Having looked into its crystal ball, the analyst group Manufacturing Insights has released some predictions for manufacturers in 2005. Two caught our eye in particular.

To begin, the group says that productivity will become the supply chain priority. The most successful companies will find ways to improve supply chain efficiencies beyond the four walls without sacrificing cost, quality and timeliness.

The group estimates that as much as 15% of revenue "is wasted in unnecessary supply chain transaction costs." Global manufacturing execution, supply chain visibility and supplier relationship management will all play a large role.

The second key trend is the emergence of demand information management. The idea is to better attract and service customers by collecting and managing information about demand and its cycles.

The key here is to integrate that data with operations. Leaders will move to a "sense and respond" model that "calibrates the supply chain to actual demand signals."

A copy of the study is available at www.manufacturing-insights.com.