Profitability through supply
chain segmentation
Based on a recent study of 140 supply chain executives, sponsored by JDA Software and conducted by Peerless Research Group
(PRG) on behalf of Supply Chain Management Review
What’s the importance
of differentiated
services and practices
for varying customer
and market segments?
What are the benefits you are realizing from an effective supply chain
segmentation strategy?
46%
29%
VERY
SIGNIFICANT
IMPROVED CUSTOMER SERVICE
CRITICAL
COST SAVINGS
A BETTER HANDLE ON DEMAND VARIABILITY
LOWER ON-HAND INVENTORY
BETTER RELATIONSHIP WITH SUPPLIERS
FASTER CYCLE TIMES
LESS MATERIAL / PRODUCTION WASTE
82%
70%
53%
52%
47%
46%
27%
RATE THEIR SUPPLY CHAIN
AS VERY EFFECTIVE
Do you have an effective /
successful supply chain?
YES: 71%
EARLY SUPPLY CHAIN
TECHNOLOGY ADOPTERS
LATE SUPPLY CHAIN
TECHNOLOGY ADOPTERS
YES: 36%
CONCLUSION: Supply chain segmentation, and the technology to support
it, plays a critical role in helping manufacturing and distribution companies
achieve a leading, effective and profitable supply chain.
Companies running effective segmented supply chain operations are seeing
significant gains in critical area of productivity!
Do you segment your supply chain?
YES: 65%
NO: 29%
Providing manufacturing solutions to drive performance and value with today’s core supply chain strategies
Customer-
Centricity
Organizational
AlignmentSegmentation Optimization Synchronization
