Comparative Analysis of Key Success Factors in S&OP: Focusing on Manufacturing and Retail Industry in South Korea

Abstract

The global supply chain is facing unprecedented challenges due to pandemics, geopolitical tensions, volatile commodity prices, and rapid changes in consumer demand. The Sales and Operations Planning (S&OP) process can be an important solution by integrating supply and demand with business strategy and operational planning. However, previous studies have developed single frameworks or maturity models without considering industry-specific factors, overlooking the structural and operational characteristics of different industries that can have a significant impact on the approach and success factors of S&OP. Therefore, this study identifies and compares the key success factors of S&OP in the manufacturing and retail industries using the Analytic Hierarchy Process (AHP) technique. The results show clear differences in the prioritization of success factors between two industries. In the manufacturing industry, strategic support and leadership were evaluated as the most critical factor, while in the retail industry, operational processes were emphasized. In addition, the relative importance was concentrated on the top-ranked factor in the manufacturing industry, but the relative importance was distributed among several factors in the retail industry. This study provides valuable insights into the critical success factors for S&OP implementation in different industries and offers an understanding of how industry-specific characteristics influence the effectiveness of S&OP strategies.

Keywords

• sales and operations planning (S&OP)
• key success factor
• manufacturing industry
• retail industry
• cross-industry comparison
• analytic hierarchy process (AHP)