Leveraging AI for “Segment of One” Supply Chain Planning

Leveraging AI for “Segment of One” Supply Chain Planning

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Key Takeaways

⇨ Digital economy is creating multiple supply chain imperatives that supply chain leaders need to be aware of.

⇨ "Segment of one" demand scenarios are one such imperative that introduces additional complexities in supply chains.

⇨ Fortunately, AI algorithms can be leveraged to address planning challenges due to "segment of one".

A couple of decades ago, leveraging the strategy of delayed differentiation in supply chains was the rage. Delayed differentiation offered a relatively higher level of personalization without creating inefficiencies like excess inventory in the supply chain. For example, a manufacturer would color a lot of polo shirts only after demand trends started trickling in on which colors are in high demand. While this may seem banal by the current standard of personalization expectations, it was considered an innovative idea back then. Hence, case studies like these landed in supply chain texts in schools and colleges. Today, we live in the era of the hyper-personalized scenario of the “segment of one.” This is the scenario where a customer can order a customized product, and that product is manufactured to address the demand of that segment-that one specific customer. As you can imagine, this means inserting planning and efficiency challenges into the supply chain. This article will discuss why AI capabilities are critical to designing planning processes for the "segment of one."

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