Suppliers can be regarded as a party that provides goods or services to individuals or organizations. In some cases, suppliers refer to manufacturers, who uses resources and labor to produce things for retailers, distributors or wholesalers. The relationship between a particular firm and its suppliers that are external to the ownership of the focal firm is absolutely "external". Thus, these suppliers are called "external suppliers". Simultaneously, within a firm, everyone is a customer

more »

... goods or services offered by other internal suppliers. Hence, we defined internal suppliers as anyone who plays a role within company's daily activities or support a company's end product, such as the person answering the phones, sorting the mails, or fixing the printer. However, the most important internal supplier for firms should be the one who provide his/her experience, skill and knowledge to lead this focal firm to success in the market. General speaking, internal suppliers directly influence the products or services provided by the firm, whereas external suppliers provide the resources or materials that can be utilized to manufacture this focal firm's end products or services.