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S&OP Related Key Performance Measures with Integration of Sustainability: A Decoupling Point Based and Modularized View on Supply Chains

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International Manufacturing Strategy in a Time of Great Flux

Part of the book series: Measuring Operations Performance ((MEOP))

Abstract

Key performance measures (KPMs) play an important role in the management of supply chains. An important integrator of the supply chain management is Sales and Operations Planning (S&OP) that connects the strategic and operational plans. S&OP usually impacts supply chain performance through the management of resources and customer satisfaction. This paper suggests a new classification for S&OP-related KPMs. The classification follows a typology of decision categories which are based on decoupling points. The typology supports a modularized approach to supply chain design and provides the possibility to select the KPMs according to the decision criteria of each module. The KPMs are further linked to the SCOR performance attributes to provide the link to the companies’ strategic directives and the strategic conflicts which appear in the modules of the typology are discussed. The sustainable KPMs have also been included in order to provide opportunities for improved sustainable performance. The integration of sustainable KPMs helps in creating competitive advantages for companies through development of capabilities which are beneficial but hard to replicate by competitors. The paper ends with an example that illustrates how the classification can be applied to a case company.

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Acknowledgments

This research is part of the Strategic Innovation Program Process Industrial IT and Automation (PiiA) funded by VINNOVA, the Swedish Energy Agency, Formas and the Swedish industry.

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Authors and Affiliations

  1. Linköping University, 58183, Linköping, Sweden

    Sayeh Noroozi & Joakim Wikner

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  1. Sayeh Noroozi
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Correspondence to Sayeh Noroozi .

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  1. Trinity Business School, Trinity College Dublin Trinity Business School, Dublin, Ireland

    Louis Brennan

  2. London College of Fashion, University of the Arts London London College of Fashion, London, United Kingdom

    Alessandra Vecchi

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Noroozi, S., Wikner, J. (2017). S&OP Related Key Performance Measures with Integration of Sustainability: A Decoupling Point Based and Modularized View on Supply Chains. In: Brennan, L., Vecchi, A. (eds) International Manufacturing Strategy in a Time of Great Flux. Measuring Operations Performance. Springer, Cham. https://doi.org/10.1007/978-3-319-25351-0_10

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