When should advanced planning and scheduling systems be used in sales and operations planning?

Abstract

Purpose

The purpose of this paper is to explore how the context affects successful use of advanced planning and scheduling (APS) systems in sales and operations planning (S&OP) processes, and how individual, technological, and organizational (ITO) dimensions affect this procedure.

Design/methodology/approach

This is a qualitative case study of two APS system-supported S&OP processes. The work aims to generate propositions concerning the relationships among the use of APS system, the context, ITO dimensions, and fulfillment of S&OP aims.

Findings

Use of APS systems was especially appropriate in support of S&OP processes in complex planning environments and when S&OP aims were ambitious. ITO dimensions were important influences on successful APS system use in most contexts. APS systems were not considered appropriate when having S&OP processes with ambitious aims and low individual and organizational maturities. Use of APS systems was also inappropriate when the extent of technological maturity was minimal. S&OP processes with ambitious aims, operating within a complex planning environment, are difficult if not impossible to implement without the support of APS systems.

Practical implications

The suggestions on when APS systems should be used in different S&OP environments will be useful to companies implementing or about to implement APS systems.

Originality/value

APS systems offer great potential if they are effectively used to support S&OP, still the use of APS system in S&OP is unexplored. The paper shows how the context and the ITO dimensions affect the successful use of APS systems in S&OP processes.

Citation

Kjellsdotter Ivert, L. and Jonsson, P. (2014), "When should advanced planning and scheduling systems be used in sales and operations planning?", International Journal of Operations & Production Management, Vol. 34 No. 10, pp. 1338-1362. https://doi.org/10.1108/IJOPM-03-2011-0088