There is no doubt that demand segmentation can help you bring clarity to demand planning and the overall supply chain planning process and lead to far superior results in terms of various supply chain metrics. At the core of segmentation is the understanding that one size will not fit all.
Use this comprehensive guide to get started with your product-customer demand segmentation analysis process.
To set the foundation for this discussion, let us first look at the definition of order lead time. Order lead time is the time gap between the date when a customer places an order and when they expect to receive the product. Typically, in a B2B environment, the expectation is that there will be some gap between the two dates, and in many cases, this gap can be negotiated.
Here's how you can use profit based product segmentation to improve the supply chain planning process.
Thinking about creating a customer segmentation strategy? Here are 8 common pitfalls to avoid. Customer segmentation provides a strategic way for aligning services and profitability. For businesses looking to improve bottom line results and the cash conversion cycle, creating an effective customer segmentation process is invaluable.