There is nearly unanimous recognition of the need for supply chain transformation driven by factors such as the globalization of supply, increasing competitive pressures, and dwindling product life cycles from companies. This transformation's initial state is the linear supply chains of the past and the final state is a dynamic multi-enterprise business network.

2009 is certainly shaping up to be a difficult year for manufacturers. Tight credit markets, poor consumer confidence and retail sales, along with low manufacturing activity, suggests that overall supply chain investment activity will be reduced and cost-savings activities will be prioritized.

As the financial crisis ripples through the global economy, supply chains will need to re-invent themselves and deal with uncertainty at all levels: economic, financial and regulatory. The need to balance short-term needs with long-term investments in global supply chains will add significant uncertainty to global supply chain operations.

The green imperative is expanding into virtually all walks of life and all facets of the economy. Demonstrating green credentials is increasingly a minimal stakeholder expectation and business risk management factor, and is shifting from an order-winning to an order-qualifying attribute. Swallow that carbon pill! A whole swath of additional environmental expectations may well be just around the corner, as well as a whole new way of looking at "green" and the environment.

Business process management will continue to be a topic of interest to supply chain companies in 2009. Because process change can be implemented without significant cash investments, BPM will stay fashionable in lean economic times. Adoption will be compartmental for a number of reasons: the economy, organizational politics and the lack of any vendor solution that completely meets business requirements.

In these tough economic times with revenues likely coming up short of expectations, logistics service providers will increasingly be pressured to help lower costs for customers, but not just by squeezing existing rates. Customers need help with lowering network inventories and reducing the total cost to serve by executing demand-driven strategies, enhancing trading partner collaboration, and revisiting the network flows for optimal configuration.

Today's Best-in-Class logistics executives are looking to third-party logistics providers as a value-add extension of their organization that can help deliver value to the customer at lower costs.