Product value‐density: managing diversity through supply chain segmentation

Product value‐density: managing diversity through supply chain segmentation Purpose – Aims to identify the importance of segmentation both as part of the network design process and as an operational tool for correctly allocating products to appropriate supply chains. Design/methodology/approach – The allocation is based upon a wide range of possible factors relating to the characteristics of the product, to the market, to the source and to the geographic/commercial context. The application of this framework is presented in a case study of a global electronics company, where large costs savings were achieved through the segmentation of supply chains. Findings – A logical basis for segmentation is derived and an operational framework developed, which highlights the importance of product value density (PVD), throughput volume and product availability. Originality/value – Demonstrates the paramount importance of throughput, demand variability/service factor and PVD as the key drivers in the segmentation process. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The International Journal of Logistics Management Emerald Publishing

Product value‐density: managing diversity through supply chain segmentation

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Publisher
Emerald Publishing
Copyright
Copyright © 2005 Emerald Group Publishing Limited. All rights reserved.
ISSN
0957-4093
DOI
10.1108/09574090510617394
Publisher site
See Article on Publisher Site

Abstract

Purpose – Aims to identify the importance of segmentation both as part of the network design process and as an operational tool for correctly allocating products to appropriate supply chains. Design/methodology/approach – The allocation is based upon a wide range of possible factors relating to the characteristics of the product, to the market, to the source and to the geographic/commercial context. The application of this framework is presented in a case study of a global electronics company, where large costs savings were achieved through the segmentation of supply chains. Findings – A logical basis for segmentation is derived and an operational framework developed, which highlights the importance of product value density (PVD), throughput volume and product availability. Originality/value – Demonstrates the paramount importance of throughput, demand variability/service factor and PVD as the key drivers in the segmentation process.

Journal

The International Journal of Logistics ManagementEmerald Publishing

Published: Jun 1, 2005

Keywords: Supply chain management; Electronics industry

References

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