PLAN | Supply Chain Analytics

17

Supply Chain Segmentation

ABC-XYZ analysis & differentiated strategies

What Is It?

Supply Chain Segmentation divides the supply chain into distinct groups based on specific criteria.

  • Customer needs - Service level requirements
  • Product type - Demand patterns & value
  • Market demands - Volatility & seasonality
  • Logistics requirements - Lead times & handling

Segmentation Types

Supplier

Strategic importance, performance, risk (Kraljic Matrix)

Product

Life cycle, value, demand volatility

Geographic

Regional characteristics & requirements

Customer

Demand patterns, profitability, service needs

ABC-XYZ Matrix

X (Low Variability)Y (Medium)Z (High Variability)
A (High Value)ML Forecasts (auto)Statistical + manualManual forecast
B (Medium)Statistical forecastStatistical + manualManual forecast
C (Low Value)Statistical forecastAggregatedAggregated

Analytics Methods

K-Means Clustering

Group by similarity

Predictive Analytics

Segment performance

Decision Trees

Auto-assignment rules

Key Performance Indicators

Customer Satisfaction

Tailored service

Cost-to-Serve

Aligned strategies

Profit Margins

Segment optimization

Related Use Cases

Demand Forecasting Supplier Risk Inventory Optimization
All PLAN Cases

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