Importance of Supply Chain Management for FTSE Companies

Running head: FTSE-COMPANIES SUPPLY CHAIN MANAGEMENT
FTSE-COMPANIES SUPPLYCHAIN MANAGEMENT
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1FTSE-COMPANY SUPPLY CHAIN MANAGEMENT
Executive Summary
The aim of the study is to highlight the importance of supply chain management for the
success of the organizations. Marks & spencer which once was a famous retail company in
UK faced many issues relating to supply chain management such as – they needed to upgrade
their supply chain management, risk management was poor, poor relationship with the
suppliers and their inability to meet the changing needs of the organization. The company has
taken many steps in order to overcome these challenges such as they have upgraded their
logistics and others. There deployment activities for enhancing competitive advantages are
also given.

2FTSE-COMPANY SUPPLY CHAIN MANAGEMENT
Table of Contents
Introduction................................................................................................................................3
Contemporary problems and challenges faced by the M&S......................................................3
Risk management...................................................................................................................3
Poor relationship with supplier..............................................................................................4
Inability to meet the changing demands and preferences of the customers...........................5
Marks and Spencer’s need an up gradation of their supply chain..........................................5
Critical analysis of M&K’s operational deployment of supply chain strategy..........................9
Transportation......................................................................................................................10
Inventory/ warehousing........................................................................................................11
Resource rescheduling.........................................................................................................11
Data flow activities..............................................................................................................12
Conclusion................................................................................................................................12
References................................................................................................................................13

3FTSE-COMPANY SUPPLY CHAIN MANAGEMENT
Introduction
Supply chain management involves managing the flow of goods and services from a
point of origin to a point of consumption (Christopher 2016). SCM involves designing,
planning, monitoring and controlling the activities of supply chain creating a proper balance
between the demands and supply, for creating value, for creating robust logistics and creation
of competitive infrastructure. Supply chain management plays a very important role in
determining the profits of the organization (Monczka et al. 2015). Marks and spencer is a
multinational leader retailer company dealing in sales of luxury goods, clothes and home
products but its supply chain faces a few problems that is stopping the company from earning
higher sales in the market. It is also facing issues related to the logistics
(Marksandspencer.com. 2019). The aim of the study will highlight the problems faced by the
organization relating to its supply chain management, how the organization manages its
supply chain and a supply chain strategy of the organization that will help to provide efficient
customer service and sustainability.
Contemporary problems and challenges faced by the M&S
Risk management
Risk management involves identifying and evaluating the risk followed by proper use
of resources to reduce the chances of happening of any uncertain activity with those resources
(Brindley 2017). Risk management can be of different types such as financial risks, natural
disasters and others. It is a very important part of the supply chain management and
according risk the risk needs to be shared by all the partners according to their manufacturing
capacity but during recession Marks and spencer failed to share the risks of its suppliers (Fan
and Stevenson 2018). In fact, Mark and Spencer is one of those companies, which focuses on