Context: The firm supplies to various industries with different requirements, and customers are dissatisfied with lead times and delivery reliability.

Options Breakdown:

A. Customer service ratio metrics: Useful for measuring performance but not directly improving it.

B. Market segmentation: Dividing the market into distinct groups with common needs to tailor services accordingly.

C. Customer relationship management (CRM): Manages interactions with customers but does not directly address segmentation.

D. Supply Chain Operations Reference (SCOR®): Provides a framework for evaluating and improving supply chain performance but not specifically focused on market segmentation.

Correct Answer Justification: Market segmentation allows the firm to better understand and cater to the specific needs of different customer groups, improving responsiveness and reliability tailored to each segment.