against the part # from the file against the part # in your DB (and their vendor # if you have more than one so you don't get product ID collisions).
As a recommendation you may want to ask them what they do with products once they are phased out - I've ran into vendors who entirely remove them from the file and don't bother notifying the end user so you may want to disable any product who's stock wasn't updated. If you go this route you need to do a lot of error/logic checking to make sure you dont' mass disable their products if their feed isn't available, corrupt, fails to parse, etc.