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Adding ABC, ECR & EDI to distribution formula
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Magazine Article
Adding ABC, ECR & EDI to distribution formula
1996
Overview
Servicing retailers with high quality frozen foods means more than just having a warehouse and a fleet of trucks. It means developing sophisticated logistical programs designed to meet the needs of individual customers, as well as knowing the basics of ECR, EDI, and activity-based costing (ABC). In an interview, John Crown, president of Burris Retail Food Systems, and Elliott Friedman, director of new-business marketing for the Milford, Delaware-based company, discussed how to get the best return on retail data. Crown said that H. E. Butt and Publix are taking scanning information and putting together effective category management programs. Friedman agreed that chains that follow their lead, and get away from just looking at internal margins, will be the winners in the long run. This means reducing inventories at the warehouse level and focusing on turnover of product in display cases.
