Supply Chain Segmentation

Data

• Product characteristics and attributes
• Customer characteristics and attributes
• Demand and price history

Analytics

• Clustering techniques to segment products and customers based on a combination of attributes including demand, demand volatility, margin, responsiveness, and lead time
• Optimization models to analyze and optimize supply chain strategies across product flow, inventory, transportation by segment, and more

Insights

• Each segment typically ties to a distinct value proposition – efficiency vs. speed vs. selection
• New segments within existing channels/business segments that require a different supply chain strategy
• Supply chain strategy for each segment while leveraging economies of scale across all segments

Actions

• Redefine the supply chain strategy to maximize segment value proposition (e.g. make-to-stock, make-to-order, configure-to-order)
• Rationalize and align product design and offerings to leverage scale while aligning with segment strategies