Sales and operations planning and the firm performance

Procurement's role in resolving demand–supply imbalances: an information processing theory perspective

Purpose

Drawing on information processing theory, the linkage between buffering and bridging and the ability on the part of procurement to resolve demand–supply imbalances is investigated, as well as contexts in which these strategies may be particularly useful or detrimental. Buffering may be achieved through demand change or redundancy, while bridging may be achieved by the means of collaboration or monitoring.

Design/methodology/approach

This study employs a hierarchical regression analysis of a survey of 150 Finnish and Swedish procurement and sales and operations planning professionals, each responding from the perspective of their own area of supply responsibility.

Findings

Both the demand change and redundancy varieties of buffering are associated with procurement's ability to resolve demand–supply imbalances without delivery disruptions, but not with cost-efficient resolution. Bridging is associated with the cost-efficient resolution of imbalances: while collaboration offers benefits, monitoring seems to make things worse. Dynamism diminishes, while the co-management of procurement in S&OP improves procurement's ability to resolve demand–supply imbalances. The most potent strategy for tackling problematic contexts appears to be buffering via demand change.

Practical implications

The results highlight the importance of procurement in the S&OP process and suggest tactical measures that can be taken to resolve and reduce the effects of supply and demand imbalances.

Originality/value

The results contribute to the procurement and S&OP literature by increasing knowledge regarding the role and integration of procurement to the crucial process of balancing demand and supply operations.

Challenges of Implementing S&OP in a Mid-sized Automotive Components Company: An Action Research Approach

The purpose of this paper is to present an action research (AR) study of the Sales and Operations Planning (S&OP) implementation in a mid-sized automotive components company located in Brazil. This study provides a detailed empirical exploration of the S&OP implementation steps, challenges and results obtained in the researched context. An AR method was adopted in this work, seeking: (1) to find effective solutions to the dynamics of the specific context faced during the S&OP implementation, and (2) to promote large-scale changes through the engagement of the company and the researcher in the problem. The S&OP implementation presented significant results in the organization, streamlining inventory, and maintaining the service level desired by the company. The reactivity of the S&OP process also led to a quick adaptation to the COVID-19 challenges, which stands out in the operational key performance indicators (KPIs) analyzed in the period. This work contributes to theory and practice by reporting in-depth empirical research on S&OP implementation and its benefits. Practitioners and researchers can benefit from this research by understanding the best practices, challenges, and potential outcomes of implementing S&OP.

A decision making framework for comparing sales and operational performance of firms in emerging market

Sales and operations planning translates the requirements of the customers at the market place (related to new and/or existing products and services) into actionable tactical plans to drive the activities of the value chain of the organization. The present work aims to provide a multi-period and multi-perspective evaluation framework to compare the sales and operational performance (SOP) of firms in an emerging market. SOP is one of the frontline KPIs that describes the efficiency and effectiveness of the sales and operations planning. There is a scantiness in the extant literature about well-defined indicators to measure SOP. The current work fills the gap in the literature by developing a hybrid multi-criteria decision making (MCDM) framework utilizing the Logarithmic Percentage Change-driven Objective Weighting (LOPCOW) and Evaluation based on Distance from Average Solution (EDAS) models for a novel application in assessing SOP. From the data analysis, it is also evident that there is a variations in the year wise ranking of the companies. However, all individual year wise rankings maintain statistically significant correlations with the aggregated ranking. For aggregation purpose, Borda Count Method is used. The companies like ITC Limited, Hindustan Unilever Ltd., Avanti Feeds Ltd., Britannia Industries Ltd., and Symphony Ltd. hold the top five positions on aggregate. The comparison with other MCDM models is made and sensitivity analysis is carried out. The present work is a first of its kind that would encourage the analysts and the policy makers to evaluate the sales and operational performance using a scientific way.

Global sales and operations planning: A multinational manufacturing company perspective

The purpose of this paper is to analyse the global Sales and Operations Planning (S&OP) process and investigate the steps to support consolidated business planning in worldwide operations and large-scale supply chains. The paper conducts a case study at a multinational manufacturing company applying an abductive approach. It combines the deductive logic from theory and the inductive logic from field observation in an attempt to elaborate further on theory on global S&OP. The analysis is structured and guided by a novel framework for global S&OP, which is developed based on the theoretical background and the case study findings. The research findings characterise the S&OP process for global operations and identify challenges related to the need to synchronise the subsidiaries' S&OP efforts worldwide to deal with different contingencies of these subsidiaries, and to manage and analyse a large amount of information gathered. The research reveals how the subsidiaries' performance is analysed by top executives along the global S&OP process, feeding strategic initiatives in the organisation and identifying business opportunities like benchmarking among subsidiaries, synergies with other management practices, and global gains. This paper offers a novel investigation of the global steps on S&OP in a real-life setting, offering a well-documented characterisation of the process that goes beyond the traditional local approach. Moreover, it is the first study to reveal challenges and expected outcomes of such a global perspective for S&OP. The theoretical advancements of S&OP research offered herein aid scholars, opening avenues for middle-range theorising, highlighting the cross-disciplinary nature of the domain, and discussing the use of concepts from related disciplines like Economics, Psychology, and Information Systems. The research findings can also assist executives, especially from multinational manufacturers, in their efforts to consolidate global planning.

Empirical and theoretical perspectives in sales and operations planning

This paper’s purpose is to evaluate empirical and theoretical perspectives in Sales and Operations Planning (S&OP). The methodology consists of a systematic literature review, analysing 292 publications from academics and practitioners. The results reveal that the empirical evidence has been initially obtained by practitioners and subsequently acquired by academics with a growing interest in recent years. Three main research streams are identified: S&OP and performance, implementation of S&OP, and contextualisation of S&OP designs. The investigation of theoretical foundations reveals an upward trend in external general theory usage and first signs of internal theory development in S&OP. The research findings call for more exploratory research to enhance the knowledge in the identified research streams and their interrelation. Herein, applying the design science approach is recommended to integrate practitioners into academic research. Further implications embrace a call for more theory-informed empirical S&OP research in a two-prone agenda: applying general theories from other fields and developing internal theories through middle-range theorising. A limitation of this paper is its focus on empirical studies, not embracing conceptual papers. Applications of this paper’s findings can help academics and practitioners to advance their understanding of the S&OP phenomenon. The awareness of study findings in the three main research streams, combined with empirical and theoretical research implications, can support the development of solutions to improve the S&OP effectiveness and evidence-based decisions in real-life settings. This work’s originality lies in the analysis of the S&OP literature with the focus on the evolution of empirical evidence and the theoretical foundations.

Female empowerment/participation in the workplace and firm performance: a study of privately-owned firms

Purpose

The purpose of this study is to examine the relationship between female empowerment/participation and firm performance.

Design/methodology/approach

The data are cross-sectional, extracted from the records of the Enterprise Surveys of the World Bank (ESWB). It covers 561 privately-owned firms from Lebanon. Tobit regressions are used in the analysis.

Findings

The findings show that firm performance is positively associated with one form of female empowerment (female involvement in management), and the positive and significant association remains significant when several control variables are considered. However, the positive association between firm performance and the other form of female empowerment (female involvement in ownership) does not hold the inclusion of control variables in the regression. Furthermore, there is a positive association between firm performance and female participation in the workplace (the percentage of female workers), which remains qualitatively unchanged when several control variables are considered.

Originality/value

This is one of the first research studies that examines the relationship between female empowerment/participation and firm performance, while differentiating between female involvement in management and female involvement in ownership. Notably, the study extends the authors’ limited understanding on that relationship in the context of a small and understudied country such as Lebanon, where privately-held firms dominate.

The S&OP process and the influence of personality and key behavioral indicators: insights from a longitudinal case study

Purpose

The purpose of this paper is to extend the research domain of Sales & Operations Planning (S&OP) beyond the hard issues by focusing on soft issues in S&OP processes. This paper aims to investigate how consciousness of different personality types can affect S&OP processes.

Design/methodology/approach

This paper is based on a single longitudinal case study from a medium-sized enterprise with a data collection period of more than two years. This paper is based on observation and interviews gathered at several stages during pilot implementation and operation phases.

Findings

This paper indicates that a focus on behavior using personality type theory and key behavioral indicators has provided a common framework for understanding how the S&OP process is impacted by different personalities and behavior. This knowledge has increased the awareness of which behavior sustains a silo mentality and which behavior breaks it down. Quotations are used to provide substance of this explorative topic.

Research limitations/implications

As a single case study, this paper only provides results for analytical generalization.

Practical implications

Consciousness of behavioral elements in S&OP processes is proposed here as a complement to key performance indicators as levers to implement and obtain sustained operation of S&OP.

Originality/value

This paper is the first explicitly integrating personality type theory for a better understanding of implementing and operating S&OP processes. This paper contributes with a new understanding of S&OP success factors and how a common language may improve process efficiency.

A System Dynamics Model for Sales and Operations Planning

The use of system dynamics techniques to model the sales and operations planning (S&OP), associated with the economic and financial processes, is an innovative proposal. The objectives of this article are to model and simulate the S&OP process integrated with the financial management in a Brazilian lime processing industry, based on the system dynamics approach. Initially, the model was validated. Then, over twenty scenarios were simulated to assess the behavior of the system with its key factors variation. In the microenvironment scenarios, the company's internal perspective was the only element taken into account. In turn, regarding the macro environment scenarios, the basis was the projection of lime consumption related to the country's GDP. The results have genuinely contributed to the industry researched, since the lime processing industry is struggling with obtaining enough supply due to lime acquisition price fluctuations and, consequently, the oscillation of its production costs.

Mind the gap – Assessing maturity of demand planning, a cornerstone of S&OP

Purpose

The purpose of this paper is to develop and empirically validate a model for assessing demand planning maturity in organisations.

Design/methodology/approach

The authors developed a maturity assessment model for demand planning through iterations of theoretical and empirical work, combining insights from literature and practitioners. An online survey is developed to validate the model using data from different industries.

Findings

The authors identify six dimensions of demand planning maturity: data management, the use of forecasting methods, the forecasting system, performance management, the organisation and people management. The empirical study indicates that demand data are well managed and organisation readiness is high, yet improvements in the forecasting system and the management of forecast performance are needed. The results show a positive relationship between the size of an organisation and its demand planning maturity.

Practical implications

The contribution of this work is to propose an assessment model and survey instrument for demand planning maturity. This will help the practitioner to understand the current level of maturity of the demand planning process, reflect on the desired level and develop action plans to close the gap.

Originality/value

There is broad literature on process maturity assessment in general and on sales and operations planning (S&OP) maturity in particular. However, there is no comprehensive model for assessing the maturity of demand planning, which is a specific and critical process within the overall S&OP process. The authors fill this gap by offering a demand planning maturity model.

Supply chain integration, risk management and manufacturing flexibility

Purpose

The purpose of this paper is to investigate the impact of internal integration, external integration (EI), and supply chain risk management (SCRM) on manufacturing flexibility, and the moderating effect of SCRM on the relationships between internal and EI, respectively, and manufacturing flexibility.

Design/methodology/approach

Using hierarchical regression, data are analyzed from a sample of 343 manufacturing plants in Asia collected in 2013-2014 as part of the International Manufacturing Strategy Survey (IMSS VI).

Findings

Internal integration and SCRM have a direct effect on manufacturing flexibility. SCRM moderates the relationship between EI and flexibility.

Research limitations/implications

Further research is needed to generalize beyond the flexibility performance of discrete manufacturing firms in Asia.

Practical implications

To benefit from EI and increase their flexibility performance, manufacturing firms need to implement different mechanisms of SCRM to prevent and deal with supply chain risks including those associated with supply chain integration.

Originality/value

This research contributes to the body of knowledge on the relationships between internal integration, EI, SCRM, and manufacturing flexibility.

Context-based sales and operations planning (S&OP) research

Purpose

The purpose of this paper is to describe and categorise how current literature contributes to sales and operations planning (S&OP) research on how contextual variables affect S&OP design and to frame future areas for context-based S&OP research.

Design/methodology/approach

The method used was a systematic literature review. Studies for review were obtained through a keyword search of five relevant databases, manual searches of relevant journals and snowballing of citations in relevant papers. In total, 571 papers published between 2000 and 2017 were assessed, and 68 papers were included in the review.

Findings

The review found that S&OP design depends on industry, dynamic complexity, detail complexity and organisational characteristics. The findings of the literature review suggest that future research should study the roles of industry, complexity, system and process and organisational characteristics in S&OP design.

Research limitations/implications

The findings revealed several gaps in the literature on context-dependent S&OP design. To address these gaps, an agenda for future S&OP contingency research is developed.

Practical implications

The findings revealed which contextual areas and specific S&OP design issues must be considered when designing and implementing S&OP.

Originality/value

This study focussed on identifying relevant research on S&OP design by analysing the contribution of literature to a research framework inspired by contingency-based research of operations and supply chain management.

Framework for measuring performance of the sales and operations planning process

Purpose

The purpose of this paper is to develop a framework for measuring the S&OP process performance.

Design/methodology/approach

The method used is a multiple case study of five companies from different industries based on data from 12 structured interviews.

Findings

The main result is a framework to measure the S&OP process. It includes concrete suggestions for organizations when developing measures to increase effectiveness and efficiency of the process. It will also help organizations to standardize measures and to enhance organizational transparency. Our results include measures for every step of the process as well as for the outcome of the process. The authors highlight the importance of cross-functional measures along with measures that focus on how to conduct the process. The framework is founded on a set of criteria on appropriate measures such as comprehensiveness, internal process efficiency, horizontal and vertical integration, internal comparability, and usefulness. The study contributes to performance measurement literature and the S&OP literature.

Research limitations/ implications

Validation of the framework is desirable in similar as well as other contexts. Implementation challenges should also be investigated.

Practical implications

The framework provides guidelines in order to measure, analyze and improve the effectiveness and the efficiency of the process.

Originality/values

This is the first framework for measuring the S&OP process that includes detailed measures for each step of the process, for the outcome of the process as well as how to conduct the process itself.

Collaborative planning, forecasting and replenishment: a literature review

Purpose

– The purpose of this paper is to provide a systematic review of the literature on Collaborative Planning, Forecasting and Replenishment (CPFR). The review emphasises the descriptors of CPFR implementation and models, as well as the impact of CPFR and other supply chain collaboration (SCC) initiatives on supply chain (SC) performance.

Design/methodology/approach

– The systematic review includes 50 full-text papers retrieved from four databases: Emerald, EBSCO, ScienceDirect and Wiley. Rigorous and verifiable keywords, review steps and selection criteria were applied to the database and inter-coders agreement was systematically checked.

Findings

– There is no consensus regarding the breadth and scope of CPFR configurations. CPFR is context-dependent and varies according to the configuration of the SC. Trust, information-communication technology and the quality of information sharing are main enablers and inhibitors of implementation.

Practical implications

– Practitioners will benefit from insights related to the choice of SCC configurations (e.g. number of partners, nature of products and spatial complexity), the importance of trust and empowerment for SCC and the need to outweigh carefully the costs and benefits of specific SCC before implementation.

Originality/value

– CPFR, which is considered by many to be the most advanced and the most comprehensive SCC process and has a direct impact upon SC performance. Nonetheless, efforts to synthesise the overall state of the art in CPFR have been rather limited to date. As an effort to fill this gap, this paper provides a better understanding of the role of CPFR as a determinant of SC performance. As an effort to contribute to complete the cycle of theory building based on the literature review, seven propositions for CPFR research are put forward.

Improving productivity with self-organised teams and agile leadership

Purpose

– Many organisations remain adverse to self-organised teams. The reasons are non-trivial and complex, but it is suspected that not willing to let go to direct control by senior management is at the root cause. There is a perceived security in following traditional, hierarchical chains of command under the guise of reducing risks and maintaining efficiency. The purpose of this paper is to describe the development of a research agenda that will empirically test in the field a range of widely held assumptions around leadership of self-organised teams. In total, 23 companies have agreed to participate in the proposed longitudinal research.

Design/methodology/approach

– An extensive literature review has identified extant theories, frameworks, and methodologies adopted by researchers to gain greater understanding of self-organised teams. This knowledge will be used as the basis for generating hypotheses for subsequent testing in the field.

Findings

– There is a considerable knowledge base established for self-organised teams. However, there is limited understanding of the benefits or detrimental effects of self-organised teams on organisational productivity and the appropriate style of leadership. This initial research has identified several hypotheses that will be used to develop questionnaires and instruments for information collection.

Research limitations/implications

– The tools and techniques presented in this article need to be adapted to the organisation’s specificities as well as to the contextual situation.

Practical implications

– The work is of significant practical use. The research will be completed in a number of companies. There will be continuous input from operational and executive management. The findings from the work will be disseminated through various channels including workshops and conferences. Companies implementing and using self-organised teams will benefit from the knowledge generated.

Social implications

– Self-organised teams are used in a variety of settings – commercial businesses, not-for-profit, NGOs. The work will explore issues around behavioural networks and inter- intra-team relationships.

Originality/value

– There is much rhetoric around the adoption and uses of self-organised teams, yet there appears to be little understanding of the effect of leadership style of these teams and effect on productivity. This work will therefore contribute to the understanding of self-organised teams. While prior research has been conducted in the motivational and behavioural implications of self-organised teams, the knowledge is at best scant when leadership models for self-organised teams and operational factors are explored.

Using the military in disaster relief: systemising challenges and opportunities

Purpose

– The purpose of this paper is to contribute to a greater understanding of the challenges of civil military logistical cooperation, coordination and collaboration in humanitarian relief logistics.

Design/methodology/approach

– Systematic literature review of academic journals.

Findings

– This paper has four main findings. First, a categorisation of humanitarian logistics literature is achieved through a systematic review. Second, a classification of military involvement in humanitarian relief logistics is presented. Third, the research substantiated systematic differences in the kinds of military cooperation not only due to stage of operations but also depending upon whether the disaster is “natural” or “manmade”. Fourth, the research identifies the challenges of civil military logistical cooperation, coordination and collaboration and posits recommendations to overcome the identified challenges.

Research limitations/implications

– This paper represents an exploratory study and provides the basis for further research on cooperation, coordination and collaboration between military and civilian agencies in humanitarian operations. The paper sets a research agenda for academics.

Practical implications

– This paper is the first to offer practical guidance to military commanders and managers of humanitarian agencies on solutions and recommendations to overcome the challenges to civil military logistical cooperation/coordination in humanitarian operations.

Originality/value

– The area of civil military logistical cooperation/coordination has received limited consideration within the humanitarian aid logistics literature to date. This paper is designed to redress this shortfall. As a result, it is hoped that it will act as a catalyst for further research and to widen and deepen the resultant debate with a view to improving the outcome for those affected by current and future disasters.