What does supply chain segmentation aim to accomplish?

Supply chain segmentation aims to tailor processes to specific customer needs. This approach recognizes that different market segments have varying requirements regarding service levels, product types, and delivery methods. By segmenting the supply chain, organizations can better address the unique demands of different customer groups, enhance service quality, and ultimately improve customer satisfaction.

This strategy allows companies to optimize their resources and apply customized approaches in logistics, inventory management, and production, depending on the characteristics of each segment. For instance, high-value customers may receive faster delivery and higher service levels, while lower-value segments might have more standardized service to maintain cost efficiency. Thus, effective supply chain segmentation enables businesses to align their operations with customer expectations, leading to better overall performance and competitiveness in the market.