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Summary |
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Efficient Consumer Response (ECR)
is the realization of a simple, fast and consumer driven system,
in which all links of the logistic chain work together, in order
to satisfy consumer needs with the lowest possible costs. In order
to examine ECR three focus areas are distinguished, which are
dealt with in subsequent chapters, namely: Category Management,
Product Replenishment, and Enabling Technologies.
Category Management is the process between
parts in the logistic chain, where categories are being managed
as strategic business units, producing enhanced business results
by focusing on delivering consumer value. Category Management
involves Efficient Product Introduction, Efficient Product Promotion,
and Efficient Store Assortment. Advances in technology introduce
new possibilities to carry out these tasks. It is made clear that
this is only possible with accurate information, which indicates
the importance of Enabling Technologies.
Product Replenishment deals with methods
for replenishing a store. The following methods are discussed
in this paper: Continuous Replenishment (CRP), Direct Store Delivery
(DSD), Cross Docking, Transport, and Order Support Systems. Continuous
Replenishment is very attractive, but once again very dependent
on Enabling Technologies. Furthermore the importance of Order
Support Systems in future is pointed out.
Enabling Technologies are (electronic)
means for improving business processes. Electronic Data Interchange
(EDI) is discussed in great detail. Not only the technology itself
is presented, but also future developments of EDI, such as Cyber
Assisted Business EDI (CAB-EDI). Secondly, Electronic Funds Transfer
is explained, which is quite a new technology implemented in 1996.
The great cohesion with EDI is evident, because transferring funds
electronically can be considered as electronic data interchange.
Finally methods to create, maintain and use databases are given
by discussing the last method: Database Management.
Finally, maturity profiles of each focus area for European retailers
and manufacturers are presented. At present retailers are slightly
ahead with an average in the study sample of 44%, versus manufacturers
scoring 36%. The conclusion is that
ECR does not provide many new methods, but provides a new vision
on the usage of these methods. This can decrease costs throughout
the chain and provides companies with more dynamical reactions
to consumer needs.
Moreover, it is argued that adopting EDI is certainly no option,
but a compulsory method in order to be able to use the vision
presented by ECR. Besides the fact that EDI enables ECR, other
companies form a great threat with developments like on-line shopping
and new retailing possibilities. Therefore in my opinion the following
slogan holds: EDI or DIE!
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If you have
any suggestions, comments, or links related to any of my subjects,
please send E-mail to: S.Bhulai@few.vu.nl. |
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