What is a primary goal of supply chain segmentation?

A primary goal of supply chain segmentation is to categorize customers or products in a way that tailors operations to specific needs and requirements. This approach allows companies to optimize their supply chain strategies based on the unique characteristics and behaviors of different segments. By understanding the various needs of each segment, organizations can ensure that they are providing the right level of service, pricing, and fulfillment options that align with the expectations of those target groups.

For instance, products with high demand variability might need a different handling approach compared to more stable products. Similarly, customers who purchase in bulk may require different logistics solutions than those who place smaller, less frequent orders. Tailoring operations in this way leads to improved efficiency, customer satisfaction, and competitive advantage.

This focus on customizing operations is essential for remaining agile and responsive in a dynamic market environment, ultimately enabling companies to better meet demand and optimize resource allocation.