Cross-Functional Alignment in Supply Chain Planning
Cross-Functional Alignment in Supply Chain Planning: A Case Study of Sales and Operations Planning
Rogelio Oliva Noel H. Watson
Working Paper
07-001
Copyright © 2007, 2008, 2009 by Rogelio Oliva and Noel H. Watson Working papers are in draft form. This working paper is distributed for purposes of comment and discussion only. It may not be reproduced without permission of the copyright holder. Copies of working papers are available from the author.
Cross-Functional Alignment in Supply Chain Planning: A Case Study of Sales and Operations Planning Abstract
In most organizations, supply chain planning is a cross-functional effort. Functional areas such as sales, marketing, finance, and operations traditionally specialize in portions of the planning activities, which results in conflicts over expectations, preferences, and priorities. We report findings from a detailed case analysis of a successful supply chain planning process. In contrast to traditional research on this area, which focuses on incentives, responsibilities, and structures, we adopt a process perspective and find that integration was achieved despite an incentive landscape that did not support it. By drawing a distinction between the incentive landscape and the planning process, we identify process as an additional mediator beyond the incentive landscape that can affect organizational outcomes. Thus, organizations may be capable of integration while different functions retain different incentives to maintain focus on their stakeholders’ needs. Through iterative coding, we identified the requisite attributes of the planning process that drive planning performance—informational, procedural, and alignment quality— but hypothesize that achieving alignment in the execution of plans can be more important than informational and procedural quality. In addition to process attributes, we also identify social elements that influenced the performance of the planning process and place the information
Rogelio Oliva Noel H. Watson
Working Paper
07-001
Copyright © 2007, 2008, 2009 by Rogelio Oliva and Noel H. Watson Working papers are in draft form. This working paper is distributed for purposes of comment and discussion only. It may not be reproduced without permission of the copyright holder. Copies of working papers are available from the author.
Cross-Functional Alignment in Supply Chain Planning: A Case Study of Sales and Operations Planning Abstract
In most organizations, supply chain planning is a cross-functional effort. Functional areas such as sales, marketing, finance, and operations traditionally specialize in portions of the planning activities, which results in conflicts over expectations, preferences, and priorities. We report findings from a detailed case analysis of a successful supply chain planning process. In contrast to traditional research on this area, which focuses on incentives, responsibilities, and structures, we adopt a process perspective and find that integration was achieved despite an incentive landscape that did not support it. By drawing a distinction between the incentive landscape and the planning process, we identify process as an additional mediator beyond the incentive landscape that can affect organizational outcomes. Thus, organizations may be capable of integration while different functions retain different incentives to maintain focus on their stakeholders’ needs. Through iterative coding, we identified the requisite attributes of the planning process that drive planning performance—informational, procedural, and alignment quality— but hypothesize that achieving alignment in the execution of plans can be more important than informational and procedural quality. In addition to process attributes, we also identify social elements that influenced the performance of the planning process and place the information
References: 30 Brown, J.S., Duguid, P., 2001