Understanding the Diffusion of Efficient Consumer Response in Australia: A Survey Study

Efficient Consumer Response (ECR) is a grocery industry supply chain management strategy designed to make the industry more efficient and responsive. Although ECR originated in the US, the concept has been adopted in many regions. Despite the many potential benefits obtainable from ECR, however, many studies indicate that the ECR diffusion rate has been slow, which is attributable to a number of factors. To enrich the findings of the studies conducted in the US and Europe in this respect, this paper examines ECR adoption in Australia, which presents another unique case. For this purpose, a survey of the Australian grocery industry was conducted. The findings suggest that in Australia, ECR diffusion has also been slow. Differences in barriers, perceptions of ECR, and benefits experienced were discovered among different sub-groups within the retail industry, which affect their ECR involvement level, satisfaction level, and ultimately the ECR diffusion rate. These differences further suggest that manufacturers are largely passive followers of an ECR initiative led by retailers.