Effective Consumer Response (ECR) is a supply chain management strategy developed from American grocery industry in 1992. It is also a supply chain management solution composed of finished products of manufacturers, wholesalers and retailers, and all parties cooperate with each other to meet the needs of consumers better, faster and at lower cost. Effective customer response is a supply management strategy, which is based on the principle of meeting customer requirements and minimizing the cost of logistics process, and can make accurate response in time to optimize the logistics supply or service process provided.
The difference between QR and ECR
ECR is mainly aimed at the food industry, and its main goal is to reduce the cost of each link in the supply chain and improve efficiency. QR is mainly aimed at general commodities and textile industry, and its main goal is to quickly respond to customer demand and replenish goods quickly. This is because the product characteristics of the non-staple food industry are different from the textile and garment industry: most of the products operated by the non-staple food industry are functional products, and the life cycle of each product is relatively long (except fresh food), so the loss of ordering too much (or too little) is relatively small. The products operated by the textile and garment industry are mostly innovative products, and the life span of each product is relatively short. So the loss caused by too many points (or too few points) is relatively large.
The emphasis is different. QR focuses on shortening the delivery lead time and responding to customer demand quickly; ECR is committed to reducing and eliminating the waste of supply chain and improving the effectiveness of supply chain operation.
Differences in management methods. QR mainly relies on information technology, through joint product development, to achieve rapid upgrading and shorten the time to market; In addition to launching new products quickly and effectively, ECR also implements effective commodity management to effectively promote scrolling.
Applicable industries are different. QR is suitable for high unit value, strong seasonality, poor substitutability, long-term maximum elimination of shortage, and only when there is demand for goods. The focus of ECR reform is efficiency and cost.
The focus of the reform is different. The focus of QR reform is the speed of replenishment and ordering, with the aim of eliminating the shortage to the greatest extent and purchasing only when goods are needed. The focus of ECR reform is efficiency and cost.
* * * Same function
It is manifested in transcending the boundaries between enterprises and pursuing logistics efficiency through cooperation. It is embodied in the following three aspects: (1) business information sharing between trading partners; (2) Commodity suppliers enter the retail industry and provide high-quality logistics services; (3) Inter-enterprise ordering and delivery business are conducted through EDI, realizing paperless transmission of ordering data or delivery data.