Analyst Insight: Not sensing the upturn in the economy is almost as bad as being hit with the downturn. Value chains have slashed inventories in their effort to remain cash-positive. Some are already scrambling as their sales pick up but their inventory coffers are empty. It's not surprising that sales and operations planning initiatives have grown in importance.
Analyst Insight: Continued globalization and increasing leverage of third-party services for manufacturing, distribution and returns keeps the warehouse and logistics sector strong. Though the growth of warehouse space slowed due to poor sales of consumer and commercial goods in the U.S. over the last year, technology sales continue to thrive though growth for some was not robust in the last year.
Analyst Insight: While the economic slowdown has adversely impacted the volumes of global sourcing and product distribution, global recovery will continue to fuel expansion of importing and exporting worldwide. For companies that source and distribute internationally - more than 80 percent of all companies that make or sell products - supply chain managers need to continue improving their knowledge and processes for effective global supply chain management.
Analyst Insight: For most companies, the management focus on order fulfillment concerns cost-containment. To lower operating expenses, companies should look to both cost savings (via efficiency gains) as well as cost avoidance (via accuracy improvements). Making these changes in the short term can yield long-term benefits, as those improvements that save costs now can also position companies to better handle the greater volumes that will follow a rebound in consumer demand.
Analyst Insight: Despite the fact executives downgraded risk levels in our recent risk survey, the impact of current economic conditions is long lasting. Global supply chains will continue to face major risks in 2010 and beyond. As such, designing a supply chain risk management strategy is still critical.
Analyst Insight: Today's transportation organizations are being affected on all sides by rising costs and demands. Top performers in this economy are extending beyond the basics of domestic and international systems and beginning to create and extend automated processes to address advanced capabilities like dynamic optimization and the daily use of analytic tools to monitor events and communicate and collaborate on a near real-time basis.
Analyst Insight: As the economic recovery proceeds, companies should be changing their sights from mere tactical cost-cutting measures to more strategic improvement initiatives. Productivity increases and cost containment are now considered a given at the leading companies. The bigger benefits are coming from companies that are integrating logistics and distribution more broadly into innovative supply chain improvement strategies.