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The Impact of Digitalization on Sales and Operations Planning and Its Influence on Supply Chain Performance

Ali Ishag, Ali Mustafa LU and García Calatayud, Qiong María LU (2024) MTTM02 20241
Production Management
Engineering Logistics
Abstract (Swedish)
This research examines the impact of digitalization on Sales and Operations Planning (S&OP) and its broader influence on supply chain performance. By adopting digital technologies, companies can streamline decision-making processes, reduce manual efforts, and enhance operational efficiency. The study aims to address the insufficient understanding of how the integration of digital technologies into S&OP practices affects key performance indicators (KPIs) and the overall dynamics of the supply chain. The research methodology involves an extensive literature review and interviews with companies, providing both theoretical and practical insights.
The study makes notable contributions to improving organizational efficiency, filling academic... (More)
This research examines the impact of digitalization on Sales and Operations Planning (S&OP) and its broader influence on supply chain performance. By adopting digital technologies, companies can streamline decision-making processes, reduce manual efforts, and enhance operational efficiency. The study aims to address the insufficient understanding of how the integration of digital technologies into S&OP practices affects key performance indicators (KPIs) and the overall dynamics of the supply chain. The research methodology involves an extensive literature review and interviews with companies, providing both theoretical and practical insights.
The study makes notable contributions to improving organizational efficiency, filling academic gaps, and exploring the role of digitalization in promoting sustainability in supply chain practices. This research provides valuable insights into the practical implications of digitalization in business, fostering critical analytical and research skills for future roles in industries undergoing digital transformation. Overall, the research aims to guide companies in navigating the digital landscape to improve their performance in the supply chain and adapt to the ever-evolving business environment. (Less)
Popular Abstract
Impact of Digitalization on Sales and Operations Planning and Its Influence on Supply Chain Performance
By Ali Mustafa Ali Ishag and Qiong María García Calatayud (2024)



Imagine an orchestra playing with different music sheets—chaos, right? Now, imagine they have the same sheet, but the composer's handwriting is nearly illegible. How would they perform? Would a typed sheet work better? Then how about Apple Vision Pro? Would that help musicians play well?!

An orchestra playing with different music sheets will sound disjointed, out of tune, and without a clear rhythm, creating a disaster. S&OP is the unified music sheet that coordinates the performance of musicians (who are in sales and operations) and allows them to produce good... (More)
Impact of Digitalization on Sales and Operations Planning and Its Influence on Supply Chain Performance
By Ali Mustafa Ali Ishag and Qiong María García Calatayud (2024)



Imagine an orchestra playing with different music sheets—chaos, right? Now, imagine they have the same sheet, but the composer's handwriting is nearly illegible. How would they perform? Would a typed sheet work better? Then how about Apple Vision Pro? Would that help musicians play well?!

An orchestra playing with different music sheets will sound disjointed, out of tune, and without a clear rhythm, creating a disaster. S&OP is the unified music sheet that coordinates the performance of musicians (who are in sales and operations) and allows them to produce good pieces of music (supply chain performance). Now, even though all the musicians have the same sheet, if the composer's handwriting is nearly illegible, the performance would likely still be disastrous, as they would struggle to play it correctly. Clearly, a typed sheet would be more effective and easier to read. Now, consider the potential of Apple Vision Pro. By providing clear, digitized music sheets directly in the musicians' view and marking the tempo synchronously, this technology could significantly enhance their performance, ensuring precision and harmony. Apple Vision Pro represents digitization. Our thesis is not different from this example; we studied the impact of digitization on Sales and Operations Planning and its influence on supply chain performance.

Companies also face issues while playing their music, Sales and Operational Planning maintain the balance between supply and demand. It involves on one hand Supply planning which includes enterprise resource planner (ERP), Material requirement planning (MRP), Master production schedule (MPS), Rough Cut Capacity Analysis (RCCP) and shop floor planning. On the other hand, we have the demand planning which includes forecasting and inputs from the sales team. Digitization helps many companies with the use of digital technologies to change a business model and provide new revenue and value-producing opportunities. When S&OP is combined with digital tools, companies can produce very nice symphonies.

We wanted to understand what makes companies' lives easier when they use digital tools and who improves their supply chain. To this end, we read a lot of literature discussing the benefits of S&OP, digitalization, the use of new technologies, enablers, and studies on factors that enhance supply chain performance. Based on this research, we developed a framework to help us engage with companies working with digitalization in S&OP. This allowed us to compare our findings with the practices being implemented in real companies.
The thesis concludes that while digitization significantly enhances S&OP and SCP by improving efficiency and accuracy, it also requires effective implementation, access to information, skilled personnel, and robust communication channels.
This popular scientific article is derived from the master thesis: Study of the Impact of Digitalization on Sales and Operations Planning and Its Influence on Supply Chain Performance, written by Ali Mustafa Ali Ishag and Qiong María García Calatayud (2024), Division of Engineering Logistics, Faculty of Engineering /LTH), Lund University. (Less)
Please use this url to cite or link to this publication:
author
Ali Ishag, Ali Mustafa LU and García Calatayud, Qiong María LU
supervisor
organization
course
MTTM02 20241
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Supply chain performance, digitalization, critical success factors, KPI, Sales and Operations Planning, S&OP
other publication id
6013
language
English
id
9161635
date added to LUP
2024-08-28 14:32:00
date last changed
2024-08-28 14:32:00
@misc{9161635,
  abstract     = {{This research examines the impact of digitalization on Sales and Operations Planning (S&OP) and its broader influence on supply chain performance. By adopting digital technologies, companies can streamline decision-making processes, reduce manual efforts, and enhance operational efficiency. The study aims to address the insufficient understanding of how the integration of digital technologies into S&OP practices affects key performance indicators (KPIs) and the overall dynamics of the supply chain. The research methodology involves an extensive literature review and interviews with companies, providing both theoretical and practical insights. 
The study makes notable contributions to improving organizational efficiency, filling academic gaps, and exploring the role of digitalization in promoting sustainability in supply chain practices. This research provides valuable insights into the practical implications of digitalization in business, fostering critical analytical and research skills for future roles in industries undergoing digital transformation. Overall, the research aims to guide companies in navigating the digital landscape to improve their performance in the supply chain and adapt to the ever-evolving business environment.}},
  author       = {{Ali Ishag, Ali Mustafa and García Calatayud, Qiong María}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{The Impact of Digitalization on Sales and Operations Planning and Its Influence on Supply Chain Performance}},
  year         = {{2024}},
}