Analyst Insight: "Big data" software and analysis will be the most important supply chain technology for forecasting and demand planning in the years to come. Through analysis of huge quantities of data it provides a competitive advantage by providing unparalleled insights. The challenge for companies will be staying ahead of the technology in a cost-effective manner, and developing organizational processes to effectively utilize the huge amounts of data and absorb the information into their organizational decision making processes. - Nada R. Sanders, Professor of Supply Chain Management and Iacocca Chair, Lehigh University

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Analyst Insight: CFOs today have a keen sense of the cost of volatility and uncertainty in terms of the link between cash/margins and the supply chain, yet they are largely in the dark when it comes to the quantitative techniques available to improve forecast accuracy, which tends to deteriorate as volatility increases. Major changes are being made in forecasting methods to address this volatility. - Sree Hameed, Vice President, ChainLink Research

Analyst Insight: As new software and technologies gain market entry and alternative sources of information come into play for improving the process of demand planning and forecasting, it is vital that companies embrace this rampant invasion of methodologies and information with a focused, retrospective view of the basics"”to achieve a successful demand planning and forecasting strategy. A strategy that goes back to the basics can help companies ensure they apply universal and effective principles for success. - Jorge García, TEC Senior BI and Data Management Analyst, Technology Evaluation Centers

Analyst Insight: Despite extensive writing from IDC Manufacturing Insights last year extolling the virtues of supply chain responsiveness "” and that in many cases investments in responsiveness might well be better served than investments in forecasting "” manufacturing supply chains continue to rate "making improvements in planning and forecasting" among their top investment priorities. Not that responsiveness isn't important, just that companies believe there is still more progress to be made in things like forecast accuracy. - Simon Ellis, Director, Supply Chain Strategies Practice, IDC Manufacturing Insights

Analyst Insight: It's no secret that companies in logistics-intensive industries are facing a variety of commercial and operational challenges. For example, consumer products and goods companies experience "margin squeeze," in which they pay more for commodity raw materials but typically are not able to pass along corresponding price increases to retail customers. High fuel prices, increasing wage rates in low-cost countries and concerns over supply chain disruption are causing manufacturers and retailers alike to rethink global sourcing strategies. - Ryan Godsil, Tony Ross, Alex Bajorinas and Jim Morton, all of Ernst & Young LLP

Analyst Insight: The lack of understanding of the supply chain by the financial team is the third-highest obstacle in achieving supply chain performance. The supply chain is a complex system with increasing complexity. Many unknowing financial leaders try to manage it through Excel spreadsheets which is inadequate to truly understand the trade-offs. - Lora Cecere, Founder of Supply Chain Insights