J. Andrew Grimson and David F. Pyke
The paper seeks to develop a framework for sales and operations planning (S&OP) that is based on previous literature and company interviews. It is designed to help managers…
Abstract
Purpose
The paper seeks to develop a framework for sales and operations planning (S&OP) that is based on previous literature and company interviews. It is designed to help managers understand how effective their S&OP processes are and how to progress to advanced stages.
Design/methodology/approach
The S&OP literature, is reviewed and the results of a number of company interviews are presented. These lead to a new framework, with descriptions of each stage, and to implementation insights for managers.
Findings
After highlighting key dimensions for establishing a firm's S&OP maturity on a five‐stage framework and, with the use of this framework, exploring in a preliminary way the relationship between firm size or process type (job shop, batch flow, continuous flow, etc.) and its degree of S&OP plan integration, little apparent relationship was found. However, the data suggest that business processes are enablers of S&OP plan integration, but that information technology is not clearly so.
Research limitations/implications
The results are based on a thorough review of the literature and on 15 in‐depth company interviews. Because the sample size is small, the results should be considered to provide only preliminary insights.
Practical implications
Managers can use the framework to assess their S&OP process maturity. To advance to higher S&OP integration, managers should focus on leadership of business processes that can enable effective S&OP plan integration. These processes include organizational structure, meetings and collaboration across functional areas, and performance measurements. Information technology tools may also be enablers, but they do not appear to be the primary drivers.
Originality/value
The framework separates business processes from information processes. It is quite extensive and therefore provides managers with an indication of the maturity of their S&OP processes. Also presented are insights into an intuitive, albeit challenging, process for advancing through the stages of maturity. Finally, a perspective on the future of S&OP integration is suggested that is focused on optimizing profits rather than myopically maximizing revenues or minimizing costs.
Details
Keywords
The Corporation of the City of London are about to appoint a Public Analyst, and by advertisement have invited applications for the post. It is obviously desirable that the person…
Abstract
The Corporation of the City of London are about to appoint a Public Analyst, and by advertisement have invited applications for the post. It is obviously desirable that the person appointed to this office should not only possess the usual professional qualifications, but that he should be a scientific man of high standing and of good repute, whose name would afford a guarantee of thoroughness and reliability in regard to the work entrusted to him, and whose opinion would carry weight and command respect. Far from being of a nature to attract a man of this stamp, the terms and conditions attaching to the office as set forth in the advertisement above referred to are such that no self‐respecting member of the analytical profession, and most certainly no leading member of it, could possibly accept them. It is simply pitiable that the Corporation of the City of London should offer terms, and make conditions in connection with them, which no scientific analyst could agree to without disgracing himself and degrading his profession. The offer of such terms, in fact, amounts to a gross insult to the whole body of members of that profession, and is excusable only—if excusable at all—on the score of utter ignorance as to the character of the work required to be done, and as to the nature of the qualifications and attainments of the scientific experts who are called upon to do it. In the analytical profession, as in every other profession, there are men who, under the pressure of necessity, are compelled to accept almost any remuneration that they can get, and several of these poorer, and therefore weaker, brethren will, of course, become candidates for the City appointment.