Challenges and key benefits of ECR


Implementing ECR means dramatic change in current business practices. ECR is about redesigning the processes, altering paradigms and changing attitudes. Proper management of the ECR process is effective in mitigating resistance and increasing co-operation. A clear communication by top management of the benefits and rewards of ECR will make the process more effective.

ECR challenges many existing approaches, which can often lead to inefficiency. Trading partners are asked to work together in order to increase value to the consumer. The intensifying competition amongst trading partners often presents an apparent barrier to achieving this. However, just the opposite is true – ECR allows companies to seek a competitive advantage by demonstrating their superior ability in working with trading partners to add value for the consumer.

Before they are ready to start with ECR companies should ask themselves:

• Which activities are done in different departments?


• How are these activities related to each other?


• Is there a more efficient way that we can organise our business?


• What about costs and profitability? Do we have an insight into the costs and profitability at product, distribution channel and customer levels?


• What kind of information is available in the different departments, and how can we use this information to create greater value to the business as a whole?

Companies, which are not well prepared internally to pursue ECR, are in danger of exposing this fundamental weakness when starting to work together with their trading partners. And companies that are unable to work effectively with their trading partners will fall increasingly behind in the competition and falter in their efforts to meet changing consumer demand.