The efficient consumer response (ECR)

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.