ECR - Effective Consumer Response

According to the theory of the value chain, the companies’ advantage can be improved by skilful cooperation between e.g. production & logistics, logistics & marketing. New methods of flow controlling e.g.: Just in Time, Quick Response, Effective Consumer Response together with new management concepts like: outsourcing, lean management, lean logistics force companies to establish strategic ties of cooperation.

The difference between logistics and SCM (Supply Chain Management) - according to the M.Christopher – is cooperation of the companies inside the SC.

The real SCM success depend on integration and coordination of three types of the flow: information, products, cash.

Thanks to ECR it is possible to increase level of customer service because this strategic is based on close cooperation between trade partners. It require an exact exchange of the information between individual SC chain links which is possible thanks to the Electronic Data Interchange.

In practice very often EDI is not enough developed comparing to the whole SC.

For the industry of Fast Moving Customer Goods (FMCG) it is crucial to skip the storehouse in SC and transport goods directly on the shelves. It brings as well as big saving of money as longer expiry date.

What is under the banner of:

CRP – Continuous Replenishment Program – key component of ECR. Accurate demand forecast together with well synchronized production assisted by efficient and fast deliveries can be excellent basis for brand new quality.

CD – Cross Docking (idea centralnego komplementowania)

Did your company implement ECR?? Have You any experience You would like to share?? Do You find it as a useful improvement’s tool??