Research On Efficient Consumer Response Based On Joint Value Creation For Fast Moving Consumer Goods Industry

As a supply chain management strategy, Efficient Consumer Response (ECR) was generated from US food and grocery industry in 1992. The core meaning of ECR is the close cooperation between suppliers and retalers. Based on modern information technology and synchronizing process for manufacturing, operation and supply, both sides deeply work together and try to fulfill changeable consumers’ needs and wants within best times.Nowadays, getting more internationalized in market, China local retailers have to face the severe challenge from many top retailers world wide. At the same time, suppliers also have the same pressure from both outside and inside. How to survive in such a challenging environment and how to achieve sustainable development? The answer comes in ECR.Based on the background for ECR generation, firstly, author conducts a detail analysis about the current status of China fast moving consumer goods industry (FMCG), tries to find out all the challenges, difficulties and weakness. Secondly, through further study about customer value and customer satisfaction, author’s conclusion is the practice understanding in industy is the overall concern about cost and profit. Here comes into being the main logic clue for this paper. What needed? What to do? How to do? Based on theory analysis, author tried to answer these three questions by 1) analyzing the basic needs and wants of retailers and suppliers; 2) expaciating ECR model; 3) explaining practical operations about ECR conbined with working experiences.As a practice research, author hope this thesis can bring some new thinking, which could help when setting up a brand new cooperation model between local retailers and suppliers, and also hope ECR can finally be applied widely throughout all the FMCG industry. At the same time, having to admit that due to auther’s weakness, it should be improved furtherly on theory research part.