CoreProcess

In 1998, the pan-European grocery industry body, Efficient Consumer Response Europe,  set about establishing a methodology to identify the profit impact of retailer and manufacturer supply c hain initiatives. The resulting report, Assessing the Profit Impact of ECR, draws heavily on rigorous cost to serve analysis and introduces revenue into the equation to show true profit (gross margin, minus cost to serve).

One year later, Garry O’Sullivan, then Managing Director of Focus Information Logistics, led an Australian project to evaluate the Profit Impact of ECR in the Australian business context. The resulting publication from ECR Australasia, is called The Profit Impact of ECR.

In 2004, the Australian Food and Grocery Council asked Garry O’Sullivan to translate his years of experience in the application of the Profit Impact methodology into a guide book. The book would provide a kick-start for those wanting to understand the profit impact of their supply chain initiatives, through a cost to serve analysis.

Using Cost to Serve to Enable Effective Customer Engagement is now the most widely referenced cost to serve publication on the Web. The document provides a wealth of practical tips and questions to ask when planning and undertaking cost to serve analysis.

CoreProcess PIM is unique in fully implementing the Profit Impact of ECR methodology as a deployable, “every period” analysis and reporting solution.