Australasian Grocery Industry Tracking Study 2002

ECR Australasia 2010.09.24

Publication Date: 2002 Publication Language: English Publication Country/Region: ECR Australasia Publication Type: Bluebook Companies involved: PwC Consulting, Australian Food and Grocery Council Author: Michael LaRoche, Graham Correy, Justin Greig, Christopher Fox, Joe Coote, Harris Boulton, Denis Phelps

The ECR Australasia (ECRA) Board commissioned PwC Consulting (PwC) to conduct the 2002 Tracking Study as part of its ongoing process to monitor and encourage the development and implementation of advanced demand and supply chain management processes in Australasia. The major objectives of the study are to identify:

-    progress, current performance and best practices in implementing Efficient
Consumer Response (ECR) in Australasia
-    opportunities for further improvement from both an industry and individual trading
partner perspective.

For the first time, the 2002 Tracking Study included New Zealand and made use of the Global Commerce Initiative (GCI) scorecard and database. Scorecards were enhanced from previous years to reflect evolving best practices and to emphasise the importance ofconcepts such as collaborative planning and consumer value creation. A verified self-assessment process was used for collecting individual company data from 49 manufacturers (representing approximately 50% of total ex-factory industry sales for the categories covered in the study through the grocery channel) and 6 retailers/wholesalers (representing approximately 70% of total grocery retail industry sales).

The leaders in the Australasian grocery industry have made significant progress in implementing ECR since our initial study was conducted in 1995. They have begun rolling out advanced ECR concepts across their businesses with significant progress in areassuch as demand management and operational excellence. Although progress has been made, the industry, as a whole, is substantially behind the targets that were set for 2002 by participants in the 1999 Tracking Study.

The 2002 Tracking Study reports that lagging organisations are missing out on the opportunity of seizing their share of further operating cost reductions in the Australasian industry. PwC estimate these to be greater than A$1 billion, and available reductions in finished goods inventory to be an additional A$800 million.

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