Contingency between S & OP design and planning environment
International Journal of Physical Distribution & Logistics Management
ISSN: 0960-0035
Article publication date: 7 September 2015
Abstract
Purpose
The purpose of this paper is to understand how companies design sales and operations planning (S & OP) contingent on the planning environment (PE).
Design/methodology/approach
On the basis of the literature, the paper creates an analytical framework identifying the main constructs related to the PE and S & OP design, which is the basis for gathering and analysing qualitative data from eight cases in the food industry. The findings highlight the relations between S & OP and the PE, and are used for generating three propositions.
Findings
Responding to the complex and uncertain PE, the companies set up S & OP on a stock-keeping unit (SKU) level, with the possibility of re-planning and a flexible planning horizon, thus differing from what has generally been suggested in the literature. In addition, the companies are aligning the inputs, activities, and outcomes of the S & OP process to the PE. Particularly important environmental contingencies are uncertainty connected to demand and supply, frequent product launches, and production network complexity. Product-related variables have a lower impact on the S & OP design.
Research limitations/implications
The present study is limited to one industry only and a comparison between industries with larger data sets would be valuable in future studies. The study selected cases based on their S & OP maturity; further studies need to explore the effect of the alignment of S & OP and the PE on the planning performance.
Originality/value
In the literature, S & OP is presented as a generic process with a strict formal design that is equal for all companies. The study provides insights into how companies adjust S & OP according to the PE.
Keywords
Acknowledgements
The authors would like to express profound gratidude to the NordForsk organization, which is funding the LogiNord project that this research is a part of. The author would also acknowledge the anonymous referees for their constructive comments and suggestions.
Citation
Ivert, L.K., Dukovska-Popovska, I., Fredriksson, A., Dreyer, H.C. and Kaipia, R. (2015), "Contingency between S & OP design and planning environment", International Journal of Physical Distribution & Logistics Management, Vol. 45 No. 8, pp. 747-773. https://doi.org/10.1108/IJPDLM-04-2014-0088
Publisher
:Emerald Group Publishing Limited
Copyright © 2015, Emerald Group Publishing Limited