What term describes suppliers that are members or units within an organisation?

CIPS Managing Ethical Procurement and Supply Test is designed to enhance your understanding of ethical practices in procurement. Study with comprehensive questions and explanations. Prepare effectively for your exam!

The term that describes suppliers who are members or units within an organization is "internal suppliers." Internal suppliers can refer to departments, teams, or other organizational units that provide goods or services to other parts of the same organization. This concept emphasizes the importance of understanding the supply chain within the organization itself, as internal suppliers play a critical role in the overall efficiency and effectiveness of operations.

Recognizing internal suppliers helps organizations streamline processes, improve communication, and foster collaboration. It also highlights the interconnectedness of different units and how they contribute to the overall objectives of the organization. In contrast, external suppliers refer to entities that are outside the organization, contract suppliers involve those that provide services through a formal agreement, and preferred suppliers are external firms that have been recognized for their quality, reliability, or competitive pricing, without being part of the internal structure. Understanding the distinctions among these types of suppliers is essential for effective procurement and supply chain management.

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