Improving the S&OP process in a Finnish technology company

Abstract

With globalization and digitalization, companies must constantly integrate and enhance coordination between their operational functions to respond rapidly and accurately to customer demand, which can be achieved by improving the company’s sales and operations planning (S&OP) process. The aspiration of S&OP is to create a state of balance between demand and supply, which can lead to optimized inventory levels and production, more precise capacity planning, and conceivably better investment decisions. However, there are challenges connected to implementing and improving the S&OP in a company, as no consensus plan for this exists despite of vast amount of research in the field.

The aim of this thesis is to analyze the concepts of S&OP and find a course of action for improving the case company’s S&OP process. Literature review, quantitative data analysis and qualitative analysis are conducted in this mixed methods research. This thesis provides a timeline including measures which could be taken in order to improve the case company’s already implemented S&OP process. In addition, the remaining challenges and future perspectives of the case company’s S&OP process are also highlighted.