Point of View
“Segment of One - Procurement”
From Lot Size Optimization to Late Stage Customization – What Segment of One means for Procurement
As pointed out in our previous publications on Segment of One, sales organizations today increasingly put customer centricity at the top of their sales strategy. The principle of customer centricity aims at fulfilling customer needs, especially the need for “extravagance” and “exclusivity”. Having specified the products themselves increases product identification and builds up customer loyalty (1). Thus, the concept has become unavoidable for survival in global competition today. Until recently only a few manufacturers could produce customized products cost-effectively. Today, however, this has become a prerequisite to stay competitive. New and advanced technologies have brought individualized products within the reach of a wide range of customers. Companies that do not focus on customer centricity as a key element of their sales activities, and instead remain with traditional “one size fits all” approaches, will face significant challenges and lose market share.
(1) Fader, Peter (Customer Centricity: Focus on the Right Customers for Strategic Advantage, 2020)