How your company engages with its Sales & Operating Plan (S&OP) can drive great efficiencies in time, effort, and cash—or it can be one of the most cumbersome overheads. Most companies can and should improve this process because it is where some of the most important company planning is done. It also typically involves some of the most expensive resources at the company. Inventory purchasing decisions are among the most critical decisions that should come from this process. A well-functioning Supply Chain should be able to provide the company purchasing flexibility to respond to changing sales forecasts, leading to reduced inventory costs and freeing up working capital while decreasing stockouts and maintaining service levels. There are large financial opportunities in properly paying for and managing inventory beyond just the cost of the inventory, logistics, and warehousing. In many cases, Supply Chain groups are not equipped to engage in the most effective manner, leading to unwarranted friction and inefficiency.