The role of finance in the sales and operations planning process: a multiple case study
Business Process Management Journal
ISSN: 1463-7154
Article publication date: 17 January 2022
Issue publication date: 18 February 2022
Abstract
Purpose
This paper aims to offer evidence-based findings on the under-researched role of finance in the sales and operations planning (S&OP) process, aiming to guide academics and practitioners towards successful S&OP implementations.
Design/methodology/approach
The research builds upon a multiple case study, embracing five Latin American subsidiaries of four global manufacturing corporations from the consumer goods, chemical and pharmaceutical industries. Following an exploratory approach, the case study results are analysed in within- and cross-case analyses.
Findings
The research findings are synthesised into a framework, demonstrating relevant benefits from the engagement of finance along the S&OP process and the implications of its interactions with traditional S&OP functions as sales, marketing and operations. The paper shows how finance adds value in supporting the process, enabling decisions on costs, margins, capital expenditures and return on investments. Finance strengthens S&OP when assessing demand- and supply-related risks and facilitates comparing the functional business areas' plans to budget. While finance participation is highlighted as necessary for supporting successful S&OP implementations, it also receives valuable inputs in return, characterising a two-way communication role that benefits the entire organisation.
Originality/value
This is the first research paper focusing on empirically exploring the role of finance within S&OP, going beyond initial insights from practice and academia. It provides practitioners and scholars with an in-depth, evidence-based view of finance's integration along the S&OP process.
Keywords
Acknowledgements
This research was funded by Deutscher Akademischer Austauschdienst – DAAD [PROBRAL Grant Number 57447177]; Coordenação de Aperfeiçoamento de Pessoal de Nível Superior – BRASIL – CAPES, Finance Code 001 and grant Number 88881.198822/2018-01, and Brazilian National Council for Scientific and Technological Development – CNPQ, grant Numbers 304931/2016-0, 404682/2016-2, 311757/2018-9, 311862/2019-5, and Research Support Foundation of Rio de Janeiro State (FAPERJ) grant Numbers E-26/203.252/2017; E-26/201.251/2021; E-26/201.363/2021.
Citation
Seeling, M., Kreuter, T., Scavarda, L.F., Thomé, A.M.T. and Hellingrath, B. (2022), "The role of finance in the sales and operations planning process: a multiple case study", Business Process Management Journal, Vol. 28 No. 1, pp. 23-39. https://doi.org/10.1108/BPMJ-07-2021-0447
Publisher
:Emerald Publishing Limited
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