Forecasts Improve with Scanner Data: A Swedish Grocery Supplier's Journey

FORECASTS IMPROVE WITH SCANNER DATA: A SWEDISH GROCERY SUPPLIER’S JOURNEY By Magnus Larsson Efficient Consumer Response approach works if every stakeholders collaborates and retailers provide access to their consumer demand data … expert system built in many forecast software substantially improves forecast accuracy … uses the case history of a Swedish grocery supplier. ECR (Efficient Consumer Response) is one of the most promising retail concepts. At the center of ECR is information transparency in the supply chain and the value of store (scanner/ consumer demand) data. The overall objective is that companies can serve consumers better, faster and at less cost by working together with trading partners. But the acceptance of this concept is very slow in the European grocery industry, which may be because companies have not yet fully grasped the value of it. This article investigates the value of store data for a supplier in forecasting the demand for its products. Using data from a Swedish supplier reveals that safety stock could be significantly reduced if the suppliers have access to store data. The benefits can be realized without large investments in IT systems or expert ...