SUPPLY CHAIN SERVICE STRATEGY

44 | R i g h t S e r v e ™ Service Channels Service channels are distinguished from one another by their geography, handling units, business purpose, customer base, and format. For example, Coca-Cola serves five major channels — restaurants, grocery stores, convenience stores, vending machines, and institutions such as schools and public facilities. One of our retail clients, Payless Shoes, serves three major channels — standalone retail stores, shopping mall retail stores, and end consumers via e-commerce. It is critical to differentiate service strategy by channel because the supply chain culture, competitive environment, physical conditions, security, and logistics infrastructure are unique in each service channel. Service Strata The mantra for success is real estate is “Location, Location, Location.” We say the mantra for success in supply chain service is “Segmentation, Segmentation, Segmentation.” Ourmethodology segments customers within channels based upon the value they bring to the business. We typically stratify the customer base into A, B, C, and D segments and differentiate service offerings accordingly. This notion of stratification may or may not resonate within our client’s culture. The organization psychology challenge, is that by its very nature, stratification and service differentiation yield disappointment and conflict somewhere in