Marks Spencer Report
Marks Spencer Report
ASSIGNMENT
Table of Content
Executive Summary
Supply Chain Management is the management of the upstream and downstream value-added
flow of material or goods which includes the supply of raw materials, processes of making
products and its warehousing, Inventory management and transportation from source origin to
final delivery of goods and material through interconnected networks or channels. The whole
mechanism is integrated with design, planning, execution, control, logistics and monitoring of
supply chain activities. Supply Chain Management is a crucial issue in todays competitive
business world because profitability and profit growth of a company significantly depends on the
effective and efficient of supply chain management.
In context to Marks & Spencer, the globalization of markets had offered plenty of opportunities
for increased sales, but Marks & Spencer did not apply the same logic to its supply chain
management, which is the key factor for sale decline in domestic and international markets in the
era of 90s. Contrarily, its competitors were able to procure cheaper products from their global
supply chains. These competitors and their suppliers with shorter production cycles were often
less costly and quick response to the leading fashion houses of that era. Whereas M&S products
was no longer perceived to provide sufficient competitive advantage. M&S supply chain was no
longer responsive for the needs of modern global retailing due to consumers increasingly
fashion-conscious in their pursuit of the latest products and designs. In short, M&S was not able
to compete in a rapidly developing global marketplace.
Marks & Spencer revitalized their own-brand by reducing operating cost and formalizing ethical
supply chain management policy. The mission of the company is to build the sustainable
business, through consistent, profitable growth to make sure that customer and stakeholders can
always trust in companys products. Marks and Spencer succeeded by implementing the right
thing in the right way.
1. Introduction:
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Marks business was started by Michael Marks in 1884.[10]He came with the strategy to sell
durable merchandise at economical price. In 1894, Thomas Spencer joined the business as a joint
partner and later form a public limited company named as Marks and Spencer in 1926.[10] The
company was involved in selling cloth and food production. Thus, M&S known as matured
brand. Till 1998, the business expanded to almost 500 Marks & Spencer stores around the world.
After 1999, Marks and Spencer faced sales decline, profit collapse and market share fall. Its
reputation was declined due to their attitude towards its worker. They also failed to manage
Supply Chain activities of national and international markets and in response to what competitors
were doing to remain in competitive market. They were facing critical problems in the marketing
strategy for international market penetration as well as supply chain management.
The main aim of Marks & Spencer is to become the worlds most sustainable major retailer by
2015. M&S introduced a strategy of 100-point plan to improve the sustainability of the business
called Plan A. M&S has upgraded the existing system by heavy investment that was conducive to
support their business. To achieve this goal Marks and Spencer has introduced a new strategy in
2007.They have promoted the speed of activities to enhance the level of M&S business. The
overall goal aimed to create long-term sustainable value and growth in market share. M&S have
focused on three priorities viz. restructuring their supply chain, implementing new IT systems
and driving operational execution. These changes were succeeded to deliver long-term benefits
such as improved cost efficiency, driving sales growth and created a platform for future
profitable growth.
2. Mission:
Mission of Marks and Spencer focuses primarily on quality, which is the most important priority
of the company. M&S wants providing new quality products in the areas of cloths, food, home
and financial services and offering really high quality goods at a very affordable price leading to
consumer receiving good value for money. [6]
3. Organisational goals
To increasee sales and market share in retailing
To continuee differentiation strategy by delivering freshness, quality and innovation
To become the worlds most sustainable major retailer by 2015[8]
3.
4.
5.
6.
7.
5. Pillars of Plan A:
Pillar 5.1. Climate change is aimed to reduce operational emission of carbon by 35% and
make operations carbon neutral.
Pillar 5.2. Waste is aimed to help customers reuse and recycle products and packaging of
M&S and reduce companys operational waste by 25% and construction waste by 50%
Pillar 5.3. Natural Resources is aimed to use of natural resources in companys operations
Pillar 5.4. Fair partnership is aimed to ensure workforce and communities benefit in our
supply chain
Pillar 5.5. Health and wellbeing is aimed to promote healthy life style.[5]
All these activities shape brand image of the Marks and Spencer selling good quality
products taking into account persistence of environmental issues.
increasingly using websites to browse and look for a bargain. The retailers could offer the
customers a free delivery in order to keep them online dealing. [2]
8. Customers perception
Marks & Spencer value the loyalty and confidence of customers and focus on striving to offer
the highest possible standards of quality, value, innovation and service. They will always try to
ensure that their labelling, advertising and other forms of communication are clear, honest and
accurate. M&S endeavour to meet customer satisfaction by anticipating different trends such as
stylish, flattering and smart. They welcome recognising and analyse the customers perception
through research with high level of customer requirements. They keep performing strongly as
consumers turn to trusted brands like M&S for impact on their financial services. [7]
9.6 Validation
All production sites are regularly visited by Marks and Spencers own staff. Auditing processes
have a different focus depending upon where suppliers are based. Within the UK, most of the
emphasis is placed upon food safety and health standards. The audits of suppliers activities are
carried out through both the buyers and product technologists on site visits. The environment
department inputs into these audit mechanisms on various product issues where leading edge
environmental practice is expected. Audit mechanisms can be risk-based or product based. For
example, in the clothing area there is an environmental code of practice. Product technologists
carry out occasional quality checks against this code of practice on products by testing samples
from suppliers.
For some global suppliers, the audit mechanism is used to assess health, safety, environmental,
social and ethical criteria. Audits are determined for targeted high risk suppliers. As part of the
ETI membership, Marks and Spencer also works with an external consultancy to carry out some
audits on the companys behalf. Some audits are also done in conjunction with NGOs to reflect
transparency with ETI principles.
Where suppliers are found to be in breach of Marks and Spencers global sourcing principles,
actions may be taken:
"..Suppliers must not only apply these principles at all times, but must also be able to show
they are doing so. We will take action against suppliers who do not comply, which may involve
cancelling our orders and ceasing to trade."
Marks and Spencers Global Sourcing Principles, 2000).
9.7 Success Factors
Although the approach to supply chain sustainability within the Marks and Spencer is not
completely integrated between the various functions of environmental, health and safety and
ethical criteria, there are several organizational structures that make this company work well.
Technologists i.e. experts in particular product lines, who in turn are influenced by the
environment department, support buyers in each business unit. They are the key information
holders that can influence environmental standards introduction and improvement. Specific
product buyers and product technologists handle only those product suppliers; there is in-depth
product knowledge in dealing with those suppliers on hand. This leads to better suppliercustomer relationships, as well as a good understanding of sustainable product standards.
The Environment department is a corporate function rather than a business function. This means
they can influence all business areas. They also have input into the Corporate Social
Responsibility sub board, which feeds information into the PLC board and influences corporate
Marks and Spencer environmental policy. Standards for global sourcing are an embedded
process within the procurement process. Audits of production sites are undertaken on a regular
basis.[7]
10. Conclusion
1. In near future, it is possible that individual companies will not compete against
companies, but rather that entire supply chains will compete against other supply chains.
This will require whole supply chains to be tighter and have closer relationships. Adding
value through those chains would be a key feature of a successful supply chain
management approach.
2. SSCM managers are questioning if the current metrics used in supply chain management
are adequate to enable a shift towards the triple bottom line. They have suggested that
rather than present reduction of waste or percentage of on-time deliveries, metrics
should include the number of years that a company has remained a supplier to its
customer or the average life span of the customer base. Stable relationships with suppliers
building trust mechanisms will make supplier-customer influence easier.
3. Environmental management systems (EMS), such as ISO14001, can be a powerful tool
for incorporating environmental issues into supply chain management practices and
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11. Recommendations
Further research would be useful that would link all three triple-bottom line elements including
the financial aspects of operations. Other findings within the other research strands need to be
integrated with this research before methods to cascade sustainability through the supply chain
can be determined. There should be further research on development of business models of
successful supply chain management approaches e.g. what are the effects of applied tools and
approaches for the triple bottom line and what are the lessons learnt from successes and
weaknesses. There is a need for the development of a flexible portfolio of SSCM tools such as
strategic, tactical and operational, which are focused on the needs of different organizations.
These tools will need to be hard and soft. Hard tools e.g. SSCM performance measurement and
soft tools e.g. partnership, collaboration and networking methodologies.[7]
References:
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1- Lan Dayson (2009/10). Group Finance and Operations Director Fully year results [online]
available from <http://annualreport.marksandspencer.com/brand-and-marketplace/our-brand.aspx
>. [16th March, 2011].
2- M&S (2009). Quality worth every penny Annual report and financial statements [online]
available from <http://corporate.marksandspencer.com/file.axd?
pointerid=c25b7670e6e4420abd2403cb7a6149f4&versionid=c6167e6e5dc44b918eb9a277b921f
a23>. [16th March, 2011].
3- Retailed Gazette (2011). M&S to start work on new DC [online] available from <
http://www.retailgazette.co.uk/articles/ms-to-start-work-on-new- dc>. [16th March, 2011].
4-Marks and Spencer: How we do business Report 2010 [online] available from
<http://plana.marksandspencer.com/media/pdf/planA-2010.pdf> [11 March 2011]
5-Gyekye, L. (2010) Marks and Spencer's Plan A makes "good progress. Journal of Material
Recycling Week [online] available from <http://www.mrw.co.uk/marks-and-spencers-plan-amakes-good-progress-comment-update/3005441.article> [18 March 2011]
6- Grundy, T. (2004) Gurus on Business Strategy. London: Thorogood [online] available from
<http://up.m-e-c.biz/up/Mohcine/Book/Gurus%20on%20Business%20Strategy.pdf> [18 March
2011]
7-Supply Chain Strategy and Evaluation CASE STUDIES
Professor Martin Charter, Aleksandra Kielkiewicz-Young, Alex Young and Andrew Hughes
The Centre for Sustainable Design
[February 2001]
8-Grayson, D., Jin, Z., Lemon, M., Rodriquez, M.A., Slaughter, S., and Tay, S. (2008) A new
mindset for corporate sustainability [online] available from
<http://naomi.typepad.com/1000_cranes_blog/files/a_new_mindset_white_paper.pdf> [17 March
2011]
9-Heizer and Render ,Operations Management, 10e
10- A Short History of Marks & Spencer [online]
http://marksintime.marksandspencer.com/media/56669/short_history_of_m_s_for_w
ebsite.pdf
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