17 element(s)

Product Introduction and Delisting – Improving the Supply Chain Efficiency and Effectiveness

ECR Australasia 2010.09.24




The Product Introduction and Delisting report evaluates the operational inefficiencies and unnecessary costs for supplier, retailers and wholesalers through the introduction of new product lines and delisting of others, and outlines processes aimed at optimising the management of ranging decisions.


A cross industry project team conducted a detailed survey, a review of global best-practice and a number of industry workshops to understand current performance levels, underlying issues and to identify a set of recommended improvement actions.
For example the findings of an industry wide survey identify the cost of poor execution is significant and that supply chain budget over-runs for product launches alone are estimated to average 1% of revenue annually.
The Product Introduction and Delisting report includes:-
• The study findings including survey results, key findings and recommendations
• New Product Introduction and Delisting self assessment tool
• Examples of Product Lifecylce Management Processes
• Sample New Product Introduction and Delisting metrics
• Local and international case studies depicting best practice.
ECR Australasia extends thanks to the project participants for their invaluable input and to Accenture for their project management and facilitation throughout the project.
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A Guide To Efficient Replenishment and Reducing "Stock Outs" Within The Grocery Industry - 2001

ECR Australasia 2010.09.24




The publication is intended as an operational guide that is applicable across a variety of trading environments and provides an improvement path for companies with varying levels of experience and capability. The concepts in this guide reflect the conclusions of studies in Australasia and the USA that were accessed in the preparation of the report. Anecdotal evidence suggests that the stock out rate at retail may be 5%-10%, while for fast moving consumer products and during periods of high demand, stock outs may reach 15% or higher.

The project identified that the impact of stock outs is threefold:


  • cost of lost sales to retailers, estimated between $500 million — $1 billion per annum;

  • cost of lost sales to manufacturers, estimated between $450 million — $750 million per annum;

  • manufacturers and retailers can lose end consumers or repeat buyers.


Manufacturers and retailers will benefit from the analysis of the replenishment process, organisational requirements and enabling systems to reduce stock outs and improve consumer satisfaction. While the majority of root causes of stock outs appear to lie in-store, the greatest benefit is likely to be achieved through the collaborative efforts of all trading partners.

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A Guide to Demand Forecasting within the Grocery Industry - 2000

ECR Australasia 2010.09.24




The Grocery Industry Supply Chain Committee's (GISCC) 1999 Tracking Study identified that there were several opportunities for significant improvement in demand forecasting. General operating practices revealed that there were few instances of trading partners sharing information, few companies were actively developing forecasting capabilities and most forecasting was done on a monthly cycle rather than weekly using different forecasts for sales/marketing, etc. The ECR Australasia project team has developed a framework for demand forecasting including recommendations for improving the process, developing organisational capability and acquiring the right technology. "A Guide to Demand Forecasting within the Grocery Industry" includes two case studies which clearly demonstrate the improvements that can be made using the methods it recommends.
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A Guide to Collaborative Loss Prevention - 2002

ECR Australasia 2010.09.24




The benchmark ECR Europe shrinkage project reported early in 2001 and took up from the many retail loss prevention studies and surveys, to further investigate loss within the fast moving consumer goods and supermarket sector.

When the ECR Australasia Board considered the loss prevention project proposal, the Australasian impact could not be quantified beyond the general acknowledgement that it was of substantial estimated cost to the industry. There was little in the way of formalised or documented retailer and manufacturer collaboration or measures available for review.

The project objective was to determine the level of stock loss in the Australasian grocery supply chain, in a way that identifies key points and methods of loss, so that actions can be taken by trading partners individually and in collaboration to reduce the impact. While recognising that loss occurs in many ways, potential solutions to reduce fraudulent supply chain loss were the principal focus of the project. The project was undertaken with a view to utilising as much of the ECR Europe project methodology as was possible.

The project determined, through an industry survey, that in their last reported year, suppliers, retailers and wholesalers in the supermarket industry reported the value of overall stock loss along the supply chain and within the retail store as A$942 million or 1.73% of industry turnover.

Of particular significance in an ECR context was the survey finding of a very low level of collaboration between trading partners on the issue of loss prevention. The recommendations of the ECR Australasia project team highlight how suppliers and retailers can collaborate to reduce the incidence of stock loss.

In addition to measuring the size of the stock loss problem in Australasia, this project sought to highlight the key points and methods of loss. The project team reviewed the extended supply chain, using their knowledge and experience to highlight the risk areas, report on best practices and promote local case study examples. Project participants were able to identify elements of the community that need to be included in a holistic loss prevention.

In providing a quantifiable estimate of the impact of stock loss on the supermarket industry in Australasia, ECR Australasia has identified an understanding of where and how that loss occurs. This should serve as a call to trading partners to review the manner in which they are addressing loss prevention and to establish whether the sum of two halves will be greater as a whole, in attempting to reduce the total cost of stock loss. The cost of the status quo is the enormous, and growing figure of A$942 million dollars per year to Australasian supermarkets and their suppliers.

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Industry Toolkit for Shelf Ready Packaging

ECR Australasia 2010.09.24




ECRA announces the launch of an Industry Toolkit for Shelf Ready Packaging


The Board of Efficient Consumer Response Australasia (ECRA) recognised that there was the potential for a multiplication of shelf ready packaging standards within the Australian and New Zealand food and grocery industry leading to a risk of proliferation of contradictory guidelines, which would endanger the initial vision of bringing more value to the consumer.

The development of a set of common industry standards and guidelines aims to assist retailers, suppliers, wholesalers and packaging companies implement sustainable alternate packaging solutions. Through the publication of the Retail Ready Packaging – A focus on shelf ready packaging an Industry Toolkit guidance is provided on how to look at the introduction of shelf ready packaging within your organisation.

The practical approach of the Toolkit will benefit trading partners and provide a framework for open dialogue, avoiding prescribed solutions or technical specifications.
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How to Win in January – Improving service levels

ECR Australasia 2010.09.24




Improving availability through the supply chain in January represents a great opportunity to improve sales for suppliers and their retail trading partners, and ultimately provide a better service to shoppers and end consumers.

The following ECRA report aims to provide insight into this industry wide problem and guidance on the best ways for retailers and suppliers to meet the challenges and make the necessary improvements for January 2010.

Use this report to:


  • Understand the causes and impacts of poor service levels to the industry;

  • Identify the opportunities and challenges to improving service levels in January within the Australian market;

  • Gain insight into the top seven focus areas for improving availability and what they mean for your business; and

  • Consider developing organisational specific action plans to drive improvements.


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