5 Benefits of Lifecycle Segmentation

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Chris Gordon
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Re: Segmentation by Market
Chris Gordon   8/9/2011 3:35:42 PM
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Yes that is certainly the case. Segmentation will provide a view as to the relative cost and value of supporting each product segment through end of life. That gives the organization enough information to support an improvement in decision making. In many ways, its a move from unplanned to planned costs of carrying and eventual disposal. 

Hawk
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Re: Segmentation by Market
Hawk   8/9/2011 2:23:06 PM
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Chris, I know you were talking about life cycle segmentation but is it possible this strategy could also be applied to product segmentation? By this, I mean, will it work for a company to decide early on what products it would support as it reaches end-of-life? Your description of life cycle segmentation tells me this is a possibility.

Chris Gordon
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Re: Segmentation by Market
Chris Gordon   8/9/2011 12:57:16 PM
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It is indeed surprising that an approach as compelling as segmentation hasn't already been more widely adopted. Much of this may be due to the organizations looking for the application that has the perfect fit accross the supply chain.

I think segmentation is appropriate for most industry sectors. The key difference should be in the choice of parameters from which to segment. The parameters should align closely with major costs and value drivers within the sector 

 

Eldredge
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Segmentation
Eldredge   8/9/2011 8:10:57 AM
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The segmentation approach makes a great deal of sense, and based on the inventment tied up in inventory and manufacturing, is bound to save a lot of operating capital.

Jay_Bond
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Jay_Bond   8/9/2011 6:55:24 AM
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From a quick glance it seems that your idea of breaking the supply chain into smaller parts could save large sums of money. It is hard to believe that more companies have not looked at adopting this sort of system when so much money could be saved. I'm sure there are many companies who are aware of potential savings, but need some consultation on what areas to best focus on and where they will receive the most savings.

mfbertozzi
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Segmentation by Market
mfbertozzi   8/9/2011 3:49:48 AM
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I have appreciated present editorial, it follows the previous one on segmentation process. I agree the principle proposed that it allows me to outline a question I would like to share: could we assume segmentation is valid in general or it depends on market addressed by producer? For istance, focusing on shipment, it is very different operations for addressing consumer market instead of big enterprises or 1st distributors layer.



More Blogs from Chris Gordon
Product lifecycle segmentation is a strategy high-tech companies can effectively deploy to combat the problems of inventory imbalance.

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