Applying Supply Chain Segmentation


The management of supply chains is getting more complex in terms of coordination and shifting of customer needs and requirements. Therefore, organizations need to continuously improve in order to satisfy these needs and requirements. One solution to meet the complexity in today’s supply chains is a supply chain which moves beyond the thinking of “one-size-fits-all” approach. The new approach is based on the trend of a differentiated supply chain strategy.

Supply Chain Differentiation starts with the customer, understanding the structure, behavior, and strategies of what the customer sees as value. It is about focusing on the logistics service offer between different customers and to identify its values. Understanding the customers’ needs and what value is for the customer is critical in the segmentation journey.

Next steps:

1. Read my research conducted in a medical device company: Access the publication here

2. Read case studies from different sources:

a) EY (2012). “Supply Chain Segmentation”.

b) Culey (2006) – Segmenting for Success – From Value Chain Theory to Everyday Execution.

c) Davis (2010) -Case Study for Supply Chain Leaders: Dell’s Transformative Journey Through Supply Chain Segmentation

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