Operations and Service Management: A Case Study of Marks & Spencer

This report discusses the operational practices of Marks & Spencer and their impact on the efficiency and performance of the firm. It covers the supply chain management of the company, the role of technology in supply chain management, and supporting functions linked to operational management. The report also includes an overview of the company, its USP, and its global operations.

Operations and
service management

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Overview of the company..........................................................................................................3
Supply chain management of Marks & Spencer....................................................................4
Impact of Supply Change Management in regards to efficiency..........................................4
Role of Technology in Supply Chain Management................................................................6
Supporting functions of Supply Chain Management.............................................................7
CONCLUSION................................................................................................................................9

INTRODUCTION
Operations management can be well-defined as one of the utmost organizational practices they
use to create maximum efficiency and effectiveness within a company. The foremost task of the
company's operations division is to renovate raw materials into final products in a highly
operative way to rise productivity and sustainability (Li and et. al., 2021). Operations and service
management assists in managing the company's operations and controls effectively. Managing
the operation of a service includes recognizing the needs of the target customer, managing the
tasks to provide the service, achieving the goals, and considering improving the quality of
service. Effective and well-organized service operational management helps companies to
manage labour costs and achieve high level of customer satisfaction. Marks & Spencer Plc is
taken into consideration for the completion of this report which is a British multinational
clothing brand based in London, England. The company's supply chain administration manages
and regulate all the numerous actions that Marks & Spencer needs to deliver goods and services
to the consumers. The following report is paid focus on the operational practice regulated by the
chosen organization and their impact on the efficiency as well as performance of the firm. In
addition to this, this report also will consider the role of technologies in the overall procedure
and what supporting functions are linked to the operation management practice which assist in
the ensuring the company success.
MAIN BODY
Overview of the company
Marks & Spencer (M & S) is a world-known apparels brand in the fashion industry. The
respective company was founded in 1884 in Leeds, England and the M & S headquarter are
situated in the London, England. The company was founded by Michael Mark and Thomas
Spencer and known for its high-quality clothing offered to consumers. The respective firm
operates its apparel services globally, with over 1500 stores and online distribution all across the
globe. In addition to this, more than 80,000 dedicated staff members work for the corporation in
a very collaborative manner in all divisions and functions which are controlled by the company
management (Sabharwal, Rathore and Agrawal, 2022). The USP (Unique Selling Product) of the
company's is that they offer limited but stylish and elegant clothing made from high quality
fabrics at a very reasonable price. The respective firm is listed on the London Stock Exchange

(LSE) and is part of the FTSE250 Index. These shares are trade in the stock market as MKS. The
organization operates with an operating profit of over € 250 million euros.
Supply chain management of Marks & Spencer
A supply chain is basically an organized arrangement of individuals, stores, events,
resources and information needed to bring a final product within the reach of consumer. The
manager of the supply chain management is responsible for managing the supply flow that a
business regulates to retailers and stores (Rösler, Osterrieder and Friedli, 2021). Once the
product and services are formed and available for sale in the market, supply chain management
will be applied to additional functions and consumer will be able to purchase these goods. This
management played a very important role and this is very vital for the enterprise for several
reasons which are discussed below: -
 Network Design: - Supply chain management assist to design the appropriate supply -
chain network, by taking into account target audience, transportation facilities,
demographics of customers, availability of the labour in the region and many more. An
effective and adequate supply-chain network will help companies not only in decreasing
the costs but also help in to reach to the client’s market in a very effective manner
 Improving financial position: -The financial condition of the company is also enhanced
as well as improves by the supply chain management. Creating value through this
management process improves the profitability, minimize the fixed cost and increasing
cash flow. The procedure of the supply chain management reduces or eliminate the
additional cost which is associated with delivering goods and services and improves the
company's profit margin. By creating an effectual network plan assist in eliminating the
need for additional physical assets such as facilities, warehousing, and transportation.
 Improved customer service: - By getting closer to the target audience in the competitive
marketplace, improved and more efficient approaches as well as tactics can be developed
by the management in order to meet their customers' needs (Guo and et. al., 2021). When
the customer's requirements are met, it improves the satisfaction level of the consumer
Therefore, well-organized supply chain management leads to improved customer
satisfaction and improved client service.

Impact of Supply Change Management in regards to efficiency
 Increased profitability: - The main effect of supply chain management is that, this
improves the company's profit margin. This result is reflected, in the delivery of the final
product to the customer by removing additional and non-essential cost which is
associated with the company's processes (Zhou and et. al.,2022). Management increases
profitability by choosing appropriate and efficient means of transportation, acquiring
fixed asset locations, and remove the additional workers as well as cost. the efforts which
are made by the management of the Marks and Spencer can be seen in reducing product
supply costs and improving business profitability. Therefore, the increase in extra profits
will support Marks & Spencer's overall growth.
 Improved customer targeting: - by utilizing the right supply chain and the effective
locations of the outlets in the market, the company representatives can efficiently target
consumers. This result in that they can effectively determine the needs of the consumer,
what they expecting from the company and developing approaches to meet those needs.
Expanding strategic planning in order to meet the buyer needs is being considered as
another positive result for the organization (Hill, 2021). Improves the satisfaction level of
the customers are one of Marks & Spencer's main goals. Supply chain management
permits the management of the company to make the decisions about delivering the
cloths to the specific locations. As a result, it has become possible to deliver products that
matches the existing tastes of customers in the region which improved the company sales.
 Inventory management: - Supply chain management plays an important role in
handling a company's inventory in warehouses and the stores. The choice to have the
right warehouses and storage rooms will enhance the supply management of the
inventory in an organized and effectual manner. Decisions regarding to the location of
the warehouse include transportation availability, distance to the consumer market and
responsiveness. The best location for warehousing reduces shipping costs, improves
response times, and improves distance to retail markets. Efficient inventory management
will also provide consumers with specific preferred stock as a positive effort to meet the
current needs of their target audience. Warehouse management assist to maintain a
structured inventory sale ratio which may be referred as the amount of inventory being

sold and the amount of inventory remaining. Therefore, this ratio can be maintained with
the necessary adjustments.
 Transportation management: -Transportation is being considered as one of the most
important factors within the procedure of delivering goods to the buyer in the
marketplace. Transportation related to the delivery of finished goods from the
warehouses to the consumer includes road vehicles, rail, transportation and air
transportation (Udoro, 2022). These methods of transportation are used by the Marks and
Spencer in their delivery process. Effective transportation systems and nominal
transportation costs are the goals of the company's supply chain management team.
Transportation is also divided into two parts such as transportation form the company to
warehouses and from warehouses to outlets and stores. Due to the heavy weight and size
of the cargo, large transportation is needed to deliver the inventory to the warehouse, but
it is also possible to deliver the inventory to retailers via the road.
Role of Technology in Supply Chain Management
A crucial role is played by the technology in functioning the supply chain management.
This makes it more efficient to regulate the activities of the supply chain from production units to
the market of consumer. Technology is growing significantly to influence the practices of supply
chain and improve these activities of delivering goods to final consumer. Some of the aspects
that have a technical impact on the supply chain management has been mentioned below: -
 Forecasting current and future market trends: -it is very important for the
management of a company to understand the markets and market trends. Trends are
basically the preferences of individuals who are live in the society over a period of time.
These trends are changed in a very rapid manner (Barretiri and et. al., 2021). The trends
may be cultural, seasonal and preferences for a specific fashion lifestyle, and many other.
It is very important for the company management to know all the trends which are
running in the industry which make them able to offer its customers' favourite products.
This technology also give assistance to predict the upcoming trends and allow the Marks
and Spencer to develops consumer clothing accordingly.
 Data generation: - Technology assist the company management to process large
amounts of electronic data and overlook the sales and inventory. Paperless data is utilized
to analyse the past inventory sales and consumer demand for products. The efficiency of

collecting the data for analysis helps companies to prepare for future situations. For
example, if an area buys a large collection of Marks & Spencer's winter collections, the
corporation can do the inventory adjustments which needed to meet customer demand
and eliminates the supply shortages (Kaur and Lashkari, 2021). As the technology has
been increases day by day the consumer start searching or exploring the goods over the
Internet. This helps the company management to determine the present market trends and
the products which are in demand. In addition to this, this technology assist in creating
business growth opportunities in efficient ways.
 Evolution of supply chain management software: - The introduction of innovation and
advanced software in supply chain management, result in enhancing the productivity of
supply chain operations. The software give assistance in order to analyse the different
types of aspects and the collection of market data in a simple and easy way by avoiding
the complexity lies in the procedure (Ahmad and et. al.,2021). All the element of the
supply chain management can be analysed together in order to eliminate the future
deviations and create suitable approaches. The ideal software management is needed by
the firm which give assistance to them to quickly calculate electronic data, access the
market information, maintain logistics, and support relationships with the customer.
Technology is considered the key to attain the growth in the corporate world
Supporting functions of Supply Chain Management
Supply-chain management provides an organization with multiple benefits by improving the
procedures for several support functions in an organization's activities and practices. These
support features have been discussed below: -
 Purchasing: -As an essential support feature, supply chain management is considered as
purchase. This function is regulated in managing the raw materials before the company's
process of manufacturing. In relation to the Marks & Spencer, the raw materials for
apparel include fabrics, dyes, machinery, chemicals and consumables. Pre-supplying of
these raw materials in adequate and sustained quantities is also the main responsibility of
supply chain management (van Maasakkers, 2021). Effectual collaboration with the
suppliers of raw material is controlled by the company's management. Delays in
organizing the raw material result in delaying production departments in producing the

mandatory units within a set time. Proper quality as well as quantity play an important
part in editing the raw materials that a firm need. Marks and Spencer utilize high value as
well as quality of raw materials to provide good product units that is improved by the
company's supply chain management. Therefore, the purchasing function of the
respective organization is boosted by the supply chain management division.
 Resource Management: -Within the operational functions of the Marks and Spencer the
supply chain management is extremely important from the stage of production to the
delivery of the finished products and the acquisition of the market knowledge. With the
help of the efforts which are done by the supply unit of the organisation not only the
proper but effective utilization of the resources can be done or maintained (Ali and
Kannan, 2022). For example, like, demand forecasting and information form the market
result in managing the all the resources with accurate and appropriate resource utilization.
By proper utilization and organizing the resources, the company management can
effectively analyse the future needs which can be used to eliminate the uncertainties in
the operations of company. In the operations of the firm, talented as well skilled
workforce played a very crucial role that is why they are being considered as the most
vital elements of the resource management. Effective utilization of resources and
effectual management of this result in decreasing the cost.
 Information System: -Market intelligence on consumer needs and preferences is act as a
global asset for the enterprise. This information comprises of preferences of buyer, recent
trends in the market, cultural aspects etc. In relation to the Marks and Spencer, if they get
the appropriate market information then this enhances future opportunities for the
company which help the company management to prepare the necessary resources and
raw materials in advance (Luo, Zhou and Lev, 2022). With the help of this information,
they can easily need and thinking of the consumer and produced the goods by taking into
account consumer preferences.
Relevancy of these supporting functions with reference to organisations success
Supply chain management proves its requirement at each and every step in a company's
activities, from raw material procurement at the organizational stage to information provision
during the management process. At every stage of the business's operations, there are some gaps
that can be improved by extra support for supply chain management. Improvements within these

functions may be simply recognized by management representatives. In addition to this, these
improvements will enable Marks and Spencer operations to deliver products that meet the needs
of their customers. By delivering within a certain period of time, customer's trust is developed
for the company (Ali and et. al., 2021). Add value to the firm by improving waste management
system, increasing profitability, reducing costs, and delivering on time.
CONCLUSION
From the above report it has been concluded that supply chain management as a operational
management practice give assistance to the company management to grow in the market. This
practice has its presence in each section of the firm and effective involvement of the supply chain
management result in giving additional values to the company functions. This report also
concluded that technology plays a very important role in the development of the entire
functioning of the company. The development in the supply chain management with the help of
technology provide additional support to the firm function.

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