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Sep. 3--Last week we wrote about the demand and supply aspects of Efficient Consumer Response (ECR) improvement concepts. This week we'll write about the Integration aspects. Next week, the Enablers.
The key integration aspect of ECR is one of the "hot" approaches in business today, not just the grocery trade, and is known as Collaborative Planning, Forecasting, and Replenishment (CPFR). The concepts are not new: partnership, trust, sharing of information, co-operation. Indeed, they are the core of ECR. But, what is new is the will and technology to actually effect collaboration across enterprise boundaries.
The business problem at the heart of these efforts is uncertainty. Uncertainty about the precise outcomes of particular economic events, such as opening a store or a web site for business, increasing advertising, changing a retail price, opening a nearby ...