A Better Approach to Supply Chain Segmentation?

Most companies segment their supply chain by breaking it down according to operational and logistical metrics. That’s necessary for continuous improvement and operational excellence.

But there is another way to segment supply chains that begins with the customer. Gartner research director Jennifer Loveland calls it end-to-end segmentation, where you determine first what your customers want, then create end-to-end models—from sales through sourcing, delivery, and customer service—to serve them.

A Better Approach to Supply Chain Segmentation?

5 segmentation pitfalls to avoid

Many organizations are segmenting customers and products to improve EBIT and working capital or to implement their strategy more consistently. Although segmentation initially seems to be little more than a logical reflection on the customer and product portfolio, it is actually a lot more complex than that. When embarking on a segmentation exercise, keep in mind the following pitfalls:

1. Treating customer and product segmentation as two separate worlds

5 segmentation pitfalls to avoid