Analysis of Supply Chain Management at Marks and Spencer: A Report

This report provides an in-depth analysis of Marks & Spencer's supply chain management. It begins with an introduction to the company and its global presence, followed by an examination of customer service and inventory methods, including safety stock and reorder levels. The report then delves into transportation and logistics, exploring modes of transport and the role of logistics service providers. It also discusses warehousing and capacity management, outlining capacity management steps and the efficiency of M&S's supply chain in this area. The report concludes by analyzing M&S's strategies for achieving competitive advantages and offering suggestions for supply chain improvement, emphasizing the importance of innovation, supplier relationships, and IT integration.

SUPPLY CHAIN
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
(2) Customer service and inventory.............................................................................................3
3) Transportation & LPS.............................................................................................................4
(4) Warehousing and capacity.....................................................................................................6
5) strategy, competitive advantages & conclusion......................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Marks and Spencer is major British multinational retailer company who are also operating their
business in all over the world. They are selling varieties of product that include food products,
clothing, furniture and most of them are their own label.
Mark & Spencer made their reputation in the early 20s the policy of only selling British made
goods. They entered into the long term relationship with the British manufacturers and sold food
and clothes products under the St Michael
. Currently companies one of the top leading companies in United Kingdom. The supply change
management is stronger And they make available their product and services to their stores in all
over the world. Customers are easily get their products and they can satisfy their needs and
demand that also helped them to gain loyalty of the customers and they are taking competitive
advantages within the market where they are operating their business and showing their presence
as a strong brand. Their efficiency in chain management is also helping them to grow their
business because it directly benefits the customers and if customers get their product and services
on time then they are more satisfied and they recommend the others to go for Mark & Spencer.
MAIN BODY
(2) Customer service and inventory
The product of the M&S readily available to its customers. The reason behind such quick
availability of the products of the company is its efficient supply chain that enable it to have
making availability of its products among its customers.
Inventory methods:
There are various inventory methods that may includes:
Safety stock:
As per this method of inventory some additional or safety stock is to be kept by the
company. This method enables the company to have the availability of its products in the market
at all the time. Through the adoption of this method of inventory the items and products of the
company never went out of stock (Jonsson and Mattsson, 2019). This method also assist the
company to have availability of its item in order to meet the situation of emergency too.
Reorder Level (ROL):
Reorder level refers to that point of time when the company will make further order of its
products. This means that it is that level which suggest the company to have a necessity of

reordering the stock (Adamu, 2017). As per this method companies set a level and when the
stock of the company reaches that level then it make it necessary for them to have a reorder of its
stock.
M&S usually adopts and follows both the methods of inventory in its workplace. This means that
apart from setting up of specific level it also implements the concept of safety stock whereby it
keeps some safety stock so that shortage will never arise.
Inventory management:
It is also an important concept that which allows the company to have management of its stock.
This can be implemented by applying these methods:
Economic Order Quantity (EOQ):
It is one of the inventory management technique. As per this method an optimum amount
of inventory is to be purchased by the company so that it can meet the existing demand along
with reducing the storage and holding cost (Riza and Purba, 2018). Through this method an
optimum quantity of stock is being ordered by the company so that it will not lead to under or
over stocking of the products. This method also enable the company to reduce the un-necessary
cost of storage and holding.
Pareto method:
It is also counted under the method of management of inventory. This method works on
the principle of 80/20. This means that the 80% outcome are the result of the 20% efforts. This
method shows the relation between efforts and results that by 20% of focus 80% outcome can be
grabbed.
ABC analysis:
It is also counted under the best method of inventory management and controlling. As per
this method categorization of the inventory is being made wherein a category contain those items
which requires strict control and recording, while in category B the controlling and recording is
less in comparison of A category (Stojanovic and Regodic, 2017). However, C category contain
those items that are required very low controlling and recording.
In case of M&S it usually adopts the method of EOQ and ABC in its business for having
a management of inventory.
3) Transportation & LPS
Transformation mode used by company

Mark & Spencer Is globally presents organisation which means there supply chain management
and transportation is different for the domestic and internationally. for the domestic supply of the
product and services they take help of the Courier delivery organisations who are handling their
transportation of the product and services. they are also having transportation services like
trucks, trains ATC are used by the company because it is cost effective and easy method that
helped them too make available their product. while for the international transportation Mark &
Spencer transfer there product through the flights and export through ship’s. It is becausr mostly
companies use this kind of transportation mode to make available their product and services on
their stores internationally
LSP employed by company
The logistics service provider management is outsourcing of logistic operations by the any Other
third party. companies use client and third parties that provide the logistic services helps tto
Supply their product and services from one place to another place. Mark & Spencer take help of
the local delivery service providers for delivering their product from one place to another place
and they can be considered as the third party logistic service provider. When services and
product reach to the customers and stores effectively and customers are more satisfied and
company and gain their loyalty.
Supply side transportation managed differently from the demand side or not
Both supply and demand side of the Mark & Spencer managed by the local logistics supply
provider. it helps them to save their time and both supply and demand can be effectively fulfilled
for the company. Sometimes company use their own logistic services to fulfil the demand side
but supply side always completed by the logistic service provider which is known as third party
plastic service provider. It is also counted under the method of management of inventory. This
method works on the principle of 80/20. This means that the 80% outcome are the result of the
20% efforts. This method shows the relation between efforts and results that by 20% of focus
80% outcome can be grabbed.
Efficiency of supply chain transportation of the company
the supply chain transportation of the Mark & Spencer is effective and they are capable to
transport product and services on the time and deliver it effectively to the stores of the mark and
Spencer and from there it is ready to sell to the customers. it helped him to take competitive
advantages within the market where they are operating their business and they are able to show

their presents it is directly affecting their growth and customers loyalty can be gained by the
company.
(4) Warehousing and capacity
Warehousing contributes a major role in case of supply chain of M&S. Through the
implementation of warehousing M&S stores and save the extra inventory and products which are
required for future use. In case of M&S which operate in the delivery of number of products,
warehouse plays an important role. As in warehouses it stores finished goods and perform the
work of packaging and shipping (Khan and Yu, 2019). It provides economic benefits to the
business of M&S in terms of saving the cost of shipment, delivery, transportation and various
other. It makes the centralization of products so that the company can make the process of
storage and distribution at an easier mode,
Capacity management and its steps:
It is one of the important concept in the context of supply chain. As per this concept the
company always have to ensure that it can adopt every practice by which the capacity of the
company will be maximized under all the conditions and circumstances (Jacobs and et.al., 2018).
Steps of capacity management:
Task and stock requirement:
As per this step it is to be determined that how much time will be required by the
employees in order to perform the task. In the same way determination of inventory is also made
that how much stock will be needed in order to perform the task.
Total estimates:
After determining the value of workers it will be total so that the estimate requirement of
inventory, time and resources will be identified.
Prioritization of work:
Here prioritization of workload is to be done wherein the priorities of work performance
is set. As per the priorities time-frame is also determined.
Consideration of strategies:
Under this step planning regarding the complex work and projects is to be made. This
step enables the company to accomplish its goals.
Monitoring and altering:

Here the work will be monitored and in case of any fluctuation it will be recovered and
moulded.
However, it is to be noted that the management of the capacity is difficult by inculcating
5 steps of capacity management because these steps involves making of prediction regarding the
employees and the future. Since due to possessing of uncertainties and changing trends it
becomes very difficult that the plans steps will work in the same direction. Thus, an involvement
of these steps don't manage the capacity management easy.
Efficiency of supply chain in capacity management:
In case of M&S the supply and its capacity is very efficient that it can easily mange
capacity. As the supply chain of M&S includes adequate inventory method and techniques of
inventory management along with a good system of warehousing that always assist the company
to have possession of high capacity under all the conditions and circumstances. Since there is
direct relation between supply chain and capacity management so with the efficient supply chain
the capacity of the M&S is always high in terms of meeting the needs of its customers by
availing them product one time and in adequate quantity. Through the use of adequate
warehousing supply chain by M&S its cost regarding the transportation and other cost reduces
along with ensuring the distribution of its products. Thus, by having minimum cost and adequate
availability the capacity management of M&S is always implied and ensured.
5) strategy, competitive advantages & conclusion
Ways to provide competitive advantage
There are many strategies that can help M&S to take competitive advantages That can include
the innovation in products. It is necessary for the companies research and development team to
continuously develop their product and services by understanding the customers needs and
demands. It can be only possible if they research about the market and collect customers needs
and demand. creating a good relationship with the suppliers can also provide a competitive
advantages. leaders and managers should create a good relationship with their suppliers so they
can get some discount so they can manufacture their product and services in lower price and sell
to the final customers and satisfy their needs and demand. it will be beneficial for the company
and company available to take competitive advantages and they will able to show their presence
with the market where they are operating their business.
Suggestions for improvement in supply chain

There’s various way that can helpful for the M&S for improvement in their supply chain
management. one of them is engaging I Department in the supply chain management. There are
various ID tool that can be implemented like investment management tool that is helpful to
manage inventory of the company and calculate the supply and demand that needed. IT
Department Are only consultant directly by the management when it either comes time for new
software implementation or something goes away with the current system they can solve the
problem and help company to improve their supply Chain management. implementing a good
project plan can also increase the supply chain efficiency. be ongoing process and that means
company need a comprehensive project plan to enhance that they are continuously working
toward there define goals. A good project plan can serve framework that can guide company
toward the continuously working and improve the supply chain capabilities.
Improvement and supply chain efficiency required a proper collaboration with the Department
and team, . But payoffs is well worth the efforts done by that gaining the better visibility for the
supply chain management can enhancing the training, investment and smart technology and
developing a project plan to guide a very step of the way we’ll put M&S on the part of achieving
and improving their supply chain management.
Overall supply chain strategy used by company
The supply change management is stronger And they make available their product and services
to their stores in all over the world. Customers are easily get their products and they can satisfy
their needs and demand that also helped them to gain loyalty of the customers and they are
taking competitive advantages within the market where they are operating their business and
showing their presence as a strong brand. Their efficiency in chain management is also helping
them to grow their business because it directly benefits the customers and if customers get their
product and services on time then they are more satisfied and they recommend the others to go
for Mark & Spencer.
Recommendation
There are various changes that need to be implemented by the market Spencer so they can take
competitive advantages. Some of the improvement they can do with their technology they are
using. they can take help of the It system that can help them to improve their supply chain
management. They’re taking help of the third party supply chain service providers but to make
the supply chain more stronger it is necessary for the company to create their own supply chain

management so they can invest and save some money this will help them to take competitive
advantages within the market where they are operating their business and their label to show
their visions and United Kingdom.
CONCLUSION
As But the report has been covered study of market Spencer and explain the customer service an
inventory management of the company. It has been explain the product and services sell by the
company an inventory methods to manage their stocks. This report also has been discuss about
the transportation an third party services taken by the company and how effective they are to
improve their supply chain transportation. It also has been concluded warehouse and capability
of the warehouse where they bring and collect all the product and services and how it reached to
the final customers. in the end of this report has been covered strategy and competitive
advantages that can be covered by the company so they can achieve success in their business.

REFERENCES
Books and journals
Adamu, I., 2017. Reorder quantities for (Q, R) inventory models. In International Mathematical
Forum (Vol. 12, No. 11, pp. 505-514).
Jacobs, and et.al., 2018. Manufacturing Planning and Control for Supply Chain Management:
The CPIM Reference. McGraw-Hill Education.
Jonsson, P. and Mattsson, S.A., 2019. An inherent differentiation and system level assessment
approach to inventory management. The International Journal of Logistics
Management.
Khan, S.A.R. and Yu, Z., 2019. Strategic supply chain management. AG: Springer International
Publishing.
Riza, M. and Purba, H.H., 2018. The implementation of economic order quantity for reducing
inventory cost. Research in Logistics & Production. 8.
Stojanovic, M. and Regodic, D., 2017. The significance of the integrated multicriteria ABC-XYZ
method for the inventory management process. Acta Polytechnica Hungarica. 14(5).
pp.29-48.
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