One problem: Many of the road signs along the way are now obscured, or difficult to understand.

That’s why now is a great time to take a step back and assess where you are and where you’re going.

The biggest influence to take into account: the role of IT in improving your supply chain performance.

But instead of IT spending, expect pressure to “make do and mend,” experts caution. You’ll be called upon to make the best use of what’s already in place. This means there’ll be little discretionary funding available, but you’ll still need to find some money (perhaps under the couch cushions!).

You’ll still be expected to squeeze a few pennies out of procurement, logistics and distribution functions.

One idea: You might switch over to a pay-per-use technology license, rather than an annual contract.

Three areas experts have targeted as ripe for change:

• Supply chain flow management. In response to pressure to improve lead-time indicators and supplier flexibility, you’ll be expected to work with tech vendors that offer detailed analysis and higher visibility of business functions.
• More efficient inventory management. More supply chain operators will be asking vendors to integrate their tools as part of operations, and might even begin purchasing software services from vendors.
• Production and distribution management. Supply chains will need to ramp up contingencies for a growing number of “what-if” scenarios, to be even better prepared to react quickly when conditions change.

A recent survey of more than 300 supply chain execs revealed some interesting observations:

• Only one in 10 (11%) responded that supply chain planning and execution were handled as a single, joined process.
• More than half (57%) said there was some integration of supply chain planning and supply chain execution, and
• Nearly one in three supply chain managers said there was little if any link between supply chain planning and execution.

You might think that these stats reflect a lack of interest among supply chain managers in integrating planning and execution. Nothing could be further from the truth:

92% of the pros responding to the survey said it was critical to achieve better integration in the next 2 to 3 years.

As today’s business increasingly turns to running lean and just-in-time inventory processes, more companies will be expected to plan well enough to react and then handle even more demanding requests.

The biggest barrier, as is in so many cases, is communication.

That’s where the survey from CSCO (Chief Supply Chain Officer) Insights offers a four-step progression toward achieving optimum communication across departments of any given company.

• Baseline: Poor planning between sales and ops; disconnect between supply chain planning and execution
• Phase I, the Basics: Improved feedback between planning and execution; consolidated view of customer/internal demand; closer link between ops and sales
• Phase II, Real-Time Supply Chain: Real-time visibility; networks designed to react immediately, metrics for making/supporting decisions
• Phase III, Sense & Respond Networks: Multi-level visibility; new organization methods for supply chain planning; looking ahead to new supply chain technologies

A survey of more than 400 supply chain execs by IBM — resulting in a report called “The Smarter Supply Chain of the Future” — ranked topics in this order. Respondents were asked if the topic impacted them to a significant or very significant extent.

• supply chain visibility — 70%
• risk management — 60%
• cost containment — 55%
• increasing customer demands — 55%, and
• globalization — 45%

Execs who were surveyed also remarked that all five topics are critical areas in successful supply chain management.

The IBM study also offered a few specifics.

On the subject of supply chain visibility, the biggest problem is the lack of information sharing and collaborative decision-making. This is not the fault of technology; it’s the way many companies are organized.

Risk management: Supply chains have been stung with more regularity in recent years, from defective products to bankrupt business customers and vendors, natural disaster, and a host of other causes that can take a toll on your efficiency. To get a step ahead of this, it’s become more critical to build risk management into your basic daily functions.

Cost containment: It used to be that supply chains could take a “tortoise” approach in continually improving costs and cost control. But today’s fast-moving economy demands a “hare-like” strategy, reacting daily to whatever cost issues might arise.

Customer demands: Most companies do a great job now of collaborating with your suppliers. It’s time to take that a step further, the experts recommend, and build the same type of relationship with your customers — deploying joint forecasting, for example.

Globalization: It’s not the cure-all and end-all some said it would be. In fact, one-third of the execs responding to the IBM survey said supply costs have actually increased due to global sourcing.  The main issues are product quality and lead times.

The same supply chain tactics that make your company lean and profitable can become your downfall in just the blink of an eye.

That’s because the benefits of the drive to improve efficiency — running lean, just-in-time production, single-source suppliers — can also leave you more vulnerable than ever before.

Fortunately, the best solution is easily summed up in two words: Be prepared.

The fancy term for it is “risk management.” Either way, we’re talking about shooting for the same goal.

1. What could go wrong?

The first step in managing supply chain risk (or being prepared), is to identify and catalog the “what-if” problems that could possibly disrupt your operations.

A few to consider include:

• Shifting customer demand
• Changing financial factors, such as credit availability
• Other market pressures, such as your competitors or your supplier’s competitors, and
• Weather, natural disasters or similar problems (think Hurricane Katrina or the California wildfires, for instance.)

2. Profiling your suppliers

At the same time, you should gather material about your own company (think of it like you’re writing a book) that is critical to supply chain continuity.

This means your company’s operations, including production and fulfillment; and data about your suppliers and your customers.

Try profiling your top suppliers, by identifying:

• Who are your key suppliers
• Where they are located
• Is there another site that could fill in if the primary supplier or supplier site fell short?
• What’s their production capacity, and
• What’s their production flexibility? Can they turn on a dime to help you if you asked?

Today’s emphasis on lean production has left many companies dealing with single-source suppliers, without much of a safety net.

3. What else could go wrong?

There’s the flip side of this coin, too.

Does your company rely heavily on a small but powerful customer base? What would happen if one of those customers closed up shop or took its business elsewhere?

Another contingency to consider: Does your supply chain focus efforts on one primary “ship-from” location? Would you be prepared if a disruption put that area out of commission?

Of course, you’re not going to come up with all of the answers right away.

Risk management is an ongoing process. You can never be prepared enough.

But taking the time now to anticipate problems and plan contingencies could make the difference between success and failure for your company in the future.

With this front and center in your mind, watch out for these 7 deadly supply chain pitfalls:

• Build first, then wait for the orders to roll in. Do this and you’re liable to end up with a lot of product you can’t use. You know the money meter is ticking away each day product sits on your shelf and gathers dust. Solution: Analyze and monitor your ordering from outside suppliers.
• Too much down time. Staffers should move fluidly from one task to another, and outgoing shipments must be timed for maximum efficiency. For example, say your regular FedEx shipment goes out at 4 p.m. Yet there are almost always a couple of more orders that dribble in afterward. Those orders won’t go out until 4 tomorrow — unless you can adjust the timing of FedEx pickup.
• Efficient, uncluttered delivery routes. When was the last time you took a close look at your delivery patterns? Chances are, there’s been some change in suppliers and needs since then. Study where trucks are going now with an eye toward more efficient delivery, then tighten up those routes.
• No wasted motions. In addition to plotting the most efficient routes around the warehouse for putaway and picking orders, examine the ergonomics of each location. Are workers being asked to pick up too much from the floor? From higher than their head? Spend a few minutes each day observing how workers lift, tote and put down.
• Too much here, too little there. All too often, it’s a normal part of logistics shuffling: Early deliveries are stowed over there, orders going out soon but not yet are stashed here, inventory plopped into a temporary location, until the proper home opens. All of these cost you time and raise the risk of error, which can be even more costly. Clearly designate a place for everything, even temporary stops.
• Space, the final frontier. When you see the same warehouse configuration every day, it’s not unusual to start looking past areas that aren’t quite all that you hoped they could be. Some folks even develop what can be best described as a blind spot. What to watch for: too much open space; too much tight space; too much space on shelves; cartons that aren’t loaded to capacity; even outgoing shipments that aren’t packed to the rafters.
• Errors, plain and simple. Billing errors, incorrect shipments, broken or damaged goods or product, deductions, adjustments, mislabeled product and even simple inventory discrepancies and slip-ups. These all cost you, and will continue to be problems unless aggressively addressed and attacked.

When times are tough, like during today’s embattled economic climate, it’s pretty easy to pull back into the security of your turtle-like shell.

But the winners are the people who take these opportunities to show ingenuity, that they’re willing to take risks, and they’re looking for ways to improve the company’s overall position.

That’s how you get attention — and considered for promotion.

There are five key steps on the ladder to your professional success:

1. Bend but don’t break. You need to demonstrate you’re willing to change direction — even when it means “taking one for the team.” After all, that is the ultimate demonstration of teamwork.
2. No Yes men (and women). Putting your honesty on display is essential — look ‘em right in the eye — even when the truth hurts. “Yes” men and women might find short-term gain, but they’re soon left by the wayside.
3. Lead the way. There are no special initiations to becoming a leader. It’s the talent to convince people to follow you, which you achieve through honesty, common sense and your own actions. Show ‘em how you can get everyone on the same page.
4. Own up. When something doesn’t go as planned, step forward, take responsibility, and explain why. There’s no room at the top with people who are more concerned with CYA.
5. Brainpower. Let’s face it: The best bosses have more than a shred of intelligence. Good bosses are both street smart and book smart. They can quickly size up a situation, apply past knowledge, make clear decisions, and follow through.

Just ask any of the companies that have relied on China for supplies, parts and products.

Tens of thousands of manufacturers have gone belly up in China — often overnight — leaving many of your peers scrambling for a back-up plan.

If your business handles mainly middle of the road product, available from more than one source, you’re certainly better positioned.

But that doesn’t mean you don’t have to prepare yourself for any problems that might pop up.

What if another customer fails to pay your supplier, and it means your supplier can’t fill your order? What if something as simple as a shortage of shipping materials hangs up your next delivery?

No matter how secure you might feel today, you still don’t want to come up short if the unexpected occurs.

There are three ways you could offer to help:

• If your supplier is unable to obtain necessary product, offer to go one step further and deal directly with your supplier’s supplier. You might even be able to generate a volume discount.
• Depending on your relationship with the supplier, you could offer expert advice from your own staff on navigating process changes that could improve operations for the supplier.
• If it’s a matter of money — your supplier is locked into a contract with you, but the supplier’s costs have unexpectedly increased, you always could offer to negotiate a way to mitigate that cost difference.

In many companies, that’s changed.

Now, people are starting to figure out that an efficient supply chain is directly linked to a company’s overall performance.

Successful supply chain operations usually have four aspects in common:

• Making decisions that benefit the entire company, rather than staying on the departmental level. Guidance for making these decisions can be found in Key Performance Indicators and Key Risk Indicators established for your individual company.
• Opening the doors and creating high visibility into all aspect of supply chain operations.
• Ensuring that all purchasing decisions are made strategically, and
• Getting buy-in from senior management to put a priority on supply chain performance, especially when it comes to involving other departments.

While this good news for supply chain pros, the brighter spotlight means that all you do will be more closely scrutinized.

What this all means is that today, it’s imperative that you create the time to take a step back and assess the big picture, despite the ongoing day-to-day pressure to perform.

Here’s some good news: It’s now easier to mix and match elements of differing inventory technologies.

The best example: Linking RFID with voice terminals.

It used to be that voice terminal systems were designed to interface directly with a Warehouse Management System. That made it difficult to integrate elements of RFID, which might be better suited for portions of that warehouse.

The result was that inventory operations were forced to use two separate ways to conduct business — which didn’t speak to each other.

Technology is catching up to this problem. Now, it’s possible to create a hybrid of RFID and voice systems.

There are at least two instances where this type of hybrid capability could increase the efficiency of warehouse operations.

Warehouses that employ temporary labor, who maybe don’t speak English as well, can steer those employees into RFID-only tasks. Other workers can use the voice system.

Also, if a warehouse is switching employees from one area to another and the new area is short on voice terminals, RFID can fill the gaps.

The pros are calling it “multi-modal” use. Warehouses use RFID to tally and confirm cartons stored on a pallet; voice direction is used to direct the actual picking activity.

There’s also the promise of linking other inventory systems in a similar manner.

But it’s not all bad news for 2009: By shining a light on these problems, they catapult to the front burner for many companies.

If there was one theme to tackling these problems, it would better cooperation between the players involved.

A recent study showed that only 11% of companies said their supply chain planning and operations were highly integrated with the rest of company functions.

But the same study also points out that 92% of the same companies are planning to implement better planning and execution of supply chain strategies over the next three years.

Three strategies are cited in bringing that about:

• better supply chain visibility
• linking existing supply chain software systems with internal and external customers, and
• improving collaboration with suppliers and customers.

The other area of focus in improving supply chain operations is transportation.

There are three main aspects to transportation that supply chain operators hope that implementing will lead to better integration with all customers — inside and outside of the company.

• Squeezing more pallets, cartons or product onto every truck leaving the docks. This can be achieved with optimization technology or good old elbow grease and common sense.
• Dock door scheduling systems, which puts the function in the hands of the people who have most at stake. Better scheduling of supplier deliveries is a win-win.
• Trying new transportation strategies, like switching from truck freight to intermodal transportation. Another strategy: setting up a consolidation center for shipping when distance is involved, rather than have all shipment originate from home base.