The impact of sales and operations planning practices on manufacturing operational performance

Antônio Márcio Tavares Thomé*, Rui Soucasaux Sousa, Luiz Felipe Roris Rodriguez Scavarda do Carmo

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

42 Citations (Scopus)

Abstract

There is a lack of rigorous empirical studies directly examining the impact of sales and operations planning (S&OP) practices on manufacturing operational performance. This paper aims to fill this gap by analysing a sample of 725 manufacturers from 34 countries. Hypotheses relate internal S&OP, integration with suppliers (IS) and integration with customers with manufacturing operational performance (delivery, quality and flexibility). The constructs were validated with structural equation modelling and the hypotheses were tested using multiple stepwise regression. Our findings showed a positive and moderate-to-large effect of internal S&OP on manufacturing performance, controlling for firm size, country economic development and market dynamics. There was no significant impact of supply chain integration on manufacturing performance. However, we found that IS positively moderated the relationship between internal S&OP and performance, suggesting that firms with mature IS amplify the effect of internal S&OP on performance. The study is among the first to empirically and rigorously establish the impacts of S&OP practices on manufacturing performance, using a large sample of manufacturers spanning different countries, markets and firm sizes. Results show that S&OP practices have a broad impact across several performance dimensions and are a powerful lever for generating manufacturing performance.
Original languageEnglish
Pages (from-to)2108-2121
Number of pages14
JournalInternational Journal of Production Research
Volume52
Issue number7
DOIs
Publication statusPublished - 2014

Keywords

  • Business planning
  • Cross functional integration
  • Structural equation modelling
  • Supply chain integration
  • Survey

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