Citation: Apaolaza, U.; Orue, A.;
Lizarralde, A.; Oyarbide-Zubillaga, A.
Competitive Improvement through
Integrated Management of Sales and
Operations. Sustainability 2022, 14,
2722. https://doi.org/10.3390/
su14052722
Academic Editors: José L. Yagüe
Blanco and Vanesa Gladys Lo Iacono
Ferreira
Received: 3 January 2022
Accepted: 12 February 2022
Published: 25 February 2022
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sustainability
Article
Competitive Improvement through Integrated Management of
Sales and Operations
Unai Apaolaza
1,
* , Aitor Orue
1
, Aitor Lizarralde
1
and Aitor Oyarbide-Zubillaga
2
1
Mechanics and Manufacturing Department, Mondragon Unibertsitatea, 20500 Mondragon, Spain;
aorue@mondragon.edu (A.O.); alizarralde@mondragon.edu (A.L.)
2
Department of Mechanics, Design and Organization, University of Deusto, 48007 Bilbao, Spain;
aitor.oyarbide@deusto.es
* Correspondence: uapaolaza@mondragon.edu
Abstract: Several authors agree on the importance of integrating sales and operations (S & OP) when
it comes to improving the management of organisations. Thus, the relationship between S & OP can
be critical from a competitive point of view, and therefore strategic. However, most of the literature on
this topic focuses on the field of repetitive manufacturing. Consequently, this work aims to enhance
the scarce literature related to S & OP in organisations that produce make-to-order (MTO). The
present study is an analysis of cases of two industrial companies managed according to the theory of
constraints. In both cases, the relationship between sales and operations was initially poor. Their
approaches were mainly founded on their experience and intuition, as well as on simple data. The
development of a new approach, integrating S & OP, has demonstrated the potential advantages of
integrated management. As a result, we have identified some aspects of interest from a managerial
perspective. Furthermore, we consider the findings of this study to be relevant to improving the
competitiveness of this kind of organisation.
Keywords: project management; sales and operations; drum-buffer-rope (DBR); theory of constraints
(TOC); demand-driven adaptive enterprise (DDAE); demand-driven MRP (DDMRP)
1. Introduction
The evolution of the business environment has led to an increase in both the com-
plexity and competitiveness of organisations [1]. Bennet and Lemoine [2] defined the
entrepreneurial space as being volatile, uncertain, complex, and ambiguous (VUCA). In
these conditions, adaptiveness to change is an essential quality for companies to survive
today. Customer satisfaction is a factor that has acquired growing influence in terms of
competitiveness, and three aspects define it: product variety, speed and compliance relia-
bility [3]. To maintain their competitiveness, companies must improve their competence in
these for the long term [4,5].
The sustainable enterprise capital management approach [6,7] suggests, “the faster
an enterprise achieves and maintains a balance between its capitals” (namely tangibles,
financial capital, structural capital, market capital, human capital, and social capital). Con-
sequently, the efficiency of management is a balance between goal achievement efficiency or
the “point of balance between capitals” [7]. The authors warn that the search for objectives
often hinders the balance between the capitals. So, often, a goal is strived, and only later
does the search for the balance between the capitals begin.
The demand-driven adaptive enterprise (DDAE) model arose in response to the VUCA
environment to provide a complete model for management [8]. It is composed of three
components that together cover operational, tactical, and strategic levels of management.
The DDAE approach aims to address all three managerial levels consistently through
configuration-feedback-reconciliation cycles, and S & OP is a key process within this
framework. Importantly, DDAE incorporates a flow-based method for the operational
Sustainability 2022, 14, 2722. https://doi.org/10.3390/su14052722 https://www.mdpi.com/journal/sustainability