Proponents of the so-called `Intelligent Supply Chain` methodology and practice behind e-commerce solution implementation, around the world, are saying the same things as those supporting the `Efficient Consumer Response` movement - that there cannot be any efficient consumer response without efficient enabling technology, an important part of which is e-commerce.
This is according to Frank Vivier, managing director of Destiny e-commerce, Datatec`s e-commerce solutions arm, and the local representative of GE Information Services (`GEIS`) global e-commerce products and services.
Vivier considers many of the essential tenets of both practices to be very similar, and, importantly, mutually synergistic.
Commenting on the recent Efficient Consumer Response Conference hosted by the South African Grocery Manufacturing Association, as well as the recent Retail Conference organised for the industry by Destiny, Vivier points out: "Both movements are customer-centric in their approach. Efficient Consumer Response and the formation of electroncially-linked trading partners in an Intelligent Supply Chain have the common goal of working together to fulfill consumer or customer wishes better, faster and as cost-effectively as possible," he maintains.
"However, as vital as it is, the similarities and synergies do not begin and end with a strong focus on the customer," he emphasises.
For effective roll-out or practical implementation to take place, Vivier points out that companies need to analyse and examine the supply and demand aspects of their businesses, and then ask the uncomfortable but necessary question, `what is missing`?
"The answer to this could indicate a need to update systems which are all about products and services and category management and not enough about relationship management," underlines Vivier.
"In a retail context, like the one addressed by the proponents of ECR, this would mean re-engineering one`s business in order to strategically focus in on the customers` needs. In the past, customers really had to put up with myriad supply chain inefficiencies. Now all that has changed. Someone down the road can do it better, quicker and in a more tailored way - unless you beat them to it."
At the specific request of ECR-SA and the GMA, global business consultants PricewaterhouseCoopers conducted Value Chain Analysis in the Retail Industry.
"The findings of this report reveal what we at Destiny e-commerce have maintained all along : South African businesses need to redefine themselves in the a `new age` value chain," Vivier said.
How can this be achieved?
"Essentially, through simplification of supply chain processes, building collaboration in the supply chain between partners through traditional or web-enabled EDI (`electronic data interchange`), and through an effective customer relationship management policy, which enthuses your customers about your products and services, effectively differentiating you from your competition."
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