AN EFFECTIVE MANAGEMENT TOOL: SALES & OPERATIONS PLANNING (S&OP) and MATURITY MODEL

Year 2017, , 76 - 88, 30.06.2017

Batuhan Kocaoglu

https://doi.org/10.17261/Pressacademia.2017.453

Abstract

Purpose – The
center of the transformation of companies’ supply chain development is sales
and operations planning (S&OP). Although S&OP is emphasized in previous
researches, the related resources and the literature are very limited. For this
purpose, it is aimed to develop a mixed framework for firms to analyze their
S&OP processes and to monitor these processes within a maturity model.

Methodology - It has
been researched how the S&OP maturity model can be used to determine the
stages and the stage in which the firm is located. Literature research was
carried out and synthesized. By examining these studies, concepts are blended
in terms of academic and practitioner perspectives.

Findings - S&OP
literature is limited, there is no Turkish resource about the maturity level.
By way of existing S&OP models, a more understandable collective model has
been proposed. In addition, an efficiency evaluation checklist, which can be
used with the maturity model, is presented.

Conclusion - The
recommended checklist shows how a company should develop the S&OP process
and where it is weak; Maturity model is useful for understanding the current
state of the S&OP process as well as the appropriate next improvement
steps. This will guide the companies that are in the S&OP process. 

Keywords

S&OP, sales and operations planning, maturity model, integrated business planning, ERP

References

• APICS. (2011). “2011 Sales and operations planning practices and challenges”, https://www.apics.org/docs/default-source/defaultdocument-library/apics-2011-sales-and-operations-planning-practices-and-challenges.pdf?sfvrsn=2 adresinden alınmıştır Ball, B. (2013). “S&OP non-negotiable as a process”, Aberdeen Group.
• Cecere(b), L., & Chimni, J. (2014). “Changing mental models: The evolution of S&OP”, Kinaxis Inc.: https://www.kinaxis.com/Global/resources/slide-decks/WebcastPresentation-Changing%20Mental%20Models.pdf adresinden alınmıştır
• Cecere, L., Barrett, J., & Mooraj, H. (2009). “Sales and operations planning: Transformation from tradition”, AMR Research Report, May 2009. AMR Research Inc.
• Elbaum, S. D. (2004).” The sales and operations planning benchmark report: Leveraging S&OP for competitive advantage”, Aberdeen Group.
• Feng, Y., & D’amours, S. (2008). “The value of sales and operations planning in oriented strand board industry with make-to-order manufacturing system: Cross functional integration under deterministic demand and spot market recourse”, International Journal of Production Economics, vol. 115, no. 1, pp. 189-209.
• Goh, S. H., & Eldridge, S. (2015). “New product introduction and supplier integration in sales and operations planning evidence from the Asia Pacific region”, International Journal Of Physical Distribution & Logistics Management, vol. 45, no. 9-10, pp. 861-886.
• Google. (2017, 02 28). http://www.googgle.com adresinden alınmıştır
• Grimson, J. A., & Pyke, D. F. (2007). “Sales and operations planning: An exploratory study and framework”, The International Journal of Logistics Management, vol. 18, no. 3, pp. 322-346.
• Lapide, L. (2005). “Sales and operations planning part III: A diagnostic model”, Journal of Business Forecasting, vol. 24, no. 1, pp. 13- 16.
• Palmatier, G. (2011). “An executive level synopsis integrated business planning (Advanced sales & operations planning)”, Oliver Wight Americas.
• Sheldon, D. (2006). World Class Sales & Operations Planning: A Guide to Successful Implementation and Robust Execution. Ft Lunderdale, FL: J. Ross Publishing.
• Thome, T., Marcio, A., Scavarda, L. F., Fernandez, N. S., & Scavarda(b), A. J. (2012). “Sales and operations planning: A research synthesis”, International Journal of Production Economics, vol. 138, no. 1, pp. 1-13.
• Tinker, E. J. (2011, 04 12). “Excellence in S&OP : tips and traps when implementing”, Nexview Consulting. APICS North Shore Chapter: http://www.apics-northshore.org/pdm/presentations/Excellence_in_S&OP_Nexview.pdf adresinden alınmıştır
• Tohamy, N., Tarafdar, D., Kohler, J., & Pukkila, M. (2013).” Introducing the five-stage sales and operations planning maturity model for supply chain leaders”, Gartner.
• Ventana Research. (2006). “Sales and operations planning: measuring maturity and opportunity for operational performance management”, San Mateo, CA, USA.
• Veronesi, P. M. (2013). “The journey toward next -generation S&OP in the manufacturing industry”, IDC.
• Viswanathan(b), N. (2009). “Sales and operations planning solutions AXIS”, Q3 2009, Aberdeen Group, Inc.
• Viswanathan, N. (2010). “Sales and operations planning strategies for managing complexity within global supply chains”, Aberdeen, July.
• Wagner, S. M., Ullrich, K. K., & Transchel, S. (2014). “The game plan for aligning the organization”, Business Horizons, Mar-Apr, vol. 57, no. 2, pp. 189-201.
• Wallace(b), & Stahl. (2014). Sales & Operations Planning: The Executive's Guide. Ohio: Steelwedge Software.
• Wallace, T. (1999). Sales & Operations Planning: The How-to Handbook. Ohio: T.F.Wallace & Company.
• Web Of Science. (2017, 02 28). www.webofknowledge.com/ adresinden alınmıştır
• Wing, L., & Perry, G. (2001). “Toward twenty-first-century pharmaceutical sales and operations planning”, Pharmaceutical Technology, pp. 20–26.