Hammond Inc.supplies its retailers with handheld Crownlink electronic data interchange terminals.All of its retailers use these terminals to transmit merchandise orders to Hammond in Kansas City.Their inventory is always stocked as needed.Shipments are made daily as required by individual retailers.This is an example of a _____ system.

Question

Quizplus · Accepted Answer

Efficient consumer response (ECR) is a supply chain management strategy that utilizes technology and communication to improve efficiency in the entire supply chain. In this case, Hammond Inc. is using EDI terminals to connect retailers to their inventory system and ensure that inventory is always stocked as needed. The shipments made daily as required by individual retailers are also part of the ECR strategy, as it ensures that the products are delivered as quickly as possible to meet customer demand. Therefore, the system described in the question is an example of the efficient consumer response.