In 2009, expect most large WMS and WCS applications to remain dedicated applications tailored to a company's particular business rules, with SOA concepts appearing primarily in the integration interface.
To improve supply chain resiliency, companies need to include risk considerations in their supply chain network design efforts, sales and operations planning, and inventory planning; on the execution side, they need to improve logistics and transportation management, secure alternative supply chain partners, and ensure proactive alerting process and response management for disruptions.
The global credit crunch is jeopardizing the financial health of our supply chains. In 2009, companies should reassess suppliers' financial stability and implement processes to spot operational red flags that are early warning signals of financial stress.
If ever there was a year for financial and revenue management to come to the fore, then 2009 is that year. It's a year which will witness a vacillating, near schizophrenic, model of cost containment and revenue growth, driven by tentativeness, innovation and acquisition.
When the competition is no longer among individual companies but among entire supply chains, every area of end-to-end cost reduction needs to be explored. Financial supply chain optimization has helped leading companies make their whole supply chain more competitive with the introduction of more advanced supply chain finance practices and automated transaction processing. Finance, supply chain, and procurement groups need to collaboratively explore how to use supply chain finance to reduce supply chain costs.
Increased linkage between material and financial flows requires supply chain managers to learn more about topics like working capital optimization, margin and asset utilization, valuation and risk, managerial accounting and cash flows, taxes and transfer prices.
Sales and operations planning is the cornerstone of being demand-driven and a foundational process to propel growth strategies. As companies drive growth-growth in the innovation of new products, growth through expansion into new geographies, and growth in core markets-they must align functions through S&OP.
The S&OP process should be complemented by a strong root cause analysis and execution framework that ensures that the S&OP plan is continuously tracked with respect to the financial goals set forth by the company. In other words, the S&OP lifecycle should precede the financial reporting lifecycle of a company and should be in lock-step.
Multi-enterprise supply chain management solutions are successful when companies are able to achieve large-scale, global adoption with their trading partners, overcoming both technical and business change management challenges. Software as a service solutions play an important role in enabling multi-enterprise business networks.