Overview

The Supply Side of ECR is focused on an integrated set of four improvement concepts, each of which addresses a different aspect of the need for rapid and efficient replenishment of products in the overall supply chain.

Operational Excellence: the "entry ticket" for any serious efforts to improve relationships between trading partners. Often the primary source for cost reductions - if profit improvement or price reduction are critical business goals, these concepts may provide the key.
Responsive Replenishment: drives inventory out of pipeline; much faster response to unexpected shifts in shopper buying patterns. Less direct impact on sales and market share than the demand side concepts, except to fulfill the need to get the right product in the right place at the right time.
Integrated Demand Driven Supply: when it is possible, the key to extremely rapid response, permitting production schedules to be more closely aligned to actual consumer demand. To implement one can't ignore the suppliers since on average a third of the consumer price are ingredient and packaging costs and these suppliers frequently dictate downstream service levels. Often easier for companies to work together to realize the benefits without getting into any issues regarding trading relationship.


 

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