7 GUIDELINES FOR EFFECTIVESUPPLY CHAIN SEGMENTATION DESIGN

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For practical advice on supply chain segmentation strategy and design, download: How To Guide: Supply Chain Segmentation.

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LOOK OUT-TO-INCoordinate your supply chain architecture to the customer, not to your existing capability.

ESTABLISH REAL COSTS-TO-SERVE (CTS) Strip CTS to the bone – aggregations or averages will only skew your data.

EMPHATICALLY STEER COLLABORATION Tighten cross-functional alignment to unlock new value propositions.

SIMPLIFY APPROPRIATELYSelect the optimal number of configurations – supply chain leaders have between 3 and 5.

REDESIGN WITH RESTRAINTMake shared infrastructure the default to drive efficiencies and optimise profitability.

PLAN THE OPERATIONS PROCEDURES AND PROCESSES TO EXECUTERealign your resource plan to deliver upon the new architecture of a segmented supply chain.

HEED THE METRICS AND DIAGNOSTICS Create fresh visibility across the entire value network with relevant metrics and data.