Sales and Operations Planning. How conflict and consensus affect S&OP Performance?

This thesis explores the evolution, implementation, and strategic significance of the Sales and Operations Planning (S&OP) process, with a particular focus on the dynamics of consensus and conflict among cross-functional stakeholders. S&OP serves as a critical integrative mechanism that aligns supply and demand, operational capabilities, and financial objectives within organizations. Drawing on established maturity models, this research investigates how organizations progress in their S&OP capabilities and the organizational enablers that support this evolution. A central theme of the study is the tension between functional goals, which often generate conflict, and the organizational need for alignment, which requires consensus. Through a review of academic literature and case-based analysis, this work examines how executive leadership, structured processes, and collaborative decision-making enable firms to navigate these tensions. Particular attention is given to resolving cross-functional disagreements and ensuring strategic coherence. The findings suggest that effective S&OP is not merely a technical process but a organizational capability shaped by negotiation, trust, and shared understanding to drive companies towards the optimum. Mature S&OP processes demonstrate a high capacity for consensus-building while also institutionalizing mechanisms to manage and leverage conflict constructively. This thesis contributes to the understanding of S&OP not only as a planning discipline but as a strategic practice embedded in organizational dynamics.