S&OP Design and Implementation in the Fitness Industry
Open Access
- Author:
- Oblon, Allison Taylor
- Area of Honors:
- Supply Chain and Information Systems
- Degree:
- Bachelor of Arts
- Document Type:
- Thesis
- Thesis Supervisors:
- Robert Alexander Novack, Thesis Supervisor
John C Spychalski, Thesis Honors Advisor - Keywords:
- Supply Chain
Sales and Operations Planning
S&OP
Fitness
Orangetheory Fitness - Abstract:
- The prevalence of Sales and Operations Planning (S&OP) is expanding rapidly as an increasing number of companies begin to recognize the benefits of a process centered on cross-functional collaboration and creating a balance between supply and demand. While the basic framework of S&OP is relatively consistent across many businesses – demand planning, supply planning, preliminary review, and executive review – there is no one-size-fits-all design that will optimize the performance of every business in every industry. Considering the known benefit stream of S&OP and an unmet need for a more sophisticated planning model in service industries, this thesis will compare manufacturing’s version of S&OP with the foundational beginnings of the planning process in the service industry. This thesis will analyze the technology and science-backed fitness franchise, Orangetheory Fitness, to specifically illustrate how S&OP differs between the service and manufacturing industries and utilize their varying concepts of supply, demand, and performance-tracking metrics to develop a specialized S&OP process. This thesis will begin by explaining the differences between the two sectors and include an overview of Orangetheory Fitness and its current forecasting strategies. An analysis will follow detailing the benefits of S&OP for service-based firms as well as outlines for organizational structures to follow when building a company’s specific plan. Finally, recommendations and a step-by-step S&OP process tailored to the needs of Orangetheory Fitness will be offered to ensure successful implementation of the benefits S&OP provides. The research completed within this thesis shows that despite forecasting and operational differences between the manufacturing and service industries, the ability to create a cohesive timeline to successfully execute the core and supplementary services that define Orangetheory Fitness is possible. Tackling issues such as lack of visibility and collaboration both up and down the supply chain can be overcome by adopting new AI reporting systems, incorporating client insights into demand plans, and beginning interdepartmental meetings throughout the process. The fitness industry is continuously improving, incorporating new technology, techniques, and styles. The proposed S&OP plan designed in this thesis finds methods to combat these challenges that arise from the fast-paced nature of the industry.