Analyst Insight: Inventory working capital reduction is a wonderful concept; however, it is important to understand all of the potential financial impacts before beginning. - Ralph Cox, principal, Tompkins International

Analyst Insight: Signing a contract and getting the business ramped up is just the beginning of an outsourcing deal. The real work is shaping the relationship and making the parties operate not only as a high-performance team, but also to allow the companies to embrace the dynamic nature of business and keep the parties aligned as "business happens." It's essential to have a flexible and cooperative governance framework. - Kate Vitasek, faculty of the University of Tennessee's Center for Executive Education, and founder, Supply Chain Visions

Analyst Insight: Recently, Big Pharma went through a significant period of mergers and acquisitions to gain a global market presence and product offering expansion. Now it appears the tides may be shifting. A segment of Big Pharma is shedding non-core business units and focusing on core profitability. But the acquisition strategy is not dead. These diverging paths are both focused on increasing flexibility and profitability to adapt to market uncertainty. Supply chain planning and adaptability have moved forward as integration of business units has increased in all regions of the globe. - Brian Hudock, partner, Tompkins International

Analyst Insight: Volatility is a huge factor for business today. From the stock market to local economies, these volatile times impact world events and play havoc on supply chains. Companies that do not learn to manage the volatility of their supply chains will continue to be at the mercy of external influences. - Bruce Tompkins, executive director, Tompkins Supply Chain Consortium

Analyst Insight: The pressure of increased supply chain complexity, a byproduct of more trading partners and global geographies, is the top factor driving best-in-class companies (cited by 59 percent) to further increase their outsourcing to logistics service providers as one key solution to managing increasing supply chain costs. This direction is compelling when performance considerations for the best-in-class companies (top 20 percent) compared to average (50 percent) and laggard (30 percent) are taken into consideration. - Bob Heaney, lead research analyst, supply chain execution, and Bryan Ball, supply chain management vice president and principal analyst, both of Aberdeen.

Analyst Insight: While the global economy continues to remain sluggish, there is still a rising demand for new products, sources and markets. Nearly all multinational corporations (MNCs) have learned more about globalization and the risks and rewards that come with it. But MNCs and middle market companies still struggle with supply chain disruptions, higher costs of logistics, and issues caused by longer lead times. Supply chain managers have to plan and execute better globally. At the same time, more effective strategies and methods are evolving to overcome these challenges and achieve profitable growth. - Gene Tyndall, EVP Global Solutions, Tompkins International