The boundaries of the supply chain are blurring, according to Limited Brands senior VP Paul Matthews. And as a result, the kind of visibility into the supply chain that managers need is changing, too.

Matthews told Optimize that what he calls the demand chain is "not narrowly defined as just what happens between the warehouse and the store. It involves the wholesale, catalog, and Internet channels, too." Ideal visibility lets any partner know where merchandise is in the pipeline at a given time—from raw materials to finished goods. It's driven by sophisticated intelligence that helps stores track inventory, determine markdowns, and set prices proactively, Matthews said.

Limited is about a third of the way into a multiyear transformation effort that includes a data warehouse and new demand-chain processes and systems from Manugistics and others. Limited's 4,000 U.S. stores include Bath & Body Works, Express, Henri Bendel, and Victoria's Secret. — Paula Klein

Online Customers Pay Dividends

Financial-services firms that are satisfied with their revenue growth define themselves as online-product innovators, according to a new report by Keane Research. "Some financial-services companies failed spectacularly in initial online strategies," says George Tubin, senior analyst with TowerGroup, which closely monitors the financial-services industry. "But many have retrenched and are finding success."

The biggest drivers for online investments were customer retention and cross-selling opportunities, according to the report. But the major stumbling block is existing technology platforms. "Acquisitions and mergers in the banking industry have limited innovation and investment in new technology," Tubin says. For the report, Keane Research surveyed 106 senior business and IT executives from a wide range of retail banks, insurers, and brokerages. — Derek Top

Outsourcing Slows A Bit

There's evidence that the outsourcing trend is maturing slightly. Revenue growth at outsourcing companies declined in 2005 from the previous year. While revenue grew by 15.2%, growth was 16.4% in 2004, according to the International Association of Outsourcing Professionals.

Still, the outsourcing arena remains more than healthy. Smaller companies, in particular, are cashing in—posting revenue growth rates of 33.9% in 2005. Employment within the outsourcing industry is up by 15% in 2005 compared with 14% the previous year. The average outsourcing company now has more than 10,000 employees. — Patricia Brown

Photo Credits: Photographers Choice, Sherwin Castro/Reuters