Back in the early 1980s, when I was new to the world of transportation, logistics and the supply chain, I recall ocean carriers complaining that their freight rates weren't high enough to meet operating costs, let alone generate a profit. They were begging shippers to accept higher rates, in exchange for greater service reliability. Yet every time they would achieve some traction on the rate front, they would flood the market with new capacity, and offer deep discounts in order to fill the new ships. Then they would appeal to shippers for higher rates ...

Analyst Insight: 2011 marked a watershed year in the way supply chain managers conceived of global practice. Natural disasters that shook up traditional global sourcing coupled with a growing willingness to rethink the value of lowest piece-part pricing led companies to reassess what it means to operate efficient, effective supply chains. Companies are rethinking and reconfiguring supply chains to be more rational, regional, practical, low in total cost and risk, and high in fostering quality and customer value - moving toward rational, lean value streams. - John Shook, chairman and CEO, Lean Enterprise Institute

Analyst Insight: The generally low-margin and high-waste food & beverage sectors will continue to increase their technology investments in 2012. Traceability, quality and fulfillment technologies are emerging with strong ROI, though compliance and traceability get much of the attention. No doubt global regulations on food safety may be somewhat of a catalyst, but companies say that the benefits are what really drive their investments. - Ann Grackin, CEO, ChainLink Research

Analyst Insight: Food and beverage manufacturers have the distinct advantage (or detriment, depending on how you view it) of often having direct access to the customer. In today's more open, collaborative, social world this can reap major benefits of understanding one's customer base and responding to its needs. On the flip side, food and beverage manufacturers are susceptible to a major downfall simply from minor issues across its supply chain. Open or not, it's the new reality. - Simon Ellis, practice director, Supply Chain Strategies, IDC Manufacturing Insights

Analyst Insight: Warehouse management system vendors have used the slower market demand of 2009 and 2010 to invest in improved architecture and functionality. Today, the WMS market has seen a robust return in upgrades and new solution selections. Leading WMS application providers - from integrated ERP solutions to best-of-breed suite applications - all tout upgrades in architecture, new user interfaces and robust operational support. - Kevin Hume, principal, Tompkins International

Analyst Insight: The sales and operations planning process has evolved from manufacturing conflict resolution in the late 1980s to data- and visibility-enhanced strategic demand and supply balancing for retail executives today. This is a remarkable evolution for a concept. As visibility continues to increase, could S&OP become the primary tool for managing supply chains or, for some, complete businesses? - Ralph Cox, principal, Tompkins International