Analyst Insight: While traditional supply chain processes focus on efficient transactions, value chain networks are built on effective relationships. The difference is not trivial, challenging deep-seated traditional supply chain paradigms. With 70 percent to 80 percent of a product's components sourced externally vs. made in house, supplier relationship management is critical to value chain success.

Analyst Insight: Product and engineering design focuses more on the technical feasibility of a product, and strategic sourcing works more on the commercial feasibility of materials of the same product. The two together are what product development is about. Product lifecycle management (PLM) comprises the management approach and the technology used to increase the dynamic between the two feasibilities.

Analyst Insight: Before investing in new programs for procurement or other functional areas, organizations must evaluate each program thoroughly as implementation can be a time-consuming and expensive process. However, in many cases the long-term benefits may compensate for the short-term pain.

Analyst Insight: 2009 painfully taught organizations the value of having a flexible, modular, agile supply chain - from planning through to execution. Companies learned that being prepared for uncertainty with the right people, processes and technology can be the key to business survival. CPG companies that have maintained and developed their talent, redefined their processes and strengthened their supply chain capabilities can look forward to a rewarding, yet challenging, 2010.

Analyst Insight: PLM applications have grown up in engineering or technology-oriented value chains where product and technological complexity required a much firmer grasp of specifications and proactive lifecycle management, but a number of market trends suggest PLM applications might offer important capabilities to process manufacturers.

Analyst Insight: 2009 was filled with mergers and acquisitions led by mega mergers. During this time, the definition of "pharmaceutical company" evolved, as the big players began morphing into global health care providers. As the evolution continues, processes for integrating multinational supply chains, new product lines, and rationalizing LSP contracts will challenge even the most capable and visionary supply chain executives.

Analyst Insight: 2009 was a rocky year for some aspects of this market, but stellar for others. Retail continues to roll-out voice and other technologies to ensure customer service and efficiencies, but RFID has slowed, for now. Defense logistics still is on the move with requirements and deployment of both active and passive RFID. Expect more purchases of these technologies in 2010, with a broader application of these technologies in diverse markets.

Analyst Insight: In Aberdeen's Supply Chain Executive's Agenda 2009 study, the following top market pressures were reported by the process industry respondents: economic and financial volatility, rising supply chain management costs, escalating customer service demands, and rising business complexity of managing an increasingly global business network. Process industry firms have a number of differences in the way they manage their manufacturing and supply chains and are now increasing their focus on supply chain performance.