Dells segmented supply chain engage the entire organization transformation is endtoend 17. Yet many of the typical tactics for increasing productivity and reducing costs postmergersuch as closing plants, laying off workers, and reducing wagesend up disrupting the supply chain and result in poor operational performance and reduced revenue. Creating value through supply chain segmentation the. That makes the importance of analytics in supply chain design and planning absolutely critical, and those companies that dont have the capability for rapid analytics could be left standing. If you continue browsing the site, you agree to the use of cookies on this website.
Sep 20, 2014 supply chain segmentation slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Similar to the upstream merger case, depending on the value of c s, c r and. The postmerger supply chain assessment should rightly be focused on the planning processes. Supply chain optimization through segmentation and. This is a complicated way to say that you need to consider the characteristics of your products, channels and service models in order to provide the most profitable. Dec 06, 2016 manufacturers ignoring supply chain segmentation posted on 6 dec 2016 by jonny williamson manufacturers are failing to effectively leverage data and analytics when it comes to supply chain planning and segmentation, according to new research from university of warwicks wmg and jda software group.
At its core, supply chain segmentation is a process of grouping customers by shared sets of values, then developing supply chains that can profitably meet the needs of each customer group on its own terms. If you have one type of problem in a part of your supply chain, you use the solution that appropriately focuses on that problem. In this paper, we will highlight three improvements that make designing and implementing a supply chain segmentation strategy easier and. Appendix a characterises the participant population. In this chapter we introduce a more holistic and practical supply chain segmentation framework that mckinsey developed. Sourced from phil gibbs, executive director of customer success, llamasoft. In section 4, the generated concepts for merging product segmentation with hysteresis is outlined and we.
Criteria, approaches and key enablers for a segmented. The power of supply chain segmentation the power of. Through our experience and analysis, accenture has come to realize that the supply chain is one functional area that has a direct impact on all four major types of synergies that can result from a merger. Criteria, approaches and key enablers for a segmented supply. Segmentation is the key to simplifying complex supply chains by balancing complexity with operational efficiency and flexibility, you will be able to deliver greater customer value. This chapter describes the service parts supply chain segmentation initiative at siemens healthineers where we present the background of the company and the industry. Supply chain segmentation journey for retailers ehap sabri, ph. We will publish selected readers comments in future issues of cscmps supply chain quarterly. It involves treating products, customers, channel segments, and stores dif.
Hau lee stanford supply chain forum call it distribution or logistics or supply chain management. Supply chain segmentation slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. The most critical aspect of implementation is ensuring segmentation successfully feeds into business processes. Download this white paper to find out how segmentation can help you manage your endtoend value chain and revolutionise supply chain delivery. The advantage of supply chain segmentation is that it allows management to work strategically with the supply chain of the company. Consequently, we adopt this segmentation approach for the purpose of improving supply chain flexibility management.
The case for segmentation in the modern supply chain environment, segmentation is becoming more and more valuable. Then, we make recommendations for and help you implement an integrated approach aligned with your future strategy. In their book lean and agile value chain management, sabri and shaikh defined segmentation as the stratification of the channelcustomerproduct portfolio into groups which allows the company to have a different level of service by applying differentiated inventory, supply, and fulfillment strategies. Factors influencing supply chain segmentation source. Supply chain segmentation is a powerful strategy to mitigate supply chain complexity. The next step in supply chain excellence by tom k thursday, 15 september 2016 published in blog there are a few different definitions of supply chain segregation floating about, and most are unnecessarily verbose and complex. Last month i have been asked to make a presentation at the global bme supply chain conference in frankfurt about supply chain segmentation in the pharma industry. Oct 11, 2011 supply chain segmentation contd case study. The power of supply chain segmentation the power of supply. However, in absence of the right decisionsupport tools, segmentation strategies will not yield the expected benefits. In section 3, we merge supply chain segmentation with hysteresis forming a solution in the tradeoff for adequate segmentation intervals. The company which is acquiring will pay for all the assets and liabilities of the acquired company varma, 1997.
To maximize effectiveness of supply chain segmentation, it is important to. Rather, it is an endtoend strategy for the supply chain that has implications for. Supply chain segmentation in the sporting goods industry article pdf available in international journal of logistics 172 march 2014 with 570 reads how we measure reads. Checklist for supply chain segmentation supply chain movement. Companies that successfully deploy segmentation strategies will have improved customer service and sales, higher growth and margins and a deeper multichannel penetration. The dell supply chain transformation linkedin slideshare. Apr 16, 2011 supply chain predictability segmentation in a similar approach as in example 2, we can segment based on demand predictability and supply predictability. Manufacturers ignoring supply chain segmentation the. Supply chain minded is a very active and fast growing online supply chain community. We aim to inform and connect professionals active in supply chain, purchasing, manufacturing, warehousing, transport, distribution. I do truly believe that this topic is the next opportunity area for meaningful improvement in overall pharma supply chain practices. The framework is based on the governing principle that segmentation should add value to the supply chain without increasing its complexity cost significantly. Mar 23, 2015 the way jda defines supply chain segmentation is as the dynamic alignment of customer channel demands and supply response capabilities across the extended value chain.
The goal with supply chain segmentation is to move from a onesizefitsall approach to a portfolio of supply chain execution options. Application of hysteresis for stable segmentation within. Dells segmented supply chain evolve the supply chain 16. Checklist for supply chain segmentation supply chain. Best practices for merger to handle segmentation issue. Supply chain segmentation is an iterative process as there is a constant change in customer requirements. We wish to thank the mit forum for supply chain innovation and professor david simchilevi for conducting the research in this report. Merge, split, and watermark your pdfs with pdf chain.
Due to the aforementioned advantages, however, we expect the combined productcustomer segmentation to be more beneficial. Jan husarcik could you please add a note suggesting the best way how can the merger approach modified segmentation within. This book introduces the concept of segmentation as the planning and scheduling tool that facilitates the optimization of the supply chain. In essence, supply chain segmentation is the dynamic alignment of customer channel demands and supply response capabilities optimized for net profitability across each segment. Introducing supply chain segmentation procedures into. Accentures survey, the supply chain merger integration study, examines the benefits and setbacks of these activities. It is easy to follow with clear examples and useful exercises.
A window of opportunity for european manufacturing reveals that less than a fifth 18% of the more than 100 european manufacturing organisations surveyed considered historic, present and future data in the supply chain planning process aiming to benchmark supply chain segmentation practices across. Chain initiative the pharmaceutical supply chain initiative psci, an industrywide trade association, creates a common platform to drive continuous improvement across the supply chain to improve labor, ethics, environmental, and health and safety practices. Examples and supply chain segmentation supply chain brief. Nevertheless, a lot of companies still work based on the onesizefitsall principle.
Xliff12 best practices for merger to handle segmentation. Supply chain optimization through segmentation and analytics. Before going further, the table below summarized the key factors that will influence supply chain segmentation. Everyone agrees that effective manufacturing and logistics practices are crucial for improved financial performance. Supply chain segmentation analysis linkedin slideshare. Key practices in supply chain segmentation segmentation is not just a network strategy, or an inventory strategy, or a fulfillment or manufacturing strategy. Correspondence may be edited for clarity or for length. The value of supply chain segmentation in pharma supply. Pdf chain is a graphical front end for the pdf toolkit which allows you to merge, split, watermark, rotate, add attachments to, and set permissions for existing pdf documents. The way jda defines supply chain segmentation is as the dynamic alignment of customer channel demands and supply response capabilities across the extended value chain. Done properly, supply chain segmentation can significantly increase customer service and satisfaction. In a similar approach as in example 2, we can segment based on demand predictability and supply predictability.
Jan 03, 2007 accentures survey, the supply chain merger integration study, examines the benefits and setbacks of these activities. Supply chain segmentation contd characteristics of push and pull supply chain 15. Costtoserve is the cost of all supply chain activities from taking the customer order upto delivering the order. This puts more pressure on the supply chain to leverage analytics to improve supply chain segmentation and demand translation, says gartner research in a report titled, the five things chief supply chain officers need to know about industrie 4. Supply chain segmentation page 4 more companies are beginning to automate lowtouch processes so that supply chain disruptions and exceptions can be managed in real time. Godsell, janet 2012 the power of supply chain segmentation. Structuring supply chains based on product segmentation. While a companys physical assetsraw materials, factory resources, warehouses, distribution centers and channelsmay be the same across all segments, its processes and policies for predicting customer demand and positioning supply can be different from one segment to another. The increasing fragmentation of todays markets implies that supply chains need to handle very different products and serve customers with different needs.
Mergers and acquisitions are the companies mainly targeting the globalization and changing the market environment. I would argue that demand volatility is only one criterion to define demand predictability. Mckinsey supply chain segmentation framework springerlink. Supply chain executives can play a pivotal role in delivering synergies that can help achieve deal objectives. The second step is to analyze the sku portfolio using these segmentation criteria.
The next step in supply chain excellence, we discussed some of the fundamentals for creating a supply chain segmentation strategy. A supply chain segmentation strategy requires executive. Pdf supply chain segmentation in the sporting goods industry. The ability to test scenarios to inform supply chain decisions will be vital. Merger is nothing but the combination of two firms where one survives and the other lose its corporate existence. In our previous supply chain segmentation paper, supply chain segmentation. We examine current technology used to drive the supply chain, including enterprise resource planning erp systems, backoffice systems, and infrastructure. Reduced product complexity costs, improved profit margin, increased market share, and improved service levels. Implement a segmented supply chain strategy for profitable. A supply chain perspective on achieving high performance by tom herd, arun k. Output the output of this tool is a breakdown and overview of the companys supply chain.
Benefits of supply chain segmentation as with any largescale transformation, supply chain segmentation requires. The aim is to define the supply chain segments, to determine segment boundaries, and to allocate the products to the segments. The study included a survey of 154 managers75 supply chain managers and. The design and management of supply chains in todays competitive business environment presents one of the most important challenges to managers. Supply chain management definitions supply chain management deals with the management of materials, information, and financial flows in a network consisting of suppliers, manufacturers, distributors, and customers. Merge, split, and watermark your pdfs with pdf chain ghacks. In the article mentioned before, mckinsey used demand volume and demand volatility for segmentation. Gartner defines supply chain segmentation as designing and operating distinctly different endtoend value chains from customers to suppliers optimized by a combination of unique customer value, product attribute, manufacturing and supply capabilities, and business value considerations in essence, supply chain segmentation is the dynamic alignment of customer. Most how to advice on supply chain segmentation focuses exclusively on 2. Supply chain segmentation journey for retailers rvcf. Rather, it is an endtoend strategy for the supply chain that has implications for many areas, from the customer through to the supplier. Sep 24, 2010 pdf chain is a graphical front end for the pdf toolkit which allows you to merge, split, watermark, rotate, add attachments to, and set permissions for existing pdf documents.
Supply chain segmentation provides input to the overall company strategy and should be in accordance with this. In step 3 they elaborate on how to derive a supply chain strategy for each defined segment. The power of supply chain segmentation janet godsell fierce competition coupled with the global economic downturn has meant. Mar 10, 2017 in fiscal 2015, siemens healthineers had around 44,000 employees worldwide and posted revenue worth 129 billion euros, and profits of more than 21 billion euros. This report attempts to help break the psychology that keeps organisations endlessly optimising a onesizefitsall supply chain architecture, and limits the adoption of segmentation as a core, repeatable business process. And, best of all, its very easy to use so any level of user can take advantage of pdf. Effects of upstream and downstream mergers on supply chain. To meet synergy goals, executives should proactively identify potential supply chain sources of value during a transactions due diligence and. The survey was distributed to members of the mit forum for supply chain innovation and worldwide clients of pwc.
850 1241 1243 1484 31 832 421 44 885 513 1104 807 1447 287 1436 754 1461 823 1260 120 913 534 353 1568 1443 762 1270 1378 548 801 648 822 1321 288 831 981