The document discusses a project to review the business case for Efficient Consumer Response (ECR) in Europe over the past 10 years. It aimed to assess achievements, future opportunities, and recommendations to accelerate adoption. Key findings from a GCI Scorecard analysis of over 900 records showed that ECR adopters reported improved service levels by 7% and reduced finished goods inventory by 20% on average. Case studies identified successful initiatives in areas like on-shelf availability, shrinkage reduction, and demand forecasting collaboration. Overall, the results indicate ECR can deliver significant cost savings across the consumer goods value chain.

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12. Shopper at the Core
Shopper based Joint Business Planning
Shopper based Value Chain
Consumer Driven Innovation
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13. What Did ECR Set Out to Achieve 10 Years Ago?
The 1995 value chain analysis opportunity projection
• Cost reduction of: 4.8% of consumer sales value
• Inventory reduction of: 42%
• Cost impact of inventory reduction: 0.9% of consumer sales value
• Total cost impact: 5.7% of consumer sales value
The 1999 Transport Optimisation study
• Additional benefit: 1.2% of consumer sales value
Total potential cost savings: 6.9%
of consumer sales value
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14. Project Overview
Academic Partnership and IBM commissioned to
review the Business Case for ECR in Europe:
1. Assess achievements over the last 10 years
• Determine future opportunity for ECR
• Make recommendations for accelerating the
adoption of ECR
• Re-energise the ECR communities
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15. Project Components
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16. Project Components
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17. Project Components
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18. Project Components
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19. Project Components
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20. Project Components
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21. Project Components
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22. GCI Scorecard Analysis – What Did We Do?
Reviewed a total of 908 records (Global)
Date: August 2001- February 2005
Balance of retailers / manufacturers
Key outputs:
• ECR adoption scores
• Supply side performance indicators
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23. GCI Scorecard Analysis – The Scorecard
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24. GCI Scorecard Analysis – Adoption Levels
Significant variation between countries and within
countries
Germany
France
UK
Average
Greece Range
Switzerland
Italy
0 20 40 60 80 100
Source: GCI Scorecard database
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25. GCI Scorecard Analysis - Highlights
ECR-adopters report:
• An increase of Service
Level by +5.7 percentage
points…
• ...which means improved
by 7%
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26. GCI Scorecard Analysis - Highlights
ECR-adopters report:
• Finished Goods Inventory
cover reduced by -10 days
…
• ...lowered by 20% on
average
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27. GCI Scorecard Analysis - Highlights
ECR-adopters report:
• Reduced Out of Stocks by
4.9 percentage points…
• ...which means halved
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28. Successful Initiatives Driven Through ECR
On Shelf Availability & Shrinkage
• A leading global retailer quantified €122m saving
through the OSA Road Map
• Another global retailer delivered a 75% reduction in
shrink across hypermarkets
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29. Successful Initiatives Driven Through ECR
Global Data Synchronisation
• A leading European retailer delivered 30% productivity
improvement in their data management
• A leading Japanese retailer reduced item management
costs by $2m
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30. Successful Initiatives Driven Through ECR
CPFR
• Between a leading Global retailer and a major Health
& Beauty manufacturer
• Reduced lead-times from 21 to 11 days
• Increased sales by $8.5m
• Improved instock levels from 87-98%
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31. Project Components
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32. Case Studies – What Did We Do?
37 case studies, retailer-manufacturer collaboration across
Western Europe
Range of categories, food and non-food
In-depth interviews with industry leaders
Objective:
• Identify patterns of drivers and barriers to ECR adoption
• Quantify implementation and results
Clear patterns are evident
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