ECR - Efficient Consumer Response Australiasia

Business Background

This issue is topical, with recent loss prevention work in New Zealand and an ECR Europe project report at the May conference in Glasgow. The Australian Retailer's Association has also been active on this issue across a broader retail front.

Loss prevention is recognised as a substantial cost to the industry, although reliable estimates of the cost are non-existent and there is little in the way of formalised retailer/manufacturer collaboration in tackling the problem.

International estimates placing overall stock loss at between 1-3% of turnover are likely to be appropriate for the Australian grocery market. This places losses in Australia and New Zealand at approximately $2-3 billion per year.

Objective

Determine the level of stock loss in the Australasian Grocery supply chain, in a way that identifies key points and methods of loss, so that actions may be taken by trading partners individually and in collaboration to reduce the impact. Solutions to reduce fraudulent supply chain loss are the principal focus of the project.

Assess the costs and benefits of industry solutions which maintain the integrity of the supply chain from manufacturer to retail back dock, allow continued display and sale of high value and/or market leading sku's in-store, and recognise the interests of wholesalers, retailers and affected manufacturers.

Project Team

Report

A Guide to Loss Prevention