Over the next decade, integration of sensor networks will provide a wide variety of real-time data to improve various aspects of business activity and public life-from highway maintenance to healthcare delivery, from energy peaks to emergency services, and from intermodal freight to intelligent transit. Companies that access and leverage these emerging systems and communities early could realize not only a step improvement in supply chain visibility but also enhanced profiles of their mobile customer base.

There is nearly unanimous recognition of the need for supply chain transformation driven by factors such as the globalization of supply, increasing competitive pressures, and dwindling product life cycles from companies. This transformation's initial state is the linear supply chains of the past and the final state is a dynamic multi-enterprise business network.

Companies and their logistics service providers need to reduce their international transport and logistics costs. Despite the uncertainties of the current business environment, they can apply both old and new techniques.

Globalization and the economics of purchasing technology will continue to catalyze the growth for network platform and applications. Out of the rubble of the internet have come real industry solutions that address the ever complex supply networks that the enterprise must cope with. A new generation of savvy tech buyers will continue to be the primary purchaser for the networked solutions option.

In these tough economic times with revenues likely coming up short of expectations, logistics service providers will increasingly be pressured to help lower costs for customers, but not just by squeezing existing rates. Customers need help with lowering network inventories and reducing the total cost to serve by executing demand-driven strategies, enhancing trading partner collaboration, and revisiting the network flows for optimal configuration.

There are a lot of parallels between the logistics software industry and the logistics service provider industry. For example, both have undergone a lot of mergers and acquisitions over the past five years, and companies in both industries are looking to further penetrate the small and mid-sized market. And it's also true that the business models of software vendors and LSPs are converging. But an important distinction still remains between these two industries: one primarily sells "products" and the other primarily sells "services." When times get tough, companies tend to outsource more and spend less, which is why LSPs have historically performed better than software vendors during economic slowdowns. Does this mean that LSPs can breathe easy in 2009? Not exactly.