AMR Research expects shared services organizations and outsourcing delivery models to be a crucial vehicle for reducing sourcing and procurement overhead expenses. This will be enabled by a labor arbitrage, centralization of resources, tighter efficiencies in managed spend, improved process acumen and access to new technologies. These technologies, however, will see a shift from traditional license approaches to a more economical, integrated SaaS approach.

In 2009, expect most large WMS and WCS applications to remain dedicated applications tailored to a company's particular business rules, with SOA concepts appearing primarily in the integration interface.

Increased linkage between material and financial flows requires supply chain managers to learn more about topics like working capital optimization, margin and asset utilization, valuation and risk, managerial accounting and cash flows, taxes and transfer prices.

From government to home solutions, RFID is changing, step by step, our way of working, answering our questions about the world we live in, as well as creating humanitarian solutions that can make a real difference in the lives of those in need. Many negative myths exist about RFID and its applicability, reliability and availability. They are oft repeated by those who have low to no contact with the actual solutions.

In past product lifecycle management research, we asked manufacturers why they think product launches fail-the reason most often cited was that the product doesn't meet customer needs. While still within the top three, not meeting customer needs has been replaced in this year's spending study by a new top challenge: higher than projected costs.

Certainly we expect the new president to favor legislation protecting consumers as well as incentives to reduce job losses to low-cost manufacturing countries. But it is not clear how much of an effect he will be able to have, at least in the short term. We do expect to see significant investments in infrastructure/public works projects and a continuation, for now, of recent defense spending levels.

With new crises seemingly emerging weekly, risk management has taken on a new urgency. Leading companies recognize the importance of a solid supply chain risk discipline, but grapple with scope, ownership, metrics, and ties to other types of strategic and operational risks facing the business.

The election of Barack Obama in the United States, the repercussions of the global "financial bailout" and a potential increase in environmental regulations will affect supply chain operations at multiple levels. The ability to quickly monitor and absorb these changes in supply chain structures will be the main agenda for 2009.

To make multi-echelon inventory optimization more impactful, it must take a more holistic approach that accounts for the implications of inventory decisions on total supply chain costs, for organizational realities and weaknesses in supporting functional areas.

Core high-tech consists of semiconductors, contract & design manufacturing, original equipment manufacturing, consumer electronics, and telecommunications. Most companies in this segment are highly impacted by the economic downturn, trying to reduce working capital, and segmenting product decisions based on profitability.