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: Optimizing inventory safety-stock policies without considering capacity and material constraints is not enough. Inventory management should be viewed within the context of a supply and demand balancing process associated with S&OP. Rough-cut capacity planning within the S&OP process should be augmented with inventory analysis.

Analyst Insight: Economic volatility has been the cause for the majority of supply chain disruptions in 2008-2009, forcing companies to put an increased emphasis on supply chain management. In today's multi-enterprise demand-supply networks, process collaboration, closed-loop integration between planning and execution, and enhanced focus on intelligence and performance management become key to success.

Analyst Insight: The recent economic turmoil has pulled into sharp focus the issue of how to manage increasingly volatile supply chains. Through late 2008 and 2009, many companies simply panicked and aggressively cut both production and productive assets. These companies are beginning to pay for those aggressive cuts as demand is now starting to increase -- straining diminished capabilities. For 2010, we offer guidance on how companies can get supply chains back in balance and get sales and operations planning right.

Analyst Insight: If an organization fails to accurately manage its warehouse, it runs the risk of selling stock it doesn't have or retaining stock it should have sold. Both of these situations result in lost revenue and potentially unhappy customers.

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.

Analyst Insight: The life sciences industry is realizing significant supply chain and operational benefits by driving even modest increases in demand forecast accuracy. Companies included in a recent AMR Research study pointed to improved demand management processes as the number one reason for this increased supply chain visibility. And the benefits don't stop there!