SUPPLY CHAIN MANAGEMENT

MARKS AND SPENCER

COMPANY : MARKS AND SPENCER

SUBMITTED BY: SUBMITTED TO:

PRIYANKA THUSOO MR.SATENDER

SHAIFALI RAWAT
RADHIKA AGRAWAL
SWAPNIL GIRI
PARIKSHIT SINGH
 INTRODUCTION
 Marks and Spencer  (also known as M&S) is a major British
multinational retailer headquartered in the city of Westminster, London.

 M&S was founded in 1884 by  Michael Marks  and Thomas Spencer in

Leeds. The company began to sell branded goods like Kellog’s
cornflakes in November 2008.

 It specialises in the selling of clothing, home products and luxury food

products.

 M&S currently has 959 stores across the U.K including 615 that only
sell food products.
• In 2007 Marks & Spencer (M&S) was the UK's largest clothing
retailer with a market share of 11.1%. It is listed on the 
London Stock Exchange and is a constituent of the 
FTSE 100 Index.

• Food sales accounted for 49.8% of its UK business and had a

market share of 4.3%.

• The group's international business accounted for 7.1% of

turnover and had grown to 219 franchise stores in 34 territories
worldwide as well as 8 wholly-owned stores in Hong Kong and 13
in the Republic of Ireland.
PULL EFFECT
 Pull: execution is initiated in response to a customer
order.
 M&S manages their supply chain with customer

requirements and origin of product.

E.g. of Pull EFFECT
 M & S are now giving discounts vouchers to M & S

store card holders to encourage them to make

additional purchases.
INFORMATION TECHNOLOGY OF
MARKS AND SPENCER
 IT supports M & S efficient
procurement.
 It has became a powerful selling channel.
 MARKS & SPENCER SIGN NEW
SUPPLY CHAIN IT DEAL
•Marks & Spencer (M&S) is overhauling its supply
chain, from distribution centres to stores.
•The retailer is implementing a range of systems from
JDA Software, in a bid to improve efficiency and stock
level management for its non-food business.
•M&S is implementing the Allocation, Demand,
Fulfilment and Size Scaling systems from JDA.
•The company, which operates over 1,000 stores in 40
countries, will use the systems to manage the supply of
standard goods up to high fashion items.
 M&S SUPPLY CHAIN STRATEGIES
 M&S have different supply chain strategies for different products. M&S
manages their supply chain with customer requirements and origin of
product.
 Company's logistics policy is also dependant on product origin.

2 approaches

Responsive Efficient
supply chain supply chain

 Responsive supply chain policy gives stress on high service levels and
customer reaction. The inventory locations are placed close to customer.
The reason is to continuous supply in case of sudden changes in
demand. Therefore supply chain needs to be sufficient flexible to
accommodate uncertainty.
 Efficient supply chain policy is to keep low level of inventory at retail
locations.
 This helps company to concentrate more on manufacturing and
allied functions making inventory cost less. Information flow is
quick from retailer to manufacturer.
 This manages supply chain by delivering high demand period with
adjustable lead time.
 Analysis of supply chain as whole to find delays in order to shorten
throughput time is the basis for Lean supply chain concept.
 DRIVERS OF SUPPLY CHAIN
PERFORMANCE :
Facilities:
 Facilities are key drivers of supply chain performance in terms of
responsiveness and efficiency. Location of each product production
facility is very different.
 For e.g.. responsive supply chain of French wine and the essential
color lipstick requires centralized distribution centers while efficient
supply chain of leather bag collection and abbey love seat require
comparatively lower inventory volume.
 With two big warehouses in Asia, Marks & Spencer was routinely
transporting thousands of tonnes of cargo across borders.
 Inventory:
 M&S has adopted different strategies for its different
product lines. M&S strategy for French wine and the
essential color lipstick is to locate large amount of
inventory close to the customer i.e. retail locations. In
contrast strategy for leather bag and abbey love seat is
reducing inventory by using efficient supply chain
management. This eliminates waste of excess stock for
leather bag and abbey love seat furniture.
 Transportation:
 Transportation has large impact on both
responsiveness and effectiveness. As M&S sourcing its
product from different locations its choice of
transportation mode is different for each product. Also
transportation mode and supply network is depending
on size and quantity of product ordered.
 For eg . shipment size of M&S products like French
wine, the essential lipstick, leather bag collection and
abbey love seat are different.
 Information :
  Food Stock Adjustment process did not meet Marks &
Spencer efficiency objectives of providing all users with the
information they required quickly enough.

 Food Stock Management (FSM) was developed to replace

the FSA, through greater use of technology and eliminated
the use of paper and manual recording procedures. 

 Later , Hardware included the use of new user-friendly

hand-held terminals (HHTs), which recorded and
transmitted bar code information to a windows-based PC
and a keyboard held in each Marks & Spencer store. 

 Information is transmitted to a store processor before being

sent to Head Office through a wider area network,
connecting computers on different sites via modems to a
centralized information system providing access to
managers. 
 Sourcing :
 Responsible sourcing :Each year M&S sells around 3 billion
items, produced by nearly 3,000 suppliers. Their suppliers source
raw materials from around 20,000 farms and 100,000
smallholders.
 Thus their entire supply chain involves around 2 million people.
 To supply its more than 1,330 stores in 17 countries, British retailer
Marks & Spencer relies on a supply chain of factories spread around
the world. Increasingly, the retailer is looking to newer, cheaper
sourcing markets like Cambodia and Bangladesh .
 It plans to in source future development of its multichannel
business.
 M&S logistics director said ,“This previously would be outsourced,
but as we are looking to improve innovation and speed to market,
we believe insourcing will help us deliver this.”
 As a result, the retailer is creating a team of around 50 software
engineers, based in London, to work on new channel applications
and creative add-ons to M&S’s core platform.
 For areas such as strategy and innovation, the benefits of
insourcing outweigh any cost advantage of looking outside the
organization.
 Pricing :
 M&S started with its price points very low until the 1st
world war.
 Later,M&S started paying emphasis on quality of the
product rather than prices.
 Even in troubled times for the UK high street, the
retailer took what appeared to many in the media to
be two foolhardy decisions. First, it was determined
to maintain its price premium when competitors were
slashing their prices to the bone to survive. Secondly,
it decided to continue to invest in brand-building
advertising to justify that premium.
 M&S URGES THE NATION TO ‘SPEND IT WELL’, its
new bran positioning.
 The determination of Marks & Spencer to hold fast to
its message of quality through both the good and bad
times reinforced the brand’s premium positioning and
its profitability.
 CO-ORDINATION
 Yes there is coordination in the supply chain of marks and
spencers.
 The common objectives for Marks & Spencer and its suppliers are
to :-
 increse the saes
 minimise stocks
 minimise commitment
 maximise flexibility.

 The key to doing this has been to manage, or integrate, the supply
chain so that both Marks & Spencer and its suppliers are working
towards the same business objectives.
 Communication is therefore important between all parts of the
chain to ensure that the differences between demand from
customers and the suppliers’ ability to meet such demand can be
minimised.
Developing supplier relationships:
 Working closely with a limited number of suppliers involves
helping each of them to meet their own business aspirations, but
not at the expense of other key suppliers. The starting point for
managing the supply chain is to coordinate Marks & Spencer’s
business strategy with each of the suppliers’ business plans.

Supplier strategy:
 M&S plans a business strategy with suppliers which helps to
provide a clearer brief for all parties involved in the process of
supply chain.
 Constant meetings and regular communications in the supply chain
ensure that the information between the stages is not distorted.
 MARKS AND SPENCER’S ONLINE
PRESENCE :
 Marks & Spencer unveils 23.4% rise in online sales as it takes action to boost
Falling profits.

 The clothing to home wares and food retailer, which sells online and through
stores in the UK and Europe, said that mobile continued to be its fastest-
growing sales channel, while shoppers increasingly use more than one
device when they buy.

 But while online sales grew by 23.4% over the year, growth slowed to 8.2%.

 Marks and Spencer’s activity on various sites has clearly defined roles.
Facebook hold customer reviews and community building and Twitter is
used for promotional activity, notifications and for instant customer
feedback.
 ONLINE
PRESENCE
 M&S
Now
Available
ONLINE !!!!!
 DISTRIBUTION CENTRES OF
M&S
 Britain’s biggest retailers with an ever-growing dotcom business, it
involves a massive behind-the-scenes operation and some of the most
advance technologies in the industry.

 Fast, flexible and agile, our Castle Donington Distribution Centre

plays a vital part in our ability to deliver what our customers want
when they need it .
 Distributor Storage with
Carrier Delivery for online products

Warehouse Storage

Information flow
Product Flow
COMPETITIVE ADVANTAGE OF
SUPPLY CHAIN
 To achieve competitive advantage supply chain operations
must be efficient and customer satisfaction is achieved by
lowest operation cost. The cost is associated with supply chain
management process and technology. Supply Chain
Management has three levels of activities that different parts
of the company will focus on: strategic, tactical and
operational.

 Supply chain at Strategic level: At this level, company will

integrate its corporate strategy with supply chain policy.
Decision are made regarding products category,
manufacturing locations and plant capacity, supplier
partnerships, sales and distribution channel selections.
DEVELOPMENT OF A DISTRIBUTION
MODEL

1. Improve customer satisfaction through reviewing

the current operations of Marks and Spencer (M&S)
and examining its distribution system

2. Develop a new inter-store stock transfer model to

shorten this service process, reduce operation costs,
and improve the productivity of supply chain. 

3. Provide a user-friendly interface and user manual

for M&S reference that it can enhance the inter-store
stock transfer service.
FUTURE PLANS FOR MODIFICATION IN
DISTRIBUTION SYSTEM OF MARKS AND
SPENCER

Recommendation
1. Shorten the time between stock arrived and
customer notification
2. Establishing of feedback survey about inter-store
stock transfer service
3. Stores Inventory redistribution
4. Enhancing operation efficiency 
5. Increasing the awareness on the importance of
inter-store stock transfer
6. Provide an economic routing system
THANKYOU !!!