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In 2002, Leitax, a niche consumer electronics company, suffered serious supply chain planning mishaps due to poor cross-functional integration in the supply/demand planning activities. The poor integration resulted from organization differentiation among the functions and an unsophisticated approach to integration. In response to the planning mishaps, the organization introduced significant changes, which we examine in this case study.
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Leitax (Firm)Showing 4 featured editions. View all 4 editions?
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Cross functional alignment in supply chain planning: a case study of sales and operations planning
2009, Harvard Business School
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Cross functional alignment in supply chain planning: a case study of sales and operations planning
2008, Harvard Business School
in English
- 2nd rev.
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Cross functional alignment in supply chain planning: a case study of sales & operations planning
2006, Division of Research, Harvard Business School
in English
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Cross functional alignment in supply chain planning: a case study of sales & operations planning
2006, Division of Research, Harvard Business School
in English
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Book Details
Edition Notes
"Revised October 11, 2006."
Originally published: c2006.
Includes bibliographical references.
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Work Description
In most organizations, supply chain planning is a cross-functional effort. Functional areas such as sales, marketing, finance, and operations traditionally specialize in portions of the planning activities, which results in conflicts over expectations, preferences, and priorities. We report findings from a detailed case analysis of a successful supply chain planning process. In contrast to traditional research on this area, which focuses on incentives, responsibilities, and structures, we adopt a process perspective and find that integration was achieved despite an incentive structure which did not support it. By drawing a distinction between the incentive landscape and the planning process, we identify process as an additional mediator, beyond structure and responsibilities, that can affect organizational outcomes. Thus, organizations may be capable of integration while different functions retain different incentives to maintain focus on their stakeholders' needs. We hypothesize that achieving alignment in the execution of plans can be more important than informational and procedural quality. We close by discussing the implications of our findings for organizations and researchers.
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