4×4 Segmentation

EBP 4x4 Segmentation - ebp Global

Case details

Client Profile


> $5bn USD


– 10000 +

Problem Statement

Transform Footwear retailer’s Supply and Inventory Planning Backbone based on a responsive, flexible and segmented Supply Chain to support an Omni-channel Ecosystem

  • We use ebp’s own 4x4 classification methods to group products which have similar historical patterns, volume and/or revenue. Classifying a product will help determine the optimal method for distribution, promotion, and pricing.
  • We recommend it as a first step in demand planning process as it provides you with a direction and help optimize your approach and focus first on the items that mean most to your portfolio.
  • Range Planning: Framework defined for identifying Core and chase candidates alongside trimming long tails​.
  • Differentiated supply strategy through defined Service Level & Safety Stock​
  • Omni Inventory Management: Insights into Sales and stock interaction across Channels​ to enable
  • The approach is now being adapted into all stages of GTM from product creation to MEIO. Segmentation used as a foundation for product flow, inventory and deployment management
  • Identified potential Core styles to grow the segment from 8.3 mil units, $404 mil, 35 styles to 12.7mil units, $675 mil, 114 styles.