What is the term used for a supplier that operates independently from the organization it serves?

The term "external supplier" refers to a supplier that operates independently from the organization it serves. This means that the external supplier is not part of the organization’s internal framework and functions as a separate entity. External suppliers provide goods or services to an organization but do so as independent companies, which can create distinct advantages including access to specialized products, competitive pricing, and expertise that may not exist within the organization.

In contrast, an "internal supplier" is one that operates within the organization, often referring to a department or division that provides services to other parts of the same organization. Other options, such as "joint venture supplier" and "partnership supplier," imply a closer connection and collaboration between organizations, often involving shared ownership or collaborative efforts, which differs fundamentally from the independent operation characteristic of external suppliers. This distinction emphasizes the nature of the relationship between the supplier and the organization, underscoring the autonomy of external suppliers in their operations.