Downstream demand signals have been available in the retail world for some time now, but it has taken a while for suppliers to take full advantage of them. Mark Kremblewski, global business expert in demand planning with Procter & Gamble, likens the situation to the mining industry, which trades in deposits of both high- and low-grade ore. The latter type is more plentiful, but it's the first that offers the biggest payback from a better use of demand data in unpredictable situations.

Sysco Corp. has operated very successfully for many years as a decentralized company, distributing $40bn annually in food and associated products to restaurants, schools and other meal-serving organizations. The company felt that it could do better in terms of logistics, however, and decided to centralize inbound transportation operations that previously were distributed among its 70 business units.

Freeing data from functional silos and making it available to decision-makers throughout the supply chain in real time is the elusive key to true, end-to-end supply chain optimization, says Kristi Montgomery of Kenco Management Services, a third-party logistics provider.

Traceability always has been important to dairy cooperative Agri-Mark, but it has become even more of a focus since passage in 2010 of The Food Safety Modernization Act, which gives the Food and Drug Administration the right to make product recalls mandatory, rather than voluntary.

As a leading contract manufacturer of electronics, Celestica works with a diverse supply base comprised of thousands of vendors. Six years ago, the company began a major initiative to gain better visibility and control of supplier performance, an effort that led to creation of a proprietary supplier collaboration tool known as Live Share.

People, processes and technology are the three key areas where companies are experiencing "pain points" in their forecasting efforts, says Eric Ball, solutions manager with Avercast LLC. The people side is especially vital, given the trend within many companies of "trying to do more with less." Too often businesses rely on a new piece of technology to improve their forecasting, ignoring the need for humans to run the system. "Coupled with budget cutbacks left and right, developing personnel is a tremendous issue," he says.

International transportation management, value engineering and strategic collaboration are three cornerstones of Menlo Worldwide's 4PL service offering, says Nick Caragher, director of 4PL operations.

Briggs Healthcare develops and markets products that are designed to improve clinical outcomes and reduce operating costs for more than 50,000 customers in the senior care, home care, acute care, physician and retail markets. "Having the right product at the right place and time and at the lowest cost is very important to us," says Brad Mueller, vice president of supply chain solutions.

The electronic industry has always been characterized by high variability in supply and demand. With recent natural disasters such as the earthquake and tsunami in Japan, and flooding in the parts of the U.S., the problem has only become more acute. Tackling it requires state-of-the-art systems, strong management commitment, good customer service, well-run business processes, integration among functions and effective inventory-control procedures, says Dave Lentz, director of innovation and solutions marketing with Avnet Electronics Marketing Americas.

In addition to technical and functional skills, supply chain managers need to hone their "soft" skills in areas like project management and change management, says Bill Seliger of R.R. Donnelly Logistics Services.