Core high-tech consists of semiconductors, contract & design manufacturing, original equipment manufacturing, consumer electronics, and telecommunications. Most companies in this segment are highly impacted by the economic downturn, trying to reduce working capital, and segmenting product decisions based on profitability.

High-tech organizations have evolved their supply chains that specialized in flow of materials into supply-demand networks where information flow is more critical to manage. This has resulted in high-tech supply chains to be asset lite and information heavy. There is a need to cash this information into tangible business value through the creation of a flexible and responsive supply chain.

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 way companies manage global trade and supply chain networks is changing. Aberdeen's research shows that leading performers are moving towards an integrated view of global trade management, focusing on simultaneously optimizing physical, financial and information flows and networks in order to achieve competitive advantage.

Traditional demand management approaches fail miserably in providing companies with an accurate depiction of predicted demand.

Supply chain executives in the process industry sector are primarily concerned with being able to drive volumes in accordance with previously established plans, as well as with maximizing utilization of assets. Asset-intensive manufacturing operations are a key common theme across process industries.

Staying afloat during times of economic challenge may require companies to rethink the way they have traditionally conducted their businesses. Finding ways to standardize and streamline processes may be essential to reducing costs within the demand/supply chain planning functions.

If history is our guide, sales of food and beverage products will rise in the economic downturn. Food staples (cereal, bread, milk) along with convenience meals will gain volume as more families eat at home. It appears that 2009 is a time for food and beverage manufacturers to create big brands in big economies.