Efficient Consumer Response
Activities under the ECR concept focuses on the integration of modern management methods and various assistive technologies to improve the level and quality of customer service while decreasing inventory and costs throughout the supply chain products that require increasingly rapid flow rate. Close and effective cooperation of all the partners allows them to efficiently respond to changes in the market and get the effect in the form of meeting customer expectations in a way that is faster, better and cheaper.
In the context of logistic dimension ECR concept, i.e. supply chain management, this concept can be defined as the strategy of distribution logistics for finished products based on close cooperation between all cells of distribution from the producer to the final consumer. In this perspective, the primary strategic objective of the ECR It is to shorten the lead time by reducing the time flow of inventory, but also flows in supply, production, distribution. Customarily, in many companies there is a principle, that restock occurs when they have received the order from the next company in the chain, and the innovation of the ECR concept is based on the free movement of data from selling points for each partners throughout the supply chain.
And a key element of the concept of ECR is primarily the integration of supply chain information, which requires the introduction of organizational changes and uniform communication standards for data interchange.
- Wood, A. (1993). Efficient consumer response. Logistics Information Management, 6(4), 38-40.
- Seifert, D. (2006). Efficient consumer response. In Handbuch Marketing-Controlling (p. 375-394). Springer Berlin Heidelberg.