Adoption of efficient consumer response: The issue of mutuality

Abstract

The adoption of efficient consumer response (ECR) has been slow in many regions, despite its many potential benefits to supply chain participants through reduction of inventory level and operating costs. There has not been any well-developed theory that can explain this slow uptake. Argues that the inherent characteristics of ECR have actually created barriers to its own adoption. As an inter-organisational system (IOS), ECR adoption requires co-operation and trust between trading partners, which are unlikely to happen unless costs, benefits and risks of ECR implementation can be mutually shared. Shows, using a case study conducted within one supply chain, that an unequal distribution of cos..