IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i5p2722-d758816.html
   My bibliography  Save this article

Competitive Improvement through Integrated Management of Sales and Operations

Author

Listed:
  • Unai Apaolaza

    (Mechanics and Manufacturing Department, Mondragon Unibertsitatea, 20500 Mondragon, Spain)

  • Aitor Orue

    (Mechanics and Manufacturing Department, Mondragon Unibertsitatea, 20500 Mondragon, Spain)

  • Aitor Lizarralde

    (Mechanics and Manufacturing Department, Mondragon Unibertsitatea, 20500 Mondragon, Spain)

  • Aitor Oyarbide-Zubillaga

    (Department of Mechanics, Design and Organization, University of Deusto, 48007 Bilbao, Spain)

Abstract

Several authors agree on the importance of integrating sales and operations (S & OP) when it comes to improving the management of organisations. Thus, the relationship between S & OP can be critical from a competitive point of view, and therefore strategic. However, most of the literature on this topic focuses on the field of repetitive manufacturing. Consequently, this work aims to enhance the scarce literature related to S & OP in organisations that produce make-to-order (MTO). The present study is an analysis of cases of two industrial companies managed according to the theory of constraints. In both cases, the relationship between sales and operations was initially poor. Their approaches were mainly founded on their experience and intuition, as well as on simple data. The development of a new approach, integrating S & OP, has demonstrated the potential advantages of integrated management. As a result, we have identified some aspects of interest from a managerial perspective. Furthermore, we consider the findings of this study to be relevant to improving the competitiveness of this kind of organisation.

Suggested Citation

  • Unai Apaolaza & Aitor Orue & Aitor Lizarralde & Aitor Oyarbide-Zubillaga, 2022. "Competitive Improvement through Integrated Management of Sales and Operations," Sustainability, MDPI, vol. 14(5), pages 1-18, February.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:5:p:2722-:d:758816
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/5/2722/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/5/2722/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Noroozi, Sayeh & Wikner, Joakim, 2017. "Sales and operations planning in the process industry: A literature review," International Journal of Production Economics, Elsevier, vol. 188(C), pages 139-155.
    2. Dariusz Klimek, 2020. "Sustainable Enterprise Capital Management," Economies, MDPI, vol. 8(1), pages 1-10, February.
    3. Feng, Yan & D'Amours, Sophie & Beauregard, Robert, 2008. "The value of sales and operations planning in oriented strand board industry with make-to-order manufacturing system: Cross functional integration under deterministic demand and spot market recourse," International Journal of Production Economics, Elsevier, vol. 115(1), pages 189-209, September.
    4. Tuomikangas, Nina & Kaipia, Riikka, 2014. "A coordination framework for sales and operations planning (S&OP): Synthesis from the literature," International Journal of Production Economics, Elsevier, vol. 154(C), pages 243-262.
    5. Dariusz Klimek & Elżbieta Jędrych, 2020. "A Model for the Sustainable Management of Enterprise Capital," Sustainability, MDPI, vol. 13(1), pages 1-13, December.
    6. Pereira, Daniel Filipe & Oliveira, José Fernando & Carravilla, Maria Antónia, 2020. "Tactical sales and operations planning: A holistic framework and a literature review of decision-making models," International Journal of Production Economics, Elsevier, vol. 228(C).
    7. Platts, K. W. & Mills, J. F. & Bourne, M. C. & Neely, A. D. & Richards, A. H. & Gregory, M. J, 1998. "Testing manufacturing strategy formulation processes," International Journal of Production Economics, Elsevier, vol. 56(1), pages 517-523, September.
    8. Yann Jaegler & Anicia Jaegler & Patrick Burlat & Samir Lamouri & Damien Trentesaux, 2018. "The ConWip production control system: a systematic review and classification," International Journal of Production Research, Taylor & Francis Journals, vol. 56(17), pages 5736-5757, September.
    9. Tavares Thomé, Antônio Márcio & Scavarda, Luiz Felipe & Fernandez, Nicole Suclla & Scavarda, Annibal José, 2012. "Sales and operations planning: A research synthesis," International Journal of Production Economics, Elsevier, vol. 138(1), pages 1-13.
    10. Thürer, Matthias & Stevenson, Mark & Silva, Cristovao & Qu, Ting, 2017. "Drum-buffer-rope and workload control in High-variety flow and job shops with bottlenecks: An assessment by simulation," International Journal of Production Economics, Elsevier, vol. 188(C), pages 116-127.
    11. Soman, Chetan Anil & van Donk, Dirk Pieter & Gaalman, Gerard, 2004. "Combined make-to-order and make-to-stock in a food production system," International Journal of Production Economics, Elsevier, vol. 90(2), pages 223-235, July.
    12. Andrew Manikas & Mahesh Gupta & Lynn Boyd, 2015. "Experiential exercises with four production planning and control systems," International Journal of Production Research, Taylor & Francis Journals, vol. 53(14), pages 4206-4217, July.
    13. Olhager, Jan & Rudberg, Martin & Wikner, Joakim, 2001. "Long-term capacity management: Linking the perspectives from manufacturing strategy and sales and operations planning," International Journal of Production Economics, Elsevier, vol. 69(2), pages 215-225, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gloria Jiménez-Marín & María del Mar Ramírez Alvarado & Cristina González-Oñate, 2022. "Application of Sensory Marketing Techniques at Marengo, a Small Sustainable Men’s Fashion Store in Spain: Based on the Hulten, Broweus and van Dijk Model," Sustainability, MDPI, vol. 14(19), pages 1-17, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pereira, Daniel Filipe & Oliveira, José Fernando & Carravilla, Maria Antónia, 2022. "Merging make-to-stock/make-to-order decisions into sales and operations planning: A multi-objective approach," Omega, Elsevier, vol. 107(C).
    2. Pereira, Daniel Filipe & Oliveira, José Fernando & Carravilla, Maria Antónia, 2020. "Tactical sales and operations planning: A holistic framework and a literature review of decision-making models," International Journal of Production Economics, Elsevier, vol. 228(C).
    3. Goh, Shao Hung & Eldridge, Stephen, 2019. "Sales and Operations Planning: The effect of coordination mechanisms on supply chain performance," International Journal of Production Economics, Elsevier, vol. 214(C), pages 80-94.
    4. Pedroso, Carolina Belotti & da Silva, Andrea Lago & Tate, Wendy Lea, 2016. "Sales and Operations Planning (S&OP): Insights from a multi-case study of Brazilian Organizations," International Journal of Production Economics, Elsevier, vol. 182(C), pages 213-229.
    5. Noroozi, Sayeh & Wikner, Joakim, 2017. "Sales and operations planning in the process industry: A literature review," International Journal of Production Economics, Elsevier, vol. 188(C), pages 139-155.
    6. Samuel Roscoe & Nachiappan Subramanian & Romina Prifti & Lin Wu, 2020. "Stakeholder engagement in a sustainable sales and operations planning process," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3526-3541, December.
    7. Tobias Kreuter & Luiz Felipe Scavarda & Antonio Márcio Tavares Thomé & Bernd Hellingrath & Marcelo Xavier Seeling, 2022. "Empirical and theoretical perspectives in sales and operations planning," Review of Managerial Science, Springer, vol. 16(2), pages 319-354, February.
    8. Marcelo Xavier Seeling & Tobias Kreuter & Luiz Felipe Scavarda & Antônio Márcio Tavares Thomé & Bernd Hellingrath, 2021. "Global sales and operations planning: A multinational manufacturing company perspective," PLOS ONE, Public Library of Science, vol. 16(9), pages 1-22, September.
    9. Ben Ali, M. & D’Amours, S. & Gaudreault, J. & Carle, M-A., 2018. "Configuration and evaluation of an integrated demand management process using a space-filling design and Kriging metamodeling," Operations Research Perspectives, Elsevier, vol. 5(C), pages 45-58.
    10. Pereira, Daniel Filipe & Oliveira, José Fernando & Carravilla, Maria Antónia, 2023. "Design of a sales plan in a hybrid contractual and non-contractual context in a setting of limited capacity: A robust approach," International Journal of Production Economics, Elsevier, vol. 260(C).
    11. Sali, Mustapha & Ghrab, Yahya & Chatras, Clément, 2023. "Optimal product aggregation for sales and operations planning in mass customisation context," International Journal of Production Economics, Elsevier, vol. 263(C).
    12. Tuomikangas, Nina & Kaipia, Riikka, 2014. "A coordination framework for sales and operations planning (S&OP): Synthesis from the literature," International Journal of Production Economics, Elsevier, vol. 154(C), pages 243-262.
    13. Fildes, Robert & Goodwin, Paul & Onkal, Dilek, 2015. "Information use in supply chain forecasting," MPRA Paper 66034, University Library of Munich, Germany.
    14. Laurent Lim, Lâm & Alpan, Gülgün & Penz, Bernard, 2014. "Reconciling sales and operations management with distant suppliers in the automotive industry: A simulation approach," International Journal of Production Economics, Elsevier, vol. 151(C), pages 20-36.
    15. Elżbieta Jędrych & Dariusz Klimek & Agnieszka Rzepka, 2021. "Principles of Sustainable Management of Energy Companies: The Case of Poland," Energies, MDPI, vol. 14(8), pages 1-18, April.
    16. Quan Zhu & Harold Krikke, 2020. "Managing a Sustainable and Resilient Perishable Food Supply Chain (PFSC) after an Outbreak," Sustainability, MDPI, vol. 12(12), pages 1-11, June.
    17. Habib Zare & Mahyar Kamali Saraji & Madjid Tavana & Dalia Streimikiene & Fausto Cavallaro, 2021. "An Integrated Fuzzy Goal Programming—Theory of Constraints Model for Production Planning and Optimization," Sustainability, MDPI, vol. 13(22), pages 1-15, November.
    18. Paiva, Ely Laureano, 2010. "Manufacturing and marketing integration from a cumulative capabilities perspective," International Journal of Production Economics, Elsevier, vol. 126(2), pages 379-386, August.
    19. Eksoz, Can & Mansouri, S. Afshin & Bourlakis, Michael, 2014. "Collaborative forecasting in the food supply chain: A conceptual framework," International Journal of Production Economics, Elsevier, vol. 158(C), pages 120-135.
    20. Zhiying Ji & Tingyu Zhou & Qian Zhang, 2023. "The Impact of Digital Transformation on Corporate Sustainability: Evidence from Listed Companies in China," Sustainability, MDPI, vol. 15(3), pages 1-19, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:5:p:2722-:d:758816. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.