Comprehensive Analysis of Supply Chain Management at Marks and Spencer

This report provides a comprehensive analysis of the supply chain management practices employed by Marks and Spencer (M&S). It begins with an introduction to supply chain management, emphasizing its significance in ensuring customer satisfaction and organizational success. The report then delves into key aspects of M&S's supply chain, including customer service and inventory management, detailing various inventory methods such as safety stock and reorder levels (ROL), and exploring how these methods improve product availability and service levels. The report further examines transportation strategies, the role of Logistics Service Providers (LSPs), and the efficient movement of goods. Warehousing and capacity management are also discussed, highlighting their contribution to supply chain efficiency. Finally, the report analyzes M&S's supply chain strategy, competitive advantages, and ways to improve the organization's supply chain, culminating in a conclusion that summarizes the key findings and recommendations. The report highlights the importance of adapting to market changes, ethical trading, and the use of technology to enhance supply chain performance.

SUPPLY CHAIN
MANAGEMENT

Table of Contents
(1) INTRODUCTION......................................................................................................................3
(2) Customer service & Inventory:..................................................................................................3
Products available to your customers.....................................................................................3
Inventory methods (safety stock, ROL, etc) are used by organisation in order to improve
availability and the service level of your organisation...........................................................4
Managing stock......................................................................................................................4
(3) Transportation & LSPs:..............................................................................................................5
Modes of transport are used by organisation’s supply chain.................................................5
LSPs chosen by organisation employ....................................................................................5
Supply side transportation managed differently from the demand side.................................5
Efficient supply chain transportation for organisation...........................................................6
(4) Warehousing & Capacity: .........................................................................................................6
Warehousing contribution to organisation.............................................................................6
5 steps of managing capacity..................................................................................................6
Supply chain efficiency..........................................................................................................7
(5) Strategy, Competitive advantage & Conclusion: ......................................................................7
Aid the chosen organisation’s competitive advantage...........................................................8
Ways to improve the organisation supply chain: ..................................................................8
Supply chain strategy used by organisation...........................................................................9
Conclusion..............................................................................................................................9
REFERENCE.................................................................................................................................11

(1) INTRODUCTION
Supply chain management is the management of production flow of goods and services
starting from raw material to making and delivering final product to the customers. It includes
supply planning, planning of product, demand planning, sales and operations planning and
supply management. Supply change management is important as it is considered as an integral
part of the organisation which makes the firm success and satisfying the customers. Marks and
Spencer is taken as base company. Logistics refers to the process of moving resources which are
acquired, store and transported from one location to the final destination. Marks and Spencer is a
British multinational retailer which specialises in selling of cloth, food products and home
products. This company was found by Michael Marks and Thomas Spencer in 1884 and its
headquarter is in UK. They are serving across the globe covering more than 1500 areas with their
more than 800 stores in United Kingdom. In context to the selected organisation, this report
covers customer service and inventory which helps understanding of different inventory methods
used in the organisation that helps in keeping the stock. Organisation uses transportations and
different LSPs for movements of products and warehouse for managing the stock are explained
in the report. Furthermore, it includes the strategies and competitive advantage that helps
organisation stand out of the crowd from the competition. In context to Marks and Spencer,
supply chain management is that the customers demands the products, supplier has the work of
delivering the product to the warehouse where they dispatched and present to the customers.
There are some factors in supply chain management which are mentioned below-
(2) Customer service & Inventory:
Customer service in supply chain management is changed from past and it is convenience to
outsourced another country for profitability (Badi and Murtagh, 2019). It is an important factor
in supply chain management and logistics as it affects the process when goods and services are
delivered to the customers which includes the process of distribution, selling and manufacturing.
In reference to Marks and Spencer, they provide a better customer service which helps in
building and maintaining its brand image in the market.
Products available to your customers
Marks and Spencer stores are spread across the globe with more than 1000 stores located
in the United Kingdom and more than 450 stores worldwide which helps in catering of people

and market easily. The company manufactures cloth, food products and home products which are
always available in the store due to a strong inventory system that enable the store never out of
stock. The products and services can be easily accessed to the people and strong inventory.
Inventory methods (safety stock, ROL, etc) are used by organisation in order to improve
availability and the service level of your organisation
Inventory refers to the term for goods and raw materials that are available for sale
(Banerjee and Mishra, 2017). Inventory is considered to be the most important assets of business
as the it represents the primary source of revenue generation and also serves as buffer between
manufacturing and order fulfilment. Marks and Spencer uses different types of inventory
methods that are mentioned below-
Safety stock: Safety stock is considered as as an extra quantity which is stored in the warehouse
in case the level of stock dropped. In reference to the selected organisation, safety stock helps in
protecting against the sudden demand of the market and customers. It also serves in unpredicted
market fluctuation which might increase the price of stock that will impact on the profitability of
the firm.
ROL: Reordering level is considered as important method for inventory control. It refers to the
ordering of products before the stock in the warehouse fall to a particular level. The reordering
level used in Marks and Spencer when the safety stock drop to a minimum level which indicates
that the firm now has to order the products to stock in the warehouse.
Service level is used in measuring the performance of inventory replenishment in supply
chain management (Chen and Kitsis, 2017). Service level of M&S is both customer level and
service level which consists of 50-50 customer-service relationship. Customer is the key element
in the organisation which the firm is working for their need and preferences. And the products
and services that are developed for them which makes the ratio as 1:1.
Managing stock
Managing of stock is important as it ensure that a minimum level of stock in the
warehouse. In context to Marks and Spencer, it include different methods of inventory
management for managing of stocks which are mentioned below-
EOQ: Economic order quantity refers to the quantity of products that an organisation should
purchase in order to minimize the inventory costs. EOQ used in Marks and Spencer to analyse
the optimal number of units to be order.

Pareto method: Mark and Spencer using Pareto principle for doing 20% work for benefiting to
job by 80%.
Honeywell: Marks and Spencer can use Honeywell for their customers for providing a better
shopping experience and also serves to stock up the selves. Honeywell is a user friendly device
that look up the inventory without physically going into the inventory room (Out of Stock? Not
Anymore, 2017).
(3) Transportation & LSPs:
Transportation refers to the movements of products and services from on location to another
(Das, 2018). It is considered as important because it is not necessary that a product which is
manufactured at a location is consumed in the same location.
Modes of transport are used by organisation’s supply chain
The goal of supply chain management is to ensure that products that are delivered should be
efficient and uses lowest cost while transporting the commodities to the customers. In context to
the selected organisation, they deliver products to their customer through trucks and pickup
truck. They also use air transportation for import and export of the good. Air services are fastest
way to provide the products to other location.
LSPs chosen by organisation employ
Marks and Spencer uses 3PLs for fulfilment of warehouse and provides various services
such as picking and packing, inventory management, shipping and receiving and so on. Third
party logistic organisation act as an e-commerce fulfilment firm. They are the part of
technological revolution which enables them to track all the activities and real- time to aid
decision-making. Third-party logistics manages both inbound and outbound transportation which
provide then to lease warehouse place so that they can drop their products and shipment of
products can be start from there only (Deng, and Jiang, 2019). The role of logistics service
providers to act as intermediaries between freight operators and customers. There are various
logistics service providers (LSPs) such as WH Malcom, The Russell Group and Stobart Rail are
working with Marks and Spencer for the growth of domestic intermodal services.
Marks and Spencer has announced that the will start their national network of distribution centres
from summers 2021 which the helps of XPO logistics and DHL. It will help in moving faster of
all their clothing and home products to different areas and also speed up the supply chain. The

new supply chain officer Paul Babbs makes sure that the goods will now able to move from
national distribution centre to their Marks and Spencer stores (M&S to close DHL and XPO
RDCs, 2020).
Supply side transportation managed differently from the demand side
Transport supply refers to the supply of products from different locations. Marks and
Spencer transport product which depends upon the capacity of both airports and air corridors.
They also uses road transport which are considered as more contingent whereas air transport and
maritime are dependent upon intermodal capacity.
Efficient supply chain transportation for organisation
Recently Covid-19 has impacted the worse for everyone. Marks and Spencer manages its
supply chain efficiently by offering various strategies such as if the customers order any product,
the shipment charges will be given by the company itself. They also provide with the ethical
trading initiative which helps in distribution of emergency relief funds.
(4) Warehousing & Capacity:
Warehouse is a spacious and large place where the finished or semi finished products are kept
(Heizer, Render and Munson, 2017). This is the place where all products are distributed to stores
and other location. It also performs functions such as picking and receiving, management of
inventory, auditing of products and so on. Warehousing is important in supply chain
management as it allows a sustainable management of inventory and enhancing a better customer
experience.
Warehousing contribution to organisation
The most challenging business is to maintain the accuracy of the inventory. In reference
to the selected organisation, it is important to make effective and organised inventory by tracking
every aspects. which are mentioned below- Supplier relationship: Marks and Spencer can create a harmonious connects with their
suppliers so that they can provide high quality products to their customers and it also
enable to create opportunities for performance improvement and came up with best
output in a short period of time.
 Risk management: There are various type of changes occurs in the market which are risky
for an organisation such as customer demands, political agendas and global sourcing and

create impact on the operation and function of the firm (Ketchen Jr and Craighead, 2020).
Marks and Spencer can hire logistic software development company which will help in
managing these issues effectively.
5 steps of managing capacity
Step1: Check on the current SLA levels
Marks and Spencer analyse the service level agreement and signed partnership agreement
with service providers.
Step2: Analyse existing capacity
in reference to the selected organisation, Identify the current capacity with the use of
technologies and they can also use load testing and performance monitoring tools to gain
accurate capacity.
Step3: Determining future needs
This step involves in identifying the need after analysing the capacity of requirements of
units in the warehouse.
Step4: Identifying opportunity for consolidation
Consolidating removing the unnecessary hardware can educe licensing cost or utility
expenses (Lamba and Singh, 2018).
Step5: Making capacity recommendation and take action
Capacity plan should be support the user and it provides the in sights about the capacity
and future needs.
Supply chain efficiency
In reference to Marks and Spencer, all products are delivered from the warehouse where
they daily record all the information about the arriving of products, products that are on their
way to deliver to customers and stores, products are available in the warehouse or not. They also
make sure that products are delivered to the customers are on time which helps in satisfying the
customers and employees as well as maintaining their brand image. Marks and Spencer has
closes their two warehouse which affects the jobs of more than 500 workers. The company has
decided to close it Thorncliff distribution site which was run by XPO Logistics and Long Eaton
warehouse by DHL that will helps in improving their distribution systems as they are at the early
stage for changing of their supply chain for availability of products to the customers (M&S to
close two warehouses as overhaul continues, 2021).

(5) Strategy, Competitive advantage & Conclusion:
Supply chain management has an important role in organisation for gaining competitive
advantage as efficient management leads in saving of costs of supply chain which increases the
profitability of the organisation. Companies focuses on developing efficient supply chain which
will helps in delivering of products quickly (Tokar and Swink 2019). Marks and Spencer focuses
on providing quality customer-service with fulfilling the demands and needs of the customers.
The products are transported to different location through different modes of transportation such
as using roadways and air services. The products which are available in different locations
depend upon the size of the airports and warehouse. These products are available in the stores
and refill the store by taking products from the warehouse. Warehouse is a spacious place where
the products are stored for future use. The warehouse maintains a minimum level that restocks
when the level falls.
Aid the chosen organisation’s competitive advantage
To achieve competitive advantage, supply chain management must be efficient and customer
satisfaction can be achieved by lowering the operation costs (Tönnissen and Teuteberg, 2020). In
context to Marks and Spencer, all different departments will focus on three levels of functions
that are mentioned below-
Supply chain at strategic level: At this level, Marks and Spencer will link its corporate strategies
with supply chain policies and all decisions are made in respect to the product category, supplier
partnership, sales and distribution and so on.
Supply chain at tactical level: Tactical level is for supplier's selection and logistic development
partners for cost effective transportation. All decisions on this level taken by Marks and Spencer
will search and provide solution for producing cost effective techniques and strategies. They also
evaluate strategies for warehousing and inventory control.
Supply chain at operational level: M&S operational objectives are satisfied at this level where
material handling systems are selected and processes of production. All operational decisions are
involve for making changes to the production, purchasing with supplier, taking order from
customers and shifting of products in the warehouse. At this level, they have a competitive
advantage as they have the whole process of supply chain starting from raw material to
delivering the final product and customer has the technological facilities to track the orders
timely.

Ways to improve the organisation supply chain:
 Standardize: Marks and Spencer can use standardize ERP systems which helps in
increasing the efficiency as well as saving time and cost. It is considered as the central
success of the supply chain that also helps in increasing the accuracy reduces the
miscommunication within the employees of the organisation.
 Raise cost awareness: Marks and Spencer can have central financial data pinpoints
which helps in analysing the areas where the organisation spends money. It will helps in
encouraging the communication to cost and strategies for consolidating expenses.
Supply chain strategy used by organisation
Marks and Spencer uses efficient supply chain by keeping the optimum inventory in local
warehouse and concentrates more on decreasing manufacturing inventory cost. The flow of
information is direct towards manufacturing locations to their stores in time of high demand.
M&S uses all entities for making supply chain effective such as product, facilities, vehicles and
routes are interrelated to each other. Product is the demand that the customer wants and products
are manufactures, stored and sold at Marks and Spencer stores. In order to get the products in the
store, various types of transportation used for movement of products from one location to
another and products are transported through various routes such as by using roads and air
services so that product can reached to its destination.
Conclusion
From the above discussion, it can be concluded that supply chain management is an
essential part of an organisation which has a process of flow of raw materials to delivering the
final product to the customers. Logistics has a key part in supply chain. It plans, implements and
control the flow and storage of products to fulfil the requirements of the customers. The major
difference between supply chain and logistics management maintain the flow and storage
whereas supply chain management is the movement of supply chain in the organisation. In this
report, it includes how logistics and supply chain management is conceived, supported, delivered
and developed. It includes all the key elements of supply chain management such as customers
services, transportation, warehousing and competitive advantage. Along with this, it also
includes ways in which organisation can improve its supply chain for a better productivity and
profitability.

REFERENCE
Book & journals
Badi, S. and Murtagh, N., 2019. Green supply chain management in construction: A systematic
literature review and future research agenda. Journal of cleaner production, 223, pp.312-
322.
Banerjee, M. and Mishra, M., 2017. Retail supply chain management practices in India: A
business intelligence perspective. Journal of Retailing and Consumer Services, 34,
pp.248-259.
Chen, I.J. and Kitsis, A. M., 2017. A research framework of sustainable supply chain
management. The International Journal of Logistics Management.
Das, D., 2018. The impact of Sustainable Supply Chain Management practices on firm
performance: Lessons from Indian organizations. Journal of cleaner production, 203,
pp.179-196.
Deng, X. and Jiang, W., 2019. Evaluating green supply chain management practices under fuzzy
environment: a novel method based on D number theory. International Journal of Fuzzy
Systems, 21(5), pp.1389-1402.
Heizer, J., Render, B. and Munson, C., 2017. Principles of Operations Management:
Sustainability and Supply Chain Management (Global editon). Pearson.
Ketchen Jr, D.J. and Craighead, C.W., 2020. Research at the intersection of entrepreneurship,
supply chain management, and strategic management: Opportunities highlighted by
COVID-19. Journal of Management, 46(8), pp.1330-1341.
Lamba, K. and Singh, S. P., 2018. Modeling big data enablers for operations and supply chain
management. The International Journal of Logistics Management.
Tokar, T. and Swink, M., 2019. Public policy and Supply Chain Management: using shared
foundational principles to improve formulation, implementation, and evaluation. Journal
of Supply Chain Management, 55(2), pp.68-79.
Tönnissen, S. and Teuteberg, F., 2020. Analysing the impact of blockchain-technology for
operations and supply chain management: An explanatory model drawn from multiple
case studies. International Journal of Information Management, 52, p.101953.
Varsei, M., 2016. Sustainable supply chain management: A brief literature review. The Journal
of Developing Areas, 50(6), pp.411-419.
Online
M&S to close DHL and XPO RDCs, 2020 [Online], Available through; <https://apex-
insight.com/ms-to-close-dhl-and-xpo-rdcs/>
M&S to close two warehouses as overhaul continues, 2021 [Online], Available through;
<https://www.sharecast.com/news/news-and-announcements/ms-to-close-two-
warehouses-as-overhaul-continues--7311936.html>
Out of Stock? Not Anymore, 2017 [Online], Available through;
<https://www.honeywell.com/us/en/news/2017/08/out-of-stock-not-anymore>