ECRA Benefits

ECR provides a framework so that FMCG and retail participants can work together to fulfill consumer wishes better, faster and at less cost, thereby leading to improvements in business performance. 

Implementing ECR means dramatic change in current business practices. ECR is about redesigning the processes, altering paradigms, changing attitudes and increasing co-operation. 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 ability in working with trading partners to add value for the consumer. 

It is estimated that there are $1 billion in cost savings and $750 million in inventory reductions available to the Australasian grocery industry from the implementation of ECR principles. (Australasian Grocery Tracking Study, 2002)  

Since its inception in 1999 ECR Australasia progress has included: 

• Top tier ECR adopters enjoy 6% better service levels, 3% higher on shelf availability and better (lower) finished goods inventories than non adopters of ECR practices. 
• Top tier ECR adopters clearly demonstrate better, stronger and faster progress against business (B2B) enablers. Adopters implementation rates can be 70% better for manufacturers and 20% better for retailers.  
• Focus on delivering improved on-shelf availability, a +$3.2B issue annually, by bringing the industry together to increase linked knowledge; become more responsive and flexible; and show greater commitment to joint problem solving.  A 3 to 5% service level improvement resulted from Winning in January 2010. 
• Development of industry standards, best practice and tools aimed at delivering joint solutions that positively impact the shopper, the supplier, and the retailer. Shrink costs the industry 1.73% of turnover annually, by delivering practical approaches the industry is fast reducing this figure. 
• Nearly 70% of the industry using ECRA reports, toolkits and collateral report a direct benefit to their business.