Towards a Risk-Focused Sales and Operations Planning Process
Résumé
Sales and Operations Planning (S&OP) is a vital business process that establishes a connection between the strategic plan of a company and its daily operational plans, facilitating the alignment of demand and supply for its products. However, in the face of dynamic and volatile business environments characterized by constant changes, achieving the desired objectives of S&OP becomes increasingly challenging.
The explicit inclusion of a comprehensive understanding of uncertainties and decision options within the S&OP process has not been adequately addressed. In this context, the traditional S&OP process often falls short in addressing the unpredictable factors like demand fluctuations, supply disruptions, market changes, and other uncertainties.
This paper aims to enhance the S&OP process, encompassing sub-processes such as demand planning, supply planning, and financial integration, with a dedicated focus on effective uncertainty management. The Risk-Focused S&OP Process proposed in this paper aims to equip organizations with a comprehensive set of strategies that will enable them to navigate the complicated supply chain road successfully. This approach seeks to address the critical need for strategies that can adapt to evolving uncertainties. The Risk-Focused S&OP Process enables organizations to address uncertainties and capitalize on opportunities, thereby promoting long-term sustainability and competitiveness.
One of the limitations of this study is that the Risk-Focused S&OP Process, although introduced in this article, has not undergone validation. Consequently, future research should implement and validate this study to ensure its broader applicability.