Sales and operations planning for new products: a parallel process?

Abstract

PurposeThis paper aims to detail how a Sales and Operations Planning (S&OP) process can be designed to support the planning requirements of recently introduced products.Design/methodology/approachDesign science research was conducted to propose and implement an S&OP model for demand fulfillment after the introduction of new products. The results were analyzed using the CIMO (Context, Intervention, Mechanisms and Outcomes) logic, and two sets of design propositions were formulated.FindingsAn S&OP process for new products can reduce additional costs for market fulfillment by concentrating the planning efforts on new products, aligning organizational efforts, and increasing the sales and supply chain information’s update frequency.Research limitations/implicationsThe outcomes of S&OP new products were analyzed in a single organization and are limited to the contextual factors presented.Practical implicationsThis paper describes in detail how to organize an S&OP focused on new products. By considering the contextual factors and design propositions, managers can potentially increase the success of new products introduction (NPI) in their context.Originality/valueA specific S&OP process focused on new products is a viable solution and could co-exist with a traditional S&OP process. Moreover, we identified six contextual factors that influence the outcomes of the S&OP new products.