Section: Supply Chain Strategy, Design, and Compliance
Explanation

When redesigning a supply chain, the first strategic level to review should be customer segmentation. This is because understanding the different customer segments and their specific needs, preferences, and buying behaviors is crucial for designing a supply chain that can effectively meet these requirements. Customer segmentation informs decisions regarding inventory policies, transportation strategies, and the flow of materials through the network. By prioritizing customer segmentation, companies can ensure that the supply chain is aligned with market demands and can provide the right level of service to each customer group.
References:
* Chopra, S., & Meindl, P. (2016). "Supply Chain Management: Strategy, Planning, and Operation." Pearson.
* Christopher, M. (2016). "Logistics & Supply Chain Management." Pearson.

After two firms have established an initial relationship for Collaborative Planning, Forecasting, and Replenishment (CPFR), the next logical step is to create joint business plans for the products. This step involves aligning on business objectives, market strategies, and goals for the collaboration. Creating joint business plans ensures that both parties have a clear and shared understanding of their roles, responsibilities, and expectations, which is essential for the success of CPFR initiatives. It helps in setting the stage for effective collaboration, mutual trust, and long-term partnership.
References:
* "Collaborative Planning, Forecasting, and Replenishment: How to Create a Supply Chain Advantage" by Dirk Seifert
* APICS Dictionary, 16th Edition