Chapter 21: Introduction to a Global Scorecard: Industry Practice and International Implications
Camille P. Schuster INTRODUCTION In an historic move, the companies from the grocery and packaged goods industries (manufacturers, retailers, brokers, wholesalers, and industry associations) met during the early 1990s to examine the threats to their industry. As a result of the discussions Kurt Salmon and Associates conducted a study to evaluate the current state of the industry. The results indicated that an integrated supply chain be created to enhance the timely, accurate, paperless ﬂow of information while creating a smooth, continuous ﬂow of product matched to consumption (see Figure 21.1). Savings to the industry of US$30 billion would result if the industry operated in a more eﬃcient manner while keeping the consumer clearly in mind.1 To follow up on these ﬁndings, the companies and associations formed the Eﬃcient Consumer Response (ECR) organization. A number of committees were created to analyze business activities in a particular area, conduct pilot tests and report on the results. About 40+ books documenting best practices in speciﬁc areas, such as activity-based costing, category management, eﬀective replenishment, and eﬀective assortment, have been published and made available to the industry so any company planning to concentrate improvement eﬀorts in a particular area has access to the information on best practices. One of the fundamental business behaviors resulting from this new approach to doing business is the development of greater collaboration among companies. The only way for companies to have access to timely and accurate ﬂows of information enabling smooth continuous...
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