Both sides benefit when a third-party logistics provider takes over processes that don't fall within the core competency of a manufacturing or distribution customer, says Stephen Sargunaraj, director of global operations support with UTi Worldwide.

Raul Corella, vice president of worldwide supply chain operations, stresses the importance of collaboration with key suppliers, understanding best practices and maintaining strict performance metrics - all with an eye toward continuous improvement.

It's great to have accurate supply-chain data within a given department. But companies must be able to communicate and collaborate across discrete business functions, as well as with outside suppliers. Sanjay Ravi, worldwide managing director of high tech & electronics industry at Microsoft, shows how it can be done.