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The grocery industry has in the 1990s developed a number of value innovations for the supply chain. Starting from the customer end of the supply chain, the innovation is category management, or systematic merchandizing (Buzzel and Ortmeyer, 1995). At the supplier end the innovation is replenishment, i.e. instead of waiting for the order, the supplier delivers according to consumption. With category management retailers started to systematically manage the products offered to the consumer. The objective was to maximize the profitability of retail space, while simultaneously improving the value for the customer. In practice this has meant that retailers do not let supplier promotions and new product introductions drive the assortment decision-making process. The other major innovation is replenishment, i.e. instead of waiting for the order, the supplier delivers according to consumption. The grocery industry realized that the easiest way to improve operational efficiency was to change retailer practices. Procter & Gamble, Campbell Soup and other leading suppliers in the grocery supply chain achieved significant cost reductions by encouraging customers to aggregate demand from many retail locations, and passing this information with minimal delay to the supplier (Fisher, 1997).