Marks Spencer Report

8/19/2019 Marks Spencer Report

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SUPPLY CHAIN AND LOGISTICTS

ASSIGNMENT

Prepared by : Syed Muhammad FarrukhAzeem

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Executive Summary. . . .. . . . .. . . ... . .. . . .. . . . . . . . . . . . . . . . .. . . .. . . . . . . 4

1. Introduction . . . . . . . . . .. . . .. .. . .. . . . . . . . . . . . . . . . .. . . .. . . . . . . . . …5

2. Mission . . . . . . . . . .. . . .. . . . . . . . . . . . . .. . . . .. . . .. . . . . . . . . . . . . . .. . . . 5

3. Organisational goals . .. . . . . . . . . . . . . .. . . . .. . . .. . . . . . . . . . . . . . . . . .. .5

4. Sustainability Su!!ly "#ain Strategy. . . . . . . . . . . . . . .. . . .. . . . . .. . 5

5. $illars o% $lan &. . . . . . . . . .. . . .. . . . . . . . . . . . . .. . . . .. . . .. . . . . . . . . . . '

'. (evival o% Su!!ly "#ain ). . . . . . . . .. . . .. . . . . . . . . . . . . . . . . . .. .. . . . . '

'.1 Success%ul Ste!s %or Su!!ly "#ain……………………………. . ..'

*. +rivers %or Sustainability o% Su!!ly "#ain Management. . . . . . . . .*

7.1 ‘Brand Trust’. . . . . . . . .. . . .. . . . . . . . . . . . . . . . . . . . . ... . . . . . . . . . . .

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7.2 Operatn! "#st. . . . . . . . .. . . .. . . . . . . . . . . . . . . . . . . . . ... . . . . . . . . .

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*.3 Managing $roduct ,ines. . . . . . . . . . . . . . . . . ... . . . . . . . . . . ... . . . . . *

*.4 "or!orate $ublic (is- . . . . .. . . . . . . .. . . ... . . . . . . . . . . ... . . . . . . . . *

*.5 Et#ical Investment unds. . . .. . . . . . . . . . . ... . . . . . . . . . . ... .. . . . . . .. .*

/. "ustomers !erce!tion. . . .. . . . . . . . . . . ... . . . . . . . . . . ... . . . . . . . . . . . . /

0. SS"M a!!roac#es and tools Metrics "riteria Measures. . .. . . . . . . . . ./

0.1 "ommunicating "om!any sustainability !olicy and values. . .. . . . . . . . . ../

0.2 $reuali%ication "riteria . . .. . . . . . . . . . . ... . . . . . . . ... . . . . . . . ... . . . ./

0.3 $urc#asing S!eci%ications . . .. . . . . . . . . . . . . . . . ... . . . . . . . ... . . ... . . 0

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Table of Content


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0.4 Internal raining . . .. . . . . . . . . . . . . . . . . ... . . . . . . . ... . . . . . . . ... . ... .0

0.5 Su!!lier "ustomer $artners#i! and &lliances . . .. . . . . . . . . . . ... . . . .0

0.' 6alidation. . .. . . . . . . . . . . ... . . . . . . ... . . . . . . . ... . . . . . . . ... . . . . .0

0.* Success actors. . .. . . . . . . . . . . ... . . . . . . . ... . . . . . . . . . . . ... . . . .17

17. "onclusion. . . .. . . . . . . . . . . ... . . . . . . . . . . ... . . . . . . . . .. . . . . . . . 17

11. (ecommendations. . . .. . . . . . . . . . . ... . . . . . . . . . . ... . . . . .. . . . . 11

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Executive Summary

Su!!ly "#ain Management is t#e management o% t#e u!stream and do8nstream valueadded

%lo8 o% material or goods 8#ic# includes t#e su!!ly o% ra8 materials !rocesses o% ma-ing

!roducts and it9s 8are#ousing Inventory management and trans!ortation %rom source origin to

%inal delivery o% goods and material t#roug# interconnected net8or-s or c#annels. #e 8#ole

mec#anism is integrated 8it# design !lanning execution control logistics and monitoring o%

su!!ly c#ain activities. Su!!ly "#ain Management is a crucial issue in today9s com!etitive

business 8orld because !ro%itability and !ro%it gro8t# o% a com!any signi%icantly de!ends on t#e

e%%ective and e%%icient o% su!!ly c#ain management.

In context to Mar-s : S!encer t#e globali;ation o% mar-ets #ad o%%ered !lenty o% o!!ortunities

%or increased sales but Mar-s : S!encer did not a!!ly t#e same logic to its su!!ly c#ain

management 8#ic# is t#e -ey %actor %or sale decline in domestic and international mar-ets in t#e

era o% 07s. "ontrarily its com!etitors 8ere able to !rocure c#ea!er !roducts %rom t#eir global

su!!ly c#ains. #ese com!etitors and t#eir su!!liers 8it# s#orter !roduction cycles 8ere o%ten

less costly and uic- res!onse to t#e leading %as#ion #ouses o% t#at era.


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Mar-s business 8as started by Mic#ael Mar-s in 1//4.=17>?e came 8it# t#e strategy to sell

durable merc#andise at economical !rice. In 1/04 #omas S!encer @oined t#e business as a @oint

!artner and later %orm a !ublic limited com!any named as Mar-s and S!encer in 102'.=17> #e

com!any 8as involved in selling clot# and %ood !roduction. #us M:S -no8n as matured

brand. ill 100/ t#e business ex!anded to almost 577 Mar-s : S!encer stores around t#e 8orld.

&%ter 1000, Mar-s and S!encer %aced sales decline !ro%it colla!se and mar-et s#are %all. Its

re!utation 8as declined due to t#eir attitude to8ards its 8or-er. #ey also %ailed to manage

Su!!ly "#ain activities o% national and international mar-ets and in res!onse to 8#at com!etitors

8ere doing to remain in com!etitive mar-et. #ey 8ere %acing critical !roblems in t#e mar-eting

strategy %or international mar-et !enetration as 8ell as su!!ly c#ain management.

#e main aim o% Mar-s : S!encer is to become t#e 8orld9s most sustainable ma@or retailer by2715. M:S introduced a strategy o% 177!oint !lan to im!rove t#e sustainability o% t#e business

called $lan &. M:S #as u!graded t#e existing system by #eavy investment t#at 8as conducive to

su!!ort t#eir business. o ac#ieve t#is goal Mar-s and S!encer #as introduced a ne8 strategy in

277*.#ey #ave !romoted t#e s!eed o% activities to en#ance t#e level o% M:S business. #e

overall goal aimed to create longterm sustainable value and gro8t# in mar-et s#are. M:S #ave%ocused on t#ree !riorities vi;. restructuring t#eir su!!ly c#ain im!lementing ne8 I systems

and driving o!erational execution. #ese c#anges 8ere succeeded to deliver longterm bene%itssuc# as im!roved cost e%%iciency driving sales gro8t# and created a !lat%orm %or %uture

!ro%itable gro8t#.

2. Mission:Mission o% Mar-s and S!encer %ocuses !rimarily on uality 8#ic# is t#e most im!ortant !riority

o% t#e com!any. M:S 8ants !roviding ne8 uality !roducts in t#e areas o% clot#s %ood #ome

and %inancial services and o%%ering really #ig# uality goods at a very a%%ordable !rice leading to

consumer receiving good value %or money. ='>

3. Organisational goalso increasee sales and mar-et s#are in retailingo continuee di%%erentiation strategy by delivering %res#ness uality and innovation

o become t#e 8orld9s most sustainable ma@or retailer by 2715=/>

4. Sustainability- Suly !"ain Strategy

#e main aim o% Mar-s : S!encer is to Abe t#e 8orld9s most sustainable ma@or retailer by 2715.o gain t#is in 277* Mar-s and S!encer #as introduced a ne8 strategy called $lan &. $lan &

Strategy is 177!oint !lan to im!rove t#e sustainability o% t#e business. =4>

Moreover com!any also !ays attention to t#e !ersistence o% clot#es covered by Mar-s : S!encer ec#nologies. "om!any s!ends as muc# time and energy to !re!are and test t#eir %ood.

Im!ortant goal on t#at level o% business is to !roduce #ealt#y %ood. o ac#ieve it Mar-s :

S!encer is 8or-ing on eliminating #arm%ul %ats excess salt and sugar %rom its %ood !reservatives.

#e main ob@ectives o% Mar-s : S!encer set in $lan & included)1. reducing t#e amount o% 8aste generated by %actories and stores o% Mar-s : S!encer

2. !rotecting natural resources o% t#e eart# t#roug# greater use o% recycled materials

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3. !romoting o% #ealt#y li%estyles

4. !romoting and a!!lying t#e !rinci!les o% airtrade

5. introducing greater diversity o% organic !roducts'. creating ne8 @obs

*. t#e use o% tec#nology to eliminate t#e adverse climatic c#anges and !rotection o% animal

rig#ts#e issues #andled t#roug# $lan & lies into t#ree categories.

1. #eole: its o8n em!loyees and t#ose em!loyed in its su!!ly c#ain

2. roducts) 8it# an em!#asis on !roducing #ig# uality value %or money goods t#at #ave !ositive environmental and social bene%its.

3. community: recognising t#e com!any9s role in #el!ing to create and maintain good

!laces 8it#in 8#ic# to 8or- and live.=5>

$. #illars o% #lan &:

#illar $.1. "limate c#ange is aimed to reduce o!erational emission o% carbon by 35B and

ma-e o!erations carbon neutral.#illar $.2.

&ll t#ese activities s#a!e brand image o% t#e Mar-s and S!encer selling good uality

!roducts ta-ing into account !ersistence o% environmental issues.

'. (evival o% Suly !"ain :

'.1 Success%ul Stes %or Suly !"ain+elivered D35 m o% cost saving


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increasingly using 8ebsites to bro8se and loo- %or a bargain. #e retailers could o%%er t#e

customers a %ree delivery in order to -ee! t#em online dealing. =2>

). *rivers %or Sustainability o% Suly !"ain Management

#e -ey interests o% Mar-s and S!encer %or introducing sustainability into t#eir business can be outlined in %ive main areas. &ll t#ese issues #ave an in%luence on #o8 sustainability 8it#in

t#e su!!ly c#ain #as been develo!ed and managed by Mar-s and S!encer.

).1 +,rand rust

&s Mar-s and S!encer stoc-s only o8nbrand goods t#ere may be an ex!ectation %romt#e consumer t#at all goods con%orm to similar criteria on issues suc# as sa%ety uality

environmental and social im!act. Ensuring Arand rust9 means ca!turing and addressing

consumer concern across all !roduct ranges. Arand rust9 is one o% t#e -ey drivers %or

Mar-s and S!encer9s interest in sustainability. Arand rust9 is an evaluation by Mar-s

and S!encer o% 8#at t#e consumer 8ants %rom a #ig#street retailer.

).2 Oerating !ost

&not#er -ey driver %or sustainability is to cut t#e costs associated 8it# t#e su!!ly c#ain.

O!erating cost drives as!ects o% sustainability 8it#in t#e su!!ly c#ain. &n exam!le is t#eclot#ing business 8#ere %lexibility in t#e su!!ly c#ain is being ac#ieved in t#e mar-et

%rom identi%ication o% %as#ion to contract tender s!eci%ication etc.

).3 Managing #roduct /ines

Many s!eci%ic !roduct lines need to #ave stricter or di%%erent s!eci%ications according tocustomer demands. Fey exam!les o% t#is #ave been t#e introduction o% organic range !roducts in %oods as 8ell as labeling %or t#e domestic consumer to enable in%ormed

c#oice. #e consumer needs to be reassured in t#ese areas t#at t#ese !roducts meet

certain standards.

).4 !ororate #ublic (is0

#e Mar-s and S!encer su!!ly c#ain is #ig#ly trans!arent to t#e consumer mar-et

t#roug# t#e CGO and !ressure grou! c#annels.

).$ Et"ical Investment unds

#ere is a gro8ing interest %rom investment %und management in develo!ing assurances

o% "or!orate Social (es!onsibility "S( %rom t#e invested organi;ations.It is clear t#at Mar-s and S!encer #as been driven strongly by t#e consumer mar-et

to8ards introducing sustainability. #e t8o -ey areas #ave been consumer and !ublic

!ressure and mar-et evaluation.=*>

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. !ustomers ercetion

Mar-s : S!encer value t#e loyalty and con%idence o% customers and %ocus on striving to o%%er t#e #ig#est !ossible standards o% uality value innovation and service. #ey 8ill al8ays try to

ensure t#at t#eir labelling advertising and ot#er %orms o% communication are clear #onest and

accurate. M:S endeavour to meet customer satis%action by antici!ating di%%erent trends suc# asstylis# %lattering and smart. #ey 8elcome recognising and analyse t#e customers9 !erce!tion

t#roug# researc# 8it# #ig# level o% customer9 reuirements. #ey -ee! !er%orming strongly as

consumers turn to trusted brands li-e M:S %or im!act on t#eir %inancial services. =*>

. SS!M aroac"es and tools Metrics5 !riteria5 Measures6

o meet t#e needs o% sustainability Mar-s and S!encer #as a!!lied a number o% tools and

strategies 8it#in t#e su!!ly c#ain. #ese management tools include t#e a!!lication o%

environmental criteria et#ical criteria as 8ell as sa%ety standards issues as covered by)

.1 !ommunicating !omany sustainability olicy and values &t a !olicy level Mar-s and S!encer #as develo!ed t#e Global Sourcing $rinci!les. In

accordance 8it# t#ese !rinci!les Mar-s and S!encer directly contract %or bot# goods and

services H to ensure 8#at Mar-s and S!encer believe to be acce!table standards as 8ell as -ee!im!roving t#ose standards. Mar-s and S!encer en%orce t#ese !rinci!les %irmly among su!!liers

and encourage t#eir im!lementation %urt#er do8n t#e su!!ly c#ain. #ese !rinci!les

include)

a


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.3 #urc"asing Seci%ications

#e direct inter%ace bet8een t#e su!!lier and Mar-s and S!encer is managed t#roug# t#e !roduct

buyers 8it#in eac# business unit. uyers are su!!orted by !roduct tec#nologists %rom t#eir o8n business unit 8#o advise on s!eci%ication issues %or !roducts and t#e !rocess o% !roduction.


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or some global su!!liers t#e audit mec#anism is used to assess #ealt# sa%ety environmental

social and et#ical criteria. &udits are determined %or targeted A#ig# ris-9 su!!liers. &s !art o% t#e

EI members#i! Mar-s and S!encer also 8or-s 8it# an external consultancy to carry out someaudits on t#e com!any9s be#al%. Some audits are also done in con@unction 8it# CGO9s to re%lect

trans!arency 8it# EI !rinci!les.

19. !onclusion1. In near %uture it is !ossible t#at individual com!anies 8ill not com!ete against

com!anies but rat#er t#at entire su!!ly c#ains 8ill com!ete against ot#er su!!ly c#ains.

#is 8ill reuire 8#ole su!!ly c#ains to be tig#ter and #ave closer relations#i!s. &ddingvalue t#roug# t#ose c#ains 8ould be a -ey %eature o% a success%ul su!!ly c#ain

management a!!roac#.

2. SS"M managers are uestioning i% t#e current metrics used in su!!ly c#ain management

are adeuate to enable a s#i%t to8ards t#e Atri!le bottom line.9 #ey #ave suggested t#atrat#er t#an !resent Areduction o% 8aste9 or A!ercentage o% ontime deliveries9 metrics

s#ould include t#e number o% years t#at a com!any #as remained a su!!lier to its

customer or t#e average li%e s!an o% t#e customer base. Stable relations#i!s 8it# su!!liers building trust mec#anisms 8ill ma-e su!!liercustomer in%luence easier.

3. Environmental management systems EMS suc# as ISO14771 can be a !o8er%ul tool

%or incor!orating environmental issues into su!!ly c#ain management !ractices and

1*


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1 ,an +ayson 2770K17. Group Finance and Operations Director Fully year results =online>

available %rom L#tt!)KKannualre!ort.mar-sands!encer.comKbrandandmar-et!laceKourbrand.as!x

. =1't# Marc# 2711>.

2 M:S 2770. uality worth every penny !nnual report and inancial statements =online>

available %rom L#tt!)KKcor!orate.mar-sands!encer.comK%ile.axdN !ointeridc25b*'*7e'e4427abd2473cb*a'140%4:versionidc'1'*e'e5dc44b01/eb0a2**b021%

a23. =1't# Marc# 2711>.

3 (etailed Ga;ette 2711. #$S to start work on new D% =online> available %rom L

#tt!)KK888.retailga;ette.co.u-KarticlesKmstostart8or-onne8 dc. =1't# Marc# 2711>.

4Mar-s and S!encer) ?o8 8e do business (e!ort 2717 =online> available %romL#tt!)KK!lana.mar-sands!encer.comKmediaK!d%K!lan&2717.!d% =11 Marc# 2711>

5Gye-ye ,. 2717 AMar-s and S!encerPs $lan & ma-es Qgood !rogressR9. &ournal o #aterial

'ecycling Week =online> available %rom L#tt!)KK888.mr8.co.u-Kmar-sands!encers!lanama-esgood!rogresscommentu!dateK3775441.article =1/ Marc# 2711>

' Grundy . 2774 Gurus on usiness Strategy. ,ondon) #orogood =online> available %rom

L#tt!)KKu!.mec.bi;Ku!KMo#cineKoo-KGurusB27onB27usinessB27Strategy.!d% =1/ Marc#

2711>

*Su!!ly "#ain Strategy and Evaluation "&SE S+IES$ro%essor Martin "#arter &le-sandra Fiel-ie8ic;oung &lex oung and &ndre8 ?ug#es

#e "entre %or Sustainable +esign

=ebruary 2771>

/Grayson +. Tin U. ,emon M. (odriue; M.&. Slaug#ter S. and ay S. 277/ ! new

mindset or corporate sustainability =online> available %rom

L#tt!)KKnaomi.ty!e!ad.comK1777VcranesVblogK%ilesKaVne8VmindsetV8#iteV!a!er.!d% =1* Marc#2711>

0?ei;er and (ender O!erations Management 17e1*+ A Sh#rt ,st#ry #- Marks Spen/er 0#nne

http:33marksntme.marksandspen/er./#m3meda3&''')3sh#rt4hst#ry4#-4m4s4-#r45

ebste.pd-

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