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A. Harrison, R. van Hoek
International Logistics: A Supply Chain Approach
A. Harrison, M. Christopher, R.I. van Hoek
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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.
The International Journal of Logistics Management – Emerald Publishing
Published: Jun 1, 2005
Keywords: Supply chain management; Electronics industry
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