Efficient Consumer Response (ECR)
Efficient Consumer Response (ECR) was a U.S. grocery industry initiative launched in 1993, when a Kurt Salmon Associates report presented through the Food Marketing Institute estimated that closer supplier and retailer cooperation could cut about $30 billion from supply chain costs.
What happened and why it matters
ECR brought data sharing, continuous replenishment and cross-docking into mainstream grocery and consumer goods, practices that shape how brands supply retailers today. The report argued that the grocery chain held too much inventory and spent too much on promotions and handling, and projected that dry grocery inventories could fall by about 41 percent. Its four focus areas were store assortment, replenishment, promotion and new product introduction. Results came more slowly than promised, but ECR spread EDI, scan-based data and category management. Brands selling to retailers still live with its legacy: replenishment driven by point-of-sale data, advance ship notices and compliance programs tied to on-time, in-full delivery.
Related events
Sources
- Efficient Consumer Response (University of Minnesota, AgEcon Search) ageconsearch.umn.edu
- Putting ECR to work (Supermarket News) supermarketnews.com