Analyst Insight: Inventory working capital reduction is a wonderful concept; however, it is important to understand all of the potential financial impacts before beginning. - Ralph Cox, principal, Tompkins International

Analyst Insight: Signing a contract and getting the business ramped up is just the beginning of an outsourcing deal. The real work is shaping the relationship and making the parties operate not only as a high-performance team, but also to allow the companies to embrace the dynamic nature of business and keep the parties aligned as "business happens." It's essential to have a flexible and cooperative governance framework. - Kate Vitasek, faculty of the University of Tennessee's Center for Executive Education, and founder, Supply Chain Visions

Analyst Insight: The pressure of increased supply chain complexity, a byproduct of more trading partners and global geographies, is the top factor driving best-in-class companies (cited by 59 percent) to further increase their outsourcing to logistics service providers as one key solution to managing increasing supply chain costs. This direction is compelling when performance considerations for the best-in-class companies (top 20 percent) compared to average (50 percent) and laggard (30 percent) are taken into consideration. - Bob Heaney, lead research analyst, supply chain execution, and Bryan Ball, supply chain management vice president and principal analyst, both of Aberdeen.