S&OP is an ideal tool for organizations struggling to align supply chains to market demand. When done correctly, the S&OP cycle greatly improves supply and demand forecasts. This can help companies cut inventory costs, which then boosts working capital because less money is tied up in inventory. More accurate forecasting also improves on-time delivery rates, resulting in higher customer satisfaction and potentially increased market share and revenue. An effective S&OP process also provides greater visibility across sales, production and procurement activities. Without S&OP, companies may miss out on business opportunities simply because they don’t see them coming — or if they do, by the time they’ve mobilized a response, it’s too late to take advantage.