This website uses cookies to ensure you have the best experience. Learn more

Segmentation Inside The Supply Chain Essay

1188 words - 5 pages

Mid-Term: Segmentation inside the Supply Chain
Joelle Konze
Florida Institute of Technology: Extended Studies
Dr. Janice Spangenburg

Roughly 30 years ago the idea of logistics evolved from a military movement notion into what we consider today the complexity of supply chain management. Supply chain management has continued to blossom through immerging technological advances and the immense ability for data sharing. Strides for increasing profitability, customer satisfaction, and overall success of an organization are the driving forces for these immerging implantations. The imminent theory of supply chain segmentation has become an ensuring practice to boost profits. Organizations ...view middle of the document...

Segmentation “is the dynamic alignment of customer channel demands and supply response capabilities optimized for net profitability across each segment” (Gartner).
An organization’s catalyst for segmentation stem from the need for optimized profitability which manifests from reducing complexity, discovering synergies, increasing standardization, cross-functionally designing the chain, and matching customer value. Segmentation is not limited for these reasoning’s, but can be generalized within these areas. Any practice an organization takes on to better suffice the needs of the customer while increasing profits could be part of segmentation. Just as supply chain management has evolved, these practices of segmenting will evolve. As technologies emerge, segmentation practices and theories will grow and emerge alongside it.
Reducing complexity begins with analyzing the customer extensively; understanding how they purchase the product or service that is being purchased. When an organization thoroughly understands this data, it can then be used to combine strategies for what’s most profitable. Product design and delivery methods can also be added to this data in order to develop practices that best suite efficiency, and again increase profitability. Synergizing is done through leveraging economies of scale (Bender). This means leveraging volume across the various segments. When the organization can purchase larger quantities for less, inherently the saving can trickle down to the customer. Another example includes a company using separate manufacturing plants for a different customers, synergizing would entail the company taking the abilities of one plant and designing what other products for other customers could also be created there. Consequently, saving money by operating a single plant and also combining transportation routes; using one semi-truck for one facility instead of 2 large box trucks for two facilities. Increasing standardization is another component of leveraging volume. A successful example if this is Southwest Airlines who flies only one type of aircraft, the Boeing 737 (The Economist). Their V.P of ground operation, Chris Wahlenmaier, explains their success as, "We only need to train our mechanics on one type of airplane. We only need extra parts inventory for that one type of airplane. If we have to swap a plane out at the last minute for maintenance, the fleet is totally interchangeable—all our on-board crews and ground crews are already familiar with it. And there are no challenges in how and where we can park our planes on the ground, since they're all the same shape and size" (Sullivan, 2013). Designing the supply chain with a cross-functional team means to evaluate the impact of the design of the product or process will have on the chain and tweak it to the most efficient design....

Other Papers Like Segmentation Inside the Supply Chain

Planing and Controlling the Supply Chain

1340 words - 6 pages Planning and Controlling the Supply Chain ISCOM 471 December 24, 2012 Planning and Controlling the Supply Chain Within the many different organizations in todays business world there are some key factors that will establish the profitability, growth, and longevity of a company. Some of the things we will discuss will be that of how my chosen corporation American Express applies some of the forecasting techniques to better develop the

Customer-Facing Supply Chain Practices -- the Impact of Demand and Distribution Management on Supply Chain Success

1416 words - 6 pages against the capabilities of the supply chain,” demand management (DeM) is becoming more and more popular in the operations management field; however, DeM has not been comprehensively analyzed in terms of supply chain performance. Moreover, DeM is more than the traditional demand forecasting; the field of DeM has been expanded to include customer and product segmentation and sales and operations planning, (p 269). The authors stated their hypotheses

The Impact of Supply Chain in Businesses and Consumers

1252 words - 6 pages Supply Chain Organizations of all types are in business to provide products and services to consumers. The process in which this takes places is not as simple as some may believe. From obtaining materials to stocking products on shelves many details need to be covered. A supply chain assists organizations in coordinating the activities needed to ensure a successful sale or service. To better understand what a supply chain is and how it

Strategies In Supply Chain Management For The Trading Agent Competition

1130 words - 5 pages Strategies for Supply Chain Management for the Trading Agent In an effort to address the of increasingly sophisticated and advanced methods of supply chain management, a joint team of researchers from the e-Supply Chain Management Lab at Carnegie Mellon University, formed The Trading Agent Competition (TAC). This particular forum was designed to address the problem of trading agent competition within the global marketing

Supply Chain Role in the Oil and Gas Industry

4244 words - 17 pages Troy Rock Florida Institute of Technology Research Paper Supply Chain Process in the Oil and Gas Industry. MGT 5069 June 18, 2016 Introduction The definition of supply chain management, it is described as being the set of processes in a firm that are implemented to maximum customer satisfaction while operating at a lowest cost possible to achieve maximum profits. In the oil and gas industry supply-chain, the profitability of a

The Marketing and Supply Chain Change in E-Commerce

2973 words - 12 pages Analysis of the Online Business in Supply Chain Management and Marketing Strategy by © Renjie Wu __________________ 2011 Student Number: WU_11340881 Tutor: Dr Luca Lo Sicco Table of Content |Chapters |Pages | |Abstract

The Information Flows and Supporting Technology in the Automotive Supply Chain: a Suppliers Focus”

2135 words - 9 pages The Information Flows and Supporting Technology in the Automotive Supply Chain: A Suppliers Focus” DR. Anu Maheshwari DR. Sanjay Shankar Mishra Guest Lecturer, Dept.of Commerce Prof. & Hod of Commerce Department Govt. T.R.S.College, Rewa

Case: Dell Inc.: Improving the Flexibility of the Desktop Pc Supply Chain

3720 words - 15 pages Case: Dell Inc.: Improving the Flexibility of the Desktop PC Supply Chain It was June 2005, seemingly a good time for Dell Inc. Since the dot-com bubble burst in 2001, the price of the company’s stock had roughly doubled. Both the company’s revenue and net income were reaching new heights. In spite of the confidence and optimism, however, Dell’s desktop PC manufacturing division found that its manufacturing costs had continued to surge. Tom

Supply Chain Management in the Construction Industry: Gilmor Engineering Limited Case Study

1862 words - 8 pages Supply Chain Management in the Construction Industry: Gilmor Engineering Limited case study. By Emmanuel Ola Elehinle Student I.D 15597305 Submitted To Laureate Online Education & University of Liverpool – Online Masters Degree In Partial fulfillment for the award of Master of Science (M.Sc.) Degree in Operations and Supply Chain Management Abstract Activities in the execution of a construction project are usually time bound and

Supply Chain Practices in Retail Industry - a Comparative Study Between Emerging East and the Developed West

842 words - 4 pages Literature Review This literature review we will cover all the aspects of the retail industry and how supply chain management affects the industry. We will also be looking into the common industry practices that are used in the developed nations. Apart from this we shall also be looking at the current situation of supply chain practices that are used in retail companies in India. Witte, C, Grunhagen, M, & Clarke, R 2003, 'THE

To Review the Company, General Electric (Ge) Supply Chain and Its Components. Show How Expansion Within a Company Can Be Profitable over Time

1060 words - 5 pages | GENERAL ELECTRIC (GE) | | | To review the company, General Electric (GE) supply chain and its components. Show how expansion within a company can be profitable over time. | General Electric also known as GE has been around for many years. GE is a global company that provides a variety of products in the United States and abroad. The company started in 1900 in a barn and they have been much more advanced as the

Related Essays

The Right Supply Chain Essay

1056 words - 5 pages The first step in devising an effective supply chain is to consider the nature of demand for your product. For this many aspects are important: Product life cycle, demand predictability, product variety etc. But any product can be broadly classified into as either a Functional Product or an Innovative Product based on their demand patterns. Root cause for ineffectiveness of any supply chain is the mismatch between the type of product and

Map The Supply Chain Paper

710 words - 3 pages MKT 421 Week 5 Map the Supply Chain Paper Name University Map the Supply Chain – Introduction Supply chain logistics is a fundamental component of the global economic system. Goods can change hands from a variety of different global companies, which some form of value being added at each stage. In the context of marketing, the following paper will map the supply chain of the solar panel industry. This is a growing industry that has seen a

The Case Of The Rewired Supply Chain

835 words - 4 pages The Case of the Rewired Supply Chain CASE TOOL FOR ASSESSMENT OF PROGRAM OUTCOMES 2 and 3 The Case of the Rewired Supply Chain ORUN is a 4th generation family owned company with a corporate headquarters and 4 plants located in three states, each of which manufactures nearly identical product lines. They are considered a leader in the development, design, manufacture, marketing, and distribution of metal cabling and related products used

Scheduling Across The Supply Chain Executive Summary

771 words - 4 pages Scheduling Across The Supply Chain Executive SummaryTeam A has unveiled a new product for McDonalds called the McTurkey Club Sandwich. The team believes in the new product and the initial research has shown that the consumer is ready for this new sandwich. This executive summary will discuss the new sandwich and will examine different methods and concepts concerning scheduling of the supply chain. This summary will also examine scheduling