What is segmentation strategy in SAP LO-SGT - Segmentation?

SAP Term: segmentation strategy

• Component: LO-SGT

• Component Name: Segmentation

• Description: A collection of business rules that define which stock materials should satisfy which demand objects. The segmentation strategy is based on the mapping between a stock segment associated with a material in stock and a requirement segment associated with a demand object. strategies can be assigned to materials to determine the valid stock segments and requirement segments for the materials and to define which requirements should be covered by which stock segments.

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• Key Concepts: 
  Segmentation strategy is a component of SAP's Logistics (LO) module. It allows users to define and manage segmentation rules for materials, customers, vendors, and other objects. Segmentation rules are used to group objects into segments, which can then be used for various purposes such as pricing, sales analysis, and inventory management. 
  
  How to use it: 
  To use the segmentation strategy component, users must first define the segmentation rules. This involves specifying the criteria for each segment and assigning objects to the appropriate segments. Once the rules have been defined, users can then use the segmentation strategy component to manage the segments and their associated objects. 
  
  Tips & Tricks: 
  When defining segmentation rules, it is important to consider how the segments will be used. For example, if the segments will be used for pricing purposes, then it is important to ensure that all relevant criteria are taken into account when defining the rules. Additionally, it is important to ensure that the segmentation rules are regularly updated to reflect any changes in the business environment. 
  
  Related Information: 
  The segmentation strategy component is closely related to other components of SAP's Logistics module such as pricing and sales analysis. Additionally, it can be used in conjunction with other components such as inventory management and customer relationship management (CRM).