Formation of Efficient Consumer Response (ECR) Board for Malaysia

In response to the competitive market and external forces of change, retailers and suppliers the world over have recognised that businesses can no longer afford to be managed in the usual way. Better inventory management, efficient transportation and distribution of goods, and speedy response to consumers' exact requirements have become prerequisites for survival.

ECR initiatives started in the USA in 1980’s when the North American continent was hit by a deep recession and the consumer expenditures were declining. ECR initiatives had successfully pulled the retail sector out of the recession in the early 1990’s. Multinational manufacturers in the USA that have gained the benefits of ECR then introduced the concept into Europe. ECR Europe was launched in 1994 and now consists of 25 national ECR boards from Western and Eastern Europe.

The same reasons that brought the ECR initiatives into Europe also brought ECR into Asia. ECR Asia-Pacific is an independent joint trade and industry body, launched in 1999, to promote ECR techniques in the region. Members of the ECR Asia Council comprise the ECR Country Boards, manufacturers, suppliers, retailers and service providers from Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, Philippine, Singapore, South Korea, Taiwan and Thailand. ECR is a strategy to remove unnecessary cost from the distribution system and to make it more responsive to consumer demand. ECR involves all parties in the supply chain collaborating together to improve consumer satisfaction and to drive out cost.

The enormous benefit of ECR has prompted the Malaysian business sector to initiate similar activities to be set up in the country. The ECR Malaysia (ECRM) Board was formed in May 1999 to develop ECR activities in the country. The ECRM Board operates under the GS1 Malaysia. The ECRM Board comprises nine retailers, thirteen manufacturers, Federation of Malaysian Manufacturers (FMM) and the Malaysia Retailers Association (MRA).

The Working Group on Service Level was established with the objectives to improve the service level within the retail supply chain and to bring down hidden costs such as out of stock, shrinkage and product damage. The Service Level Working Group is subdivided into the Logistics Sub-Working Group and the KPIs Sub-Working Group.

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9th ECR Asia Conference
Kuala Lumpur Convention Centre (KLCC)
13 - 16 November 2006

ECR and Free Trade - The Challenge for Cross Border Supply Chain Management