Australasian Grocery Industry Tracking Study 2006

ECR Australasia 2010.09.24

Publication Date: 2006 Publication Language: English Publication Country/Region: ECR Australasia Publication Type: Bluebook Companies involved: ECRA Board, IBM Global Business Services Author: n/a


This is the fourth ECRA Tracking Study commissioned by the ECRA Board, facilitated by IBM Global Business Services. The objectives are to:
- assess industry maturity development vs targets previously set
- benchmark industry maturity vs Europe and the USA
- estimate potential remaining benefits of full ECR adoption at an industry level
- provide each participating company with visibility of their maturity vs others in their
industry
The results are qualified: firstly by the industry participation rate which is about a third of the last study in 2002; and secondly by the skew in participating companies towards those that are larger and more mature in ECR adoption. Nevertheless participants represent 20% of total ex-factory industry sales for the grocery categories covered and 81% of total grocery retail industry sales.

There are four key findings from the study:

1. Leading companies are leading in ECR implementation and now have scores that are comparable with  global benchmarks. They are reaping the benefits and positioning themselves for future success.

2. Lagging companies are in danger of losing relevance to both consumers and trading partners. In manufacturing,   laggards may seek to become the future low-cost house brand suppliers - but will need to improve service to retailers to reach this goal.

3. Assigning resources and priorities for business development is a recurrent issue. Several leading companies have made hard decisions about which parts of the business to keep in-house and focus on, vs which parts to outsource or send overseas. Other manufacturing businesses appear to have cut costs and their capacity for product and service innovation, passing this role to others in the industry.

4. For the leaders, collaboration is now an established way of working in areas such as replenishment ordering; although in other areas the lack of systems to support automated exchange of timely and accurate data is a limiting factor.

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