Analyst Insight: The dirty underside of supply chain is confronting the many risks inherent in 24x7-operations entrusted to "partners" in far-flung regions who are conducting fraudulent activities as well as dealing with unpredictable events. The big market here is risk transfer-insurance and others services to mitigate the impact of events. In addition, step by step, we are beginning to see approaches-metric and risk assessments methods, auditing and monitoring services, and technology - to support risk avoidance and assure recovery.

Analyst Insight: The number one strategy for sourcing and procurement executives is taking costs out. But that requires an enterprise view of procurement and sourcing resources, including spend, business process, supplier contracts, organizational structure, and employees. Leading organizations have accelerated their strategic cost-reduction activities to ensure immediate sourcing and procurement ROI.

Analyst Insight: Ideally, the output of the S&OP plan should drive companies' income statement and balance sheets. Companies should create internal projects and SWAT teams wherein the S&OP plan is mapped to the key financial documents with collaboration between finance and supply chain.

Analyst Insight: There has been significant debate spanning 20 years about the validity of the "perfect order" metric, which measures the quality of product delivery. The debate mostly focuses on how the metric is calculated and if it is a valid measurement of supply chain performance. But, a more relevant part of the discussion is the mentality that drives organizations toward perfect performance.

Analyst Insight: Today's supply chain managers operate in a distributed, networked environment, where multi-tier process visibility and effective partner collaboration are critical to success. In order to successfully balance the risks and rewards of this new environment, companies need to have much more transparent and responsive supply chains than in the past.

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.