The efficient
consumer response (ECR) movement effectively
began in the mid-nineties and was characterized
by the emergence of new principles of collaborative
management along the supply chain. The underlying
premise was that by collaborating with trading
partners the supply chain could become more efficient,
eliminate excess inventory, and ultimately provide
a more efficient response to customer demand.
Collaborative forecasting, planning and replenishment
(CPFR); and demand driven supply networks (DDSN)
are extensions of what was begun with efficient
consumer response (ECR).
At the heart of efficient consumer response
(ECR) was a business environment characterized
by dramatic advances in information technology,
growing competition, global business structures
and consumer demand focused on better choice,
service, convenience, quality, freshness and
safety and the increasing movements of goods
across international borders aided by the internal
European market. Retailers were increasingly
realizing their in-store programs can only be
effective when inventory is in-stock and on the
shelves to sell. Demand planning and accurate
forecasting and replenishment are the key - not
buying more "safety-stock" because
that simply leads to lower operating profits.
This new reality required a fundamental reconsideration
of the most effective way of delivering the right
products to consumers at the right price. Non-standardized
operational practices and the rigid separation
of the traditional roles of manufacturer and
retailer threatened to block the supply chain
unnecessarily and failed to exploit the synergies
that came from powerful new information technologies
and planning tools.
In order to better serve customers, and improve
operational efficiency retailers and suppliers
began to challenge the traditional supply chain
relationships and technologies.
In its simplest form, efficient consumer response
(ECR) enables more precise forecasting through
sharing and monitoring of POS data. Improved
demand planning within the retail supply chain
is the objective. ECR has also lead to innovative
new thinking in the areas of market basket analysis,
category management, and demand planning.
Accelerated Analytics, developed by the Rainmaker
Group, provides an easy no-risk solution to efficient
consumer response (ECR).
Accelerated Analytics connects buyers and suppliers
in a collaborative environment where point-of-sale
data is used to improve forecast accuracy and
decrease stock-outs. The Accelerated Analytics™ environment
is a hosted service including pre configured
reports, world-class analysis tools, and color
coded exception dashboards. These tools quickly
turn data into actionable information and promote
supply chain collaboration.
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