Logistics service providers are split on the question of whether to buy software off the shelf, or build it internally. To be competitive, they should decide quickly-and dump their outmoded equipment.

Private-branded merchandise brings higher margins and brand recognition in the competitive world of retailing. But it also calls for greater control over the supply chain.

While supply chain efficiency is important, companies need to focus more attention on reducing risk to their financial performance resulting from supply chain disruptions.

The concerns and priorities differ somewhat in each sphere, but some providers feel they can make a case for managing each type of shipment with a single, comprehensive system.

The pressure is on for companies to employ demand-driven strategies - technologies and processes that can "sense" and communicate real-time demand across customers, suppliers and employees.

A conversation with Jeremy Shapiro, professor of operations research and management emeritus in the Sloan School of Management at the Massachusetts Institute for Technology.