ABSTRACT
This chapter shows that logistics has become a major element of retailers' corporate strategies in the 1980s and 1990s. Indeed, companies such as Wal-Mart, Benetton and Tesco have achieved competitive advantage through their innovative logistics practices. The chapter discusses the new concepts of the 1990s especially efficient consumer response (ECR) and evaluates their implementation by different companies in international markets. These concepts originated in the United States and came about as a result of intense competition in the market-place and a need to respond to changes in the market. ECR arrived on the scene later, and was initiated by traditional supermarket operators and their suppliers concerned about eroding profit margins through recession and competition from new retail formats. Clearly, ECR principles will be adopted by companies according to their own strategy with regard to supplier relationships. At an international level, there have been key differences in the applicability of ECR in the United States and Europe.
