Marks and Spencer: Logistics and Supply Chain Project Analysis

This project delves into the supply chain management and logistics strategies employed by Marks and Spencer (M&S) to achieve a competitive advantage within the retail industry. The report begins with an introduction that highlights the importance of operational management, logistics, and supply chain management in the context of the rapidly evolving e-commerce landscape. The main body of the project examines how M&S achieves a competitive edge through effective logistics management, emphasizing the significance of differentiating itself and operating at a lower cost. It explores the role of logistics in meeting customer demands, enhancing satisfaction, and building loyalty. The project also provides information about M&S's supply chain, its operational strategies, and its alignment with industry trends, including how M&S manages its supply chain activities. The project analyzes how M&S manages its supply chain to enhance competitiveness, including the adoption of technical systems and adherence to industry standards. The report also highlights how M&S differs from its competitors. The conclusion and recommendations summarize the key findings and suggest potential improvements for M&S's supply chain management. The project emphasizes the importance of information technology, strategic planning, and supplier collaboration in optimizing the supply chain for enhanced performance and customer satisfaction.

Project on Marks and Spencer (M&S)

Table of Contents
INTRODUCTION ..........................................................................................................................3
Main body........................................................................................................................................3
Determining the marks and organisation’s achievement of
competitive advantage through effective logistics management ...............................................3
Information about the supply chain Of marks and Spenser .......................................................6
Identifying the way Marks and Spenser company manages it's supply chain and logistics
activities to enhance its competitiveness.....................................................................................7
Analysing the trends in industry ..............................................................................................10
Recognising the Way Marks and Spenser supply chain activities and management differs
from close
competitors...............................................................................................................................12
Conclusion and Recommendations ...............................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
The retail industry is growing at very rapid rate with the development or emergence of
e-commerce, and there have also been changes in the way the retailer is approaching its logistics
function. Operation management is considered to be as an important part of every business. As
ineffective operational management system can have adverse effect on the productivity as well
as operational activity of an organisation. In addition to this, logistics and supply chain are the
part of operational management system. It is very essential for companies to maintain its focus
on improving the supply chain and building the network. As this strategy will assist business
entities in making quick deliveries of products or services. Supply chain management is another
important aspect within an organisation by which product and services can be transferred from
the manufacturer to customers. Logistic and supply chain management assist firm in gaining the
competitive advantage in the market. It also supports an enterprise in making quick delivery of
goods or service to customers and provide client with high level of satisfaction. Business
performance of firm is totally dependent on its supply chain management.
The present report has focus on identifying the way an organisation’s achieves
competitive advantage through effective logistics management. Project have focus on
recognising the strategies adopted by marks and Spenser organisation for managing it's supply
chain. It also emphasizes on analysing the factors or elements which supply chain activities and
management differs from close
competitors.
Main body
Determining the marks and organisation’s achievement of
competitive advantage through effective logistics management
Logistic management refers to the supply chain management of business and component which
is used to meet customer requirements and demands through appropriate planning, controlling
and implementation of effective strategies and plans regarding information of goods and services
offered by business. Logistic management will help Marks and Spencer to organise effective
plans and implement process to move and store products and services effectively. The source of
competitive advantage is found firstly in the ability of the organisation to differentiate itself, in
the eyes' customer, from its competition, and secondly by operating at a lower cost and hence at

greater profit. It is the most important element of business that helps wither a cost advantage or
value advantage efficiently (Hahladakis and Iacovidou, 2018). It can be said that logistic aims to
meet customer requirements and demands at lower costs in order to manage flow of information
and material that makes logistic system, more effective from the supplier to the end customer.
There are many ways from which the logistic management will help Marks and Spencer
to achieve competitive advantage. The first one refers to advantage of providing value by
offering products and services such as delivering faster or scheduled, product assembly, etc. this
will help business in creating customer value which enhance consumer satisfaction and loyalty as
well. The second one is providing cost advantage, partnering with suppliers and business
customers, making activities and processes more efficient, by compensating for the reduction of
total logistics costs, etc. putting on the market with lower prices than the competition. This will
also help business to gain competitive advantage in the market and attract customers which helps
to increase production and profitability. There are some strategies also followed by firm in order
to provide benefits. All products and services should be placed at the centre of distribution to
keep them available which helps to reduce cost and delivery times effectively.
In addition to this, competitive advantage of supply chain of Marks and Spencer refers to
efficient and effective customer satisfaction achievement at lower costs. It can be said that the
cost is associated with technology and process of supply chain management (Mortensen and
Hazel, 2017). There are three levels in supply chain management that various part of the firm
focus on tactical, strategical and operational activities and decisions effectively.
Supply chain at strategic level: In this stage, business integrate corporate strategy with supply
chain management and policy effectively. All the decisions regarding products and services,
manufacturing locations and supplier relationship management are made carefully and
strategically in order to enhance profits and gain competitive advantage.
Supply chain at tactical level: Tactical decisions are formulated by the business and search for
the solution of producing cost effective techniques and strategies effectively. This level is for
supplier's selection, and developing logistics partners for cost effective transportation.
Warehousing and inventory control strategies are evaluated at this stage.
Supply chain at operational level: It can be said that operational activities are one of the most
important part of organisation that helps to produce products and services to customers in the

market (Taylor, 2015). Operational activities involve decisions regarding operations such as
making schedule of production changes, purchasing agreements with suppliers and taking orders.
Supply chain management and logistic management will help business to achieve better
competitive advantage that helps to manage and control supply chains effectively.
Implementation of supply chain and concept regarding will provide benefits to both company
and partners in order to achieve competitive advantage. Supply chain management is necessary
for firm in order to manage demand and supply that also helps to fill customer requirements and
demands which leads to organisation success in terms of strategical development and
profitability. This will also help to meet goals of inventories and lower supply capacity when the
products are not stocked. Information technology plays a vital role in business in order to achieve
competitive advantage to make an effective position in the market. Through the use of IT, when
a request is made to a business, dealers receives these informations almost in real time and can
forecast sales more accurately, make the supply, reduce cost and be more agile in the process
chain as a whole. There are also cases of companies that have their vendor-managed inventory,
which is also advantageous for all members of the chain effectively and efficiently.
The ABC logistic measure is also helpful that in which the expenses are involved in
process of producing products and services (Novotova, 2016). This will also help to serve
efficiency in activities and process from which the business and management is able to show
which consumer, distribution channel or regions are providing high level of profitability for firm.
This will also help to evaluate logistic contribution for business in order to achieve competitive
advantage. The BSC is also a meter that helps to determine targets and indicators for each
departments of business or can be each member of supply chain able to achieve strategical goals.
This will help towards constant improvement and development of logistic process and activities
effectively.
In addition to this, logistic give competitive advantage by reducing costs and creating
value for consumers in the market that offers various products and services using the main
concept of information technology and supply chain. This will help to improve and develop
performance of each member and department which enhance effectiveness of each member
involved in the process of supply chain management.

Information about the supply chain Of marks and Spenser
Marks and Spenser organisation is recognised as one of the leading company operating
in retail industry. An organisation has approximately 664 retail stores in more than 39 countries.
This activity has assisted business entity in becoming largest clothing and footwear retailer in
context of value as well as volume. The vision of marks and Spenser company is broad product
supply chain for the future offering additional facilities to customers. Management team in
Marks and Spenser intends to create new business policies which purpose is to bring
improvement visibility and transferring goods or services to client quickly. This strategy related
to the supply chain management has supported an organisation in developing the strong
relationship with client and providing them high level of satisfaction. It has also provided
business entity a chance to gain customer loyalty. Supply chain management is defined as the
strategic coordination of the traditional business functions as well as tactics across several
business functions within an enterprise and across businesses. The aim of supply chain
management is to assist organisation in improving the long-term performance of business. There
are several elements of supply chain which help manager in facilitating coordination as well as
assist in working together to ease in movement of products .Chain starts as soon as order is
placed by customer for the particular item. Special operational Management team in marks and
Spencer is created for ensuring quick supply of products or services (Gold, Seuring and Beske,
2010) Company has also planned to open new outlets and form partnership with other
organisation operating in same industry. Business entity has also planned to adopt the new
distribution channel. This strategy related to supply chain and logistic management has helped an
enterprise in reaching to the wide number of customer and delivering them quality services.
Effective supply chain and logistic management has aid business entity in lowering the cost of
distribution. It has enabled firm to increase its profit margin. There has been drastic as well as
major changes has been done by marks and Spenser company in supply chain management
(Stadtler,2015)
Management team in marks and Spenser company has employed several technical as well
as effective system which has helped business entity in making supply chain management
effective. The several operational activities as well as strategies and system are designed by an
organisation considering the different norm in the country. Business entity also follow the UK
Groceries Supply Code of Practice. An organisation select the supplier on the basis of activities

conducted by them. Groceries Supply Code of Practices conducted by firm in order to deal fairly
with suppliers. Business entity is also complying with the norm formulated or implemented by
Gangmasters Licensing Authority with the purpose of eliminating for avoiding the exploitation
of employees from the food supply chain. Marks and Spenser company has also signed the
Supplier Retail Protocol (Monczka and et.al., 2015)
Management team in an enterprise is undertaking a significant programme of work with
supply base through the Supplier Collaboration Programme. This strategy will assist an
organisation in gaining the financial benefits. It will also help business entity in identifying the
techniques or way for bringing improvement in practices. By organising the series of workshops
marks and Spenser company works with suppliers. This strategy adopted by an enterprise define
opportunities by individual supplier site and design solutions for action. Marks and Spenser
organisation has streamlined or interrogate its procedures which has helped firm in optimising
volumes and consolidating factories. It has also assisted business entity in increasing working
efficiency and minimising cost.
Management team in cited business venture has made proper training arrangement for
suppliers strategy has enabled suppliers to develop skills and enables them to keep update
themselves with the quality standards prescribed by an organisation. It has also helped firm in
maintaining the quality of product or services and delivering high level of satisfaction to
customers (Ahi and Searcy, 2013)