Management, Marketing, & Operations
Sales and Operations planning (S&OP) is an approach meant to help firms achieve demand and supply balance, yet experts agree that it has fallen short on delivering anticipated benefits. Carried out by cross-functional teams, S&OP entails getting people from different thought worlds, especially sales, aligned around common goals. Despite ample practitioner guidance, there is a dearth of scholarly research indicating pathways to success. Using a group effectiveness theoretical framework, this study identifies both internal team factors and contextual influencers that are predictors of S&OP effectiveness. Perspectives were captured from S&OP team members across a wide cross-section of industries representing sales and operations functions using a survey-based approach. Results indicate that internal team factors of social cohesion and decision making autonomy are key drivers of collaboration. Similarly, information quality, procedural quality, and team-based rewards/incentives serve as contextual influencers of collaboration. In turn, collaboration serves as a central mediator, partially linking antecedents to S&OP effectiveness and also serving as a direct influencer of success. Moreover, having joint rewards and incentives, which is often not the case among S&OP teams, is the greatest overall driver of S&OP effectiveness. Overall, these findings provide empirically-based guidance for managers seeking to determine which factors are most important for S&OP team success. Additionally, grounding S&OP in principles of group effectiveness theory will also aid future academic study in efforts to help firms achieve greater demand and supply balance.
Academy of Marketing Studies Journal
Jordan Whitney Enterprises
Scholarly Commons Citation
Ambrose, S. C., & Rutherford, B. N. (2016). Sales and Operations Planning (S&OP): A Group Effectiveness Approach. Academy of Marketing Studies Journal, 20(2). Retrieved from https://commons.erau.edu/publication/1121