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Logistics and Supply Chain Management: Principles, Processes, and Competitiveness in Mark and Spencer

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This report discusses the principles and processes of logistics and supply chain management, and how it helps the competitiveness of Mark and Spencer. It covers the concept of logistics and supply chain management, key principles and processes, and issues associated with the development of supply chain strategy. The interrelationships between supply chain and other areas of an organisation are also discussed.

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Logistics and Supply
Chain Management

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Table of Contents
Logistics and Supply Chain Management.......................................................................................1
INTRODUCTION ........................................................................................................................1
MAIN BODY ...............................................................................................................................1
What is deliver sequence management ?................................................................................1
Key Principles of supply chain : ..........................................................................................2
Key process of supply chain :-...............................................................................................3
How Provision and supply chain direction helps the competitiveness of an industry :- ..4
Issues associated with the development of supply chain strategy :...................................5
Interrelationships between supply chain and other areas of an organisation considering their
importance to the success of a business.................................................................................8
CONCLUSION ...........................................................................................................................10
References:.....................................................................................................................................10
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INTRODUCTION
Logistics management and supply chain management are the part of each other that
plans, implements and controls the economic flow and retention of goods, services and related
details from the point of beginning to the mark of consumption to meet users needs.
Whereas, supply chain management is the carry off the entire manufacture flow of a goods
or offers which includes the end to end process of making goods (.Ding, and Jie, 2021). This
report is based on Mark and Spencer it is UK based company deals in Food products, house
hold goods and clothing . They manufactured their own good in order to serve in the market
place. It was founded in 1942 by Thomas mark and Michele Spencer. This report will cover
the concept of logistics and supply chain management and principles of supply network and its
process. Further it will explain that how LSCM helps the competitiveness of an organisation
with the issues associated with the development of distribution chain planning. In last it
will make clear the interrelation between both the concept.
MAIN BODY
What is deliver sequence management ?
It is the integrated process oriented strategy making and managing of the flow of
products, details and funds worldwide the whole value and supply chain from the buyers to
the raw material providers. It comprehend the strategy and administration of all actions
included in source and procurement, exchange and all logistics management actions.
Essentially, it also considers skilfulness and cooperate with others channels partners, which
can be providers (, Wamba, . and Queiroz, 2020). Intermediaries and users. To raise
economic system profitability, companies utilised to separate the various work steps
between their workers. Global organization divide the various tasks in the value chain
amongst each other. The companies can manufacture more quickly and reasonable in
comparison of rivals company. These business needs closer relationships closer cooperation
and a more intensive exchange of details.
Here are some major functions of supply chain management :
1. consumers relation Management - continuous concentration on end buyer needs
to satisfy the growing users needs and assures a high degree of flexibility.
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2. plasticity and need emplacement industry - constant value deduction and resource
utilisation across all levels of the value chain.
3. Synchronisation of provision and petition - growing the adaptability and
improvement ability of the supply chain.
Key Principles of supply chain :
The following section will presents the summary of principle of distribution network
which is relevant to the present business surroundings:
1. Implement supply network to user requirements - Both concern and distribution
person are educated to concentrate on users demands. In extent to determine buyer
better, individual divide users into various segments . M&S, divide their users in a
manner by utilising the strategy ABC analysis that groups purchaser on the basis of
sales volume and profitability. It can done by offers, enterprise and business
channels (.Brinch, 2018.).
2. Produce logistics network - When company divide the purchaser on the basis of
needs, the person might have to customize various varied logistics networks to serve
various segment. This belief doesn't control true for all conditions.
3. bring into line demand planning across supply series - These practitioners are
taught to share demand data with trading individuals so nobody has to hold
unnecessary inventory. This principle manages correct details and informations. But in
reality only M&S, is actively sharing demand data to trading partners. If company
create demand forecast on the basis of consumer level, utilising the own earlier
gathered data is more correct than using POS data company get from retailers.
4. Improve IT that support multi level decision making :- This is the standard that
stands the test of clip. Simply, don't subcontract the core ability more details about
outsourcing can be found from the info explicit. In case M&S, they must process
re technology is something that the person have to action before IT assignment. This
will tool the management to understand about process inadequacy then the concern
can identify what kind of technology that person actually required (Bag, Viktorovich,
Sahu, and Sahu, 2020).
5. Global prospective :- Because of this ease with which details can be shared and
items can be transported reasonably to global areas. Every business today
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functions in a international economy. The M&S, must understand that how firm is
reliant on global forces to supply inputs and generates output demand. In addition
the management must consider the competition on a world wide scale.
6. Risk management :- Whenever high performance exceptions are combined with
intricate technology and a reliance in global area users and providers, chaos will cress
into the supply chain. Numerous variables exist and unmeasurable things can be
wrong. Whereas stability is essential to ensures that supply conducts smoothly, risk
management is necessary to avoid or reduce the costs associated with dealing with the
unexpected uncertainty management.
Key process of supply chain :-
It draws seriously from the areas of operations managing, logistics, acquistaion and
information technology and strives for an incorporated approach. The study in this include
resource based view and many others. The building blocks of supply chain adminiostration
are strategic planning, needs satisfaction, opportunity, manufacturing and many others. Some of
these are listed in below :
1. Strategic planning process :- It considers the design judgment and improvement of
the provider of the supply chain exemplary utilised in the planning application. All
part of the distribution channels like as locations, transit way resources and goods
are designed to execute planning on the basis of this network. In case of M&S, the
company implements this strategy to outline the goods in order to provide them in
market place it is mandatory to design the structure goods before serving them in
market place.
2. Demand planning process :- It includes forecasting, life cycle planing, promotion
planing and many others. These all are interlinked with each other this can be created
in using various methods like statistical methods, it can develop through using
applied maths and the total performance can be determine through forecast accuracy
analytics. In relation of M&S, the company must forecast the demand through various
techniques like research and development tools that gather a relevant source from the
market place (.Marić, and Opazo-Basáez, , 2019).
3. Sourcing planning process :- It includes protection stock planning, supply system
planning informant and arrangement planning, client cooperation and supplier
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cooperation. It determines providers who will procure goods and services to meet
planned real wants in the most economical and efficient way. There are some
benchmarks that providers requires to fulfil thus assuring the concern to deliver
quality goods to the customers. For M&S, it is important to have a minimum
supplier lead time which will assist stocks theory. As well as in the case of non
decay able bang-up the provider quoted metal must be lower than the figure of days
by when stock list reaches at zero, hence leads to no loss in income.
4. Procurement process :- According to the preferences of the buyers the company will
act all actions link with transformation of raw material to the final goods. Actions
such as gathering, testing and packing occurs at this factors of supply chain
management. Feedback from buyers makes a win win condition for M&S and buyers
as for the company it is developing their production operations constantly.
5. Delivering process :- It is also another mandatory factors of supply chain which is
involving to non stop and squints with the users. It has a particular endeavour in
variety meat and provision services. To have a seamless delivery the firm uses
various charges like road, air and many others .
6. Return process :- It is a post delivery customer support process that is
associated with all types of returned goods, it is also known as reserve logistics. It
is one of the least crucial components of supply chain management to reduce
possible worsening of relationship with users. On the other side this procedure
gives the similar course of activity for the concern towards its supplier of human
action for the concern towards its provider. The concern returns the low quality,
refractive, experied or extravagant raw material to the providers.
How Provision and supply chain direction helps the competitiveness of an industry :-
These are the arteries of current globalize economy, they control it the worldwide
trade flows that capable planetary mercantilism. It have involved to indicate the growth
difficulty of universal trade highly competitory, super linked and modifying rapidly
surrounding. This has lead to greater readying of cooperative partnerships, constantly
participating beginning and off support , making elongated webs that embrace assorted
stallholders, instance, this have distort into current multi that facilitates more effective trade
between companies, regions and nations (Lai, 2019).
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Leading border industries now consider supply chain to be planned as a business enabler
as a income and as varied. Many businessman now finish as per the distribution chain
ability as much as on their actual goods. Due to this enclose every individual activity that
getting goods to customers, it touches that big majority of activities with in and across a
industry. Globalised company to customers, the current strategic thoughts is that supply
chain is the business. As well as growing trend in current years is the presence of supply
chain management is becoming standing goods on the executed agenda.
In current era all are connected typically. This is more and more documented as a
key source of rivals benefits and distinguish. Organisation strive to make powerful supply
chains that make them to get their goods to market faster, more efficient and more
economically in comparison of rivals. For many companies specifically those in high tech,
consumers physics, medicine and fresh produce time to market and effectual supply
channels are particularly attainable components and therefore supply chain management
competency and ability are drive rivalry benefits. In this M&S, there are exciting and
germinate synergies the supply chain and marketing functions each of them both a action
discipline and professional as gathered this become the principle business person for
industry in the current era. Taking the broadcast perspective of the two disciplines of the
two actions these functions together embrace all of the mission and critical business
activities of a company with information technology, human resource and finance playing
crucially supporting roles (Jia, and Wang, 2019).
With marketing comprising the marketing principles and supply chain management
encompassing the five functioning activities of plan source make delivering and return, then
logistics be the point of roundabout and junction the important relation between the deliver
function of distribution network and the purpose of marketing. This concept drives
competitive advantage for the business, the ecosystem also makes strong hurdles to finish
against the whole system of freedom complements and supplier that from the chain.
Issues associated with the development of supply chain strategy :
This concept enables supply distribution management to path the motion of the raw
material required to make goods, utilise record stages to cut down value and synchronised
supply with users demand. Effective supplying business network also assist company in
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avoiding manufacturing breakage domain in which they are dependent on a single
provider. It consist some challenges which are elaborated in below:
1. Globalization :- It presents several issues to business and organization to reduce
the cost across the distribution network are moving industrialized operations to
countries which offers lesser labour value. low taxes and many others. For M&S,
outsourcing manufacturing includes not only a individual nations but various nations
for assorted parts of the goods. Whereas outsourcing not only extends geographical
region or else its typically the supply chain. They have expand or manage fast
delivery lead clip to users which they want to have their goods on schedule despite
the growth difficulty in the production delivery network. They also have manage
real time visibility to their operation cycle from raw material to complete goods to
guarantee of their developed procedure (. Agarwal, Kant, and Shankar, 2019).
2. Fast changing markets place :- user behaviour is effected by trend, cultural, private
and psychological components that are rapidly changing by technology. Digitalisation
is making new stress for users to confirm during keeping pressure on enterprises to
utilise these sources of details to respond to modifying preferences in order to stay
interesting and relevant. This brings with it supply chain management challenges to
keep up with the latest culture and creative by establishing new goods during
having their whole production costs low due to understand will not last for a long
time. This understand will not for a long instance. It also wants a flexible
organization chain that can be used for production other goods and for upcoming
assignments. M&S must be asking if they have all of the information to make
planning decisions to speech situation created by fast changing markets. The
continuous creativity necessity by fast altering markets also agency industry will
have to anticipated wants for new goods. Industry requires to make and
continually uphold and that can respond wants and operational wants.
3. Quality and observance - It influence consumer action, social media light the
essential of having advanced choice goods as per to research runs by marketers,
reading views , comments and feedbacks is the top social media actions that attracts
online shopping attitudes (Rebs, Brandenburg, and Seuring, 2019.) . Furthermore
digital stage has not only grow consumers anticipate of goods choice, but also
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causes by goods reminds. Thus, company are under growth stress to make
advanced attribute to make high quality goods and to make them continuously.
M&S, requires to ensure that they meet regional and global regulatory benchmarks
in production, business and transport of their goods. As well as from having quality
management and safety tests. Company are needed to make conformity statement
such as allowed license and authorization which can overcome supply chain
management .
4. Competent personnel - It has become a issue to find endowment interested and
ablaze about this outlines of activities. Organization employed in this field must have
an perceptive about the regulations and rules required. In context of M&S, it is
compulsory to have a good relation with the providers so that they feel valued and
maintain a good supply network in the market place.
5. Unexpected delays :- Making of physical and goods may be simple but the
delivery may not always be complete whole on time specially with the time varied
and a mixture of transport time frames when goods are beginning from varied
nations delays are very common. In relation of M&S, the company faces this issue in
the company as they get delay because of late delivery system that impacts the
business operations (Rehman Khan, . and Yu, 2019) .
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Interrelationships between supply chain and other areas of an organisation considering their
importance to the success of a business
Supply chain management plays an important role in organisation as it helps in managing
the flow of goods and services from raw materials to final products. There are four basic
components of supply chain management that helps in running supply chain process in effective
and efficient manner such as procurement, distribution, operations and integration. The motive of
supply chain management is to design and implement the most efficient and effective supply
chain process (Davé, Dotson, and Stoddard, , 2018). It plays an important role for enhancing the
performance and success of organisation by improving the customer satisfaction and reducing
the cost of doing business. Marks and Spencer also have strong supply chain management team
that have a strong negotiating power to get the best products and rates in the shortest time
possible. The supply chain management helps in improving the overall planning and efficiency
of operations and also reduce the inventory cost. Through effective supply chain management,
company can enhance the product flow through accurate sales and demand forecasting (Hong,
Zhang and Ding, 2018). The logistic department of Marks and Spencer plays a vital role in
supply chain management as it helps in aligning the complex pattern of transportation and traffic,
import and export operations, inventory management, shipping and receiving, production
planning, purchasing and customer service. Supply chain management of Marks and Spencer
also contribute to the growth of business by offering new products and services, allowing for
quick movement into mew geographic and meeting ever changing customer expectations.
Supply chain management and human resource management
Supply chain management has a strong relationship with human resource management as
they identify the right talent for completing the process of supply chain management in effective
and efficient manner. The HR team of Marks and Spencer focuses on identifying the contract
workers, external stakeholders and freelancers who may involved in supply chain management
process . The supply chain management is evolving rapidly but usually company face lack of
qualified professionals who manages the end of end working of supply chain activities. HR
focuses on hiring the right talent who have an ability to complete the task in supply chain
management. The human resource department of Marks and Spencer monitors the department of
supply chain in order to fill the vacant job position. They also If the supply chain management of
organisation is adopting cloud management or any other software, it is the responsibility of
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human resource management to organise training and development activity for employees in
order to train supply chain management workforce.
Supply chain management and marketing management
The supply chain management and marketing management of Marks and Spencer have
strong understanding and interconnected with each other in order to run the business activities in
effective and smooth manner. When both the departments are linked together they can
effectively supply the products that are promoted by marketers. The marketing management of
Marks and Spencer recognise the need of customer and supply chain management helps in
delivering those customer needs . Both the management of Marks and Spencer focuses on
avoiding stock-outs from promotions. The marketing department set up promotion activity due to
it is important for them to communicate with supply chain managers so that they can prevent
stock-outs. Supply chain management includes various consideration in order to prevent stock-
outs such as forecasting accuracy, safety stock utilisation and fast resupply logistic capabilities.
Marketers of Marks and Spencer focuses on delivering right message in advertisements
regarding thinks like product quality in order to attract and retain customers.
Supply chain management and finance management
Supply chain management and finance management are also connected to each other as
in order to produce the products and service in effective manner, it is necessary to have strong
financial resources. The finance department focuses on reducing the cost by optimally designing
financial flows within chain. Finance department and supply chain department works together in
order to expose potential risks and enabling executable and optimised plans. They also focuses
on driving sustainable cost reduction and enhance the profitable growth through mature planning
models (Schumann-Bölsche, 2018). The finance department of Marks and Spencer brings
stability and flexibility in supply chains by bringing the lowest cost of capital.
Supply chain management and operations management
Supply chain management and operation management also interrelate with each other as
they ad value to business, generate revue and also support more efficient processes of company.
The supply chain manager of Marks and Spencer spends their time for negotiating contracts and
also evaluate suppliers whereas operation manager focuses on planning and overseeing the daily
process and activities (Salamai, and et., al., 2018,).. The activities of supply chain management
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includes obtaining materials and delivering products whereas operation management focuses on
concerning with what happens inside the business.
CONCLUSION
It is being concluded from the above information that supply chain management plays a vital
role for improving the productivity and performance of business. The supply chain management
of organisation focuses on improving the quality control and also keep yup with the demand of
customer. They ensures that their customer feel satisfied with the products ad services of brand.
Supply chain management plays a various roles in company as they forecast the demand for
materials or products, create supply plans to ensure availability of raw materials and also
evaluate suppliers and determines the effectiveness of multiplier supplier strategies. There are
various issues which are faced by supply chain management, it is necessary to overcome those
challenges in order to run the supply chain process in smooth manner. Supply chain management
has strong relationships with other areas of organisation due to which they collectively work
together in order to achieve the goals and objective of business. They also focuses on managing
activities related to purchasing, warehousing and inventory control and also analyse the
inventories to determine the effectiveness of multiple supplier strategies. Thus, for the success of
organisation, it is essential to have strong team, of supply chain management that contribute their
best efforts in producing high quality of products to customer.
References:
Books and Journals
Bag, S., Viktorovich, D.A., Sahu, A.K. and Sahu, A.K., 2020. Barriers to adoption of blockchain
technology in green supply chain management. Journal of Global Operations and
Strategic Sourcing.
Brinch, M., 2018. Understanding the value of big data in supply chain management and its
business processes: Towards a conceptual framework. International Journal of
Operations & Production Management.
Davé, D.S., Dotson, M.J. and Stoddard, J.E., 2018. Consumer awareness of supply chain flows in
relation to consumer perceptions of value-added by supply chain management.
International Journal of Logistics Systems and Management, 31(3), pp.387-401.
Ding, M.J. and Jie, F., 2021. The moderating effect of Guanxi on supply chain competencies of
logistics firms in China. International Journal of Logistics Research and Applications,
24(4), pp.407-425.
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Kshetri, N., 2018. 1 Blockchain’s roles in meeting key supply chain management objectives.
International Journal of Information Management, 39, pp.80-89.
Lai, J., 2019, September. Research on cross-border E-commerce logistics supply under block
chain. In 2019 International Conference on Computer Network, Electronic and
Automation (ICCNEA) (pp. 214-218). IEEE.
Le, P.L., Elmughrabi, W., Dao, T.M. and Chaabane, A., 2020. Present focuses and future
directions of decision-making in construction supply chain management: a systematic
review. International Journal of Construction Management, 20(5), pp.490-509.
Moyano-Fuentes, J.,and et., al., 2020. Extending lean management along the supply chain:
impact on efficiency. Journal of Manufacturing Technology Management.
Orji, I.J., Kusi-Sarpong, S. and Gupta, H., 2020. The critical success factors of using social
media for supply chain social sustainability in the freight logistics industry.
International Journal of Production Research, 58(5), pp.1522-1539.
Rebs, T., Brandenburg, M. and Seuring, S., 2019. System dynamics modeling for sustainable
supply chain management: A literature review and systems thinking approach. Journal
of cleaner production, 208, pp.1265-1280.
Rehman Khan, S.A. and Yu, Z., 2019. Key Issues in Logistics and Supply Chain. In Strategic
Supply Chain Management (pp. 23-37). Springer, Cham.
Salamai, A., and et., al., 2018, December. Risk identification-based association rule mining for
supply chain big data. In International Conference on Security, Privacy and Anonymity
in Computation, Communication and Storage (pp. 219-228). Springer, Cham.
Schumann-Bölsche, D., 2018. Information technology in humanitarian logistics and supply chain
management. In The Palgrave Handbook of Humanitarian Logistics and Supply Chain
Management (pp. 567-590). Palgrave Macmillan, London.
Wagner, S.M., 2021. Startups in the supply chain ecosystem: an organizing framework and
research opportunities. International Journal of Physical Distribution & Logistics
Management.
Wamba, S.F. and Queiroz, M.M., 2020. Blockchain in the operations and supply chain
management: Benefits, challenges and future research opportunities. International
Journal of Information Management, 52, p.102064.
Wamba, S.F. and Queiroz, M.M., 2020. Blockchain in the operations and supply chain
management: Benefits, challenges and future research opportunities. International
Journal of Information Management, 52, p.102064.
Wang, S. and Qu, X., 2019. Blockchain applications in shipping, transportation, logistics, and
supply chain. In Smart transportation systems 2019 (pp. 225-231). Springer, Singapore.
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