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The goal of efficient consumer response (ECR) is to minimize costs to the consumer by making the supply chain more efficient. The potential supply chain savings are $30 billion a year in inventory and distribution costs. Unfortunately, widespread adoption of ECR has so far proved problematic. The Grocery Manufacturers of America inc. and Cleveland Consulting Associates released a study last fall in which they indicated that few manufacturers are ready to implement ECR. Once implemented, advocates argue, ECR would have a positive impact on both supermarkets' top and bottom lines. When this will happen and what its success will be, however, are far from certain at this time. Although few people disagree with the basic strategies and objectives of ECR, the argument against it says that organizationally, most manufacturers and retailers are simply not structured or trained to fully implement ECR today. Others say the industry already has a lot of information systems and doesn't know what to do with the data they have.

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Title Annotation:What's Not: 1994; efficient consumer response
Article Type:Brief article
Geographic Code:1USA
Date:Sep 22, 2008
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