Integrating Suppliers and S&OP: Deciding which Suppliers Should Be Incorporated

Open Access
Author:
Wilkinson, Julia Irene
Area of Honors:
Supply Chain and Information Systems
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
  • Robert Alexander Novack, Thesis Supervisor
  • John C Spychalski, Honors Advisor
Keywords:
  • Supplier segmentation
  • S&OP
  • Sales and Operations Planning
  • Industrial Equipment Manufacturer
  • Supplier S&OP
  • Supply chain
Abstract:
This purpose of this thesis is to investigate existing frameworks for supplier segmentation and the Sales & Operations Planning (S&OP) Process. Given the shift toward outsourced production, supplier relationship management is critical to manage risk in a supply chain. While supplier capacity is traditionally considered during the supply review, most companies have not fully integrated suppliers into their S&OP process. Since all suppliers are not created equally, Caterpillar wanted to know how to determine which suppliers were worth extra attention within the S&OP supply review and what other companies were doing. In order to supply this information, a literature review and interviews were conducted. Through these methods, a recommendation for a framework to segment suppliers for Caterpillar was developed based on the lessons learned and best practices in other industries.