How France's Sofrigam SA came to trust an outside logistics provider, ModusLink, to provide fulfillment and warehousing duties for its highly sensitive line of products for protecting temperature-controlled bio-pharmaceutical shipments.

Supply chains are just as susceptible to faddish behavior as anything else. We're social animals, so we tend to follow the crowd - especially if we believe that the crowd has a competitive edge. That's why so many companies flocked to China over the last couple of decades, in search of ever-cheaper sources of production. Or why outsourcing became such a hot trend over that same period of time.

We like the term "supply chain" because it suggests a tightly interlinked series of steps that results in the uninterrupted flow of product from the raw-materials stage all the way to the consumer. But the word "chain" also evokes a burden, and that's how many companies have come to view their operations in recent years. Hence the mania for outsourcing everything from design and manufacturing to logistics.