Approach

Cluster What Matters

Data & Analytics – The Nitty Gritty Approach

Inputs

  • Transactional data, such as 24–36 months of POS, outbound, inventory
  • Master data, such SKU and customer masters, lead times & supply
  • Historical system parameter settings, KPIs

How we segment

  • Supported by machine learning
  • Multi-criteria clustering (volume, seasonality, margin, criticality, etc.)
  • Automatically updates demand segments in real time
  • Create a data structure, or “DNA”, for every SKU and customer

Outputs you get:

  • Not all products are created equal.
  • Not all customers require the same level of service.
  • There is rarely a one-size-fits-all solution.
  • Policies, targets, and effort need to differ by segment.

Key Example Lifts

5%

Customer Service Level – Protecting certain demand segments more vulnerable or unpredictable

20%

DC Capacity Alleviation – Redistributing stocking locations by segment based on service need

15%

Inventory Reduction – Identifying and addressing SKU segments (e.g., domestic/import, or high/low-velocity) driving excessive inventory

18%

Operational Cost – Identifying EOQ or batch size, buffer, delivery frequency, shelf capacity, pack size by segment, optimizing labor end-to-end

Process that Works

Track A —
Health Check

01

Compute KPIs by segment (on-shelf availability, OTIF, DOH, $/cs, etc.)

02

Benchmark KPIs internally
and externally

03

Identify and quantify
improvement opportunities

Track B —
As-Is & To-Be process mapping

01

Analyze the As-Is model:
process, systems, people

02

Identify the
root causes

03

Design the To-Be with updated processes, tools, and segment-specific targets

Track C —
Delivery

01

Build phased
improvement programs

02

Prioritize initiatives based
on impact vs effort

03

Ensure resources, training, and motivation to sustain improvements

Why This Works

  • No “model shelfware”; rules live directly in your systems
  • Least-privilege access with clear owners and built-in rollback
  • Continuous improvement embedded in the operating cadence

Why work
with Segmatics?

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