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May 19, 2016
Logistics segmentation: The value-adding business strategy
By: Mark Johnson

Have you ever wondered what enables Victoria’s Secret, a US-based retailer of women’s lingerie, to deliver high-value, seasonal, and high-variety products to the shelf within two weeks of design finalization and, at the same time, utilize a lower-cost, more standard replenishment model for its regular products?

The answer is integrated logistics services. The logistics function liaises with customers to understand their requirements and translate them into a value offering that seeks to delight customers while minimizing delivery costs.

Logistics is an integral part of a firm’s strategy. An effective and efficient logistics strategy can be the difference between winning and losing a contract. As customers increasingly seek to differentiate themselves in today’s turbulent markets, their needs become increasingly diverse. A one-size-fits-all strategy does not apply anymore in the current business scenario.

To create competitive advantage through a logistics strategy, firms need to deliver the required level of customer service at the lowest possible logistics cost. It is neither effective nor efficient to accomplish this balance on a customer-by-customer basis. The challenge is to identify groups of customers with similar needs for whom you can develop a tailored logistics response. The key to success is to apply a logistics segmentation strategy.

Does your firm have a systematic process for the application of a tailored logistics segmentation strategy? Do you recognize how a segmented logistics strategy can create customer value and competitive advantage for your firm?

The Accenture Academy course Examining a Logistics Segmentation Strategy will help you recognize how logistics can create competitive advantages for your company by increasing customer intimacy, which can provide cost and value rewards. In addition, you will explore customer segmentation and cost drivers for logistics that can help differentiate your company from competitors, as well as utilize a simple four-step process to develop a segmented logistics strategy tailored to your customers’ needs. 

About Accenture Academy

Accenture Academy offers proven, cost-effective learning solutions for a more versatile workforce and a more agile organization. We provide a flexible learning approach that helps your people be more versatile and your entire organization be more agile in the marketplace. Curriculum includes Supply Chain Management, Finance, Procurement, Analytics, Leadership & Management and Specialty Skills.

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