Bronze Award Winner
Up one levelThe Potential for SMEs to enter into ECR Partnerships through establishing Distribution Networks
Since 1994, it has been appropriate for the traditional distribution channels for consumer goods in many instances, to be reconstructed radically under the name of ‘Efficient Consumer Response (ECR)’ to make it possible for businesses to overcome in a cooperative manner, the existing confrontation between manufacturer and trade (see Ahlert/ Borchert 2000, pp. 5; and Friedrich/ Hinterhuber 1999, pp. 2). Instead of negotiating about prices, conditions and isolated sales promotion, the expectations of consumers could be satisfied faster, more effectively and less expensively by adjusting integrative marketing and logistical processes. In ECR cooperation, the legally and economically independent manufacturers and trading companies coordinate their efficient replenishment, assortment, promotion and product introduction. This vertical partnership is intended to prevent inefficiency resulting from uncoordinated or even of conflicting tasks by reconstructing processes, organizational structures and job sharing within the distribution channel.
