This paper discusses which benefits the use of APS may bring to the S&OP, and the critical factors for the successful implementation. A case study was conducted in a major dairy company in the Brazilian food industry. Positioned in an environment of high market competition and narrow profit margins, the company strives for operational excellence, aimed at inventory reduction and increased service level. This supply chain includes several plants and has recently been through the deployment of an APS to support its S&OP process. The research has identified the main benefits of the APS: greater confidence and accuracy in planning, and better balancing of inventory throughout the supply chain. The deployment project went through specific difficulties that delayed its schedule. The study reinforces the importance of fully support from senior managers and the commitment of the planning staff to meet the challenges of customization and integration of the new system.
Extreme business competition results in increased demands for operational efficiency, such as reducing inventory levels and improving the quality of services offered to customers. Consequently, the decisions in the companies' tactical planning gain complexity and criticality. There is a demand by firms for the implementation of increasingly robust decision-support systems. The application of Advanced Planning Systems (APS) in the Sales and Operations Planning (S&OP) process is, then, of utmost importance, motivating the understanding of improvements this tool may add to planning. This dissertation is structured around two research questions: which benefits the use of APS brings to the S&OP, and what are the critical factors for the successful implementation of this system. A case study has been conducted in a company that suits the research: one of the major dairy companies in the Brazilian food industry. Placed in a sector with high market competition and narrow profit margins, one may note the great need the company in question has to operate efficiently. This firm owns several plants and has recently been through the implementation of an APS to support its S&OP process, which is responsible for the integrated tactical planning of the company. The research has identified the main benefits of the APS to the S&OP process: greater confidence and accuracy in planning, and better balancing of inventory throughout the whole firm chain. The deployment project went through specific difficulties that delayed its schedule. Those difficulties should be highlighted as the main critical factors to success, indicating it is important that the project be fully supported by all senior managers. Regarding the availability of data for system development, it is necessary that the company integrate transactional processes, allowing the standardization of information; besides, it is fundamental that the personnel involved in the implementation of the project be available to focus on it.
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