Supply Chain Segmentation Changes Can Help Avoid Excess Inventory

Supply Chain Segmentation Changes Can Help Avoid Excess Inventory

Supply Chain Segmentation

Today’s manufacturers need to understand how technology can help maintain their profitability. Many manufacturers still utilize an older supply chain segmentation strategy, which keeps them from moving towards more business success. As technology advances and the world becomes more complex, manufacturers must be sure their supply chain is efficient and profitable.

Supply chain segmentation is a process where companies can create profitable one-to-one relationships between their customers and their supply chains. The goal is to serve each customer and each product at a given point in time, with the best process, while helping to maximize customer service and company profitability.

Segmentation represents the most fundamental evolution in supply chain thinking. Customers have developed a wider range of needs as they increasingly serve global markets. Manufacturers must understand those needs and create value in order to serve them properly. It’s becoming more critical for profitable growth and business retention to segment supply chain operations to balance the cost to serve with the value to the business for each segment.

Employing different strategies to serve different customers and channels based on their value to your business is what supply chain segmentation is all about. It is important to understand the ways companies are segmenting their supply chain strategies, how this segmentation impacts each supply chain process and the role technology plays in enabling profitable segmentation.

In an age of growing complexity, manufacturers must ensure they understand the importance of an advanced supply chain segmentation strategy. If managing your supply chain is decreasing your productivity or causing excess inventory, you can outsource your purchasing and material management to AECI. Our mission is to provide the best possible customized solutions to meet every client’s immediate and long-term needs. AECI’s supply and material management programs lower the total cost of ownership, improve productivity, and can scale to meet production demands.

Contact us today for more information on how we can help.