Which type of customer can vendors be classified as?

Vendors can be classified as external customers because they operate outside of an organization and provide goods or services that support the company’s operations. These vendors are not part of the organization and play a crucial role in the supply chain by delivering materials or services that are essential for production or service delivery. Understanding the relationship with external customers, like vendors, is vital for effective communication, procurement processes, and maintaining quality standards within manufacturing and operations.

Internal customers, on the other hand, are individuals or departments within the organization that rely on each other for products or services, so they are distinctly different from external vendors. Main or substantial customers also refer to end-users or clients who directly purchase or use the final products, further emphasizing the separation in classification. Therefore, the correct classification of vendors aligns with their role as external entities supporting the organization from the outside.