Enabling supply chain segmentation through demand profiling

Purpose – Whilst there are a plethora of theoretical ideas regarding a segmented approach to supply chain strategy, there is paucity of empirical data. This paper aims to present the results of a field‐based case study in a fast moving consumer goods company (FMCGCo) that sought to identify the most relevant basis for supply chain segmentation.Design/methodology/approach – Research carried out on a single instrumental case, FMCGCo. A four‐stage research design was employed to develop and test an approach to developing a segmented supply chain strategy for FMCGCo supply chain Western Europe.Findings – The study identified demand profiling at an item level (using volume and variability classifiers) as the primary driver of supply chain strategy. It also developed a novel profiling tool. This not only segmented demand but identified through the introduction of the concept of filters a method for turning the results of the demand profiling analysis into a segmented supply chain strategy.Research limitations/i...

[1]  Martin Christopher,et al.  Do not lean too far - evidence from the first decade , 2007 .

[2]  David Walters,et al.  Demand chain effectiveness - supply chain efficiencies: A role for enterprise information management , 2006, J. Enterp. Inf. Manag..

[3]  L. Lapide,et al.  MIT's SC2020 project : the essence of excellence , 2006 .

[4]  Alan Harrison,et al.  Customer responsive supply chain strategy: An unnatural act? , 2006 .

[5]  Martin Christopher,et al.  DESIGNING AND MANAGING MULTIPLE PIPELINES , 2005 .

[6]  J. Gattorna,et al.  SUPPLY CHAIN COST MANAGEMENT AND VALUE-BASED PRICING , 2005 .

[7]  D. Towill,et al.  Analysis and design of focused demand chains , 2002 .

[8]  John D. Sterman,et al.  System Dynamics: Systems Thinking and Modeling for a Complex World , 2002 .

[9]  M. Christopher,et al.  An Integrated Model for the Design of Agile Supply Chains. , 2001 .

[10]  Denis Royston Towill,et al.  Lean, agile or leagile? Matching your supply chain to the marketplace , 2000 .

[11]  D. Towill,et al.  Supply chain migration from lean and functional to agile and customised , 2000 .

[12]  Danny Berry,et al.  Leagility: Integrating the lean and agile manufacturing paradigms in the total supply chain , 1999 .

[13]  Denis Royston Towill,et al.  Total cycle time compression and the agile supply chain , 1999 .

[14]  Peter T. Ward,et al.  Configurations of Manufacturing Strategy, Business Strategy, Environment and Structure , 1996 .

[15]  J. Parnaby,et al.  Systems engineering for better engineering , 1995 .

[16]  Mohamed Mohamed Naim,et al.  Business process re-engineering an electronic products supply chain , 1995 .

[17]  Robert Padulo,et al.  Business Process Reengineering: BreakPoint Strategies for Market Dominance , 1994, J. Inf. Technol..

[18]  Abby Day,et al.  Pathways to Customers: Reducing Complexity in the Logistics Pipeline , 1991 .

[19]  T. Hill.  Manufacturing Strategy: The Strategic Management of the Manufacturing Function , 1985 .

[20]  Richard N. Cardozo,et al.  Industrial market segmentation , 1974 .

[21]  Wendell R. Smith.  Product Differentiation and Market Segmentation as Alternative Marketing Strategies , 1956 .

[22]  J. Godsell.  Developing customer responsive supply chain strategy : an empirical investigation of the relationship between market segmentation and supply chain strategy , 2008 .

[23]  David Walters,et al.  Effectiveness and efficiency: the role of demand chain management , 2006 .

[24]  A. Harrison,et al.  Customer responsiveness : an exploratory view of a supply chain strategy for the new economy , 2002 .

[25]  M. Christopher,et al.  Developing Market Specific Supply Chain Strategies , 2002 .

[26]  M. Cooper,et al.  Supply Chain Postponement and Speculation Strategies: How to choose the right strategy , 1998 .

[27]  M. Fisher.  What is the Right Supply Chain for Your Product , 1997 .

[28]  David Walters,et al.  Managing the supply chain : a strategic perspective , 1996 .

[29]  N. Chorn.  The “Alignment” Theory: Creating Strategic Fit , 1991 .

[30]  M. D. Webber,et al.  Supply-chain management: logistics catches up with strategy , 1982 .