By using this site, you agree to the IDC Privacy Policy

16 Mar 2016

New IDC PeerScape Arms Manufacturers with Five Key Segmentation Practices for Inventory Management

New report features real world case studies highlighting critical levers to consider

FRAMINGHAM, Mass., March 16, 2016 – Inventory management remains one of the most critical levers to achieving profitable operations across manufacturing and retail supply chains. Because of the significant value of inventory across an organization, often the largest contributor to current assets, efficient inventory management can separate top-performing organizations from the rest of their competitors. To arm manufacturers with the insight needed for success, IDC Manufacturing Insights today unveiled a new IDC PeerScape, Segmentation Practices for Inventory Management (Doc #US40537816). The new report provides IT executives, line-of-business managers, and decision makers with actionable advice to support the development of a segmentation strategy aimed at driving improved inventory management.

  • ClicktoTweet : New IDC PeerScape Arms Manufacturers with 5 Key Segmentation Practices for Inventory Management

Inventory management has gone through a strategy shift of late. Organizations that have taken a "right sized" approach to inventory have realized increased revenue, market share, and profit, as well as supported cost reduction. This is, in part, due to the fact that not all inventories are created equal. Variance exists across products, geographies, and customers where certain segments of inventory become more profitable and thus should be managed differently than other, less profitable, segments. The new IDC PeerScape looks at best practices, and provides guidance, for the utilization of segmentation as an inventory management strategy.

According to the report, the use of a segmentation strategy can take on various forms, each with the objective of providing a more granular understanding of critical business levers. There are several critical levers to ensure a successful segmentation-driven inventory management strategy that organizations must consider when preparing to implement such a strategy. This IDC PeerScape defines these levers and presents real-world case studies to support the need for each lever. IDC believes that:

  • In a customer-driven market, firms that more efficiently manage inventory are better positioned to create value for the customer and the firm itself.
  • As organizations continue to evolve their fulfillment strategies to better meet demand in an omni-channel world, segmentation can help to better plan, position, and manage inventory to drive improved optimized fulfillment.

John Santagate, research manager, Manufacturing Supply Chain Execution, IDC Manufacturing Insights, notes, "A segmentation-driven approach to inventory management enables firms to create inventory management processes and policies based on key characteristics of inventory performance as it relates to market demand." In the report, Santagate outlines the following key actions that IT management and line of business executive can take to ensure that they are effectively implementing a segmentation strategy to drive inventory management:

  1. Analyze demand history data.
  2. Align cross-functional resources.
  3. Implement business process around segmentation strategies.
  4. Leverage segmentation strategies to drive inventory management.
  5. Monitor and control segment performance.

"To effectively compete in a highly complex and evolving market, organizations must be equipped with the knowledge and insight to support intelligent inventory management decisions. Segmentation as a strategy can help firms better understand how their products are performing, how to best manage their inventory, and enable the organizations to focus on adding value," concluded Santagate.

For additional information about this report or to arrange a one-on-one briefing with John Santagate please contact Sarah Murray at 781-378-2674 or Reports are available to qualified members of the media. For information on purchasing reports, contact ; reporters should email

About IDC PeerScape

IDC PeerScape reports provide IT executives and their enterprise partners with practices that have the most impact on the success of a technology initiative. They help mitigate project risk and increase the likelihood of the initiative driving business value by capturing practices from peers that should be emulated.

About IDC Manufacturing Insights

IDC Manufacturing Insights assists manufacturing businesses and IT leaders, as well as the suppliers who serve them in making more effective technology decisions by providing accurate, timely, and insightful fact-based research and consulting services. Staffed by senior analysts with decades of industry experience, our global research analyzes and advises on business and technology issues facing asset intensive, brand oriented, technology oriented, and engineering oriented manufacturing industries. International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a subsidiary of IDG, the world's leading technology, media, research, and events company. For more information, please visit, email, or call 508-988-7900. Visit the IDC Manufacturing Insights Community at

For more information, contact:

Samantha Ortiz

Sarah Murray