Criteria, approaches and key enablers for a segmented supply chain – a study of Swedish industrial manufacturing companies

Abstract: Problem definition: Supply chain segmentation is a topic which in later years has received increasing attention from supply chain managers of companies in industrial settings. To members of the supply chain research community the ideas and theoretical contributions underlying the concept of supply chain segmentation are hardly new, but have evolved ever since the beginning of the 1990s. However, as general definitions and well-documented approaches from industrial settings are scarce it is understandable that the concept is not that wide-spread and that supply chain managers struggle not only with the concept as a whole but also with its implementation in and applicability to a particular company. This research suggests a framework for supply chain segmentation, developed from investigation of criteria, approaches and key enablers for a segmented supply chain. Purpose: The research purpose is, firstly, to summarize criteria for segmentation of supply chain strategy. Secondly, it is to summarize approaches taken in research case studies where an actual criteria analysis has been conducted and supply chain segmentation executed. Thirdly, it is to summarize key enablers that companies must have in place to execute a segmented strategy. In all three subsets, the purpose is to investigate and compare theory and practice. Methodology: Data was collected through a qualitative interview study comprising fifteen interviewees from twelve Swedish industrial manufacturing companies. Before that, a thorough literature review was conducted for acquisition of deep theoretical understanding. Conclusions: While there are differing views regarding what supply chain segmentation really entails, the customer requirements and/or the customer demand patterns must be the starting point. The framework for a segmented supply chain describes one way to approach and execute supply chain segmentation, taking customers, constraints and organizational readiness in key enabling areas into account.