The use of category management practices to obtain a sustainable competitive advantage in the fastmovingconsumergoods industry

Despite massive efforts of suppliers and retailers in the fastmovingconsumergoods FMCG channel to adopt the efficient consumer response ECR practices, many of the expected benefits have not been realized. This study examines the history and implementation practices of ECR in the USA and in Germany and presents conceptual models that compare the likely outcomes when ECRbased category management practices are initiated either by the supplier or by the retailer channel partner. Combining the knowledge gained from a series of interviews with industry experts with their own ECR experiences, it is shown how a strategic competitive advantage can be realized through the combination of both supplier and retailer views and expertise in category management practices. The article concludes with an examination of barriers to implementation of category management plans and suggests ways to overcome these barriers.