How can you categorize hundreds (or thousands) of laboratory products? Segmenting laboratory products for logistics system design

A well-designed logistics system is fundamental in providing a continuous supply of good-quality laboratory commodities.

Laboratory testing services – screening, diagnosis, patient management and disease surveillance – are offered at varying degrees at different levels of the laboratory system. Laboratory products required for these testing services vary greatly in appearance, composition (liquids, powders, plastic), packaging size , shelf life, and storage requirements. The variety in uses and characteristics of these products and the customers that use these products (the laboratories themselves) means that to design a logistics system that manages all products the same way is impractical, inefficient and can result in losses, wastages and stock outs.

To design a logistics system(s), products should be segmented. Segmentation is the process of reviewing and analyzing product and customer characteristics to identify commonalities and then organizing the supply chain to best respond to customer needs or product requirements. Some common product characteristics around which segments can be created include: cold chain products, short shelf life products, emergency or outbreak products, bulky products, fast moving and slow moving products, full supply and non-full supply products. Some common customer characteristics to consider in the segmentation process include: type/level of service delivery point (provincial/state, district, primary), geographic proximity to the resupply facility, and seasonal accessibility.

Segmentation allows logistics system designers to logically and systematically review, analyze and organize the products so that an efficient and effective supply chain/s can be designed that will satisfy the needs of the various products and customers of that system.