The Challenges of Operations Supply Networks at Marks and Spencer

This report provides an analysis of the challenges faced by Marks and Spencer (M&S) in its operations supply networks. The introduction outlines M&S's business, mission, and strategic approach, highlighting core values and the importance of cost savings. The report identifies key challenges, including customer service, cost control, planning and risk management, supplier relationship management, and talent acquisition. An audit using the Six Sigma methodology is conducted to evaluate these challenges, emphasizing its application in determining issues within the operations supply network. The report also discusses business models like direct sales and franchise models and their relevance to addressing the identified challenges. Recommendations are provided, suggesting the adoption of advanced technologies and effective distribution channels to optimize supply chain management. The conclusion summarizes the challenges and the potential for improvements through strategic changes and future innovations within the supply network, emphasizing the importance of adapting to the marketplace.

The Challenge of
Operations Supply
Networks

Table of Contents
INTRODUCTION...........................................................................................................................1
AUDIT - ANALYSIS AND EVALUATION.................................................................................2
SUMMARY.....................................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
In modern scenario, supply network operations is a concept which is being synchronised
implementation of amenable production and logistics process across the flexible reorganised
supply network for meeting up the demands. Company which is taken for this report is Marks
and Spencer which is multi national company dealing in retail sector since 1884. This company
has been specialised in clothes selling, home products and luxury food items. In 2008 ending,
company also started selling branded food products. In current this company has around 980
stores across the UK in which 615 just only are of food items. Mission of this company is to
formulate high and unique quality services along with the products to every class in economical
manner. Besides this, core values of the company is the qualities, services, innovation and trust.
Strategic approach of the company for the supply network is to deliver of the cost saving.
Moreover, distribution centre is being opened in Bradford. This company has been planning for
international direct deliveries for attaining the objectives.
There are number of challenges which are being faced by M&S for the supply network
Operations and major of them are described below:
 Customers Service: This kind of factor is all about giving out the right kind of product
with the right quantity at the right place and at the right time. This is they major issue
which is faced by M&S as they deal at global level in 1000 of stores.
 Cost Control: This can be stated as one of the major challenge which is being faced by
the M&S as the operational cost comes under pressure due to rising cost, high number
of customers, technological factors, increasing rate of labour and commodity prices
increment (Dekker, Bloemhof and Mallidis, 2012).
 Planning and Risk Management: Innovation and necessary modifications needs to be
done by the company for staying much more effective and efficient. These needs to be
done by the company so that various changes in market like product modification,
new taste, sourcing globally, credit unavailability and many others.
 Supplier Relationship Management: For M&S it is highly essential for creating,
understanding and following mutually agreed standards for understanding the existing
level of performance and other opportunities for enhancement.
 Talent: In modern date, it is highly difficult to find out qualified and interested talent.
Inventory network pioneers require a broad comprehension of the key capabilities and
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obligations required for production network administration parts and the capacity to
productively source particular ranges of abilities and techniques for creating future
pioneers.
AUDIT - ANALYSIS AND EVALUATION
Marks and Spencer basically has applied one major theory within their business process
for the operations which are being conducted along with supply chain management and that is
Six Sigma which can be stated as approach which mainly looks out for the enhancing the quality
by determining that the how many are the barriers and issues which are present in the process
and thus resolving the issues until they become null and void. This kind of theory was being
founded by Bill smith in 1986 while he was working in Motorola company. Along with time, this
theory got popular and thus mots of the companies started applying this within their operations.
This kind of theory can be utilised by the company for not just the operations but also for
the supply chain management (Fernie and Sparks, 2014). This will provide assistance in
determining the actual issues and challenges which are being faced by the company within the
operations supply network. Major challenges which were determined by the companies within
the operations of supply network like: Customers Service: Providing the right type of product to the right type of customers and
that too at the right time is all what it takes to attain growth and success in operations of
supply networks. Six sigma mainly helps out in determining the causes which affect the
process and other operations conducted and thus helps out company to provide better
services to the customers. Cost Control: Controlling the cost is one of the crucial factor through which the cost of
the products and services which are being supplied to the customers and suppliers. But
sometimes due to various external features controlling the cost becomes difficult (Wu,
and Pagell, 2011). Those external issues and other factors are being determined by the
Six Sigma approach along with the resolution of this issue and challenges. Planning and Risk Management: In every business process it is highly essential to adopt
the changes regarding goods and operations so that they can attain growth and survival
within the marketplace. Those modifications and other changes are being determined by
this kind of theory within M&S along with its benefits and drawbacks so that they can
give expected outcomes.
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 Talent: In modern scenario, it is highly essential for the company to recruit best talent so
that they can give high level of performance and thus every process can get much more
effective. Six sigma mainly helps out in determining the employees along with the
process which can help out in conducting the activities in smooth manner. In addition this
kind of approach will help in creating platform of opportunities by which the operations
in supply chain network can become much more effective.
Business model is a crucial factor by which the operations of business becomes successful and
thus all the factors which are associated with are being applied. There are some of the major
model which are being utilised within the company and those are described below:
 Direct Sales: In this kind of model, selling is being on direct base like it is being done
by the network of salespeople who directly sell to the customers. This mainly takes
place within M&S through presentations and demonstrations for the product and
services. This allow the owners of the business to earn high portion of sales while the
company retains the amount of revenue.
 Franchise Model: In this kind of model, company can buy another company's
strategies and thus instead of creating new kind of product, franchisee purchases an
ownership stake within the business model which has been already developed
successfully (Marucheck and et. al., 2011). This will allow M&S to earn high amount
of profit and generate more revenue in various kind of locations. This kind of strategy
has been adopted by M&S and thus they have attain growth and success by providing
franchisee in other countries.
These kind of models can be utilised by Marks and Spencer for evaluating the challenges which
are being faced by them:
 Customers Service: This kind of challenge is being faced by company in most of the
time as this is the global company who has to deal worldwide. So to resolve this kind
of challenge, both of they model can be utilised by the company as this will help to
make the operations and supply chain management system much more effective.
 Cost Control: This kind of challenge can be resolved by utilising these kind of models
within the business process and supply chain management which can in turn can
provide smooth running of all the tasks and activities within M&S. By the help of both
of models company can use direct sales model which in turn will allow them to have
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direct selling and acquire the knowledge of various cost which are being applied. This
way cost can be controlled and thus company can attain growth and success within the
marketplace.
 Planning and Risk Management: These types of models can help out in company to
adopt the changes and implement them in better and effective manner. In addition,
both of the models will help out in bringing the necessary factors which needs to be
replaced by the old ones and thus apply them so that it can planning and decision
making process can be enhanced (Tayur, Ganeshan and Magazine, 2012). Along with
that it will also enhance the process of supply chain management.
RECOMMENDATIONS
According to the Tayur (2017) , in existing scenario there are various kind of
technologies and advancement factors are present which can be utilised by the companies in
different process and activities. So it is highly recommended that company should adopt one of
those technologies and should apply as test. After testing the best suitable one which is giving
high level of production should be adopted. In context of supply chain management, according
to Pagell (2014) it can be stated that the M&S should have effective distribution channel as they
are one of the largest company who is dealing at the global level. Better and effective channel of
distribution can be created and adopted so that they can achieve aims and objectives in better and
effective manner.
SUMMARY
Board of the directors can be stated as recognised group of people who mainly have
joined the oversee of the activities of the company which can be either non profit company or it
can be profitable organisation or it can be a governance agency. Govt. regulations plays essential
role in the power of board and their duties along with the responsibilities. Their main role is to
appoint the CEO of the company and thus sets out the overall strategic decision. Another major
duty of the board of directors is to disperse ownership, determination and nomination of directors
which mainly select the people which in turn leads to high degree of self perpetuation. In M&S
they play essential role in ensuring the availability of proper financial resources so that it can
make supply chain management much more effective. In this report, operations of the supply
management.
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CONCLUSION
From the above report, it can be concluded that within the supply networks, there are
many of the challenges which are being faced by the company. Marks and Spencer who is one of
the largest company dealing across the globe in retail sector and they have big supply network.
There are number of challenges and other obstacles which are being faced by them while
conducting the operations and distributing products and services to all the outlets. Apart from
this there are various models and theories which are being adopted by the business process in
order to analyse those challenges and thus overcome them in better and effective manner. There
are certain ways through which those models and theories can be implemented and thus utilised.
In addition, there are some of the recommendations which are being made on the basis of proper
evidence and support.
RECOMMENDATIONS
In existing situation there are different sort of innovations and headway factors are
available which can be used by the organizations in various process and exercises. So it is
exceptionally suggested that organization ought to embrace one of those innovations and ought
to apply as test. In the wake of testing the best appropriate one which is giving abnormal state of
creation ought to be embraced. In setting of store network administration, it can be expressed
that the M&S ought to have powerful appropriation channel as they are one of the biggest
organization who is managing at the worldwide level. Better and successful channel of
conveyance can be made and received with the goal that they can accomplish points and
destinations in better and powerful way.
Furthermore, in future, changes in the process and supply network can be done so that this can
help out in making the company much more effective along with its position within the
marketplace. After implementation and overcoming of all the challenges company will attain
better position within the marketplace. Along with this, it will help them to gave better network
of supplying the products and services.
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REFERENCES
Books and Journals
Dekker, R., Bloemhof, J. and Mallidis, I., 2012. Operations Research for green logistics–An
overview of aspects, issues, contributions and challenges. European Journal of
Operational Research. 219(3). pp.671-679.
Fernie, J. and Sparks, L., 2014. Logistics and retail management: emerging issues and new
challenges in the retail supply chain. Kogan page publishers.
Marucheck, A., and et. al., 2011. Product safety and security in the global supply chain: Issues,
challenges and research opportunities. Journal of Operations Management. 29(7-8).
pp.707-720.
Tayur, S., Ganeshan, R. and Magazine, M. eds., 2012. Quantitative models for supply chain
management (Vol. 17). Springer Science & Business Media.
Wu, Z. and Pagell, M., 2011. Balancing priorities: Decision-making in sustainable supply chain
management. Journal of Operations Management. 29(6). pp.577-590.
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