Enabling supply chain segmentation through demand profiling

Purpose – Whilst there are a plethora of theoretical ideas regarding a segmented approach to supply chain strategy, there is paucity of empirical data. This paper aims to present the results of a field‐based case study in a fast moving consumer goods company (FMCGCo) that sought to identify the most relevant basis for supply chain segmentation. Design/methodology/approach – Research carried out on a single instrumental case, FMCGCo. A four‐stage research design was employed to develop and test an approach to developing a segmented supply chain strategy for FMCGCo supply chain Western Europe. Findings – The study identified demand profiling at an item level (using volume and variability classifiers) as the primary driver of supply chain strategy. It also developed a novel profiling tool. This not only segmented demand but identified through the introduction of the concept of filters a method for turning the results of the demand profiling analysis into a segmented supply chain strategy. Research limitations/implications – The results presented are based on a single instrumental case. It is the approach that is transferable to other supply chain contexts not the specific solution per se . Practical implications – The paper presents a practical and pragmatic approach for companies to develop a segmented supply chain strategy based on demand profiling. Originality/value – The introduction of a new tool as a practical and relatively quick means of developing a segmented supply chain strategy, that considers both market and product characteristics.