Comprehensive Analysis of Marks and Spencer's Supply Chain Management

This project provides a comprehensive analysis of Marks and Spencer's (M&S) supply chain management. It begins with an introduction to supply chain management, contextualizing it within the M&S business model. The main body delves into critical aspects such as supply chain relationships, exploring how M&S builds and maintains strong ties with its suppliers, including the use of strategic alliances and IT systems for collaboration. It identifies ways to improve these relationships, including finding suppliers with common goals, analyzing supply chain strategies, and leveraging real-time data visibility. The project also examines how M&S mitigates supply chain risks, addressing areas like procurement and outsourcing, with a focus on proactive risk management models and IT-based risk management. Furthermore, the project discusses the strategies used by M&S to reduce supply chain costs and improve sustainability. The project concludes with a summary of key findings and references supporting the analysis.

PROJECT

Table of Contents
INTRODUCTION................................................................................................................................3
MAIN BODY......................................................................................................................................3
Ways to improve supply chain relationship................................................................................3
How does the M&S mitigate supply chain risk and reduce supply chain costs?........................5
Improving supply chain sustainability by Marks and Spencer....................................................8
CONCLUSION...................................................................................................................................9
REFERENCES...................................................................................................................................10

INTRODUCTION
Supply chain management refers to management of flow through which goods and
services through which raw material is transformed into final products. This involves
streamlining supply side of business activities through which value for customers is increased
and competitive advantage for business is gained. In this report, supply chain management in
terms of conceiving, supported and delivered and developed in organization. For the purpose of
this discussion Marks and Spencer will be contextualized. It is a British multinational retailer
that was founded in 1884 in Leeds, UK and is headquartered at London, England, UK. Marks and
Spencer operates in 62 countries through 1519 stores and 44 websites. In this report
relationship, information systems, procurement and sustainability of supply chain will be
discussed. This will be discussed through ways of improving supply chain relationships,
mitigation of supply chain risk and reducing supply chain cost and through improving supply
chain sustainability.
MAIN BODY
Supply Chain relationship in Marks and Spencer.
The supply chain relationship is important for every organization to build the effective
relations so that the supply of the goods or services can be done effectively and efficiently. The
supply chain relations of the Marks and Spencer are very strong and have a good relations and
terms with the suppliers (Xu, 2020). Marks and Spencer use the strategic relations with their
suppliers. They develop the supply chain relations with the supply chain networks. To increase
the overall supply chain performance they have developed the strategic alliance with their main
suppliers. With the strategic alliance used by the Marks and Spencer helps to maintain the good
relations with their suppliers so that the goods are to be supplied with the good quality and on
time. This strategic alliance helps to maintain the good relations with the suppliers all over the
globe.
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How collaboration with the supply chain relationship and how they deploy the IT systems for
collaboration.
By building the supply chain relationship helps to integrated and the collaboration with
the different suppliers. By maintain the relationship with the suppliers helps the company to be
more effective with their goods by supply the good quality of the products to their customers.
Having the relationship with the suppliers helps to Marks and Spencer to deliver the goods on
time so that the customers can get their products on time and increases the reputation of the
firm (Marnewick, 2017). The company like Marks and Spencer that multinational company and
have lots of suppliers for the supply of their products, for that company uses the IT systems to
maintain the records of the suppliers that helps to maintain the good relations with their
suppliers.
Ways to improve supply chain relationship.
Every organisation has to build a good relation with their suppliers as they are the one who
manage the entire inventory for the firm. Company has to develop the successful relations with
the supply chain
Found suppliers with common goals
Company can find those suppliers only goals are same as of the firm. Having a same goal
to achieve the supplier also work effectively and innovatively for Marks and Spencer. Reliable
supplier done its work effectively by purchasing order within the time and shipping orders on
time. Having a same goal to achieved the supplier also can do their work effectively which able
to complete the orders.
Analyze supply chain strategy
Successful supply chains are cost effective, dependable and lean. To ensure that supply
chain cost is to be low and the process is to be reliable supply chain goals and strategies are to
be reevaluating to ensure that best possible plan is used by the Marks and Spencer. With the
effect of the covid supply chain management get disrupted for that company did partnership
with the backup vendors and logistics companies that take over their suppliers and shipping
needs if needed. To work with the as a partners in a long run build a stronger trust. With the
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increase in time to work together benefits both firm and suppliers to develop innovations in
their work.
Visibility through real time data
To make the relationship with the suppliers Marks and Spencer gave access of their
supply chain and inventory data to them. Collaborative with the cloud based supply chain which
is able to do by user roles. To develop effective business strategies, company allows suppliers to
view real time data. Real time data help the company and suppliers to plan effectively for the
future by having all the data at the time of disposal.
Everyone should benefit
Even the goals of both suppliers and firm have same but sometime happen that both
have different opinions. But the company has to ensure that partnership is beneficial to both
the parties. Company ensures that it helping the supplier to meet their objectives as well.
Partnership will have some give and take, where firms tackles situations try to turn the win lose
situations into win- win situation for both partners.
Focus on a small number of suppliers
Having more suppliers it is difficult to maintain the relations with all of them. The more
the suppliers weaker the relationships will be. So much of effort is put to maintain the relations.
Its better to put efforts on quality rather than quantity. It is beneficial for the company to focus
on marinating the relations with small number of suppliers. With the less suppliers, firm can
build trust and strong ties. Company can fire those suppliers who are not working towards
same goal and can maintain relations with them who are helping in achieving the same goals.
Together firm and supplier can reduce costs, create innovative products or process and increase
efficiency.
Understand the suppliers
For the effective working with the supplier understand the suppliers. For better
understanding company can work with challenges and develop stronger relationship. For better
understanding company can try to understand the position and business of the suppliers.
Communication
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To maintain the relationship communication creates transparency on the both sides.
Communication helps to effective use their inventory count or missing purchase orders. To
develop the communication an effective channels is to be set. With the proper communication
between the suppliers and the company helps to understand each other conditions and work
accordingly for effective performance. For the effective communication the supply chain
information is also used.
Being Proactive
This is also a very important strategy to improve supply chain relationships. Being
proactive involves addressing issues quickly and before it makes considerable effect on supply
chain management. Along with this, addressing challenges and problems as they develop and
preventing from further development of challenges and problems (Kim and Chai, 2017). In
supply relationships quick decisions through discussion should be made for building trust.
Clarity and developing roles and responsibilities
This is also a very important strategy for improving supply chain relationships. In this it is
very important that everyone involved in supply chain have clarity of their roles and
responsibilities. Clarity of roles and responsibilities ensures that everyone is able to effectively
complete their task and fulfill their responsibilities. This is because for performance ability and
motivation and clarity of role is required and everyone should understand their role and
responsibilities.
Modern information system aided supply chain in Marks and Spencer.
For company like Marks and Spencer the supply chain management is becoming
increasing as an important tool that are use for bring the improvement with the business
operations so that the supply chain visibility is to be increased in the organisation. With the
adaptability of the information system in the company helps to increase the availability of the
information, bring the flexibility in the manufacturing parts and enhanced the visibility of the
supply chain (Muda, 2017). To maintain the supply chain at the operational level Marks and
Spencer uses the inter organisational information sharing system and vendor management
inventory system. Supply chain is not for the particular departments it involves the
involvement of every department of organisation. With the modern information system helps
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to make the availability and sharing of the information with all the departments at the
operational level.
How does the M&S mitigate supply chain risk and reduce supply chain costs?
Supply chain risk comes from different areas such as procurement, outsourcing, and
information technology. The manager of M&S is basically focused on the supply chain process
and then applied a suitable mitigate supply chain actions in order to reduce the risk, threat.
Sometimes, it is also helping to minimize cost or price of supply chain. As always, it is becoming
consider as proactive risk management in which handle by Marks & spencer, and also become
as cost efficient than reactive action.
An efficient supply chain is one of the essential aspect for M&S to manage or control the
different business operations such as procurement logistics and outsourcing product from one
place to another (Collier and Sarkis, 2021). Sometimes, manager will always try in M&S business
operation to improve quality of product and give the best effective customer service to their
potential consumers. Of course, there are various kind of supplier change, system updates, all
of which may inhibits one or more link of M&S supply chain process. In M&S, supply chain
manager is concerned about the risk, threat and keep on update the change in the business
tasks. M&S is one of leading enterprise in which involves an effective supply chain management
and use innovative idea to reduce the cost or price of supply chain. Moreover, it is improving
the overall supply chain process of M&S in proper manner.
In today’s scenario, mitigation of supply chain is very difficult because of the globalization
and potential arise interferences of cyber-attacks. That’s why, it is important for manager of
M&S in order to measure the specific risk such as demand, supply, environmental, business,
planning and manufacturing risks. Therefore, company would be implemented the mitigate
supply chain risk with the help of different strategies where it can easily reduce the cost or price
level.
Leverage PPRR risk Management Model – this type of model is all about the popular
global supply chain management approach. It is helping to the M&S where handle the threat
and try to eliminate within organization. Basically, consideration of steps: - prevention,
preparedness, response and recovery etc. prevention is all about the way in which supply chain
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manager of M&S is measured threat and then make a suitable plan for purpose of emergency
(Esmizadeh and Mellat Parast, 2021). Therefore, it can easily reduce their significant impact of
disruptive event or program. In order to handle any kind of logistics, procurement and
outsourcing process.
Improve M&S cyber as IT based Supply chain risk management- For M&S, it has been
already used the internet of things, consider as digital technologies which plays important role
in optimizing supply chain operations. But in certain point, it may leave the retailer, which may
exposed to threats such as phishing, hacking. That’s way, it would be increasing the
environmental risks in supply chain process of M&S. Furthermore, manager of M&S will be
trying the following chain risk management approaches:-
 Establish a better compliance standards, norms for other party vendors including
distributors, manufacturers and suppliers etc.
 Each and every user have been implemented the security control approach in order to
restrict, who are able to access the system in check the availability of supply chain
process. So as, manager will try to restrict, who is able to access the system and given a
permission for particular people (Shekarian and Mellat Parast, 2020).
 Update the software solution that provide with accurate visibility into supply chain
management. So as, it is quickly identified unusual activities.
 Regular way to update enterprise anti-virus, firewall, software solution, as it may look
into advanced cyber-security measurements.
Implement Logistics contingency plan- it is another kind of mitigation plan in order to
reduce the price or cost of supply chain process. Moreover, it is imperative that M&S have
maintain a proper logistics contingency plan in order to ensure the overall business continuity
in event of supply chain distribution (Shekarian and Mellat Parast, 2020). As need for solid
contingency plan, manager of M&S has been preferred to handle the critical situation at the
time of Covid-19 crisis. Sometimes, it may causes supply chain disruption on the large scale.
Manager of M&S is basically handle the supply chain process in order to represent clear
understanding of which most suitable entities within vulnerability or risks. Sometimes, M&S has
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been diversified their supplier network so that they are not completely reliant on the particular
on single or one supplier.
As per discussion, it has been summarized about different kind of mitigation action
applicable in supply chain threat or risks, which may be occurred in the supply chain process. So
as, manager of M&S will be implementing suitable plan and strategies in order to control the
large amount of damage within retailer. Because it has been already identified that retailer face
a certain kind of issue in marketplace because of covid-19. It may directly affecting the supply
chain process and arises different threat or risks.
Outsourcing of Marks and Spencer
Regarding outsourcing of Marks and Spencer it outsources several elements of the
operations in which it outsources jobs and recruitment practices and in addition to this Marks
and Spencer also outsources its IT activities. In its IT practices use of information technology for
supply chain is also included. Plan of Marks and Spencer to outsource its recruitment are aimed
at saving £30m a year and this reflect that planning of Marks and Spencer and its outsourcing is
competent and also enables Marks and Spencer to achieve competitive advantage. This is
because through outsourcing its recruitment and IT activities, company will be able to focus on
its core and operational activities and this way it will be able to perform better than
competitors and along with this company will also be able to achieve competitive advantage by
saving cost on recruitment and selection practices (Wallace and Kambouris, 2017). Saving £30m
each year will play important role in improving performance of Marks and Spencer in terms of
improving overall performance of Marks and Spencer in financial context. Outsourcing of IT
activities enables Marks and Spencer to get expert services and this is also helpful for effective
problem solving of the IT related issues because they are being managed by specialists in the
field. This can play very important role in improving overall supply chain management of Marks
and Spencer with application of information technology.
Improving supply chain sustainability by Marks and Spencer
Marks and Spencer is one of the organization that places strong emphasis on
sustainability and under their sustainability supply chain is also considered by Marks and
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Spencer. Marks and Spencer undertakes different actions and strategies to improve supply
chain sustainability.
Ensuring sustainability through farm- This is one of the strategies in which Marks and Spencer
ensures that their suppliers sources raw material from 20000 farms (Bhattacharya and Polman,
2017). In this sustainability by suppliers and responsible sourcing is very important.
Commitments and targets- This is another strategy in which Marks and Spencer aim to enhance
their lives and support the local communities of the people who work for Marks and Spencer.
Marks and Spencer is committed to source responsibly and they work closely with suppliers so
that in their supply chain human rights are respected, decent work condition is promoted and
sustainability is improved across supply chain.
Training and development of suppliers- This is also a strategy in which Marks and Spencer
provides training and development to its suppliers. This is done to enable them to supply
sustainability (Dong and et.al., 2019). This is also a part of their collaboration program and
training and development opportunity for suppliers is a support by Marks and Spencer. This is
aimed at improving sustainability performance of suppliers. This is because Marks and Spencer
aims at becoming leader in sustainability and they are also involving suppliers to understand
values of Marks and Spencer. In this relationships play very important role and Marks and
Spencer ensures that it is able to manage strong relationships with all suppliers of Marks and
Spencer.
Business strategy of Marks and Spencer- This is a way in which Marks and Spencer works with
suppliers as a part of company’s aspiration to become most sustainable retailer in the world. In
its business strategy sustainability scorecard initiatives is included and sustainability scorecard
initiative seeks to improve performance of Marks and Spencer for sustainability of food supply
chain. In this focus is placed on tracking and incentivizing environmental, human resources and
ethical sourcing and lean manufacturing practices of the company (Henninger and et.al., 2017).
Sustainability scorecard helps company to ensure positive trade relationships with employees,
suppliers, and consumers and this is a recognized aspect of Marks and Spencer. This involves
effective information systems for creating sustainability scorecard.
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Plan A- This is also a very important strategy and action taken by Marks and Spencer. This plan
is completely aimed at achieving sustainability by Marks and Spencer. This is highly sensible
plan developed by Marks and Spencer because it sells 35000 product lines of the sheer scale
and this is why it is required to manage diverse and complex global supply chain. This means
that different products including clothing, food products and several other products are
supplied through different ways and this is why having a detailed plan for considering supply
chain is very important and necessary for ensuring specific sustainability plan for complete
organization. This involves procurement and outsourcing, in which Marks and Spencer ensures
that procurement for supplies of the organization takes place sustainability. This involves
determination of all suppliers for supplying different products and ensuring that they are
creating and sourcing products sustainability (Tamayo-Torres, Gutierrez-Gutierrez and Ruiz-
Moreno, 2019). In this quality and sustainability both are considered by Marks and Spencer.
Impact of Logistics and Supply chain on ROI for M&S
In M&S, it has been characterized by large inventory write-off s and growing the
suspicion about the perceived values of enterprise in context of supply chain solutions. It is
mainly handled the logistics professionals that have found the right opportunity in order to
insist the demonstrable return on investment (ROI). In M&S, Logistics and supply chain is
directly impact on the ROI in following:-
Accurate data or information- it is an essential aspect in order to point for any kind of efforts in
the supply chain and logistics process. Afterwards supply chain manager in M&S should follow a
properly delivery aspects, always keep up to date information and then make informed supply
chain decisions. For M&S, it has been implementing the supply chain management platform
that automates various tasks and associated with business data. In this way, it is helping to
track order and also check the currents status of inventory level. In most of cases, it is also
eliminating the risk of threat within data input. Afterwards, it help to achieve best return on
investment and will help to grow M&S business across global world.
The supply chain and logistics approach will support for M&S to optimize account for better
way in which make a better facility storage capabilities. Sometimes, it is dependent on the
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different products and materials that can stored by company. for example- Supply chain
manager will need to be kept in moisture free and create a refrigerator environment. it may
require a specific pre-set storage on the basis of arrangement.
How M&S procurement strategy mitigates supply risk
Generally, A marks and Spencer is basically focused on the procurement strategy and
mitigate supply risk. Therefore, it has been adopted mitigate supply strategy in order to
minimize threat or risks. Procurement risk management is one of the intended to anticipate
risks or safeguards the business from various kind of problem, which is mainly arise at the time
of procurement process.
Inadequate needs analysis- M&S is mainly focused on analyzing all essential need or
requirement because it is important to satisfy demand and critical way to achieve success of
supply chain. for instance, if need it is operating a proper budget, as start the procurement
process. It may help to reduce the level of wastage of materials.
In context of mitigation supply strategy, to avoid any kind of spending patterns because it is
helping to identify the specific business needs, using budgets that completely matched with
current status. M&S is a leading organization so that it can use procurement software in order
to utilize the automation technology. The procurement software is generally package provide
the ability for manager to track, analyse the transaction data for every purchase, assess to do
some change in usage pattern.
As per analysis, it has been identified the different kind of tasks help to manage or control the
procurement function. It is helping to eliminate or mitigate risks at the time of process. There is
no doubt that automation process plays important role to handle any kind of complex situation
or condition.
Appraise of the use of Reverse logistics
Reverse logistics is an activity that is conducted by the company after the sales of their
products that helps to recapture the value and the end of the lifecycle of the products. It is
basically for the return of the product to the manufacturer or the distributor for the recycling or
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