ABSTRACT
ECR is an approach to supply chain management which originated in the US and gained support from major European retailers. It is a managerial approach that starts with consumer demand and then gears the whole of the supply chain to responding to that demand. It is a customer-driven, demand-pull product management system: ‘a seamless interface from consumer purchase to manufacturing schedules’ (Lowson et al. 1999:40); it is different to a supply-push or buying-led approach, which is based on the principles of sales forecasting, with products supplied in preparation for estimated demand. ECR, however, encompasses much more than a stock control system; it involves not only all the operational areas of retail management, but also the way in which retailers, suppliers and third party service suppliers (such as logistics companies) work together to achieve two fundamental objectives simultaneously: maximising customer satisfaction and minimising total costs.
