Skip to main content
SpringerLink
Log in

Sales and Operations Execution – S&OE: A Perspective on the Brazilian Scenario

  • Conference paper
  • First Online:
Industrial Engineering and Operations Management (IJCIEOM 2023)

Part of the book series: Springer Proceedings in Mathematics & Statistics ((PROMS,volume 431))

Abstract

In recent years, the business interest in supply chain planning processes has become notorious. The concept of Sales and Operations Planning (S&OP) aims at medium-term tactical planning. However, it was observed that due to the volatility of demand in the short term and the latent scarcity of certain raw materials worldwide, the focus of the S&OP process has shifted from the short to the near term, seeking to cover the gap between tactical plans and supply chain execution. Given this scenario, it was necessary to develop a structured process that would encourage collaboration between a company’s functions and its stakeholders to identify deviations between what was planned and what was achieved to support decision-making regarding route requirements on a regular and near-term basis. This process has been recently named Sales and Operations Execution, S&OE, with a planning horizon of up to 3 months and weekly reviews. The present study aims to understand the current state of implementation of the S&OE process in Brazilian companies of different sizes and segments through a survey conducted with 51 respondents from 38 companies. The knowledge, experience, and implementation level of the S&OE process is still low in Brazil, with improvement opportunities in the four dimensions: people, processes, technologies, and data. It was found that companies with greater experience, knowledge, and a higher level of S&OE implementation perform significantly better in terms of the level of service, inventory health, and forecast accuracy.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 219.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 279.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  1. Adexa. Integrated S&OP and S&OE. [s.1]. Adexa, 2016.

    Google Scholar 

  2. Apics. Certified in Production and Inventory Management: Learning System. Apics, Chicago, 2018.

    Google Scholar 

  3. Barrett, J., 2007. Demand-Driven is an Operational Strategy. Industrial Management, 49(6).

    Google Scholar 

  4. Behm, R., 2021. Solution methods for network model formulation and scenario analysis of supply chain optimization problem.

    Google Scholar 

  5. Bodenstab, J., 2016. Sales & Operations Execution (S&OE) vs. S&OP.

    Google Scholar 

  6. Bremer, C. F., Franciosi, l. A. and Pintão, l. R. T. (2009), “Value Chain Scorecard” Mundo Logística, p. 20–29.

    Google Scholar 

  7. Carvalho, A.L.D., (2018) The intermediate link in planning: a multicase study of the Sales and Operations Execution process (Doctoral dissertation, Universidade de São Paulo). https://doi.org/10.11606/D.18.2018.tde-16072018-100932.

  8. Chase Jr, C.W., (2013), “Using demand sensing and shaping to improve demand forecasting”, The Journal of Business Forecasting, 32(4), p.24.

    Google Scholar 

  9. Christopher, M., 2016. Logistics & supply chain management. Pearson UK.

    Google Scholar 

  10. de Almeida, C.M.P.R. and Schlüter, M.R., 2009. Estratégia Logística. IESDE BRASIL SA.

    Google Scholar 

  11. Fleischhacker, A., Ninh, A. and Zhao, Y., (2015), “Positioning inventory in clinical trial supply chains”, Production and Operations Management, 24(6), pp.991–1011.

    Google Scholar 

  12. Gil, A.C., 2002. Como elaborar projetos de pesquisa (Vol. 4, p. 175). São Paulo: Atlas.

    Google Scholar 

  13. Grimson, J.A. and Pyke, D.F., (2007), “Sales and operations planning: an exploratory study and framework”, The International Journal of Logistics Management.

    Google Scholar 

  14. Hair, J.F., Black, W.C., Babin, B.J., Anderson, R.E. and Tatham, R.L., (2014), Pearson new international edition. Multivariate data analysis, Seventh Edition. Pearson Education Limited Harlow, Essex.

    Google Scholar 

  15. Kreuter, T., Scavarda, L.F., Thomé, A.M.T., Hellingrath, B. and Seeling, M.X., 2021. Empirical and theoretical perspectives in sales and operations planning. Review of Managerial Science, pp.1-36.

    Google Scholar 

  16. Król, K. and Zdonek, D., (2020), Analytics Maturity Models: An Overview, Information, 11(3), p.142. https://doi.org/10.3390/info11030142

  17. Kurzak, L., 2012. Importance of forecasting in enterprise management. Advanced Logistic Systems, 6(1), pp.173–182.

    Google Scholar 

  18. Lapide, L., (2005), “An S&OP maturity model”, The journal of business forecasting, 24(3), p.15.

    Google Scholar 

  19. Lim, L.L., Alpan, G. and Penz, B., (2014), “Reconciling sales and operations management with distant suppliers in the automotive industry: A simulation approach”, International Journal of Production Economics, 151, pp.20–36.

    Google Scholar 

  20. Lun, Y.V., Lai, K.H., Wong, C.W. and Cheng, T.C.E., (2013), “Demand chain management in the container shipping service industry”, International journal of production economics, 141(2), pp.485–492.

    Google Scholar 

  21. Ma, K., Thomassey, S. and Zeng, X., (2020), “Development of a central order processing system for optimizing demand-driven textile supply chains: a real case based simulation study”. Annals of Operations Research, 291(1), pp.627–656.

    Google Scholar 

  22. Mbhele, T.P., (2016), “Decoupling paradigm of push-pull theory of oscillation in the FMCG industry”, South African Journal of Business Management, 47(2), pp.53–66.

    Google Scholar 

  23. McMaster, M., Nettleton, C., Tom, C., Xu, B., Cao, C. and Qiao, P., (2020), “Risk management: Rethinking fashion supply chain management for multinational corporations in light of the COVID-19 outbreak”. Journal of Risk and Financial Management, 13(8), p.173.

    Google Scholar 

  24. Monahan, S.T. and Hu, M., (2015) Sharing supply chain data in the digital era. MIT Sloan Management Review, 57(1), p.95.

    Google Scholar 

  25. Murtaugh, P.A., (2014), “In defense of P values”, Ecology, 95(3), pp.611–617.

    Google Scholar 

  26. Nguyen, T., Li, Z.H.O.U., Spiegler, V., Ieromonachou, P. and Lin, Y., (2018), “Big data analytics in supply chain management: A state-of-the-art literature review”, Computers & Operations Research, 98, pp.254–264.

    Google Scholar 

  27. Ni, Y., Wang, Y., Yao, J. and Li, J., (2013), “Integrated optimisation of scheduling and ordering based on semi-finished goods delayed differentiation”, International Journal of Production Research, 51(16), pp.4805–4819.

    Google Scholar 

  28. Noroozi, S. and Wikner, J., 2017. Sales and operations planning in the process industry: a literature review. International Journal of Production Economics, 188, pp.139–155.

    Google Scholar 

  29. Nullipady, A.M. and Raju, E., 2020. Sales and Operation Execution A study at SKF Group.

    Google Scholar 

  30. Oliva, R. and Watson, N., (2011), “Cross-functional alignment in supply chain planning: A case study of sales and operations planning”, Journal of Operations Management, 29(5), pp.434–448.

    Google Scholar 

  31. Paarma, L., (2019), “Advanced planning and scheduling (APS) system supported sales and operations execution (S&OE) process”.

    Google Scholar 

  32. Pukkila, M. (2016), “S&OE: The secret ingredient for delivering planned business results”, Stamfor: Gartner Webinars.

    Google Scholar 

  33. Rexhausen, D., Pibernik, R. and Kaiser, G., (2012), “Customer-facing supply chain practices—The impact of demand and distribution management on supply chain success”, Journal of Operations Management, 30(4), pp.269–281.

    Google Scholar 

  34. Sax, L.J., Gilmartin, S.K. and Bryant, A.N., (2003), “Assessing response rates and nonresponse bias in web and paper surveys”, Research in higher education, 44(4), pp.409–432. https://doi.org/10.1023/A:1024232915870.

  35. Seeling, M.X., Scavarda, L.F. and Thomé, A.M.T., 2019. A sales and operations planning application in the Brazilian subsidiary of amultinational chemical company. Brazilian Journal of Operations & Production Management, 16(3), pp.424–435.

    Google Scholar 

  36. Stentoft, J., Rajkumar, C., Freytag, P.V. and Mikkelsen, O.S., 2020, October. Sales and operations planning: Empirical insights into perceivedrelevance and lack of implementation. In Supply Chain Forum: An International Journal (Vol. 21, No. 4, pp. 246–259). Taylor & Francis.

    Google Scholar 

  37. Wagner, S.M., Ullrich, K.K. and Transchel, S., (2014), “The game plan for aligning the organization”, Business Horizons, 57(2), pp.189–201.

    Google Scholar 

  38. Wallace, T.F. and Stahl, R.A. (2003), Previsão de Vendas: uma nova abordagem. Trad: Daniel Gasnier, São Paulo, IMAM.

    Google Scholar 

  39. Wallace, T.F. and Stahl, R.A., 2003. Master Scheduling in the 21st Century: For Simplicity, Speed, and Success-Up and Down the Supply Chain. TF Wallace & CO.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Engenharia de Produção (PPGEP), Universidade Federal de Santa Catarina (UFSC), Florianópolis, SC, Brazil

    Ana Lígia Vieira Rodrigues, Guilherme Gomes, Carlos Manoel Taboada Rodriguez & Marina Bouzon

Authors
  1. Ana Lígia Vieira Rodrigues
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Guilherme Gomes
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Carlos Manoel Taboada Rodriguez
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Marina Bouzon
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. Department of Industrial Engineering and Management, Faculty of Engineering, Universidade Lusófona, Lisbon, Grande Lisboa, Portugal

    João Carlos Gonçalves dos Reis

  2. Department of Mechanical Engineering, Universidade Federal da Bahia (UFBA), Salvador, Bahia, Brazil

    Francisco Gaudêncio Mendonça Freires

  3. Universidade Presbiteriana Mackenzie, São Paulo, São Paulo, Brazil

    Milton Vieira Junior

Rights and permissions

Reprints and permissions

Copyright information

© 2023 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Rodrigues, A.L.V., Gomes, G., Rodriguez, C.M.T., Bouzon, M. (2023). Sales and Operations Execution – S&OE: A Perspective on the Brazilian Scenario. In: Gonçalves dos Reis, J.C., Mendonça Freires, F.G., Vieira Junior, M. (eds) Industrial Engineering and Operations Management. IJCIEOM 2023. Springer Proceedings in Mathematics & Statistics, vol 431. Springer, Cham. https://doi.org/10.1007/978-3-031-47058-5_36

Download citation

Publish with us

Policies and ethics

Search

Navigation