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About ECR
The concept of Efficient Consumer Response (ECR) was introduced in the United States in the 1990s. It refers to a set of strategies that aims to get companies across a supply chain to work closely to serve their customers better and at lower cost. Consumers benefit from improved product availability and choice, while distributors and suppliers derive better efficiency and cost savings.Today, manufacturers, suppliers, and retailers are faced with rapidly changing markets, keener competition and more exacting customers. In order to cope with these challenges, an increasing number of companies worldwide have incorporated ECR principles into their business models.
The ECR movement in Asia-Pacific has gained significant momentum in recent years. This progress is largely due to the efforts of ECR Asia-Pacific Council, which has tirelessly advocated the adoption of ECR techniques such as category management and continuous replenishment.
It has also promoted the GS1 System (GS1 is a global body which manages the article number system and RFID standards in 104 countries in the world). This global open system for bar-coding and RFID enables manufacturers, distributors and retailers to better align their operations by standardising the manner in which products, services, transport units and locations are identified. This allows trading data and information to be transmitted accurately and speedily across the supply chain through electronic data interchanges. All parties in the supply chain achieve tighter inventory control, more efficient order and delivery, and higher productivity. It ultimately enables them to deliver better customer service.
The ECR initiatives and activities in Asia-Pacific have succeeded in cutting unnecessary costs from the supply chain and bring value and choice to consumers.