What is segmentation method in SAP SCM-IBP - Integrated Business Planning?

SAP Term: segmentation method

• Component: SCM-IBP

• Component Name: Integrated Business Planning

• Description: A set of rules that defines how planning objects should be assigned to various segments. For example, users can select a method that classifies planning objects based on their relative cumulative contribution to the overall revenue. The products that contribute above a certain percentage are assigned to segment A, others to B or C.

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• Key Concepts: 
  Segmentation method is a feature of SAP SCM-IBP Integrated Business Planning that allows users to divide their data into different segments. This allows users to analyze their data more effectively and make better decisions. Segmentation methods can be used to group data by product, customer, geography, or any other criteria. 
  
  How to use it: 
  To use the segmentation method, users must first define the criteria they want to use for segmentation. This can be done by selecting the desired criteria from a list of available options. Once the criteria have been selected, users can then apply the segmentation method to their data. This will create different segments based on the criteria chosen. 
  
  Tips & Tricks: 
  When using the segmentation method, it is important to consider how the different segments will be used. For example, if the goal is to analyze customer data, it may be beneficial to create segments based on customer type or location. Additionally, it is important to consider how the segments will interact with each other when making decisions. 
  
  Related Information: 
  The segmentation method is just one of many features available in SAP SCM-IBP Integrated Business Planning. Other features include forecasting, demand planning, and inventory optimization. Additionally, there are many resources available online that provide more information about how to use these features effectively.