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Logility Teams With Aberdeen to Produce New Insights on Supply Chain “Segmentation”

“Demand Segmentation Users are Better Equipped to Manage their Channel Challenges” examines new trends in volatility, while giving managers advice on how to cope with sudden shifts in the supply chain.

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A new report focused on “segmentation” for supply chain managers seeking insight on omnichannel demands has been issued by Logility, Inc. in conjunction with the consultancy, Aberdeen.

Demand Segmentation Users are Better Equipped to Manage their Channel Challenges” examines new trends in volatility, while giving managers advice on how to cope with sudden shifts in the supply chain.

According to Bryan Ball, vice president and group director, Aberdeen, the ability to research, compare and purchase products across multiple channels at any time creates additional complexity. The report’s author further maintains that this can challenge a supply chain organizations’ ability to generate an accurate forecast.

Aberdeen conducted the research – sponsored by Logility – to identify the strategies leading enterprises employ to turn these challenges into opportunities for differentiation and growth. The research found demand segmentation is a key capability that sets leading supply chains apart.

Chief among the findings was that demand segmentation users show a 20 percentage point customer service level advantage versus non-users. Also worth noting, said researchers, was that leading companies realize a 67 percent higher forecast accuracy rate at the family and SKU level. Furthermore, demand segmentation users are 57 percent more likely to optimize inventory and service policies to maximize cash flow and profitability.

“Creating a demand-driven supply chain starts with understanding who your customer is and developing the strategy to profitably serve them at the time, place and price they are ready to buy,” said Karin Bursa, executive vice president, Logility.

She added in a statement that this research from Aberdeen highlights the importance of demand segmentation to identify and profitably satisfy specific market, channel and customer needs.
“The advanced analytics and optimization capabilities in Logility Voyager Solutions help companies develop robust segmentation strategies to prioritize supply chain operations to cost-effectively satisfy service level goals increase margin contribution,” she added.

Hank Canitz, Logility’s Director of Product Marketing & Business Development, told SCMR in an interview that researchers were surprised to find that respondents were concerned about improving their forcasting beyond demand management.

“Multiple areas of the supply chain were addressed,” he said. “Up until now, we had an intuitive idea that this might be case, but now it’s been quantified.”


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

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From the November 2018
New research from APICS, Supply Chain Management Review and Loyola University Chicago finds that operating a responsible supply chain is an increasing priority. But gaps remain between practice and the goal.
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