In a study sponsored by JDA Software and conducted by Peerless Research Group (PRG) 140 supply chain executives having management and/or purchase decision responsibilities for supply chain solutions in manufacturing and warehousing operations offered input on their current supply chain infrastructures.
Specifically, the research examined organisations’ adoption of a supply chain segmentation strategy and implementation, and how their investments and commitment o a segmented approach is delivering enhanced process efficiencies, better inventory management, and improved customer service.
Today’s demanding business environment is pushing manufacturers and distributors to rethink their traditional, one-size-fits-all supply chains and develop networks that can deftly segment and address specific customer needs, wants, and demands.
The diversity across channels and customers requires organisations to sharpen their supply chain pencils and devise ways to serve everyone from the individual consumer who buys a single item online to the huge multinational conglomerate that purchases large quantities across multiple end items.
Study shows 140 supply chain executives having management and/or purchase decision responsibilities.
Effectively serving both ends of this spectrum requires a high-performance, segmented supply chain approach. In consequence this, therefore, also impacts on the Transport Industry’s distribution sector in many different ways, from requiring smaller urban delivery vehicles to larger vehicles to transport good from city-to-city.
From the survey is was clear that, while a segmented supply chain approach pays huge dividends, not all operations are proactively moving in the direction of employing supply chain segmentation models.
Majority of companies (81%) were cautious when considering new supply chain technologies and strategies.
Only a small percentage (6%) of the individuals surveyed said their companies embrace ‘leading edge’ or innovative supply chain strategies and technologies to enable supply chain segmentation.
Challenges exist in servicing diverse customers across key business demographics, including geographic location, nature of business, and company size
The majority of companies (81%) were cautious when considering new supply chain technologies and strategies. High on the list of challenges that organisations face is the need to tailor processes for customers that demand a wide breadth of qualities and requirements.
Subsequently, challenges exist in servicing diverse customers across key business demographics, including geographic location, nature of business, and company size.
Additionally, the volume of business or revenues generated by a customer, how an order was placed, related delivery timelines, order fulfilment channels, and product customisation requirements must all be factored into the manufacturer’s order placement, processing, and delivery operations.
Those who have achieved a successful segmentation strategy are seeing significant gains in each of these critical areas of productivity, and in some instances are achieving success at dramatically high levels.