SUPPLY CHAIN MANAGEMENT

Marks and Spencer: A study of Supply Chain System



Table of Contents

Introduction3

Task 1: Critical evaluation: the existing SCMM applied by Marks and Spencer.3

Issues3

SSCM Approaches and Tools (Metrics, Criteria, Measures)4

Communicating Company sustainability policy and values4

Pre-Qualification Criteria4

Success Factors4

Task 2: Recommend and justify which supply chain management model best suits Marks and Spencer.5

The First Three Years5

The Next Phase Of Plan A5

Working With Suppliers6

Becoming Carbon Neutral6

Recommendations7

Conclusion7

Marks and Spencer: A study of Supply Chain System

Introduction

Marks and Spencer Plc is an international retailer with 718 locations across 34 countries. The group sells clothing, footwear, gifts, home furnishings and foods under the St. Michael trademark in its chain of 294 stores in the United Kingdom. It is listed in the FTSE 100 index and employs over 75,000 staff. Approximately half of the group's overseas stores are franchised to local partners (Marks and Spencer, 2000, [Website]).

The group also owns the clothing retailer Brooks Brothers and the Kings Super Markets chain in the United States of America. Marks and Spencer uses direct mail as a means for marketing products such as home furnishings, flowers and wine. Marks and Spencer also has a financial services operation providing account cards, personal loans, unit trust management, life assurance and pensions. Retailing accounted for 96% of fiscal 2000 revenues and financial services, 4%. For the interim results to September 30th 2000, group profit before tax was £183.4 million compared to full 1999 figure of £192.8 million (Marks and Spencer, 2000, [website]).

Over the past 18 months there have been some major internal organisational changes, including a change of Chairman. Both the UK and the international businesses are controlled through the PLC board. Below this sits the UK Retail Board, this controls the UK retail business (around 90% of Marks and Spencer customer business). Marks and Spencer UK retail is now made up of seven business units. These are Women's wear, Menswear, Lingerie, Children's wear, Beauty, Home and Foods. The retail business itself is made up of roughly 60% in clothing and 40% in food. The following case study is focused upon the retailing side of the business.

Task 1: Critical evaluation: the existing SCMM applied by Marks and Spencer.

As a retailer, Marks and Spencer is the furthermost downstream within the overall supply chain of raw materials to consumption. As such, supply chain activities are focused upstream toward suppliers. The management of these supply chains also involves more than just the first tier suppliers of goods. There are around 1000 different suppliers to Marks and Spencer, although there are only a few very large suppliers that form the bulk of the supply base. Most of the food suppliers are locally supplied (within UK), while most of the clothing suppliers based globally (Ballou, 2009: 67).

The supply chain is managed through each of the seven business units on an independent basis. Suppliers to the business are managed through the procurement functions for each of the business units. Each business unit integrates both the buying and selling functions within teams orientated towards particular customer ...