Maximising the Effectiveness of ECRA - 2005

ECR Australasia 2010.09.24

Publication Date: 2005 Publication Language: English Publication Country/Region: ECR Australasia Publication Type: Report Companies involved: Maximisting the Effectiveness of ECRA – 2005 Author: n/a

The ECRA Board commissioned a review of ECRA initiatives with the aim of maximising their effectiveness and identifying relevant future work streams. The review included a desktop evaluation of existing work activities, the communication media adopted by ECRA and a questionnaire issued to retailers and suppliers in the food and grocery sector.

Analysis of report recommendation adoption rates provided an insight into those areas that have yet to reach full business integration. The report did not evaluate the causes of low adoption rates. For every issue full adoption and integration of report recommendations has not yet occurred. While there is progress towards full integration there is a requirement to continually reinforce past project work and findings and to assist in the uptake of report recommendations. This report makes some suggestions as to how they may be encouraged.

The questionnaire analysis identified the opportunity to further embed ECR practice and principles within organisations and between trading partners. 89% of respondents indicated they are actively working with trading partners to reduce supply chain costs.[CUT]However some enablers to progress this work effectively such as distinguishing between commercial and supply chain costs; utilising cost-to-serve techniques in joint decision making with trading partners; investment in IT infrastructure and common tools and process for demand forecasting are yet to be fully realised.  The success stories in terms of full integration included; the adoption of industry product movement standards (55.9%); company individual measurement and analysis of stock outs (44.1%); integration of electronic transactional processes into core information systems (30.3%) and synchronisation of item and party data using EANnet (27.3%).

Issues that had the least traction included; collaboration on loss prevention (50.0%) potentially driven by the smaller number of specific SKU’s impacted; the use of cost to serve techniques in joint decision making (35.36%) however the majority of respondents have partially or substantially adopted cost to serve techniques in their own business; collaborative innovation with trading partners to decrease environmental and safety pressure on transport and packaging (35.3%) and standard messaging to support CPFR between trading partners (32.4%), low adoption may be due to limited number of companies involved in CPFR practices.

When asked to evaluate future work streams, respondents indicated strong support for further developing and appreciating on shelf availability; CPFR; cost/value profit measure; collaborative information management; and the optimisation of new product introductions.

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