In the mid 1980s, P&G launched several projects to improve supply logistics and
reduce channel inventory by implementing a process that eventually was called
continuous replenishment process (CRP). In 1985, P&G tested this new approach to
channel logistics for replenishment ordering with a moderate-size grocery chain. This test
involved using EDI to transmit data daily from the retailer to P&G on warehouse product
shipments to each store. P&G then determined the quantity of products to be shipped to
the retailer’s warehouse by using shipment information rather than retailer-generated
orders. The results of this initial experiment were impressive in inventory reductions,
service improvements, and labour savings for the retailer (Grean and Shaw, 2002
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