Sales and Operations planning : Complexities in the S&OP/CLSC interface

Abstract: Environmental concerns are increasing in today's marketplace as well as the pressure for companies tobe as efficient as possible in order to retain and gain market share. This has led to a need forstandardized processes. A process that has become increasingly more common in companies is thesales and operations planning (S&OP) process which aims to match demand with supply. With theenvironmental concern growing in interest it is becoming more important for companies to reuse aproduct in order to utilize the remaining value of the product. This if often only done if there isfinancial gains from the commitment. This is done in a closed loop supply chain where OriginalEquipment Manufacturers (OEM) takes back and remanufacture, refurbish and repair used products.With a growing interest in closed loop supply chains it is becoming increasingly more important forcompanies to be efficient in this area as well. The focal company of this study is working with theirsales and operations planning process as well as with remanufactured products in order to becomemore efficient with their processes they want to integrate the remanufactured products, in this studycalled R2 products into the already existing S&OP process. The aim of this study was hence toinvestigate what complexities that may arise when remanufactured products are integrated into anS&OP process, i.e. what challenges that would occur when remanufactured products were brought into the S&OP process. The case design included semi-structured interviews as the main data source. The results of the studyshowed that complexities may arise in all five steps of the S&OP process. The main findings showedthat the biggest impact of integration would be in the first two stages of the five step process, havingthe most complexities. This study has both academic and managerial implications. In academia thestudy contributes with knowledge in an interface which at the time of this study has been paid verylittle attention in research. This study also provides researchers with a conceptual framework whichcan be tested in other settings and used as a basis for further evaluation of this interface. Themanagerial implications comes from having the possibility by this study to know potential areas thatwill need extra attention before an integration of remanufactured products is conducted. Theframework presented in this study can provide managers with a checklist to follow in the integrationprocess.