The Efficient Consumer Response Initiative: Implications for Vertical Relationships Throughout the U.S. Food System

Abstract

Efficient consumer response (ECR) is the answer of U.S. supermarkets to a more competitive environment, particularly as discount mass merchandisers such as WalMart enter food retailing with supercenters. ECR is akin to “lean­inventory-management” or “just-in-time-delivery” in manufacturing. The purpose is to increase the efficiency of distribution and reduce costs. The strategy calls for grocery retailers, wholesale distributors, and manufacturer suppliers to be linked together electronically and cooperate closely.

The authors are from the Department of Applied Economics and, respectively, director of the Center for International Food and Agricultural Policy and director of The Retail Food Industry Center at the University of Minnesota, USA.