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: 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: The retail industry will face many difficult challenges in 2010. Unemployment and underemployment are high and living standards for Americans continue to erode, leaving little money for purchases outside of necessities. Also, issues in housing, banking and health care will continue. Although there may not be much sales growth in 2010, retailers can still strengthen their bottom lines by having an effective retail supply chain, which is essential to reduce costs and maintain high service levels.
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.
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: Many businesses have been paying more attention to the concept of software as a service (SaaS) and how it can be incorporated into their IT portfolios. The most commonly stated benefits -rapid deployment, lower cost, and scalability - must be balanced by other key decision criterion, such as fit, ROI, and risk.