Exploring adjustment mechanisms in the sales and operations planning process: an industrial case study

Purpose Using a dynamic contingency theory perspective as the theoretical lens, the purpose of the study is to understand how sales and operations planning (S&OP) can be adapted to maintain a fit with internal and external context, thereby contributing to resilience and overall company performance. Design/methodology/approach The research is conducted as a single-case study of a leading manufacturing company in Denmark. Rich data spanning several years were gathered, enabling examination of process data to reveal causal relationships and temporal dynamics. Findings The main finding is that adaptive S&OP design is central to performance and resilience in dynamic business environments. Findings further indicate that an expansion of S&OP scope triggers a sequence of interdependent changes and that scope decisions need to be governed considering S&OP maturity and technological advancements, where advanced planning systems are seen to both enable and constrain scope expansions. The inclusion of new products in S&OP has been found to call for flexibility in several design parameters. Leadership plays a pivotal role in adapting the S&OP process to sustain planning performance. Originality/value The research provides new insights into how firms can dynamically adjust S&OP to maintain contextual fit, performance and resilience in operations. It promotes S&OP as an adaptive process and outlines a process framework building on standard S&OP. The study highlights S&OP scope as a critical design parameter, which has been previously overlooked or considered contextual.