Global Supply Chain Management in Retail: A Marks & Spencer Analysis

This report examines global supply chain management within the retail sector, using Marks & Spencer as a case study. It delves into the design and implementation of supply chain strategies, emphasizing the importance of effective management for customer satisfaction and business growth. The report analyzes various aspects, including supply chain design, optimization of production, leveraging industrial standards, and minimizing premium freight costs. It also explores the use of collaboration, lean principles, and agility in configuring supply chains. Furthermore, the report discusses how companies utilize advanced technologies to maintain a competitive edge, covering aspects like demand-driven planning, integrated operations, and product design optimization. The analysis provides insights into how these strategies enhance efficiency, customer satisfaction, and overall business performance in the retail industry. The report covers the importance of aligning supply chain operations with sales and customer demands.

Global Supply Chain
Management-1

Executive summary
This report is based on the supply chain management in retail sector. In this it is
described that how retail sector design and implement supply chain strategies. Also, it is
discussed that how organisation configure the overall process of supply chain by applying some
principles. Moreover, it is shown that how advance technology is been used by organisation to
maintain competitive advantage in industry.

Table of Contents
INTRODUCTION...........................................................................................................................1
Main Body..............................................................................................................................1
1) Designs of supply chain management system....................................................................2
2) Measures to configure supply chain through collaboration, lean principles and agility....5
3) How advance technology is utilised by companies............................................................6
REFERENCES................................................................................................................................9

INTRODUCTION
Supply chain strategy is very important to be followed within an organisation to have
good growth for an enterprise. It helps in carrying various business activities and actions that
supports improvement of customer satisfaction level. Looking at approaches and expansion of
business on international level, firm must look after proper management of global supply chain
(Monczka and et.al., 2015).
For the report, Marks and Spencer has been taken as organisation of context. It is a UK
based enterprise, working in retail industry. The report will critically analyse specific design and
implementation of measures that are followed within the sector. Apart from this, various supply
chain collaborations, principles and measures will be discussed. In addition, use of advance and
latest technologies in maintaining supply chain will also be discussed with regard to competitive
advantages for cited retail firm (Wang and Cullinane, 2015).
Main Body
Along with global expansion of products and services by business entities on an
international level, firms are now required to handle supply chain management process on global
level. This is required for proper management of needs and demands of customers on
international level.
Effective handling of supply chain strategies and actions is very important for a firm that
helps in suitable growth and development of an organisation in an effective way. The proper
management of demand and supply of any good or service by cited business will improve
customer satisfaction level. In addition, it assists in building a good will between cited firm and
customers or stakeholders of M&S (Jacobs, Chase and Lummus, 2014).
The firm must effectively look after proper management of operations and activities for
effective development of a supply chain strategy. It will involve proper drafting, adoption and
implementation of development strategy, which helps the organisation to increase its efficiency
and capability to perform various business operations and activities in a significant manner.
The development of suitable supply chain management system will help firm to improve
its performance. However, this process requires effective planning and different sort of research
measures, which assist in effective growth and development of supply chain strategies. The
various measures that are been taken in consideration assisting organisation to improve their
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business performance to a greater extent. These models or measures support the firm to set
proper strategies and business operations that cause an organisation to meet their customers’
needs and demands.
Other than this, it supports cited retail firm to maintain an organisational structure
supporting proper rise in business activities and operations in an effective manner. The
management of supply chain by M&S plays an important role in improving customer satisfaction
level. In addition, this will include proper assessment of international needs and demands.
1) Designs of supply chain management system
Design for supply chain management is a process of optimising and developing of a
measure or method that acts as a bridge between supply chain capabilities and product designs.
This is based on deep and crucial assessment of production and infrastructural limitation of cited
entity and capability or scope of improvement. It also involves assessment of production
capabilities that has been possessed by organisation. Besides this, crucial and significant
evaluation supports cited retail enterprise to have cost cutting or effective approach to carry out
its supply operations.
The cost effectiveness is a major competitive advantage that will support a good rise in
operational capability. The ability to have high performance in implementation of low cost will
improve competitive advantages of a firm over its rivals. This improvement supports the firm to
have a good rise in capability and efficiency to meet their customers’ needs and demands (Wang
and et.al., 2016.).
The approach of developing a proper design for supply chain management will help in
integrating different activities and operations within M&S. In addition, it will support adoption
and implementation of various IT and other technological tools and techniques. This will
improve productivity and customer satisfaction level for products and services of firm. It not
only helps in enhancing flexibility of firm but also leads to cost advantage and maintaining the
supply chain within organisation in an effective manner. Various strategies are considered within
an organisation like adoption of a demand driven planning, following an integrated execution of
operation and optimisation of product designs for innovation etc.
Some major strategic methods of designs of supply chain (DfSC) that are followed by
cited retail enterprise are as follows:
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Optimising the level of Production: It helps in suitable management of production capacity
which supports in improving the quality of services. It extends to meeting of the needs and
demands of their customers. It is a very difficult decision to implement and requires effective
planning of various business operations and activities, which will support the growth of
company's operations and capabilities. It requires proper planning and implementation of
effective work measures within assembly or production line. The detailed assessment will be
followed within organisation and supports to forecast various risks associated with it. It assists in
getting proper solutions to various issues faced in designing of supply chain.
Leverage industrial standards: effective following of industrial demands will help
organisation to create and have good competitive advantages. It will make suppliers or vendors
within firm to collect various products and services, which will help to meet their organisational
needs. This will also assist in proper disposal of cost effective approaches that leads to improving
the quality of products or services. Other than this, the proper monitoring of supply chain
management. It also leads to a proper stock management within cited retail organisation.
Minimising the premium freight: the premium freight is a major expanse related to a resource
that makes larger portion of a supply chain expenses for a company. In order to minimise this
cost, M&S will look after effective measures to have a control over it. The firm will reduce time
and maximise availability of alternative components.
Major aim behind considering this approach is that difference between a time lead will
create a product volume fluctuation and may cause failure to meet demands. To avoid such
situations, these measures have been taken. It supports creation of a flexible approach to meet
needs of their stakeholders and suppliers to develop good quality products or services. This may
involve physical and operational changes within an organisation, which can cause a firm to
develop proper strategies and meet their business objectives with ease (Mangan, Lalwani and
Lalwani, 2016).
Designing a life cycle: The proper supply chain is required to managed that will include the
effective planning of the measures that are been followed for developing a good supply chain. It
involves the proper alterations in business operations and infrastructure that leads to the changes
in product design, cost improvement, adoption of new commodity or technology. This will help
in minimising the impact of competition on supply chain strategy of M & S. Other than this, it
reduces the disruption in management process. It will help the firm to improve the quality of
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products and services that are been developed to avoid reduction in service level. Besides this, it
helps in restructuring of production line and frame works.
Configuring the selected supply chain: After following of a proper product development
process, it leads to proper selection and configuring of a good supply chain. The proper selection
of a supply chain is based on company's strategic plan and productivity. Besides this, the
effective market requirement factors are been evaluated and analysed to adopt a good supply
chain. The basic aim of a supply chain is to have the access to high volume of goods and services
in stock and having an effective quantity of demand for it (Wang and Cullinane, 2015). The
geographic and demographic conditions within a locality or organisation are been taken in
consideration. The proper distribution measure is been evaluated to carry out the supply chain
measures in an effective manner. At last the profitability and feasibility of adopted method is
been considered.
Optimization of order management: In order to effectively and properly carrying out the
supply chain measures, M & S is requires to effectively and efficiently manage its orders. This
will help to handle the product development process and help in maintaining the flexibility of
firm to meet its customers requirements in an effective way. The effective product designing will
help the firm to fulfil its customers needs and demands. It also helps in reduction of internal
operational cost, that can affects the firms operations and meeting of targeted objectives. This
assist to improve the manufacturing and distribution process in order to improve the overall
customer satisfaction level and profitability of cited retail enterprise (Christopher, 2016).
Thus, these measures are been taken in consideration that will help in good rise in the
effectiveness of a supply chain that is been adopted within an organisation. This will help in
meeting the needs and demands of a business organisation as well as its customers. Other than
this, the selection measures for the supply chain management will help the firm to effectively
adopt the proper measures to meet customers needs and demands.
Other than this, some major strategic measures that will be taken in consideration by the
firm such as:
 Adopting a demand driven plan: proper analysis of customers demands and drafting a
plan will help the firm to improve their performance and thus will help in increasing the
productivity of firm.
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 Building a good and effective supply chain: the assessment of needs and developing of
plan will lead to flowing down of suitable supply chain that will help the firm to fulfil
identified demands in an effective way.
 Coordinating product design and management: it will help in incorporating the
innovation within actions of firm and leads to development of a unique product or
services to meet customer's satisfaction level.
 Aligning the supply chain as per the operations and sales: the management of firm
will alter and place the supply chain as per the operational capacity of firm. As the
demands will increase, supply has to add on in order to meet sales criteria and customers
satisfaction.
2) Measures to configure supply chain through collaboration, lean principles and agility
Various measures are been taken in configuration that will help in proper management of
their supply chain and thus will help in effective rise in capability and handling of business
operations and activities (Hugos, 2018). As M&S is operational in retail sector, the firm has to
see through effective handling of its customers needs and demands. The effective management of
supply chain measures that is been taken in consideration by cited retail entity. This will help in
significant rise in capabilities and efficiency of work force and the firm, as whole. The firm has
to see through the effective placing of business operations and activities that helps in effective
placing of strategic planning that helps in suitable execution of supply chain activities. Various
measures will be undertaken by M&S to meet the global supply chain requirements. Effective
measures like collaborating with other business firm or supportive organisation, controlling the
wastage or misuse of resources and performing the task with more gracefulness and in a hassle
free manner. This will help the organisation to undertake effective methodologies which will
assist organisation to carry out its supply objectives in a more efficient and effective manner.
The execution of these actions will require certain operations and activities that will help
the organisation to carry out business operations and fulfilment of customers needs and demands
in an effective way. Various operations that are been laid by a business entity will help the
organisation to meet the requirements of its buyers or consumers. This will help the organisation
to handle the retail activities. This will help in suitable adaption of measures that will help the
organisation to have a clear and precise insight of business activities and operations. Some
effective measures that are been taken in consideration are:
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 Collaboration: the collaboration or making out an agreement is an activity that will help
in suitable rise in business operations and activities (Khalid and et.al 2015). That are
been taken in consideration by M&S. The mergers, acquisition or collaboration that is
been followed in order to carry out relative actions will help in suitable management of
company's supply chain. The firm can also opt for vertical or horizontal integration that
will help the firm to meet operations and thus will support a good rise in capabilities and
thus will help in effective management of business operations. This will help the firm to
gain the support of additional firm that will aid into carrying out the supply related
operations on world wide level.
 Lean principles: the lean principles and management operations will be carried out by
M&S. It involves the activities and operations that includes the proper production and
distribution of goods and services of high quality using minimal resources. This action
helps the organisation to meet the activities and actions which will help the proper
meeting of needs and demands of buyers or consumers. Following of approaches like Six
sigma, Total quality management etc. will assist the organisation to have a good rise in
capability to execute business operations on global level. Also, setting of performance
standards will be beneficial.
 Agile functioning: Agility in supply chain management is an approach of providing
proper goods and service with efficiency, in a fixed time frame (Meixell and Luoma,
2015). This is necessary to maintain the relevance of goods and services and sustain
customers trust and satisfaction level. It also supports to save vital resources and time,
applied for execution of business operations. This approach can be carried out using Just
In Time approach (JIT) and meet operational capabilities of firm in an effective way.
3) How advance technology is utilised by companies
Technology plays an important role in business operations. They provide effective ways
to doing activities so that business efficiency can be increased. In recent times the delivering
system is getting complex due to expansion of business. This has allowed companies to establish
warehouses in different locations to supply goods. This has increased the expenses of companies.
Thus, to reduce the expenses companies has implemented several applications and software in
supply chain. The major impact of this is on retail sector. It has affected the companies to a great
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extent. As Marks and Spencer operates globally they require an effective and proper supply
chain management system (Ross, 2016). Also, it helps in connecting different locations so that
demand and supply of goods in different markets can be maintained. It also helps in delivering
goods quickly and at cheap rates. For this Marks and Spencer is using advance technology that
has allowed them to maintain competitive advantage in the industry. The technology used by
company is as below :-
Big data analytics – It is the process of analysing large amount of data that includes variety of
data sets to process useful information. Marks and Spencer is using big data analytics that has
helped them to take quick and effective decisions. By this they are able to examine market
situation. This has also benefited organisation to improve delivery by analysing order from
different locations. Moreover, it has helped Marks and Spencer in selecting the supplier that
provide goods at cheap rate. Data analytics has helped in maintaining effective CRM. With this
company identify their needs and fulfil them. Furthermore, it has helped in developing products
so that more customers can be attracted. In this way Marks and Spencer has increased customer
base and gained more market share.
Internet of things – It is a network of various physical devices, appliances, software, etc. that
helps in exchanging of information on real time basis. This has helped companies to connect
with internet so that tracking of items can be done (Beske and Seuring, 2014). Marks and
Spencer utilise internet of things to track orders, raw materials, etc. of different markets. Also, it
has enabled them to provide updated information to their customers. It has lead to increase in
their satisfaction. Furthermore, using the IOT has connected applications and software in
production and supply chain department. This has enhanced company operational efficiency.
Apart from this, IOT has been highly used in production sector. This has provided an extra
advantage to monitor the quality of goods.
Cloud computing – It is a technology that uses third party to maintain resources by storing and
processing data. It has created a platform for companies to develop an on demand delivery
system. Marks and Spencer has implemented cloud computing to store data so that it can be used
in taking effective decisions. It has enabled them in protecting their data. Moreover, cloud
computing has integrated the process within company so that operations are not affected. It has
helped organisation by providing the innovative technology. By this they implement process to
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work in creative way. Also, new machines are installed to improve quality of products. By
utilising cloud computing Marks and Spencer has analysed market situation and developed
growth strategies.
Conclusion:
This report concludes that supply chain management helps in production and delivery of
goods. The companies operate in different countries so they require a global system through
which goods can be provided quickly and at cheap cost. Also, it is concluded that by using
advance technology companies are able to survive for long term in the market.
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REFERENCES
Books and journals
Beske, P. and Seuring, S., 2014. Putting sustainability into supply chain management. Supply
Chain Management: an international journal, 19(3), pp.322-331.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Hugos, 2018.Khalid and et.al 2015.Meixell and Luoma, 2015.Ross, 2016Beske and Seuring,
2014.
Hugos, M.H., 2018. Essentials of supply chain management. John Wiley & Sons.
Jacobs, F.R., Chase, R.B. and Lummus, R.R., 2014. Operations and supply chain
management (pp. 533-535). New York, NY: McGraw-Hill/Irwin.
Khalid, R.U., and et.al 2015. Putting sustainable supply chain management into base of the
pyramid research. Supply Chain Management: An International Journal, 20(6), pp.681-
696.
Mangan, J., Lalwani, C. and Lalwani, C.L., 2016. Global logistics and supply chain
management. John Wiley & Sons.
Meixell, M.J. and Luoma, P., 2015. Stakeholder pressure in sustainable supply chain
management: a systematic review. International Journal of Physical Distribution &
Logistics Management, 45(1/2), pp.69-89.
Monczka, R.M., and et.al., 2015. Purchasing and supply chain management. Cengage Learning.
Ross, D.F., 2016. Introduction to e-supply chain management: engaging technology to build
market-winning business partnerships. CRC Press.
Wang, G. and et.al., 2016. Big data analytics in logistics and supply chain management: Certain
investigations for research and applications. International Journal of Production
Economics, 176, pp.98-110.
Wang, T. and Cullinane, K., 2015. The efficiency of European container terminals and
implications for supply chain management. In Port management (pp. 253-272). Palgrave
Macmillan, London.
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Wang, T. and Cullinane, K., 2015. The efficiency of European container terminals and
implications for supply chain management. In Port management (pp. 253-272). Palgrave
Macmillan, London.
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