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Introduction to Efficient Consumer Response (ECR)

 

The What - Introducing key performance indicators

 

The How - Introducing three levels of capability assessment

 

Using the entry level capability assessment

 

Using the Intermediate level capability assessment

 

Using the standard capability assessment

 

Using the scorecard jointly with your trading partner

 

Benchmarking and reporting

 

Create your own customised scorecard

 

Site Manager's roles and responsibilities

 





  BM01
  Annual Sales Growth Rate
  BM02
  Supplier Service Level / Unit Fill Rate to Customer Distribution Centre
  BM03
  Store Service Level / Unit Fill Rate
  BM04
  On-Time Delivery
  BM06
  Raw Materials Inventory Cover
  BM07
  Manufacturer/Supplier's Finished Goods Inventory Cover
  BM08
  Retail Distribution Centre Inventory Cover
  BM09
  Retail Store Inventory Cover
  BM10
  On-Shelf/Point-of-Sale Out-of-Stocks
  BM11
  Order to Delivery Cycle Time
  BM12
  Distribution Costs (% of sales value)
  BM13
  Invoice Accuracy
  BM14
  Retail shrinkage rate
  IM01
  % of consumer units allocated a Global Trade Item Number (GTIN)
  IM02
  % of cases/cartons/inners allocated a Global Trade Item Number (GTIN)
  IM03
  % of finished goods items allocated a Global Trade Item Number
  IM04
  % of pallets/unit loads labeled with Serial Shipping Container Code (SSCC)
  IM05
  % of shipping or receiving locations that have been allocated a Global Location Number (GLN)
  IM06
  % of orders transacted via EDI using EANCOM, web-EDI, X-12, Tradacoms or standard GS1 XML formats
  IM07
  % of invoices transacted via EDI using EANCOM, web-EDI, X-12, Tradacoms or standard GS1 XML formats
  IM08
  % of shipments for which a despatch advice was transmitted via EDI using EANCOM, web-EDI, X-12, Tradacoms or standard GS1 XML formats
  IM09
  % of shipments for which a receiving advice was transacted via EDI using EANCOM, web-EDI, X-12, Tradacoms or standard GS1 XML formats
  IM10
  % of sales with synchronized master data between trading partners via the GS1 Global Data Synchronization Network (GDSN)
  IM11
  % of SKUs with master data loaded into a GS1-certified data pool
  IM12
  % of active SKUs where the master data has been synchronized using the GS1 Global Data Synchronization Network
  IM13
  % of GTINs that are catalogued consistently with a GS1 Global Product Classification brick code (not using 9999 designation)
  IM14
  % of checkouts which can read the GS1 DataBar
  IM15
  % of sales with master data loaded into a GS1-certified data pool (no longer used)
  OM01
  Defective parts per million
  OM02
  Annual total inventory turn rate
  OM03
  Annual inventory obsolescence as a % of total inventory
  OM04
  Returns rate
  OM05
  Asset turns
  OM06
  Return on assets
  OM07
  Days payable
  OM08
  Cash to cash cycle time
  OM09
  Value added per employee
  OM10
  Dependency on top 10 suppliers
  OM11
  Proportion of sales due to new products < 1 year old
  OM12
  Time to market for new products
  OM13
  Percentage of new products launched on time
  OM14
  Proportion of new products launched on budget
  OM15
  Market Share
  OM16
  Progress vs. Commercial Share Target
  OM17
  Key customer growth
  OM18
  Perfect Order Rate

The What - Introducing key performance indicators

The site supports three kinds of key performance indicators

  • Business Measures
  • Implementation Measures
  • Optional Measures
  • Business Measures

    The main purpose for implementing Efficient Consumer Response is to provide better value for consumers and thereby improve business performance. The effectiveness of the business performance can be tracked using a set of Business Measures.

    Out of the many Business Measures available, a limited number have been chosen by the global scorecard committee of the Global Commerce Initiative for inclusion in this site according to the following principles:

    • they should give insight into the impact of Efficient Consumer Response
    • they should be easy to collect
    • they should be compatible with other global industry programs
    • they should provide a measure of the benefit achieved by ECR.

    The purpose of completing the scorecards is to drive business benefits and it is therefore appropriate that real business measures should be tracked as well as capability scores. The global scorecard committee is therefore strongly recommending that companies register their Business Measures as well as capability scores.

    There is a different set of Business Measures depending on the type of business under consideration (retailer, wholesaler, manufacturer, supplier or even joint Business Measures ). The following table shows the set of Business Measures being used. Click on the name to bring up the definition:

    Implementation Measures

    The Implementation Measures are designed to measure the extent to which the company has adopted the global standards defined by GS1. GS1 provides the standards through which collaborative business processes and transactions can take place between trading partners. They cover:

    • Item identification
    • Location Identification
    • Electronic messages
    • Master data synchronization

    Optional Measures

    For those companies who wish measure and benchmark their business performance at a greater depth, we have included a number of Optional Measures. We call them “optional” because they are not part of the standard set of measures collected by GCI in its Annual Compliance Survey.

    These optional measures are taken from a larger set of measures supported by APQC, an organization which encourages the use of “Open Standards” benchmarking.

    Benchmarking your KPIs:

    You have the ability to create benchmark reports where you can compare your KPIs with those from other companies on the database. In order to be able to use the benchmark facility, you first have to submit your KPIs to the database. (You may save your KPIs in draft form if you do not wish to submit them, but you will not be given access to the benchmarking database.)

    Once you have entered your KPIs, they are submitted to the webmaster for error checking. When you submit, you will be asked to provide your company e-mail address so that the webmaster can confirm receipt of your KPIs. You will not be able to benchmark your KPIs until approval has been given.

    If you would like to change your KPIs after submission, you will need to have them error checked again by the webmaster.

    Having entered your KPIs, you have the choice of creating a set of capability assessment scores which will be associated with those KPIs. KPIs that are attached to a scorecard will remain associated with that scorecard though benchmarking of KPIs and scorecards remain separate.