Advanced

Challenges of Measuring Performance of the Sales and Operations Planning Process

HULTHÉN, HANA LU ; Näslund, Dag LU and Norrman, Andreas LU (2016) In Operations and Supply Chain Management: An International Journal
Abstract
The purpose of this study is to identify and structure challenges of measuring performance of the Sales and Operations Planning (S&OP) process. A multiple case study methodology was applied. Qualitative data was collected via 22 structured interviews with managers from six case companies in various industries. A process oriented framework was proposed by structuring the challenges based on two key areas of process performance (effectiveness and efficiency) and different maturity levels of the process. A major challenge for all the cases, regardless of their maturity level, relates to defining of cross-functional trade-offs measures. Another major challenge was alignment of measures with business strategy and reward system. Additional... (More)
The purpose of this study is to identify and structure challenges of measuring performance of the Sales and Operations Planning (S&OP) process. A multiple case study methodology was applied. Qualitative data was collected via 22 structured interviews with managers from six case companies in various industries. A process oriented framework was proposed by structuring the challenges based on two key areas of process performance (effectiveness and efficiency) and different maturity levels of the process. A major challenge for all the cases, regardless of their maturity level, relates to defining of cross-functional trade-offs measures. Another major challenge was alignment of measures with business strategy and reward system. Additional common challenges for the different maturity levels were also found. While confirming some challenges from previous research, this study also finds new challenges, especially for more mature levels. Examples are standardization to support unbiased decision making, but also customization of measures for various organizational levels, and visualization of findings from the measurement to facilitate analysis. However, future research must validate and extend the results in other industries. The results offer challenges from a process oriented view and can serve as insights for managers when designing and implementing the S&OP process measures, or advancing from one maturity level to another. This research enhances understanding of the challenges to measure the S&OP process performance and adds to the S&OP literature and performance measurement literature. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
in press
subject
in
Operations and Supply Chain Management: An International Journal
ISSN
1979-3561
language
English
LU publication?
yes
id
c5322805-79ee-4fac-afb1-7bd4d09f0274
date added to LUP
2016-08-15 10:57:44
date last changed
2016-09-06 10:35:42
@article{c5322805-79ee-4fac-afb1-7bd4d09f0274,
  abstract     = {The purpose of this study is to identify and structure challenges of measuring performance of the Sales and Operations Planning (S&OP) process. A multiple case study methodology was applied. Qualitative data was collected via 22 structured interviews with managers from six case companies in various industries. A process oriented framework was proposed by structuring the challenges based on two key areas of process performance (effectiveness and efficiency) and different maturity levels of the process. A major challenge for all the cases, regardless of their maturity level, relates to defining of cross-functional trade-offs measures. Another major challenge was alignment of measures with business strategy and reward system. Additional common challenges for the different maturity levels were also found. While confirming some challenges from previous research, this study also finds new challenges, especially for more mature levels. Examples are standardization to support unbiased decision making, but also customization of measures for various organizational levels, and visualization of findings from the measurement to facilitate analysis. However, future research must validate and extend the results in other industries. The results offer challenges from a process oriented view and can serve as insights for managers when designing and implementing the S&OP process measures, or advancing from one maturity level to another. This research enhances understanding of the challenges to measure the S&OP process performance and adds to the S&OP literature and performance measurement literature. },
  author       = {HULTHÉN, HANA and Näslund, Dag and Norrman, Andreas},
  issn         = {1979-3561},
  language     = {eng},
  month        = {08},
  series       = {Operations and Supply Chain Management: An International Journal},
  title        = {Challenges of Measuring Performance of the Sales and Operations Planning Process},
  year         = {2016},
}