Analyst Insight: We have entered an era of radically changed weather patterns which will have a much more pivotal and dominant impact on commodity prices. Smart commodity managers will increasingly draw on weather expertise and weather related-instruments when formulating their hedging strategies.

Analyst Insight: While traditional supply chain processes focus on efficient transactions, value chain networks are built on effective relationships. The difference is not trivial, challenging deep-seated traditional supply chain paradigms. With 70 percent to 80 percent of a product's components sourced externally vs. made in house, supplier relationship management is critical to value chain success.

Analyst Insight: Product and engineering design focuses more on the technical feasibility of a product, and strategic sourcing works more on the commercial feasibility of materials of the same product. The two together are what product development is about. Product lifecycle management (PLM) comprises the management approach and the technology used to increase the dynamic between the two feasibilities.

Analyst Insight: Before investing in new programs for procurement or other functional areas, organizations must evaluate each program thoroughly as implementation can be a time-consuming and expensive process. However, in many cases the long-term benefits may compensate for the short-term pain.

Analyst Insight: 2009 painfully taught organizations the value of having a flexible, modular, agile supply chain - from planning through to execution. Companies learned that being prepared for uncertainty with the right people, processes and technology can be the key to business survival. CPG companies that have maintained and developed their talent, redefined their processes and strengthened their supply chain capabilities can look forward to a rewarding, yet challenging, 2010.

Analyst Insight: PLM applications have grown up in engineering or technology-oriented value chains where product and technological complexity required a much firmer grasp of specifications and proactive lifecycle management, but a number of market trends suggest PLM applications might offer important capabilities to process manufacturers.