Supply Chain Segmentation aims at aligning a portfolio of products, customers and suppliers as well as internal processes or policies so that different customer channels are served by different, precisely tailored supply chains. The result of successful Supply Chain Segmentation is optimized customer service, profitability and working capital for each segment and for the company as a whole.
In a worst-case situation the “one-size-fits-all” approach will not meet any customers requirements but creates additional costs and inventory.
I have lower service levels than my competition, despite having higher stock.
I do not understand why some of my items are out of stock, while I am buries in stock for others at the same time.
We have long lead times, high cycle stocks and are facing constant troubleshooting.
Despite investing a lot of time and effort into our forecasting process, we only have low overall accuracy for our forecasts.
We experience long lead times and mediocre service levels from our suppliers.
Common pain points in Supply Chain Segmentation.
Segment specific service level targets
Detailed and parameter optimized inventory policies
Increase planning quality through suitable planning approach
Target high OEE and low-cycle stocks through detailed manufacturing
Increase customer revenue through customization
Supply chain segmentation comprises not only the optimization of some tasks in one segment, it provides a complete supply chain approach: from the goal setting to operational processes including planning , sourcing, production, distribution & returning materials.
We identify the supply chain segments, evaluate the best supply chain concepts for each process step and combine this to a supply chain approach for each segment.
For each segment a specific supply chain framework is elaborated that fits best. It comprises the aim and the target of the segment, the major supply chain concepts for each process, the planning principles, the segmentation criteria and the segment “story”.