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

Dreyer, Heidi Carin; Kiil, Kasper; Dukovska-Popovska, Iskra; Kaipia, Riikka
Journal article, Peer reviewed
Accepted version
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URI
http://hdl.handle.net/11250/2586604
Date
2018
Metadata
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  • Institutt for industriell økonomi og teknologiledelse [1894]
  • Institutt for maskinteknikk og produksjon [2517]
  • Publikasjoner fra CRIStin - NTNU [19736]
Original version
International Journal of Physical Distribution & Logistics Management, Vol. 48 Issue: 2, pp.114-138   10.1108/IJPDLM-01-2017-0018
Abstract
Purpose

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/approach

This work follows an explorative design with case studies from the grocery retailing industry in Finland, Norway, and the UK.

Findings

The 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/implications

The 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 implications

The study proposes a design of an S&OP process in retailing and propositions for improving tactical planning integration.

Originality/value

The 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.
Publisher
Emerald
Journal
International Journal of Physical Distribution & Logistics Management

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