Chain of Customers

Posted in Operations and Supply Chain Terms, Total Reads: 1337

Definition: Chain of Customers

Richard Schonberger is considered to be the person to have introduced the concept of Chain of customers. It is based on the premise that every department in a company has its own customers, extending right upto the main customer to whom the product is sold.

Let us consider 3 main departments of a typical company to be Design, Operations, and Marketing. Each department is a customer of the other in the entire value chain. Operations is a customer for Design, Marketing is a customer for Operations and so on.

Chain of customers explains that in the entire chain, the desire of every customer remains the same. Every customer wants a quick response, on time delivery, better quality and flexibility. This creates a chain of customers who want to keep their immediate customers happy and thus increasing the overall efficiency and quality of the product.


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