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TruKKer for Business

Declutter your Supply Chain using Segmentation

The world’s economy has become increasingly intricate, leading to a need for novel supply chain management strategies that can meet the ever-growing demands of modern supply chains. Enter supply chain segmentation – a ground-breaking approach that simplifies the complex problems involved in supply chain management by breaking them down into more digestible segments. This process involves analyzing every part of a company’s supply chain management strategy to pinpoint weak areas and develop solutions for these operationally challenging parts.


But what exactly is supply chain segmentation? To explain, let’s use the example of “Chop Chop,” a fictional butcher shop that supplies a local grocery store and fulfils specialty orders directly to customers via online orders. While these two strategies have different requirements, using the same process to address both could lead to waste and less profit. So, “Chop Chop” could benefit from supply chain segmentation by separating and sorting their cuts for online orders, while grouping a variety of cuts for regular delivery to the grocery store.


The benefits of supply chain segmentation are vast, like including less wasteincreased efficiency, and decreased costs. For example, by giving customers exactly what they need through a segmentation model, businesses can grow substantially. However, before jumping into supply chain segmentation, it’s important to ensure transparency with partners, brainstorm changes to fix current issues and test out a segmentation model in small pieces.


The basics of supply chain segmentation implementation


Undoubtedly, transitioning from the standard supply chain model to segmentation requires a significant shift. Therefore, it’s imperative to take ample time and conduct a thorough analysis to ensure that it’s the right move for your business before diving in.


Step One: Establish transparency with your partners before embarking on any significant operational change, it’s advisable to gain a comprehensive insight into your current supply chain’s various aspects. Identify any areas where your processes are underperforming, leading you to the next step.


Step Two: Brainstorm potential solutions to address existing challenges. Once you’ve pinpointed the bottlenecks in your supply chain, you need to devise a shortlist of ideas that can address them. This could require collaboration from various departments within your organization and the assistance of your partners.


At the end of this step, you may determine that supply chain segmentation is precisely what you need to streamline your operations.


Step Three: Put into trial the segmentation model. It’s advisable to implement your new model gradually, beginning with the most pressing issues, rather than all at once. Make minor adjustments and allow ample time for the effects to manifest. This will provide you with valuable insights into the viability of your segmentation strategy and whether it’s the right approach for your business.


In conclusion, supply chain segmentation is a strategy that can work wonders for many different businesses dealing with complex operations. By maximizing profits, improving customer satisfaction, and moving towards a better overall business model, supply chain segmentation is a strategy worth considering for any business looking to streamline its operations.

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