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Value chain segmentation: A pathway to improved profitability, service and performance
This paper analyses why a Value Chain Segmentation (VCS) process is necessary to address the escalating complexity in the marketplace and successfully translate company business strategy for both its products and customers into the right supply chain designs and corresponding capabilities. A summary of the overall methodology and steps in the process are presented. The paper sets out how to get started, the role of leadership, critical success factors and how to build capability and sustain the process. Value can be delivered across multiple vectors using this approach and are reviewed. And finally, concludes that having tailored supply chains with capabilities matched to product, customer and business strategy is the only effective means for delivering a company’s strategic objectives.
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Mark Hersh is Director, Supply Chain Strategy for the Clorox Company, a leading consumer products company. Mark is responsible for helping create the supply chain vision and roadmap, being an internal expert on leading practices and industry trends, designing the processes and capabilities for globally integrated supply chains and leading major enterprise-wide initiatives across the company. At Clorox, he has had multiple supply chain and manufacturing roles including leading major transformational initiatives, managing manufacturing plants in the US and helping design Clorox’s high-performance plant in Aberdeen, MD. Recently he created, architected and built a supply chain analytics organisation. Mark is an instructor for the strategic thinking modules in both the Clorox Supply Chain Strategy & Leadership Forum and Global Operations Leadership Forum, which develop Clorox’s supply chain leaders across all levels to think and act with an end-to-end supply chain mindset. These programmes are conducted in partnership with the Georgia Tech Scheller College of Business. He also leads the ongoing supply chain Thought Leadership Program to build knowledge, skills and capabilities across all grade levels within the supply chain organisation. He has had a 40-year career in the consumer products industry.
CitationHersh, Mark (2019, June 1). Value chain segmentation: A pathway to improved profitability, service and performance. In the Journal of Supply Chain Management, Logistics and Procurement, Volume 1, Issue 4.