Analyst Insight: It is a challenging time to develop a business case for a warehouse management system (WMS). While the tight operational controls required in the current business climate can be provided by a WMS, the capital necessary to fund these initiatives has never been more difficult to acquire. How can progress be made toward tighter operational controls considering the current situation of limited funding?

Analyst Insight: From a strategic perspective, warehouse managers are faced with balancing competing objectives. They need to get orders out of the door faster, keep inventory moving amid fluctuating demand, and minimize costs. It will require not only process efficiencies within the four walls but better collaboration with both upstream and downstream partners to keep these competing pressures in check.

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: The economy and reductions in demand have focused priority on tactical initiatives within the supply chain. In 2010 there will be renewed focus beyond securing distribution efficiencies and renegotiating transportation rates (2009's top actions). As we exit the recession, companies are encouraged to embrace a 4-step strategy for transformational change.

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: With online retail sales projected to reach 17 percent of total company sales in 2010 and double-digit growth expected each year through 2012, retailers must take measures to offer next-generation retail. That would create a model that focuses on consumers and their experiences up to and through the purchase, or moment of truth. While most retailers have invested in some form of online capabilities, few (7 percent) have built the appropriate supply chain infrastructure to support a true, seamless, cross-channel experience for the customer.