Advanced Sales & Operations Planning - A Case Study at Volvo Group, Aftermarket

Examensarbete för masterexamen
Master Thesis
Supply chain management (MPSCM), MSc
Maracic, Zoran
Törnqvist, Magnus
S&OP and the balancing act of supply demand have recently been gaining a lot of attention. The advantages of being able to match supply with demand in the most efficient way is acknowledged as a way of reducing unnecessary cost and simultaneously achieving higher service levels, have already reached Volvo and Volvo Aftermarket. This thesis thus aims to provide with material allowing for further development of the S&OP process at Volvo Aftermarket. With that stance four research questions were formulated to aid in substantiating and fulfilling the aim. How can S&OP practice maturity be assessed? - For which the result consists in a generic maturity model enabling assessment of companies. How is Volvo’s S&OP process designed? - For which an answer consists in a thorough description of Volvo’s current process design, or as-is analysis, and the affecting business environment. What performance gaps in Volvo’s processes can be identified using synthesised maturity framework? - This RQ implies the comparison of the established maturity framework and the as-is analysis, whereas discrepancies in the process can be identified. How can Volvo improve their current S&OP? - For which the answer contributes with a shortlist of prioritised gaps that Volvo suggestively would benefit from filling. The project was executed in accordance with abductive research methods. A constructed theoretical framework was compared with real-life observations in an iterative theory matching process. A theoretical suggestion and conclusion is made and finally an application of the theory become a solution. As a result of the gap analysis and collaboration with participators of S&OP at Volvo a shortlist of cover-able gaps are summarised providing with Volvo more hands-on material for implementable improvements. These cover areas like measuring forecast quality coming from Volvo’s sales department, informing policies for sales initiatives, forecast bias measuring, process compliance checklists, process templates standardisation and process name change. The complete list of recommendations is depicted in the recommendations chapter. The content aspires to provide with Volvo current industry practices and a theoretical framework indicating how to improve their S&OP internally, wherein part of this thesis’ contribution lies. The created S&OP maturity framework is synthesised to enable mapping or benchmarking of S&OP not only for Volvo aftermarket but for any given company with a supply/demand balancing optimisation aspiration.
Transport , Övrig industriell teknik och ekonomi , Transport , Other industrial engineering and economics
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