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The Handbook of Logistics and Distribution Management, 5th Edition by Dr. Peter Baker, Phil Croucher, Alan Rushton

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08

Supply chain segmentation

Introduction

As noted in Chapter 2, a ‘one-size-fits-all’ approach to logistics is not appropriate in most instances. Some form of supply chain segmentation is therefore necessary for a company to satisfy the various service and cost needs of its customers. In addition to the channel options discussed in Chapter 4, this raises the question of exactly how a company’s own supply chain should be segmented. For example, one type of supply chain may be appropriate for large bulky items and another for small parcels. Similarly, a supply chain may be necessary for highly demanding customers separate to that generally available to the market. There are many different ways in which supply chains may be segmented and this ...

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