Operation and Service Management Report for Marks & Spencer Plc

This report discusses the impact of supply chain management on the efficiency of Marks & Spencer Plc, the role of technology in supply chain management, and the supporting functions of supply chain management. It also provides an overview of the company and its operations.

Operation and Service
Management report

Table of Contents
INTRODUCTION...........................................................................................................................3
Overview of the company......................................................................................................3
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
References .....................................................................................................................................10

INTRODUCTION
Operations Management in an organisation is meant converting its raw materials into
final products and services with manpower and technology in the most efficient manner.
Operations management is organised in an organisation to improve efficiency, reduce cost of
production, and maximising profits. Operations management for services is comprised of
acknowledging the target customer's needs, management of tasks delivering the services,
fulfilment of objectives, and also considering improvement in service quality. Effective and
efficient service operations management will help the company in controlling the cost of labour
and accomplishing customer satisfaction. Marks & Spencer Plc is an British multinational
clothing brand originated and headquartered in London, United Kingdom. The Supply Chain
management of the company manages and regulates various activities required by Marks &
Spencer for delivering its products to the consumer. This assessment will acknowledge the
operation management regulated in the respective organisation and its impacts on efficiency of
the company. Furthermore, exploring the role of technology in the whole process and
opportunities to introduce new and efficient technologies(Bari and Park-Poaps, 2020).
Overview of the company
Marks & Spencer(M&S) is a well known clothing brand in the fashion industry globally.
It was established in year 1884 in Leeds, United Kingdom. M&S is headquartered in the city of
London, England. The company was named after last names of its co-founders Michael Mark
and Thomas Spencer. It is well known for the quality clothing offered to its customers. The
company is operating its clothing services worldwide with more than 1500 outlets and online
delivery globally. Furthermore, over 80,000 employees are working for the company in all the
departments and activities regulated by the company(Azzi, Chamoun and Sokhn, 2019). The
USP (Unique Selling Product) of the company is that it provides limited but stylish and classy
clothing with top quality fabric at lower prices. Marks & Spencer is listed on London Stock
Exchange(LSE) and also being a part of FTSE 250 index. These stocks are traded as MKS in
LSE. The company is operating with an operating income of over 250 million euros.
Supply chain management of Marks & Spencer
Supply Chain is meant by an organised system of people, outlets, activities, resources and
information required for supplying finished goods in reach of the customers. Supply Chain

management is the management of this flow of supply regulated by the company to its outlets
and stores. This management includes As soon as the goods are produced and ready to be sold in
market, the Supply Chain Management is applied in further activities so that customers can buy
those products. This management is essential to companies for various reasons which are as
follows:
 Designing network:- Supply Chain Management helps in designing the most suitable
supply chain network considering target markets, transportation facility, consumer
demographics, availability of workforce in that area, and other contexts. An efficient and
suitable supply network will result in reducing the cost indulged for the company as well
as appropriate reach to consumer market(Bhandari, 2018).
 Improvement of Financial Position:- The supply chain management process also
results in the improvement of the company's Financial health. Value added by this
management process involves increasing profitability, reducing fixed assets, and increase
in Cash flow. Supply Chain management process reduces cost incurred in supplying the
products and services which increases profit margin for the company. Developing a
efficient network plan will eliminate the requirements of extra Fixed assets such as
plants, warehouse, and transportation.
 Boosts Customer Service:- With a close reach to the target customers in the market, the
management can develop better and efficient strategies for fulfilling customer needs.
When customer needs are fulfilled it results in happy and satisfied customers. Therefore,
efficient Supply Chain Management turn out in increasing customer satisfaction and
boosts customer service.
Impact of Supply Change Management in regards to efficiency
 Increasing Profitability:- The major impact of Supply Chain Management is resulting in
improving profit margins of the company. This result is experienced in supplying the
final products to the consumer market by eliminating extra and inessential costs incurred
in company's procedures. Profitability is enhanced by management by acquiring suitable
and efficient transportation, location of Fixed Assets, terminating supplementary
manpower, etc. The outcomes of these efforts by management of M&S can be seen in
reduction of cost incurred in supplying the products and increasing profitability from the

operations. Therefore, increased additional profits promotes overall growth of Marks and
Spencer.
 Enhanced approach to customers:- With the appropriate supply chain and outlet
locations in the consumer market, representatives of the company will be able to
approach consumer efficiently. This approach supports accuracy in determining
consumer needs and developing strategies for fulfilling these needs. Amplifying strategic
planning to satisfy consumer needs is another favourable outcome for the company.
Happy and satisfied customer is one of the major objectives of Marks &
Spencer(Famiyeh, et. al.,2018). Supply Chain Management allows management of
company in decision making of supplying preferred clothing in a particular location.
Therefore, clothing could be supplied according to the current preference of consumers in
that particular area which results in improving current sales.
 Stock Management: Supply Chain Management plays a vital role in managing
company's stock at warehouses and particular stock stores. The decision of locating
appropriate warehouses and stockrooms will improve supply management of the required
stock in a systematic and efficient manner. Decision of location of warehouses includes
availability of transportation, distance from consumer markets, responsiveness, etc. The
most suitable location for a warehouse would reduce transportation cost, enhance
response time, distance from retail market. Efficient stock decisions also lead in
supplying particular preferred stock to consumers as positive efforts towards fulfilling
current demands of target customers. Stock management helps in maintaining a
structured inventory-to-sales ratio which is defined as how much stock is sold vs. stock
left to be sold. Hence, this ratio could be maintained by making necessary arrangements
for the same(Golini and Kalchschmidt, 2019).
 Transportation Management:- Transportation is the most necessary element in the
process of supplying products to the consumer market. Transportation in supplying the
final products to warehouses and consumer markets include Road transport vehicles,
Railways, Shipping, and Air transport. These modes of transport are regulated by M&S in
their supply procedures. Efficient transportation system and minimum cost of transport is
objective of Supple Chain Management team of the company. Transportation is also
classified into two parts as transport facilities to stock warehouses and another

transportation facilities from warehouses and dockyards to the retail stores and outlets.
Large transportation is required to supply stock to the warehouses due to heavy and bulk
load, while stock could be supplied from warehouses to retail through road
transport(Hedstrom, 2018).
Role of Technology in Supply Chain Management
Technology has been contributing major role in the functioning of Supply Chain
Management. It enhances efficiency in the regulations of supply chain activities from
manufacturing unit to consumer market. Technology has been impacting these practices and is
growing immensely in betterment of these activities of supplying products to consumers. There
are various factors technology impacts in the procedure of Supply chain management which are
as follows:
 Forecasting Current and Future Market Trends:- Understanding of market and
market trends is an essential need for the company's management. Trends are the
preference by the people of society over a period of time. These trends and preferences
keeps on changing consistently after few time. These trends could be cultural preferences,
seasonal clothing trends, preference over a particular clothing lifestyle, and many other
contexts. Being aware of these market trends in clothing industry leads company to
provide products of customer preference over that particular period of time(Huang and
Wang, 2020). Technology also helps in forecasting future upcoming trends and allows
M&S to develop clothings accordingly for the consumers.
 Data Generation:- Technology has helped management to work on massive electronic
data and keep a track record of sales and inventory. The paperless data is used to analyse
the sales of previous stock and demands of consumer for their products. Efficiency in
acquiring data to analyse would help company being ready for future circumstances. For
instance, if a location have been highly purchasing Marks & Spencer's winter collection
then the company could make necessary stock arrangements to fulfil consumer demand
and eliminate shortage of supply. Consumer searches over the internet also helps in
determining the current market trends and consumer demand for the company's products.
Furthermore, technology helps in providing opportunities for growth of the company in
various efficient manner.

 Advancement of Supply Chain Management Software:- Introducing new and
advanced software in Supply Chain Management has resulted in increasing productivity
of supply chain operations. These software supports analysis of various factors and
gathering market information in a easy and straightforward manner eliminating
complications in the procedure. All the aspects of Supply Chain Management could be
analysed together to avoid future deviations and develop appropriate strategies. An ideal
software demanded by management that helps in quick calculations of electronic data,
market information access, maintaining logistics, and supports customer relationship.
Technology is considered as secret of success in the corporate world and also an essential
need for growth of the company(Jen, et. al., 2020).
 Processing Order Digitally:- Technology invading and indulging into the operations of
supply chain management has introduced a system Digitally Order Process. Retail stores
and warehouses can process their orders with a digital application of requirement. This
Digital Processing system reduces time incurred in order process and increases efficiency
by allowing better time and inventory management. This system also reduces Cost
incurred for the company, as stores and warehouses can contact directly over this system
and does not need to be at the respective locations for processing order.
Supporting functions of Supply Chain Management
Supply Chain management is providing several benefits to companies in various
supporting functions in companies activities and practices by enhancing proceedings of these
functions. These supporting functions are as follows:
 Purchasing
The major supporting function Supply chain management is considered as Purchasing.
This function is regulated in organising raw materials prior to the manufacturing/production
process of the company. Raw materials for Marks & Spencer clothing are Fabrics, Dyes,
machinery, chemicals, auxiliaries, etc. Prior arrangements of these raw materials in a sufficient
and maintained quantity is also a major responsibility of Supply Chain Management. Efficient
coordination with the delivery sources and suppliers of raw materials is regulated by the
company's management. Delay in organising these raw materials will create a lag in the
production department in manufacturing required units in a assigned time(Pal, Shen and
Sandberg, 2019). Appropriate quality and quantity plays a major role in arranging the raw

materials required by the company. M&S uses quality raw materials to deliver standard product
units which is enhanced by the Supply Chain Management of the company. Therefore,
Purchasing function of M&S is strengthened by its Supply Chain Management department.
 Resource Management
Supply Chain Management has a vital presence in M&S's operations starting from
production phase to delivering final products and acquiring market knowledge. Proper and
efficient use of resources is preserved with the support of efforts raised by its Supply unit. For
instance, forecasting of demands and market information helps the company manage its
resources with accuracy and proper utilisation of resources. Management will be able to prepare
for future demands with appropriate organisation of resources to be used to eliminate future
deviations in company's operations. Skilled Manpower plays a huge role in company's operations
being the most essential and primary aspect of resource management. Efficient resource
management will result in reduction in cost incurred and a positive initiative towards
environment(Peng, Gao and Chen, 2020).
 Information System
Market Information of consumers demands and preference is an advantage in corporate
world. These information includes customer preference, market trends, seasonal changes,
cultural aspects, and many other contexts. Appropriate market information will intensify
upcoming future opportunities for M&S as it allows management to be prepared priorly with
required resources and raw materials. These information are used by a company to develop a
virtual consumer to understand the thought process of consumers behind their preference in
clothing industry. Thence, results in terminating the chances of losing opportunities for the
company to cope up with future demands. M&S also holds a opportunity of introducing new
designs to regulate its own market trend considering consumer preferences(Qiao, Choi and
Wang, 2019).
Relevancy of these supporting functions with reference to organisations success
Supply Chain Management has proven its importance in almost every step of company's
operations from arrangement of raw materials in organising phase to provide information in
Controlling process. Every phase of company's operations has some loopholes which are
enhanced with the additional support of Supply Chain Management. Improvement in these
activities could be easily experienced by management representatives. Furthermore, these

improvements empowers M&S's operations in delivering their products for fulfilling desired
demands of customers. Executing the supply in assigned duration of time will allow company to
maintain customer belief with company and its clothing products. It generates additional values
for company by upgrading waste management, increasing profitability, reducing costs, and
ensuring timely delivery(Sarkar and Chung, 2020). Companies with complex Supply Chain will
lack the additional values provided by a smooth Supply Chain Management in a company. Well
maintained stock and inventory-to-sales could be regulated easily with the use of appropriate
information and supply network.
Conclusion
From the above assessment it could be concluded that Supply Chain Management being a
operation management practice enhances growth opportunities for the company. This operation
management practice has its presence in every phase of company's operations. Involvement of
Supply Chain Management contribute in anticipating additional values in company's activities
and practices. Technology has been playing a vital role in developing improvements in the
overall functioning of Marks & Spencer. Higher involvement of efficient Supply Chain
Management with constantly upgrading technologies provides additional support in enhancing
company's functions. Supply Chain Management is a wide concept which could be explored to
huge dimensions and resulting in increasing productivity.

References
Books and Journals
Azzi, R., Chamoun, R.K. and Sokhn, M., 2019. The power of a blockchain-based supply
chain. Computers & industrial engineering, 135, pp.582-592.
Bari, M.S. and Park-Poaps, H., 2020. The Roles of Supply-Chain Management on Competitive
Advantage: an Empirical Study in the Bangladeshi Apparel Sector. Journal of Textile &
Apparel Technology & Management (JTATM), 11(4).
Bhandari, B., 2018. Supply chain management, blockchains and smart contracts. Blockchains
and Smart Contracts (June 28, 2018).
Famiyeh, S., Kwarteng, A., Asante-Darko, D. and Dadzie, S.A., 2018. Green supply chain
management initiatives and operational competitive performance. Benchmarking: An
International Journal.
Golini, R. and Kalchschmidt, M., 2019. Supply chain management and global value chains.
In Handbook on Global Value Chains. Edward Elgar Publishing.
Hedstrom, G.S., 2018. Strategic Planning. In Sustainability (pp. 169-180). De Gruyter.
Huang, Y. and Wang, Z., 2020. Information sharing in a closed-loop supply chain with learning
effect and technology licensing. Journal of Cleaner Production, 271, p.122544.
Jen, C.T., Hu, J., Zheng, J. and Xiao, L.L., 2020. The impacts of corporate governance
mechanisms on knowledge sharing and supply chain performance. International Journal
of Logistics Research and Applications, 23(4), pp.337-353.
Pal, R., Shen, B. and Sandberg, E., 2019. Circular fashion supply chain management: Exploring
impediments and prescribing future research agenda. Journal of Fashion Marketing and
Management: An International Journal.
Peng, Y., Gao, F. and Chen, J., 2020. Sustainable Packaging and Consumer Engagement. Kelley
School of Business Research Paper.
Qiao, A., Choi, S.H. and Wang, X.J., 2019. Lot size optimisation in two-stage manufacturer-
supplier production under carbon management constraints. Journal of Cleaner
Production, 224, pp.523-535.
Sarkar, M. and Chung, B.D., 2020. Flexible work-in-process production system in supply chain
management under quality improvement. International Journal of Production
Research, 58(13), pp.3821-3838.