Towards Sales and Operations Planning (S&OP) Integration

Paper in proceeding, 2021

Purpose: Sales and operations planning (S&OP) is a tactical level planning process between the demand and supply as well as other functions in an organization. The aim of the paper is to identify and analyze interfaces in S&OP and to conceptualize and explore integration in those interfaces.
Design/methodology/approach: The paper builds on literature on integration and its mechanisms in S&OP and adopts a qualitative and explorative research approach. Two companies with established S&OP processes were selected as cases and interviews were conducted with managers in positions having an overview of the process.
Findings: Based on the analysis of the two case companies, eight different interfaces were identified in the two case companies. The interfaces were analysed with regard to which mechanisms used to reach integration. Coordination stands out as the most important mechanism, which is facilitated by process, organisation, and technology.
Research limitations/implications: The paper starts to conceptualize S&OP integration at the interface level. Based on the case analysis of individual interfaces, initial understanding of how coordination, collaboration, and alignment results in integration was created. The paper ends by raising future research questions regarding S&OP integration.
Practical implications: Managers involved in S&OP are involved daily in the interfaces. This paper add knowledge on which mechanisms to use to integrate interfaces.
Original/value: Based on identifying a range of interfaces to be integrated in a well-functioning S&OP, this paper starts a discussion of the meaning of integration in S&OP in relation to individual interfaces as well as cross interfaces.