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Proposals for enhancing tactical planning in grocery retailing with S&OP

Proposals for enhancing tactical planning in grocery retailing with S&OP The purpose of this paper is to explore tactical planning in grocery retailing and propose how process and integration mechanisms from sales and operations planning (S&OP) can enhance retail tactical planning.Design/methodology/approachThis work follows an explorative design with case studies from the grocery retailing industry in Finland, Norway, and the UK.FindingsThe tactical planning process focuses on demand management and securing product availability from suppliers in order to reach sales targets. Less attention is directed toward balancing supply and demand or toward providing a single plan to guide company operations. Planning appeared to be functionally oriented with limited coordination between functional plans, but it did include external integration that improved forecast accuracy.Research limitations/implicationsThe study involves grocery retailer cases with variable levels of S&OP maturity. The propositions need to be investigated further through action research or additional case studies to confirm their validity.Practical implicationsThe study proposes a design of an S&OP process in retailing and propositions for improving tactical planning integration.Originality/valueThe study complements research on retail tactical planning by taking planning process and integration viewpoints. The research suggests that retailers would benefit from a formal and company-wide S&OP process to unify different market-oriented plans to a single set of numbers, thus better balancing supply and demand without sacrificing the emphasis on demand planning. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Physical Distribution & Logistics Management Emerald Publishing

Proposals for enhancing tactical planning in grocery retailing with S&OP

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References (62)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
0960-0035
DOI
10.1108/ijpdlm-01-2017-0018
Publisher site
See Article on Publisher Site

Abstract

The purpose of this paper is to explore tactical planning in grocery retailing and propose how process and integration mechanisms from sales and operations planning (S&OP) can enhance retail tactical planning.Design/methodology/approachThis work follows an explorative design with case studies from the grocery retailing industry in Finland, Norway, and the UK.FindingsThe tactical planning process focuses on demand management and securing product availability from suppliers in order to reach sales targets. Less attention is directed toward balancing supply and demand or toward providing a single plan to guide company operations. Planning appeared to be functionally oriented with limited coordination between functional plans, but it did include external integration that improved forecast accuracy.Research limitations/implicationsThe study involves grocery retailer cases with variable levels of S&OP maturity. The propositions need to be investigated further through action research or additional case studies to confirm their validity.Practical implicationsThe study proposes a design of an S&OP process in retailing and propositions for improving tactical planning integration.Originality/valueThe study complements research on retail tactical planning by taking planning process and integration viewpoints. The research suggests that retailers would benefit from a formal and company-wide S&OP process to unify different market-oriented plans to a single set of numbers, thus better balancing supply and demand without sacrificing the emphasis on demand planning.

Journal

International Journal of Physical Distribution & Logistics Management – Emerald Publishing

Published: Feb 28, 2018

Keywords: Grocery; Sales and operations planning; Planning integration; Retail planning; Tactical planning process

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