Sales and Operation Planning : A multinational Manufacturing Firm ( CAREL Case Study)

Due to growing competition in global markets, multinational production organisations have been compelled to re-evaluate strategies , processes, and structures in an endeavour to preserve competitiveness and success ( (Fachini et al., 2018). With such a competitive marketplace, with a boost through globalisation and heightened complexity in supply chains, organisations have to innovate and react periodically in an endeavour to preserve positions in the marketplace and preserve profitability (Cannella et al., 2018). Additionally, It is well understood that when demand exceeds supply, manufacturing might not meet the necessary volume, leading to potential impacts on customer service. Conversely, when supply outpaces demand, inventory levels can rise, causing production cuts, plant shutdowns, and layoffs, eventually diminishing the competitiveness of organisations (Kumar, 2016). To address these challenges, global corporations are placing greater emphasis on their supply chain processes and planning, with Sales and Operations Planning (S&OP) becoming an integral component (Seeling et al., 2021). The term S&OP was introduced by companies for a process that aims at balancing demand and supply. Historically, in operations management was known as aggregate planning, but with new labels it emphasises the significance of cross-functional collaboration. This process generally necessitates a coordinated effort including sales, distribution and logistics, operations, finance, and product development (Jacobs & Chase, 2017). The research aims to critically evaluate the effectiveness of Sales and Operations Planning (S&OP) by identifying the key mechanisms that influence its success and addressing gaps in existing literature. It focuses on analysing the S&OP process in the context of a multinational manufacturing firm, as such environments present unique complexities and challenges . CAREL Industries, a leading global provider of advanced control solutions, serves as the case study company, offering a practical perspective on the implementation of S&OP processes. The research adopts a mixed-methods approach, combining quantitative analysis of historical sales data and forecasting techniques with qualitative insights gathered through surveys and interviews. This ensures a comprehensive understanding of both operational and strategic aspects of S&OP. The study begins with a systematic literature review, followed by the development of research questions and frameworks. Data collected through the case study is analysed to identify key findings and gaps. The research concludes by proposing practical recommendations and a tailored framework for optimising S&OP, ensuring alignment between global strategies and local operational needs.