We like the term "supply chain" because it suggests a tightly interlinked series of steps that results in the uninterrupted flow of product from the raw-materials stage all the way to the consumer. But the word "chain" also evokes a burden, and that's how many companies have come to view their operations in recent years. Hence the mania for outsourcing everything from design and manufacturing to logistics.

The maker of sophisticated medical equipment had reached a "plateau" in its efforts to boost customer service and optimize costly inventory within its global operation. Then it found a way to climb higher.

Analyst Insight: The top strategic action tied to improving parts management for service and support organizations in a recent Aberdeen research study on service parts logistics was to integrate service parts planning, forecasting and execution with overall logistics functions (i.e., procurement, supply chain management, inventory management) to ensure the delivery of the right part to the end customer when an asset goes down or is not operating at full efficiency. - Aly Pinder Jr., senior research associate, Aberdeen Group