What does "logistics segmentation" refer to?

Logistics segmentation refers to dividing logistics operations into distinct segments based on varying service needs. This approach allows organizations to tailor their logistics strategies to meet different demands of customers or supply chain partners, recognizing that not all goods, services, or customer requirements are the same. By segmenting logistics operations, companies can optimize their resource allocation, improve service levels for specific segments, and enhance operational efficiencies.

For instance, a company might identify different customer groups based on order size, delivery urgency, or product type, and then create specialized logistics plans that cater to the specific requirements of each group. This can lead to improved customer satisfaction as services are better aligned with customer expectations and needs.