New product introduction and supplier integration in sales and operations planning:evidence from the Asia Pacific region

Goh, Shao Hung and Eldridge, Stephen (2015) New product introduction and supplier integration in sales and operations planning:evidence from the Asia Pacific region. International Journal of Physical Distribution and Logistics Management, 45 (9-10). pp. 861-886. ISSN 0960-0035

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Purpose: This paper investigates the implementation and performance benefits of Sales and Operations Planning (S&OP) within organizations in Asia Pacific. Design/methodology/approach: A case study method was used, with two companies selected. The first company had recently commenced S&OP and applied it to facilitate New Product Introduction, while the second had integrated its supplier into an existing S&OP program. Supply chain performance data was collected and analyzed in the context of an S&OP maturity framework. Findings: Both cases show significant improvements in supply chain performance. In one case, the implementation of a common form of S&OP resulted in a 67% reduction in order lead time for newly introduced products. The second case demonstrated a 30% reduction in inventory levels and a 52% improvement in forecast accuracy through more advanced S&OP processes. Research limitations/implications: This paper studies just two companies and is not intended to be representative of outcomes at all companies implementing S&OP. Further studies are required for a more generalized picture of S&OP implementations in the Asia Pacific region to emerge. Practical implications: The findings illustrate the potential quantitative benefits of adopting S&OP and the circumstances under which these benefits may be achieved. The results are also supportive of the notion of a maturity model for S&OP implementations. Originality/value: This paper strengthens the link between practitioner and academic literature by providing empirical evidence of the benefits of S&OP. Furthermore, the findings are derived from the Asia Pacific region for which there have been few academic studies on S&OP to date.

Item Type:
Journal Article
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International Journal of Physical Distribution and Logistics Management
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This article is (c) Emerald Group Publishing and permission has been granted for this version to appear here Emerald does not grant permission for this article to be further copied/distributed or hosted elsewhere without the express permission from Emerald Group Publishing Limited.
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Deposited On:
21 Oct 2015 04:57
Last Modified:
15 Sep 2023 00:19