Supply Chain Management: The Integration of Logistics in Marketing

Based on the phenomenon of Efficient Consumer Response (ECR), the nature of Supply Chain Management (SCM) is conceptualized from a channel governance point of view. The theoretical typology of interfirm governance, introduced by Heide [1], is applied. While ECR gains in importance for retailing business practice, few theoretical explanations for the effectiveness of ECR and SCM have been put forth. It is suggested that there is a need to conceptually capture the fundamental structure and processes for an effective relationship to exist between manufacturers and resellers. This is even more so given the importance of logistics integration into the marketing realm of channel management to successfully implement these critical systems. Once the theoretical precepts are discussed, a preliminary case study is presented and is based primarily on qualitative research—both secondary and primary data—accumulated from various ECR working groups within Europe and with greater emphasis on the Austrian ECR initiative.