Segmentation

An inventory segment is a certain amount of inventory set aside to cater to the demand from a group of privileged customers. This inventory is what is required to fulfill commitments and contracts.

In Sterling Order Management System Software, supply is composed of different types of specific entities. A type of "supply" is inventory segmentation. How do you guarantee a customer that inventory has been put aside for them? Inventory segmentation is the apportion of inventory into segments. When inventory is apportioned for a segment, it indicates that the inventory is not to be consumed for demands other than the demands with matching segments segment types, or both.

For example, you are a shampoo manufacturer or supplier. You have contracts with a major pharmaceutical chain and a department store chain to supply them each with one of your brands of shampoo according to their specifications. When they place an order, their demand is recorded with the pre-arranged segment or segment type. The demand is fulfilled from the supply with the matching segment or segment type at the node for the shampoo manufacturer or supplier.