Question: Map the Xerox segments and market response(Figures 75 and 76)onto demand influences and supply capabilities in Figures 73 and 74 as far as you canmaking assumptions where necessaryHow closely does the actual match theoretical?

Case Study: Segmenting the supply chain at Xerox By the middle of the 1990 s Xerox had integrated its European manufacturing and logistics processes and organizations developing an end-to-end approach to its supply chain. This had delivered massive financials benefits to the company both in terms of inventory reduction and operating cost. At the time it was to launch a new range of products and to extend its market coverage and it was recognized that the predominantly 'one size fits all' approach to customer fulfillment was not competitive. The company embarked on a program of asking customers about their requirements for overall fulfillment and understanding supply chain competitive performance. Based on market / customer expectations the company segmented its supply chain into four different streams across the total source-plan-make-deliver process. The segmentation of the market / customer expectations are shown in Figure 7. 5 and the supply chain response in Figure 7.6. Volume represents the number of orders / shipments; variety reflects the combination of product variation and day-to-day demand variability. The organization and the processes of the supply chain needed to operate differently since the priorities of the market and customers were different. Different performance measures and targets were established for each segment and cultures and incentives put in place to drive the change. In all cases the company operated with outsourced partners as part of the supply chain operations but the balance between outsourced and In-house varied depending on the skills and flexibility required. As 'adding customer uniqueness as late as possible'was a key element in the process design. Collaboration with the product design teams and suppliers became essential to engineer supply-chain-friendly products. In particular in the high-volume / high-variety segment the customer order is directed to the integration centre at the end of the line which has fewer than five days to finalize the product and deliver to the end consumer. This could only be achieved by engineering the product to a modular design with final configuration from stock of 'neutral' modules and adding customer-unique options. This capability required flexibility and agility in all areas of the supply chain. In turn, this meant investing in the skills needed for planning demand and supply so that capacity and inventories could meet the variable load. At the time the segmentation approach allowed the company to fulfill the majority Of its European customer orders from a European supply, with the exception of the high-volume / low-variety segment which supplied customers through distributors and retailers. This approach not only improved measures of customer responsiveness but also improved inventory turns, so reducing the need for stocks below the European level and overall supply chain costs. Inherent in the design was not only the flexibility in operation but the ability to create and restructure the segments depending on changes to market and customer needs. This configuration of the Xerox supply chain segmentation had a life of approximately four years. (Source: Graham Sweet) response(Figures 7.5 and 7.6 )onto demand influences and supply capabilities in Fiqures 7.3 and 7.4 as far as you can, making assumptions where necessary. How closelv does the 'actual' match 'theoretical'? Case Study: Segmenting the supply chain at Xerox By the middle of the 1990 s Xerox had integrated its European manufacturing and logistics processes and organizations developing an end-to-end approach to its supply chain. This had delivered massive financials benefits to the company both in terms of inventory reduction and operating cost. At the time it was to launch a new range of products and to extend its market coverage and it was recognized that the predominantly 'one size fits all' approach to customer fulfillment was not competitive. The company embarked on a program of asking customers about their requirements for overall fulfillment and understanding supply chain competitive performance. Based on market / customer expectations the company segmented its supply chain into four different streams across the total source-plan-make-deliver process. The segmentation of the market / customer expectations are shown in Figure 7. 5 and the supply chain response in Figure 7.6. Volume represents the number of orders / shipments; variety reflects the combination of product variation and day-to-day demand variability. The organization and the processes of the supply chain needed to operate differently since the priorities of the market and customers were different. Different performance measures and targets were established for each segment and cultures and incentives put in place to drive the change. In all cases the company operated with outsourced partners as part of the supply chain operations but the balance between outsourced and In-house varied depending on the skills and flexibility required. As 'adding customer uniqueness as late as possible'was a key element in the process design. Collaboration with the product design teams and suppliers became essential to engineer supply-chain-friendly products. In particular in the high-volume / high-variety segment the customer order is directed to the integration centre at the end of the line which has fewer than five days to finalize the product and deliver to the end consumer. This could only be achieved by engineering the product to a modular design with final configuration from stock of 'neutral' modules and adding customer-unique options. This capability required flexibility and agility in all areas of the supply chain. In turn, this meant investing in the skills needed for planning demand and supply so that capacity and inventories could meet the variable load. At the time the segmentation approach allowed the company to fulfill the majority Of its European customer orders from a European supply, with the exception of the high-volume / low-variety segment which supplied customers through distributors and retailers. This approach not only improved measures of customer responsiveness but also improved inventory turns, so reducing the need for stocks below the European level and overall supply chain costs. Inherent in the design was not only the flexibility in operation but the ability to create and restructure the segments depending on changes to market and customer needs. This configuration of the Xerox supply chain segmentation had a life of approximately four years. (Source: Graham Sweet) response(Figures 7.5 and 7.6 )onto demand influences and supply capabilities in Fiqures 7.3 and 7.4 as far as you can, making assumptions where necessary. How closelv does the 'actual' match 'theoretical