GlobalScorecard.net - Guide to ECR concepts


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	Supply Management


		Overview


		Supply Strategies & Capabilities


		Responsive Replenishment


		Integrated Demand Driven Supply


		Operational Excellence


	Demand Management


	Enablers


	Integrators

Responsive Replenishment

Applying distribution methods that integrate the product flow from production lines to the consumer using actual consumer demand to drive replenishment, leading to very high service levels, balance against well managed cost and inventory levels.

This improvement concept focuses on the practice of partnering between distribution channel members in order to replenish the products based on actual (POS) and forecasted product demand. With responsive replenishment, consumer demand drives replenishment orders and shipping.

Key elements are: Automated Store Ordering, Continuous Replenishment and Product Flow Techniques
Advance elements are : Transport Optimisation and Efficient Unit Loads

A successfully automated store ordering system requires a forecasting capability to account for daily profile throughout the week, promotion, space changes and seasonality.

CRP improves the product ordering function through the supply chain. Replenishment quantities are determined by actual demand plus any incremental demand that is expected due to promotions.

Implementation of Product Flow Techniques like Cross Docking minimize storing of products at retailer DC's where the merchandise received at the warehouse or distribution centre is not put away, but turned around for shipment to retail stores, typically within 24 hours. This can progressively be applied to eventually cover most of retailer volume.

Additional Resources:

ECR Europe's Sustainable Transport Roadmap
Demand-Driven Replenishment
IBM White Paper on Consumer-driven supply chain networks
IBM White Paper: The GMA 2005 logistics survey