When should advanced planning and scheduling systems be used in sales and operations planning?
Journal article, 2014
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.
A qualitative case study of two APS system-supported S&OP processes is conducted. 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 show that the 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.
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.
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.
Sales and operations planning (S&OP)
Advanced planning and scheduling (APS) system