Capterra Glossary
Supply Chain Segmentation
Supply chain segmentation is a term used to explain supply chain operations in terms of small segments of operations all the way from suppliers to customers. Supply chain segmentation describes the dynamic alignment of customer channel demands and supply response capabilities. The term helps businesses to focus on each segment of the supply chain in order to optimize for net profitability.
What Small and Midsize Businesses Need to Know About Supply Chain Segmentation
For SMBs, supply chain segmentation looks different for each specific company. To optimize processes, maximize profits, make customers happy, and grow your business, it is helpful and perhaps essential to manage supply carefully and in smaller segments for greater control. For example, one segment might be ordering raw materials, another segment might be storing those materials, another might be processing the materials, and another one might be delivering the final product to the customer. Supply chain segmentation will be unique to each SMB but is an essential part of overall supply chain management for all businesses.
Related Terms
- Enterprise Resource Planning (ERP)
- Procurement
- Total Cost of Ownership (TCO)
- Vendor
- Supply Chain Planning (SCP)
- Telematics
- Senpai
- Vendor Management
- Value-Added Reseller (VAR)
- Bill of Materials (BOM)
- Supply Chain
- Smart Factory
- Scanner
- SCADA (Supervisory Control and Data Acquisition)
- Radio-frequency Identification (RFID)