Effective customer response

Supply chain management method

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Effective customer response is when food groceries Distribution system Medium, distributor A supply chain that cooperates closely with suppliers to eliminate unnecessary costs and expenses in the system and bring greater benefits to customers management 。

Chinese name: Effective customer response
Foreign name: Efficient Consumer Response
Traditional: Effective customer response

Abbreviations: ECR
Properties: one kind supply chain management method
Purpose: Increase commodity supply efficiency

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Basic overview

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In the early 1990s, Japanese food processing and commodity processing began to imitate the United States Clothing industry Of“ Rapid response ”And form its own system, called "effective Consumer reaction ”（Efficient Consumer Response）。

ECR (Efficient Consumer Response) system is used to provide consumer Provide higher benefits to improve the supply of goods efficiency Target, widely used information technology and Communication tools It is a new circulation system formed on the basis of cooperation among manufacturers, wholesalers and retailers. because ECR system Through the manufacturer wholesaler 、 retailer To improve the efficiency of commodity supply, it can also be called chain supply system.

ECR (Efficient Consumer Response) is an idea, not a new technology. It reviews the production, logistics and sales processes among upstream, middle and downstream enterprises, with the main purpose of eliminating the whole Supply chain (Supply Chain) There is no consumer in the operation process add value Of cost And transform the supply driven "push" system into a more efficient one Demand pull "Pull" system, and feedback these efficiency results to consumers, hoping to deliver goods to consumers in a faster, better and more economical way to meet their needs. Therefore, the implementation focus of ECR includes the demand side Category Management Improvement, supply side logistics distribution mode improvement, etc.

The promotion target of ECR is mainly to quickly transfer consumer products（ FMCG ）And Grocery （ grocery ）It focuses on the improvement of category management on the demand side and the improvement of logistics distribution on the supply side. In the future, we expect that the ECR concept can be extended to other industrial systems.

System definition

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The ECR European Executive Board defines ECR as: "ECR is a kind of product that is used by manufacturers, wholesalers and retailers economic activity To achieve the fastest and best integration at the lowest cost consumer demand " ECR emphasizes the cooperation between suppliers and retailers. Especially in today's increasingly fierce competition and diversified demand among enterprises, it is urgent to establish mutual trust and mutual promotion between production and marketing Collaboration To coordinate their production, operation and physical distribution management To respond to changes in customer needs in the shortest possible time.

Background

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ECR system It was put forward by the US food industry and was first applied in the food industry. Due to the increasing variety of food, food production and Circulation enterprises adapt Customer needs More and more difficult, traditional goods Supply system It's hard to adapt to modern times Circulation market The demand and sales are decreasing day by day. Consumers seldom buy the same food repeatedly as before, and the original marketing method is not applicable. Consumers commodity price The quality is becoming more and more sensitive, but the supply mode of goods has not changed, which is more and more far away from consumer demand. Retailers take great pains to deal with purchasers, but still cannot change Sales profit margin A downward trend. In this context, the food industry began to explore new operating methods. In early 1992, the U.S. Food Marketing Collaboration (FMI) set up a task force to study Commodity supply The new system of Job analysis Executed by KSA. The company investigated the food industry and proposed logistics, variety, promotion and New merchandise Four areas that need reform. KSA has proposed a comprehensive operation system for the reform measures and information technology in four major fields, which is ECR system 。 The system was presented at the FMI Conference in 1993 Public publication 。

Relevant concepts

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Generally, there is no added value All waste of must be eliminated from the supply channel to achieve the best efficiency.

confirm Supply chain The cooperation system and alliance relationship within China.

Achieve accurate and immediate information flow , replaced by information stock 。

ECR implementation strategy: effective Product mix ； Effective new product promotion; Valid replenishment And effective promotions

ECR Focus Areas

The main infrastructure of ECR is divided into four major areas, including supply side management, demand side management, and the application of standard tools and integration force to put QR/ECR into practice. Based on this, the ECR global scale is formed, which can assessment Degree and ability before ECR import. In addition, ECR can encourage supply chain related operators to make continuous improvement in the following four categories (14 projects).

Demand side management

It involves the cognition and management of the demand for goods and services, and has a direct impact on consumer satisfaction, sales (volume) and Market share Etc. Its contents include:

·Demand Strategy&Capabilities

analysis business organization The ability to implement demand side management internally, including the cooperation and preparation of personnel, systems and strategies, to achieve more efficient sales and timely response to consumer needs.

· Product mix Optimise Assessments

ensure supplier Cooperate fully with retailers to evaluate the product mix strategy that meets the market demand and implement it. It means that the most appropriate Quantity of goods Display in front of consumers, and attract consumers to buy at a reasonable price, and improve stock Question.

·Optimize Promotions

Proposed commodities that meet the market objectives Promotion strategy And plan the implementation of promotion strategies assessment Cost effectiveness And check whether the promotion mode and frequency stimulate consumers Desire to buy And the quantity purchased.

·Optimize New Product Introduction

As it is difficult to assess the success rate of commodities before commodity development, there are old obstacles and shortages among trading partners trust The problem of commodity counterfeiting makes the optimization of new commodity introduction the most difficult part of the ECR concept, so the goal of the ECR concept is to understand Supply chain Strategic cooperation among partners to effectively understand the needs and desires of consumers and improve the research and development of new products Failure rate And shortening new products Time to market 。

·Collaborative Shopper Value Creation

Collaborative Shopper Value Creation This concept is a new field added in May 2004. In addition to extending the previous idea of Consumer Value Creation, and combining collaborative customer relationship management The concept of. Cooperation to create consumer value comes from the collaborative process of trading partners in the supply chain, targeting target consumer groups and establishing and improving consumer value Differentiation The solution is the target.

It contains three main elements:

Collaborative Information management Collaborative Information Management

A way to collect consumer goods Purchase Decision And use Product information The process of.

locking Target consumers Shopper Targeting

What kind of customers should retailers attract to purchase goods and arrange Commodity category Procedure of.

Differentiation Different Solutions

Integration of goods, information and services can meet Target consumers A complete solution to the requirements.

Supply side management

The supply side mentioned in ECR focuses on the following four improvements Supply chain The concept of commodity flow in the upper part shows that the whole supply chain can be satisfied with fast and effective commodities from different directions replenishment The demand of the mode.

·Supply Strategies&Capabilities

Main view Commodity flow (product flow) From raw materials, composition, production, packaging, to dealer distribution As well as the efficiency of warehousing and other processes, the enterprise needs to have a clear strategy to improve the existing organizational structure , cooperate with information technology, and Supply Chain Services do Performance measurement 。

· Effective supply （Responsive Supply）

Supply side replenishment Management is to improve the distribution method to simplify the distribution of goods from the production end to the retail point goods shelves On Replenishment Operation , and respond to the actual situation customer demand And Balanced management Cost and Inventory level 。 The key elements include: Automated Store Ordering, continuous replenishment（ CRP ）And other technologies; Advanced elements include: Reasonable transportation Planning and effective warehousing.

·Consolidation Demand orientation Integrated Demand Driven Supply

Planning and control methods are based on Supply chain Adjust the actual supply frequency and quantity of raw materials, packaging, ingredients and commodities. It includes two main concepts: synchronized production supplier Integrated suppliers. The so-called synchronous production is commodity production The planning is based on consumer demand to avoid unnecessary costs and inventory, so as to continuously improve production cycle Days; On the other hand, the role of the supplier is Not to be ignored Because the cost of raw materials and packaging accounts for the whole supply chain total cost 30-50%, which will affect the service level The concept of ECR needs to be implemented to cope with changes in new product introduction and seasonal factors.

·Operational Excellence

Use management methods to increase the reliability of operations, such as shortage management, defective goods and Late delivery Handling and administrative errors.

Enablers

In order to truly implement demand side management and supply side management, Commodity identification And data management Capacity support is the main driving force, such as Commodity trading Processes require standard formats or messages to ensure correct and real-time information response. The driving force includes three areas, common identification standards and exchange Information standards 、 Global data synchronization 。

Integrator

Demand vs supply management Our strategic ability combines the application and development of new technology to change the original business model To form collaborative e-commerce and continue to increase interaction and value enhancement with trading partners. It includes two fields: collaboration plan And prediction（ CPF ）And cost/ profit And value measurement.

Expected benefits

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reduce Inventory cost

Through ECR Implementation plan Application of skills, such as Computer Assisted Ordering, Automatic replenishment Procedure（ CRP , Continuous Replenishment Programme）、E supplier Inventory management system （ VMI , Vendor Management Inventory）、 Cross Docking, etc.

Lower commodity prices

whole Supply chain Of Activity based cost Reduced due to increased efficiency.

reduce Out of stock ratio

Because suppliers and retailers can quickly provide goods to consumers on the shelf through integration between systems.

Sales (volume) increase

Because in the store Service quality And reasonable commodity prices to improve consumers' loyalty 。

Engineering change application : Change request is used to describe in detail how to solve product problems or improve product quality Change required and its impact, and change authorization. The change request indicates that the formal change process has started. One change request can solve the problems described in multiple problem reports.

ECN: After the change request is approved, the submitter of the change request or other designer You will receive the task of "Create ECN". According to this task, designers can create ECN and make changes.

Engineering change (Engineering Change) is Enterprise activities One of the important control items, according to the implementation time and purpose, is subdivided as follows: usually used after the completion of a new product, the non engineering unit issues an engineering change application for its own needs and submits it to the engineering unit for research, and the engineering unit will issue it if it agrees ECO , to each unit jointly sign , and import after countersigning. ECN Engineering Change Notice: usually used for new product development For engineering changes in the process, the engineering department will issue them after confirming the changes and notify the relevant units. ECO (Engineering Change Order) Engineering change order : Usually used after new product development Engineering change After the engineering department confirms the necessary changes, it will issue the documents to the relevant units for countersigning to ensure that stock Product WIP If it is properly handled, it should be changed immediately or after use. The sales unit, manufacturing unit materiel All units should agree and take necessary actions. Generally, ECO involves a large scope and takes a long time to import, which needs to be rigorous system management Of. ECA (Engineering Change Authority) engineering change authorization

ECA also has this translation: Engineering Change Activity. It is a change activity in ECO.

System characteristics

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ECR system Attach importance to the adoption of new technologies and methods.

First of all, ECR system adopts advanced information technology, and develops a kind of utilization between production enterprises and circulation enterprises computer technology Automatic Order System (CAO). CAO system is usually used in combination with electronic collection system (POS) POS system Provided Commodity sales Information automatically transmits relevant order requirements to Distribution Centre , by the center Automatic delivery , which may make Retail enterprises Of stock It is reduced to zero, and the cycle from order to delivery is reduced, the freshness of the goods is improved, and the damage rate of the goods is reduced. It can also enable manufacturers to get their own goods in the market in the quickest way Marketable Information for.

Secondly, ECR system also adopts two new management technologies and methods, namely, category management and Space management 。 The basic idea of category management is not to start from a specific variety of goods, but to consider a certain category as a whole Yield Maximize. Just soft drink In terms of inventory, counter area and other factors, such as soft drinks, are considered instead of their brands Return on investment The maximum ratio principle is used to arrange the variety structure. Some of them can win purchasing power Other varieties can guarantee the income of goods, which can be satisfied by mutual combination customer need , and improved the store's Operating benefits 。 Space management refers to the optimization of commodity layout and counter setting. In the past, many retailers also paid attention to such problems, the difference is that ECR system The space management of is combined with the category management, and the unit is realized through the combination of the two Sales area Sales and Gross profit An increase in the amount. Therefore, greater effect can be achieved.

ECR system has established a stable Partnerships In the traditional commodity supply system, producers, wholesalers, and retailers are not closely connected or relatively close to each other, and each order has a large Randomness This has caused the extremely unstable flow of goods between production and sales, and increased the supply cost of goods. The ECR system just overcomes these shortcomings and establishes a continuous and closed supply system among producers, wholesalers and retailers. They have changed their mutual hostility, formed a relatively stable partnership, overcome the intrigues in commercial transactions, and achieved coexistence and common prosperity. It is a new form of production and marketing alliance and production and marketing cooperation.

ECR system The ECR system makes full use of the non documentation information processing technology , so that information transfer It has realized the de documentation. Whether it is internal summons Processing, or between enterprises Purchase Order , price change, production notice, etc Digital switching (EOI) for automatic processing. Thanks to the utilization of electronic data interchange The production enterprise can transfer the content of production at the same time of production telex To the buyer, the retail enterprise as the buyer should scan the container shelves or Code You can complete warehousing acceptance and other processing work. Due to the comprehensive adoption of electronic data exchange, the warehouse can be automatically processed according to the production details, so that processing time Approx. 0, which is critical for fast Supplementary goods , improve Prediction accuracy , substantial cost reduction It has played a great role.

Attention

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ECR system Since it was proposed, it has been widely used in the United States. Europe, Japan and many other countries have also used the technology of this system to change their outdated commodity supply systems, and many successful examples have emerged. Therefore, the ECR system is used to Circulation process Rationalization is an unavoidable topic in the future. But in Implementation process The following issues should be noted in.

The role of senior decision-makers is crucial

。 ECR system Is to improve enterprise Operation management The system involves many enterprises in production, supply and marketing department Any department error will have a great impact on the startup of the whole system. Therefore, the enthusiasm and determination of high-level decision-makers in all departments are very important for promoting this work. Their active support and advocacy are conducive to defining goals and improving business Reform speed, eliminate waste and enhance the application quality of ECR system.

Correctly grasp the value and demand of customers

ECR system The fundamental purpose is to increase the interests and meet the needs of consumers business Improvement and efficiency The improvement is based on this purpose. Only by correctly grasping Customer value And demand, then we can formulate the working objectives of ECR system and enhance the adaptability 。 The first step of ECR is to correctly judge the interests of consumers and put their interests in what position. At present, supermarket consumption tends to Commodity quality , freshness, nutrition, packaging, price, etc. In terms of variety structure, most customers have the desire to purchase at one time. Only by mastering these information can the ECR system truly exert its advantages.

Set clear goals and standards

As a systematic improvement work, ECR should have clear goals and Working standards 。 Through these goals and standards, we can make a correct evaluation against the results. At the same time, with goals and standards, employees can be clear about the tasks to be completed and the criteria to be achieved.

Actively reform the organizational structure

ECR system The effective implementation of the project must be guaranteed by corresponding organizations and institutions. The basic idea of ECR system is to business The organization form of traditional function division is not suited to A new organizational form should be constructed. ECR system can be regarded as a wide chain system, so the organization can be established according to the chain mode.

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