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Latest revision as of 19:12, 12 July 2022

The activities associated with dividing a business into subsets ('supply chains') of product/market combinations that have common needs. Supply chain segmentation is dependent upon product segmentation and market segmentation strategies and typically involves understanding product and market characteristics.

Use Cases

Supply Chain Segmentation Matrix. A tool for grouping, visualizing, structuring the analysis of a business and determining the supply chains required to meet customer expectations and strategic objectives. The matrix links the supply and demand:

• Demand
  • Market
  • Geography
  • Customer types -- Business-to-Business, Business-to-Customer, Business-to-Employee, Business-to-Government, Consumer-to-Consumer
  • Customer needs -- Speed, Cost, Reliability
  • Customer requirements -- Mode of transport, VMI, Express Delivery, Customized Delivery
• Supply
  • Product, product families or product lines
  • Geography
  • Type (Discrete/Process)
  • Make/Buy
  • Process capabilities -- Make-to-Stock, Make-to-Order, Engineer-to-Order, Reverse Logistics
  • Technology

Alternative methods include the Two-by-Two matrix. Supply Chain Outline

Segment Supply Chains Align Strategy 4110300 3 Supply Chain, Segmentation, Demand, Supply, Product, Market, Customer, Capabilities, Strategy, Align Dividing a business into subsets ('supply chains') of product/market combinations that have common needs. Supply chain segmentation is dependent upon product segmentation and market segmentation strategies and typically involves understanding product and market characteristics