Customers vs. co-suppliers LO1566

David E. Birren, MB/5, 608.267.2442 (BIRRED@dnr.state.wi.us)
Thu, 8 Jun 1995 09:23 CST

Replying to James Moore in Re: Customers and stakeholders LO1541:

James offers what I must agree is a very useful definition of customer:

>In my training I use the following definition to determine who the
>customer is: the customer is the person or body that can make the decision
>to take their business elsewhere, all others are co-suppliers.

This needs to be distinguished between the concept of customer as the
person who represents the next step of a process. I leave it to others to
work out the semantics.

The ability to take one's business elsewhere exists in the private sector
and, to a certain extent, higher education. But in the public sector and
primary and secondary education it doesn't work like that. The lack of a
free market in government and education makes it all the more important
for bureaucrats, legislators and educators to treat their beneficiaries as
though they *could* take their business elsewhere.

The concept of co-suppliers appears to be gaining popularity and is
probably seen most often in reference to "partner" relationships, e.g.,
between a state agency and elements of its regulated community. But this
phenomenon has only recently been weaned; it must still be hand-fed.

This goes deeper, of course, into the realm of long-term customer-supplier
relationships, but that's a whole 'nother subject.

--
David E. Birren						Phone: (608)267-2442
Wisconsin Dept. of Natural Resources			Fax:   (608)267-3579
Bureau of Management & Budget		    Internet: birred@dnr.state.wi.us
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