Running Head: SCM
Marks & Spencer – Supply Chain
[NAME OF STUDENT]
[NAME OF INSTITUTE]
SCM 2
Contents
Introduction .................................................................................................................................................. 3
Part-A ............................................................................................................................................................ 3
M&S supply chain ......................................................................................................................................... 3
Supply chain network................................................................................................................................ 3
Supply chain Partners ............................................................................................................................... 4
Suppliers Role ........................................................................................................................................... 4
Competitive Advantage ............................................................................................................................ 5
Porters Five Forces Model ........................................................................................................................ 5
Part-2............................................................................................................................................................. 6
Outsourcing................................................................................................................................................... 6
Application in M&S ................................................................................................................................... 6
ZARA Example ........................................................................................................................................... 6
Technology .................................................................................................................................................... 8
Application to M&S ................................................................................................................................... 8
Example of Alibaba ................................................................................................................................... 8
Concluding Thoughts .................................................................................................................................... 9
Reference .................................................................................................................................................... 10
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Marks & Spencer – Supply Chain
Introduction
This paper will analyze the supply chain management process as being implemented and practice
in various areas of Marks and Spencer. The M&S is the top retailer in the United Kingdom and
among the leading brands of cloth retailing all over the world. It also offers other products like
home appliances and high-quality food.
It has a well-developed structure of supply chain with over 2000 suppliers and vendors
worldwide which provides it with a greater aspect of supply change managing all of its business
processes. The business effectiveness of M&S in term of its supply chain can be evaluated from
the fact that it has a chain store which is expanded over 43 countries and employs more than 75
thousand people in its global business structure.
The supply chain management aspect can be determined from various factors that provide
coordination in different business activities which are carried out to move the products towards
its final stage of consumption i.e. customer. The various activities that are carried out in process
of SCM are mainly in areas of planning, purchasing, and inventory management, producing and
transporting (Monczka, et.al, 2015).
Part-A
M&S supply chain
The M&S in the region of the UK practice various levels of business strategies in terms of its
product supply chain as it follows mainly according to the requirements of the consumer market.
This provides them with an effective means to supply products from their origin towards the
customer requirement. The organization logistics procedure and process in terms of its product is
also determined on the modes of its origin as to where the requirement has been raised. The UK
region of M&S has enhanced its supply chain management aspect by using various supply chain
strategies which may vary according to its service and product offering (Christopher, 2016).
Supply chain network
The M&S supply chain practice in the region of the UK is carried out on two fronts which is
based on the internal integration system. The other practice is carried out on the aspect of the
external supply chain management process (Hugos, 2018).
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The internal integration of the supply chain in M&S is used as a system which is integrated to all
the business process of its working environment. This provides integration to overall activities of
sales that are carried in all of its branches and online platform. This integration helps the supply
chain system of M&S to meet the customer demand as well as predicting the needs of the
potential. This provides them with an aspect to efficiently allocate all business resources and
make a purchase plan which provides them an advantage to deal with the suppliers for its various
business stores in all of the UK (Hearnshaw, et.al, 2013).
The external supply chain management of M&S in the region of the UK is more based on a
vendor managed inventory (VMI). This provides the business organization with an aspect to
inform its suppliers about the level of inventory it will be requiring to efficiently perform in all
of its business areas. It also uses GPS software in its supply chain process to have a better control
and monitoring aspect on all of its merchandise (Mangan, et.al, 2016).
Supply chain Partners
The supply chain of M&S is more dependent on the efficiency of its supply partners that function
in all aspects of its business process like getting raw material for product till delivery it to the
final consumer. These supply chain partner’s functions in various area like in capacities of third
party sourcing its material or services to the M&S. These suppliers act in many for M&S like
some time as retailers and distributors for its products and services (Lotfi, et.al, 2013).
This helps the business of the m&s to form a coordination network which helps in all of its
business activities performed by a systematic way from supplier participation. This provides the
supply chain to act as a stage process which is work in a step by step approach. The first stage
M&S followed in the region of the UK from suppliers mainly is in the aspect of getting and
acquiring raw material. After receiving all components from a raw material supplier it then
works with the manufacturer supplier that helps in producing various products for the business of
M&S. Then after manufacturing it utilizes services of its wholesalers, retailers and distributor
supplier to helps its product to sell in the consumer market (Wisner, et.al, 2014).
Suppliers Role
The supplier offers various services to the business of the M&S like providing them with a
support system to efficiently perform all of its operational matters with much productivity.
The role that supplier provides in the organizational supply chain aspect of the M&S is in various
supply chain areas like supporting the business organization in terms of its purchasing,
producing, transporting and inventory management aspect.
The role that suppliers played in the M&S supply chain department of purchasing is in form
making the purchase for the business of M&S. when supplier received an order from the
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purchasing department of the organization it makes negotiation with the manufacturer and
provides the number of products with a delivery date in the most cost-effective manner
(Gunasekaran, et.al, 2015).
The manufacturing supplier role in the business organization of M&S is in the aspect of
providing them with raw material. This helps the M&S to acquire a product that is more reliable
and quality tested.
The transportation supplier role for M&S is in the form of providing transport facilities in the
area of providing the store or warehouse facilities of the company with efficient stock. This
enhances their role in the delivery system to the company production house. The inventory
supplier role also has services from production house to warehouse and then accordingly to the
store located at various locations of the UK.
Competitive Advantage
The various aspect of the supply chain strategy helps the business of M&S to achieve
competitive advantage from various factors. This factor that helps in developing a competitive
advantage mainly forms the aspect of procuring the material and transported them according to
the demand in the consumer market. The competitive advantage in the supply chain can be
determined from the fact of relative competitiveness from another business present in the same
market segment of the UK. This also helps them to initiate a product or service delivery system
on the needs of the consumer market. The competitive advantage from various aspects of
distribution with an enhanced service system also provides the business with dynamics in the
market (Thatte, et.al, 2013).
Porters Five Forces Model
The porter’s five models provide the business of M&S to look for various aspects in terms of
keeping the business dynamics and competitive alive for its activities in the region of the UK.
This is from the factor of threat of new entrant in the retail industry which is address from aspect
keeping low price which acts as a barrier to entry thus providing it with a competitive advantage.
The second threat is in from substitute products which M&S takes care of offering various
product ranges with innovation from time to time. The product is also supplied from the aspect
of offering a price in which customer has minimum bargaining power. The same approach is
adopted in means of supplier bargaining power. The retail sector has a high competitive rivalry
which M&S deals from the aspect of offering products with more efficiency and low pricing in
the region of the UK (Indiatsy, et.al, 2014).
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Part-2
Outsourcing
There are many theories and models that can be used to understand the outsourcing process
which provides the business with greater efficiency in managing all operational matters. Theories
of transaction cost economics and core competencies can be used in context to understand the
organizational development process.
The transaction cost economics is based on the concept of providing the organization with an
effective tool that will assist them in making a decision on the business function that can be
outsourced. This in respect provides consideration to develop an effective decision-making tool
that provides consideration to all business areas. This theory also provides consideration to
analyze various outsource means and selecting the most efficient which that will easily manage
the specific business operations or task (Liu, et.al, 2013).
The core competency theory is an evolution of the theory of the resources which provides the
core competencies of an organization as its collective knowledge system. This provides
consideration to integrating various skills set with that of the latest technological means to
enhance the productivity of overall business structure. In case of the supply chain, the core
competency can be applied to analyze vendor competency. This can lead to the determination of
agreement which can successfully provide the business with outsourcing management in its
business operational matters.
Application in M&S
Outsourcing is a business practice that is now followed by all major businesses across the globe.
Despite having a complex structure it provides consideration to efficiently manage vast business
activities. The outsourcing also helps in minimizing the risk of various business functions as
practice in the business internal structure of M&S. These risks are usually associated in the
aspect of administrative and supervisory functions which are needed at all stage and process of
business practice (Szymczak, 2013).
ZARA Example
Outsourcing is also practice by ZARA that is considered one of the leading retail businesses in
the clothing segment. This has enhanced business abilities in various fronts like providing it with
expenditure on the cost of labor which affects the business profit greatly. The outsourcing also
helps the ZARA to explore potential markets which have a greater aspect in terms of revenue
generation as well as providing the business structure towards development and growth. The
outsourcing also provides the business with consideration to focus majorly on the competitor's
activities as what they are doing in the market. The outsourcing also assists the business to
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enhance its competitive advantage in the local market segment by spending more on product
development.
The outsourcing also helps the business of ZARA to look for the market which can help in
achieving business strategic objectives in terms of expanding to the global market. The
outsourcing also helps in minimizing the trade barrier for ZARA as certain outsourced
companies act as major contributors for a specific region. This also provides the business of
ZARA to invest in its internal business structure to develop and innovative more products.
Outsourcing also reduces the fund's utilization of human resource hiring that will lead the
business to create more job opportunities. The outsourcing also provides the ZARA with a
development aspect in terms of adapting to the latest business practice that will generate more
value for the whole system (Gray, et.al, 2013).
The outsourcing also enhances ZARA financial performance which helps it to get a loan from a
bank in the aspect of starting a major business process or expand in the international market. The
outsourcing also has helped the ZARA to create a standard operating procedure in its business
practice that has to be followed in strict compliance in all business processes and activities.
Outsourcing also helps the business of ZARA to form its competitiveness in all major markets
across the globe.
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Technology
The instrumentalization theory provides the technology to be assessed on two major categories
i.e. function and the design. The original function of the technology has a relation with the reallife practical approach. While the design factor of this theory has a relationship with that of
implementing the technology in real-life scenarios.
The first level of functioning of the technology provides consideration to seek the affordability of
technology with the device. This provides the technology to be used in experience to that of
providing the most useful functions that enhances the properties of the technology. This is
achieved from the process of taking the objects to their original form and carry analysis on their
features. This provides the capability to exploit the object to be used in a more effective and
sophisticated manner (Marinagi, et.al, 2014).
Modern technology can be used and applied to the human value system by breaking them into
tradition and then exploiting this tradition to form an area for technological development. This
provides a greater ability to manage the technology in a human value system with a basic factor
of smoothing the technical aspect of technology use in daily life.
Application to M&S
The technology can benefit the business structure if M&S with providing benefit to its
operational process in two major areas i.e. operations and object. This enhances the technological
aspect to develop the overall business structure as both factors are carried out by the employees
of the M&S. the operations are the business practice with relation to that of the technology used
and provide technical power to exercise all business operational matters.
The technical aspect that technology provides to the business is mainly in the form to organize
the business structure so that it helps in the development of a technology based on the principle
system. This also provides the business with a design to determine the organizational structure
that forms an interest from technological use in all business areas. The technology provides a
modern business with a factor to function by implementing a business process on which the
whole structure will be depending. This also provides a structure to create an enhanced
experience system that will benefit the overall business productive performance of the M&S
(Holmström, et.al, 2014).
Example of Alibaba
Alibaba Corporation has set up its business structure according to the influence of technology in
the current consumer market. They have been able to set up a network that greatly caters to the
needs of the consumer market that shop online. This has provided them to shift the focus of
supply chain management to a most technological advance, reliable and efficient system of
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conducting business processes. The organization of Alibaba has utilized effectively the
information and computer technology to design an e-business platform which at the same time
integrates the supply chain. This supply chain now operates more as an application in a mode of
E-SCM which provides them to meet the consumer market demand by the efficient process of
integrating supply chain with modern technological means (Vendrell-Herrero, et.al, 2017).
Alibaba has developed its supply chain business strategy more focus on the concept of e-logistics
which provides all aspects of the supply chain to be conducted by electronic means. This has
greatly influenced their mode of doing business in the retail market environment which also
provides the business of Alibaba to develop both in term of revenue generation and business
enhancement factor.
The e-supply chain also has benefited the business of Alibaba in terms of meeting the retail
market need in an efficient manner. The modern market of retail working on the mode of
electronic has a character of short life with high volatility and impulse buying behavior. The ESCM has helped the Alibaba to form a business strategy which provides it with greater
advantage to meet the demands of this constantly market in real-time. This provides it with a
business dynamics in both domestic and international markets by following the e-SCM business
strategy (de Barros, et.al, 2015).
Concluding Thoughts
Marks & Spencer has implemented an efficient system of the supply chain in all of its business
processes mainly in the region of England. This provides the business of M&S to attain a higher
level of business advantage from the supply chain aspect that assists the overall organizational
structure to have an edge on competitiveness in the retail market segment (Tayur, et.al, 2012).
Focusing on business activities in the area of supply chain management by M&S helps in
delivering high satisfaction to the consumer market is causing the business structure of M&S to
grow with more prospects all over the globe mainly in the region of the UK.
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