Proactively and reactively managing risks through sales & operations planningDittfeld, H., Scholten, K. & Donk, van, D. P., 21-Jul-2020, In : International Journal of Physical Distribution & Logistics Management. 19 p.
Research output: Contribution to journal › Article › Academic › peer-review
Purpose Risks can easily disrupt the demand-supply match targeted by sales and operations planning (S&OP). As surprisingly little is known of how organizations identify, assess, treat and monitor risks through tactical planning processes, this paper zooms in on the S&OP set-up and process parameters to explore how risks are managed through S&OP. Design/methodology/approach A multiple case study analyzes the S&OP processes of seven organizations in the process industry, drawing on 17 in-depth interviews with high-ranking representatives, internal and external documents, and a group meeting with participating organizations. Findings The study finds that organizations proactively design their S&OP based on their main risk focus stemming from the planning environment. In turn, such designs proactively support organizations' risk identification, assessment, treatment and monitoring through their S&OP execution. Reactively, a crisis S&OP meeting - making use of the structure of S&OP - can be used as a risk-treatment tool, and S&OP design can be temporarily adapted to deal with emerging risks. Originality/value This study is among the first to empirically elucidate risk management through S&OP. S&OP design, execution and adaption are identified as three interconnected strategies that allow organizations to manage risks. The design enables risk management activities in the monthly execution of S&OP. The reactive role of S&OP in risk management is particularly novel.
|Number of pages||19|
|Journal||International Journal of Physical Distribution & Logistics Management|
|Publication status||E-pub ahead of print - 21-Jul-2020|
- Sales and operations planning, Risk management, Process industry, Case study, SUPPLY CHAIN RESILIENCE, TERM CAPACITY MANAGEMENT, LINKING, PERFORMANCE, CONTINGENCY, STRATEGIES, FRAMEWORK