Observation

• Standardisation on issues such as EDI message format, Bar codes and article numbers is a prerequisite for many ECR improvement concepts,
• Currently capabilities impact how efficiently ECR processes can be performed and the pace at which these practices can be rolled-out across all products,
• Thus, companies must pay attention to these needs, both internally and with trading partners, and should not delay working together waiting for these technologies.

Typical Priorities

• Electronic Data Interchange (EDI) is needed to easily communicate and manage orders, deliver, invoices and payments, both within a company and between the company and its trading partners. EDI allows business partners to exchange vast of information with great speed and accuracy.
• Activity Based Costing (ABC) is an accounting methodology, which assigns costs to items on the basis of the activities they incur. The difference between ABC and more traditional accounting systems is that activities and not products or services are seen as the primary cause of costs. ABC provides insights into the sources of costs and the possible impact of different decisions.

< back to top >