Which type of supplier is part of the same organization as its customer?

Prepare for the CIPS Supplier Relationships (L4M6) Test with engaging questions. Deep dive into supplier management through multiple-choice questions and detailed explanations. Boost your knowledge and confidence before the exam!

An internal supplier is part of the same organization as its customer because it refers to departments or teams within the organization that provide goods or services to one another. This relationship allows for streamlined processes, better communication, and alignment of goals, as both the supplier and the customer operate under the same organizational structure and objectives.

For instance, in a manufacturing company, the purchasing department may rely on the logistics department as an internal supplier to deliver materials needed for production. This type of relationship can enhance efficiency, reduce costs, and improve overall organizational performance.

While external suppliers, contractors, and vendors operate independently from the organization, their services are typically provided to multiple clients and not specifically tied to a single organization. Hence, they do not represent the same type of supplier-customer relationship as that of internal suppliers.

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