Demand planning has a big impact on business performance. Planning error can put revenue at risk by driving component shortages. Persistent planning biases can tie up cash by driving excess inventory. Furthermore, the act of planning and dealing with planning error is time consuming and drives costly overhead. In fact, it is common for supply chain management executives to cite "planning errors" as the greatest obstacle they face to achieving their goals and objectives.

A recent TAKE Supply Chain survey indicated that the primary reason companies choose to outsource some or all of their manufacturing or distribution activities is cost reduction. This was the number one reason chosen by 61 percent of survey respondents across all global regions. However, a frequent issue faced by companies after the outsourcing project goes live is that they're not achieving their expected cost savings. Two common causes for this disconnect are vague contract terms or metrics, and manual processes.

Any attempt to apply "lean" thinking to a manufacturer or retailer's supply chain must have merchandise lifecycle plans in alignment with supply chain strategy to succeed, according to the vice president of strategic services at software company JDA.

Building true omnichannel merchandising capabilities requires the merging of previously siloed business functions. Footwear retailer Aerosoles has been omnichannel for about 10 years now, however, over the past 18 months the organization has decided to step up to manage the business properly.

What are the biggest challenges facing the global apparel supply chain in 2014? One that stands out is the pressure to deliver on the omnichannel promise. There's a fundamental disconnect between the demands of an omni-channel retail environment working to give consumers immediate results, and an apparel supply chain that is getting longer, more fragmented and more difficult to predict.

Logility Inc. has made generally available version 8.5 of Logility Voyager Solutions.

S&OP has never been more important or more confusing. For the supply chain leader, it is growing in importance and is on the top of the list for a 2014 focus. However, the market for technology solutions is confusing. We count more than thirty-five solution providers claiming to provide S&OP solutions with a range of capabilities. Here we share insights on why it matters. - Lora Cecere, CEO and Founder, Supply Chain Insights

Analyst Insight: Buckle your seat belts. Supply chain planning, a mature and stagnant technology market, is changing. This change will not be gradual; instead, it is the redefinition of planning platforms. The value proposition is large; but not as large as the change management hurdles. To prepare, we have to learn, unlearn and prepare to relearn a new language and way of thinking. - Lora Cecere, CEO and Founder, Supply Chain Insights

Analyst Insight: The critical value-add of a manufacturing supply chain comes from constantly asking, "Can we make what we sell and sell what we make?" This is sales and operations planning (S&OP): a process of constant vigilance to meet customer commitments, while optimizing scarce working capital. Supply-chain optimization efforts can benefit from approaching projects as a hybrid of S&OP and supply chain. This places the focus on value creation over functional excellence. - Jon Kirkegaard, President, DCRA Inc.