Quotation Chan, Claire, Arikan Fichtinger, Emel. 2020. Differentiation vs. standardisation in supply chain segmentation: a quantitative study. International Journal of Production Research.




The key value proposition of supply chain segmentation is to differentiate supply chains through a reasonable number of segments in order to gain a level of standardisation and avoid managerial complexity incurred in fully customised supply chains. The decision on how products are grouped into segments is at the core of a successful implementation. A fundamental trade-off in this decision-making process is between higher differentiation by having small group sizes and higher standardisation from a smaller number of groups. In this manuscript, we implement segmentation on supply chain configurations and investigate the trade-off by analysing several network scenarios. We use optimisation models for each scenario to align decisions of segment formation and supply chain configurations. We show that divergences in demand characteristics, geographic difference, and cost synergy such as pooling effect have impacts on the balance of standardisation and differentiation.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal International Journal of Production Research
Citation Index SCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, INF-A, STRAT-B, WH-B
Language English
Title Differentiation vs. standardisation in supply chain segmentation: a quantitative study
Year 2020
Reviewed? Y
DOI https://doi.org/10.1080/00207543.2020.1767311
Open Access Y
Open Access Link https://www.tandfonline.com/doi/full/10.1080/00207543.2020.1767311


An empirical investigation on supply chain segmentation through strategic alignment
Chan, Claire (Former researcher)
Arikan Fichtinger, Emel (Details)
Institute for Production Management (Reiner) (Details)
Research Institute for Supply Chain Management FI (Details)
Research areas (Ă–STAT Classification 'Statistik Austria')
5300 Economics (Details)
5326 Production research (Details)
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