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.

Retailers are making a fundamental shift in the way they do business by creating value networks that coordinate processes and technology to understand, shape and respond more efficiently to consumer demand. Leading supply chain organizations recognize the link between responsive networks and improved supply chain performance.

Working capital optimization has always been the least expensive and most readily available form of cash. With tightening credit markets the option of liberating cash from a company's operational processes has moved to the forefront. Inventory optimization presents the second-largest opportunity among the working capital components after trade receivables and ahead of trade payables.

Only 31 percent of organizations are looking at inventory management as a competitive differentiator versus the rest looking at it as a cost impactor. By adjusting the existing processes to configure a closed-loop inventory management process, organizations can gain significant improvement in customer service levels and reduced inventory carrying costs. The concept of closed-loop inventory management involves seven steps within the process: analyze demand, segment inventory, optimize inventory, replenish inventory, track inventory, manage events, and responsively execute.

For those who maintain that companies have no business getting involved with responsibility-driven endeavors because, after all, "the business of business is business" there is often a lack of awareness of the business benefits-and practical imperatives-associated with responsibility-driven endeavors. Likewise, critics who point out that it is only for shameless cost or reputation-related motives that companies adopt responsibility-driven platforms often fail to acknowledge the many positive social and environmental outcomes even of initiatives with top or bottom line-driven goals. Case study interviews with firms of all sizes indicate that these critiques illuminate an outmoded way of understanding the social, economic, and environmental imperatives of this historic moment.

To be honest, I'm a bit "greened out" at the moment. I feel like I did a few years ago, when RFID was all the rage. The first few months of RFID were exciting, learning about the technology and listening to executives at Walmart, Gillette (now P&G), and other early adopters talk about their ambitious plans. But as the months went by, there were fewer and fewer new developments to discuss or analyze. Every conference had the same set of speakers, and all the case studies (what few there were) started to sound the same. I think we've reached a similar plateau with green supply chain management.

The elongation of the supply chain on both ends of the spectrum has resulted in a phenomenon where companies are able to compete at a global level for customers. Companies that were previously handicapped by lack of channel partners, high levels of investment in advertising and marketing are able to leverage the internet and compete with their larger competitors. In other words, globalization has resulted in increased customer centricity.

Consumer products companies were early adopters of supply chain planning and supply chain execution. Most implementations are mature; yet in 2009, 24 percent of companies are considering switching supply chain planning vendors.