Unit 5 Marks and Spenser Case Study Level 4

The present report focuses on identifying the way an organisation achieves competitive advantage through effective logistics management. It focuses on recognising the strategies adopted by marks and Spenser for managing its supply chain. It also emphasizes on analysing the factors or elements which supply chain activities and management differs from close competitors.

Main BODY

There are three levels in supply chain management that focuses on tactical, strategic and operational activities described as below:

Supply chain at strategic level: In this stage, business integrates a corporate strategy with supply chain management and policy effectively. All the decisions regarding products and services, manufacturing locations and supplier relationship management are made carefully and strategically in order to enhance profits and gain competitive advantage.

Supply chain at tactical level: Tactical decisions are formulated by the business and search for the solution of producing cost effective techniques and strategies effectively. This level is for supplier's selection, and developing logistics partners for cost effective transportation. Warehousing and inventory control strategies are evaluated at this stage.

Supply chain at operational level: It can be said that operational activities are one of the most important part of organisation that helps to produce products and services to customers in the market (Taylor, 2015). Operational activities involve decisions regarding operations such as making schedule of production changes, purchasing agreements with suppliers and taking orders.

Supply chain management and logistics management will help business to achieve better competitive advantage that helps to manage and control supply chains effectively. Implementation of supply chain and concept regarding will provide benefits to both company and partners in order to achieve competitive advantage. Supply chain management is necessary for firm in order to manage demand and supply that also helps to fill customer requirements and demands which leads to organisation success in terms of strategic development and profitability. This will also help to meet goals of inventories and lower supply capacity when the products are not stocked. Information technology plays a vital role in business in order to achieve competitive advantage to make an effective position in the market. Through the use of IT, when a request is made to a business, dealers receives this information almost in real time and can forecast sales more accurately, make the supply, reduce cost and be more agile in the process chain as a whole. There are also cases of companies that have their vendor-managed inventory, which is also advantageous for all members of the chain efficiently.

ABC logistics:

The ABC logistic measure is also helpful that in which the expenses are involved in process of producing products and services (Novotova, 2016). This will also help to serve efficiency in activities and process from which the business and management is able to show which consumer, distribution channel or regions are providing high level of profitability for firm. This will help to evaluate logistic contribution for business to achieve competitive advantage. BSC is also a meter that helps to determine targets and indicators for each department of business or each member of supply chain to achieve strategic goals. This will help towards constant improvement and development of logistic process and activities effectively.

Information about the supply chain of marks and Spencer:

Information about the supply chain of marks and Spencer

Management team in marks and Spencer has employed several technical as well as effective systems which have helped business entity in making supply chain management effective. Several operational activities as well as strategies and system are designed by an organisation considering the different norms in a country. Business entity also follows the UK Groceries Supply Code of Practice. Organisations select the supplier on the basis of activities conducted by them. Groceries Supply Code of Practices conducted by firm in order to deal fairly with suppliers. Business entity is also complying with the norms formulated or implemented by Gangmasters Licensing Authority with the purpose of eliminating for avoiding the exploitation of employees from the food supply chain. Marks and Spencer company has also signed the Supplier Retail Protocol (Monczka and et.al., 2015)

Management team in an enterprise is undertaking a significant programme of work with supply base through the Supplier Collaboration Programme. This strategy will assist an organisation in gaining the financial benefits. It will also help business entity in identifying the techniques or way for bringing improvement in practices. By organising the series of workshops marks and Spencer works with suppliers. This strategy adopted by an enterprise defines opportunities by individual supplier site and design solutions for action. Marks and Spencer has streamlined or interrogate its procedures which has helped firm in optimising volumes and consolidating factories. It has also assisted business entity in increasing working efficiency and minimising cost.

Management team in cited business venture has made proper training arrangement for suppliers strategy has enabled suppliers to develop skills and enables them to keep update themselves with the quality standards prescribed by an organisation. It has also helped firm in maintaining the quality of product or services and delivering high level of satisfaction to customers (Ahi and Searcy, 2013)

Rationale For Facilities Location

Marks and Spencer is recognised as one of the leading companies operating in retail industry. It has approximately 664 retail stores in more than 39 countries. This activity has assisted business entity in becoming largest clothing and footwear retailer in context of value as well as volume. The vision of marks and Spencer is wide product supply chain for the future offering additional facilities to customers. Management team in Marks and Spencer intends to create new business policies objective is to bring improvement visibility and transferring goods or services to client quickly. This strategy related to the supply chain management has supported an organisation in developing a strong relationship with clients and providing them high level of satisfaction. It has also provided business entity a chance to gain customer loyalty. Supply chain management is defined as the strategic coordination of the traditional business functions as well as tactics across several business functions within an enterprise and across businesses. The aim of supply chain management is to assist organisation in improving the long-term performance of business. There are several elements of supply chain which help manager in facilitating coordination as well as assist in working together to ease in movement of products .Chain starts as soon as order is placed by customer for a particular item. Special operational management team in marks and Spencer is created for ensuring quick supply of products or services (Gold, Seuring and Beske, 2010) Company has planned to open new outlets and form partnership with other organisation operating in the same industry. Business entity has also planned to adopt the new distribution channel. This strategy related to supply chain and logistics management has helped an enterprise in reaching to the wide number of customer and delivering them quality services. There has been drastic as well as major changes has been done by marks and Spenser company in supply chain management

Competitiveness Achieved:

Determining the marks and organisation's achievement of competitive advantage through effective logistics management

Logistic management refers to the supply chain management of business and component which is used to meet customer requirements and demands through appropriate planning, controlling and implementation of effective strategies and plans regarding information of goods and services offered by business. Logistic management will help Marks and Spencer to organise effective plans and implement process to move and store products and services effectively. The source of competitive advantage is found firstly in the ability of the organisation to differentiate itself, in the eyes' customer, from its competition, and secondly by operating at a lower cost and hence at greater profit. It is the most important element of business that helps wither a cost advantage or value advantage efficiently (Hahladakis and Iacovidou, 2018). It can be said that logistics aim to meet customer requirements and demands at lower costs in order to manage flow of information and material that makes a logistic system, more effective from the supplier to the end customer.

There are many ways from which the logistics management will help Marks and Spencer to achieve competitive advantage. The first one refers to an advantage of providing value by offering products and services such as delivering faster or scheduled, product assembly, etc, will help business in creating customer value which enhance consumer satisfaction and loyalty as well. The second one is providing cost advantage, partnering with suppliers and business customers, making activities and processes more efficient, by compensating for the reduction of total logistics costs, etc. putting on the market with lower prices than the competition. This will also help business to gain competitive advantage in the market and attract customers which helps to increase production and profitability. There are some strategies also followed by firm in order to provide benefits. All products and services should be placed at the centre of distribution to keep them available which helps to reduce cost and delivery times effectively.

It can be said that the cost is associated with technology and process of supply chain management (Mortensen and Hazel, 2017).

In addition to this, logistics give competitive advantage by reducing costs and creating value for consumers in the market that offers various products and services using the main concept of information technology and supply chain. This will help to improve and develop performance of each member and department which enhance effectiveness of each member involved in the process of supply chain management.

Identifying the way Marks and Spencer manages supply chain and logistics activities to enhance its competitiveness

Marks and Spencer company has effective supply as well as logistics management system. It has been identified that an enterprise relationship with its suppliers has allowed firm to make continuous delivery of products as well as services. It has also supported an organisation in maintaining quality of products as well as services. Strong relationship with suppliers has enabled form to increase its sales as well as profitability. It has also provided firm an opportunity to gain customer loyalty and provide client with high level of satisfaction. There are several supply chain management strategies that has been adopted by marks and Spencer which has not only helped business entity in managing supply chain but also help an organisation in gaining the competitive advantage in the market. These unique strategies or plans adopted by marks and Spencer for improving services and delivery system has enabled business entity to distinguish itself from its competitors (Christopher, 2016)Several tactics adopted by marks and Spenser are management team, in an enterprise has planned to concentrate on managing supply chain efficiently. In this strategy, management team in an enterprise has decided to main fewer inventories as it involves huge cost of storage (Sarkis, Zhu and Lai, 2011) This strategy has supported an organisation in developing as well as maintaining its concentration on manufacturing and allied functions making inventory cost less. Information flow is quick from retailer to manufacturer. Management in markers and Spencer has conducted analysis as well as investigate to find out the reason for delay in supplies of products as well as services. During the investigation procedure, it has been found that there are several internal factors which have direct and significant impact on the supply chain. These variables have created the major hurdles in delivery of goods or services on time, which lead to high level of dissatisfaction among consumers. This forced marks and Spencer to bring improvement in supply chain and distribution system.

In addition to this, manager in marks and Spencer had formulated two policies for managing the supply. These are logistic as well as responsive supply chain policy (Seuring, 2013)

Responsive supply chain policy- this policy is formulated by management team in marks and Spencer company have focus on increasing service levels as well as analysing customer reaction. This policy has been developed by management team in marks and Spencer considering the continuous fluctuation in demand of products or services.

Logistic policy- this is created by the management team with the purpose of defining service levels at which its logistics organization is at its most cost effective. There has been several strategies as well as tactics has been adopted by marks and Spencer company. Business entity has utilised internal as well as local sourcing of its goods. Management team in an organisation has planned to buy product from the domestic market. This strategy has enabled firm to participate in local community business. It has also aided marks and Spencer in dealing with the issues related to management of inventories. The major advantage gained by an organisation by adopting this strategy is that business entity has able to gain quality products from worldwide supplier. In context of marks and Spencer company, an enterprise is importing some specific items such as lipsticks, wine bags from other countries (Tayur, Ganeshan and Magazine, eds., 2012)

There are tactics which can be adopted by marks and Spencer for improving the customer service or reducing delivery time that are as follows:

Just in time manufacturing approach: This approach is considered to be effective, as it helps business entity in reducing the cost of storing products and allows firm to increase profit margin. The main objective of this theory is to decrease the time in production and operational process. In this strategy, the management team in an enterprise is required to categorise the several activities on the basis of their sequence or priorities. The manager has taken initiative to formulate plan the different activities for the production and then take the decision that which action will be taken first. According to this approach, Business entities take orders from the customers and then obtain material from the suppliers. Further that material is transferred to the production department for further processing and the final product is delivered to the client. Organisation who utilises just in timer approach produces or manufacture goods or services after the order has been placed by the consumer.

Six Sigma: this approach is considered to be an effective tool which is useful as well as beneficial in terms of maintaining balance between demand and supply of product or services. It also assists firm in increasing working efficiency. It also assists an enterprise in improving their performance and minimising the variation by detecting and decrease the chances of defects in product (Li and Jialing, 2011)

In addition to these strategies and plan , an organisation is required to concentrate on catering the needs of suppliers and making timely payment to them .As this strategy will assist firm in ensuring success and fostering growth. It is essential for manager in Marks and Spencer to ensure clearly- aligned, efficient utilisation and efficient supply base that delivers quality advanced products, fruitfully and allows everyone to reinvest. Extensive programme has been organised by marks and Spencer in order to assist their suppliers in successful execution of Sustainability Scorecard. This strategy has assisted an organisation in developing as well as maintaining strong relationship with suppliers and help in regular supply of raw material.

Business entity has also formed the partnership with organisation which provides the fastest transportation services. This strategy adopted by firm has helped an organisation in making the supply chain responsive. Objectives of marks and Spencer is to create a supply chain, as this will assist business venture in making quick deliveries of goods and also building a more efficient platform for growth in the future. Management team in Marks And Spencer support a number of programmes that help improve working conditions in supply chain (Ross,2013)

Recognising the Way Marks and Spenser supply chain activities and management differs from close competitors.

In order to achieve competitive advantage, every organisation should have an efficient supply chain management or system. Effective supply chain management helps in achieving low operational cost and customer satisfaction which is very essential for obtaining profit or a good position in the market. Marks and Spencer utilise various types of supply chain strategies to reduce the operational cost as well as satisfy needs and wants of their customers effectively. Marks and Spencer mainly focus on two major strategies for managing their supply chain effectively -

• Focusing on supply chain management through flexibility
• Developing efficiency in the supply chain management

As per the ONS research, the buying and supply chain management in Marks and Spencer can to a great extent get influenced by different segments like arrangement, source, make, convey, return, correspondence and so on. Marks and Spencer requires a system on the most proficient method to deal with the assets, keeping in mind the end goal to accomplish their customer interest for their product and administrations. While referred to firm work store network administration then it requires an efficient arranging and procedure to screen production network so it can convey high quality and benefit to customer. Each other main consideration of store network administration is source in light of the fact that to make the product and administrations, organization requires an adequate amount of sources. With help of high quality and adequate amount of sources, organization can convey compelling administrations and consumer loyalty. Each other significant segment is correspondence which enables the whole supply to affix enhance individuals to have a similar request and operational data. With help of viable correspondence, provider can undoubtedly comprehend the genuine request and fathom the inquiries of customer. Legitimate administration is another significant part of the inventory network administration. Keeping in mind the end goal, for successful supply and acquiring program, organization requires an exceptionally precise administration work under which all procedure and exercises are efficiently overseen. Administration assumes an exceptionally vital part in the production network through which every movement are methodically accomplished its results. In the event that there is inappropriate course of action of administration then it specifically adversely influence productivity and friend's generosity in the market.

The retailing association serve producer by conveying his products and ventures to the customers and makes a channel of data where customer's criticism, their desires and purpose of disappointment are imparted to the maker. Along these lines, without adequate sourcing, enterprise cannot appropriately manage its administration in the market. In this way, sourcing alludes to various achievable improvements, went for finding, assessing and connecting with providers for procuring merchandise and enterprises. In Marks and Spencer, legitimate sourcing and supply is vital through which partnership is ready to meet the real customer prerequisite toward product and administrations (Hugos and et.al, 2018).

With regards to Marks and Spencer, while it takes choice identified with obtaining and supply at that point fund assume an extremely urgent part. Without adequate amount of support, retailing business cannot survive its business exercises and capacity. While Marks and Spencer take the choice identified with supply and buying of crude material, gear, and acquirement and so on then fund to a great extent influence it. In every business activities and decision related to supply and procuring, back, all things considered, affect affiliation. On the off chance that association have sufficient measure of store then it can take the decision of getting immense number of item and organizations from the makers. While Marks and Spencer need to take decision related to the purchasing of item and organizations by then there are diverse sorts of thought which can impact the suppliers and retailer. Retailer need to take thought on the diverse thought of purchasing like quality, costs, features, refund et cetera. Association need to take all these idea while it take the decision about getting. Expenses of item and organizations are huge thought in light of the way that if expenses of item and organizations are high then retailer can't construct the measure of items in the association. Offers and markdown is real concern while it gives mass request for product and administrations (Stadtler and et.al, 2015).

As indicated by the ONS research, in the retailing business industry, there is high rivalry in the UK advertise on the grounds that there are different sorts of retailer work their business in the comparative business. According to the above outline, it has been learned that group rivalry in the retail business about the supply and obtaining exercises.

Arrangement is another real worry in the retailing association. It is an open procedure for two parties to locate a worthy answer for a confounded clash. While Marks and Spencer take thought in the acquiring procedure, at that point it might confront different phases of arrangement which are as following-

• Planning and Preparation - It is a first stage under which the two parties as if maker and retailer sort out and aggregate the data important to have a successful transaction. The two parties ought to explore each other history and attempt to make sense of what will they have to talk about in the session(Christopher and et.al, 2016)
• Making offer-In this stage the two gatherings draw in with the offer. One party offer for specific consent to another party. In this stage, value, time, offer and discount has likewise disclosed by one party to other party.
• Justification and clarification - In this stage the two parties get ready to give specific legitimization about a subject. Each side will get an opportunity to clarify, legitimize and bolster their unique demand.
• Problem solving and Bargaining - In this stage, haggling and arrangement states by the retailer as they try to persuade producer for providing some more markdown within the product and administrations. The issue can explain in this phase by fabricate.

CONCLUSION AND RECOMMENDATIONS

It is concluded that marks and Spenser is taking high initiatives for achieving strategic objectives by making balance between responsiveness as well as efficiency. There are different strategies that have been adopted by business entity in bringing improvement in delivery system, logistics, and supply chain management. All the areas of supply chain as well as logistic management have been highlighted in the report. Study has also successfully demonstrated the way several improvements in supply and logistics management has been implemented.

It has been recommended to marks and Spenser that firm should concentrate on making supply chain flexible. As this strategy will assist business entity in dealing with the sudden changes in demand of goods or services. There are certain other tactics suggested here which can be used by marks and Spenser in order to make further improvement in delivery system. It has also been suggested to increase supply chain network. Another advice to marks and Spenser c is that, management team in an enterprise is required to develop as well as maintain strong relationship with suppliers. As this strategy will assist business entity in ensuring the continuous transfect or flow of goods or service.

Analysing the trends in industry

It can be said that Marks and Spencer is one of the most leading businesses in retail sector in UK. In 2014, the business has 914 stores located in United Kingdom only and 468 stores across the country. The assessment of Marks and Spencer structure and profile can help in determining trends to make predictions. The study includes trends related to consumer behaviour, employment, technological advancements, new product development, competition, government norms and other factors that impact the industry. There are so many trends that help to shape the next decade as well. It can be said that the trends are directly connected to customer behaviour, technological advancements and development of overall business. These can be achieved by managing customer base and satisfaction which is important for firm. Technology is also improving day by day that the firm should adopt the latest technologies in order to drive their operational activities and make cope up with the latest trends effectively. In addition to this, trends of an industry work as a guideline for firm that helps to set new goals according to the global changes in trends and culture. Norms refers to the expectation of customers in the market according to the brand image and promises (Harrison and Rouse, 2014). For example, a customer tends to receive quality and effective products and services from business.

The key trends should be considered by business in order to develop and improve market growth which helps to increase profitability and production. This will also help to achieve competitive advantage by knowing needs and requirements of potential customers in the market effectively. Marks and Spencer is a British brand, continue to expand its market, and also has a presence in India. There are a total number of 58 stores in 27 Indian cities of Marks and Spencer. The firm also tries to achieve internet market by leading fashion platforms such as Ajio and Myntra. This will help to make a joint venture such as Reliance Retail in order to make an effective presence in Indian retail market.

Retail trends in Marks and Spencer has put to reduce their cost in market of product and increase the ability in challenging market where customers spending is being squeezed and prices are rising. They have needed to invest in online business. They have to refresh their core system. Also develop smarter and personalized offers for addition to thinking about the role of their stores. Trends in marks and Spencer are:

Pricing play an important role in trends to get profit in marks and Spencer. Reimagine the store in this trend marks and Spencer looks for more than a store in which retailer needs to ensure the place where the consumer want to come back. This Important for a company to look there store at relevant place(Brindley and et.al, 2017).

Put digital in trend in which company has to need put digital affect in their stores. Some innovative and compelling stores put digital a core part of their store experience. Marks and Spencer selling online offline, it is a recent trend that online retailer are turning to stores to keep them grow their business and helps to their customer by service.

Experiment with experience is the way of new trend in which company gives innovative way in business by experiment. Shop in magical reality is trend of experiment in which reality are set to change or transform the retail experience both online and offline often connecting the two with extra immersive experience.

In recent retail trends getting personal in artificial intelligence allow company to personalise the shopping take experience of product and to do so at scale also utilising the amount of data. Customer wants to associate themselves with a brand that have objected of purpose and represent their views beliefs and value. Mobiles play an important role in new trends by which customers can directly contact with companies online (Fahimnia and et.al, 2015). Company looks for innovation time to time and focus onn offering new trend as well as update their product designs. Online business success is depended on the home delivery of product on a time. Customer satisfaction depends on the loyalty of a company, Marks and Spencer focus maintaining the loyalty to customers. Pricing can be changed according to the situation of a market. Pricing affect the profit of business and it is needed to be set according to customers. (Bag and et.al, 2017).

Analysing the trends in industry

It can be said that Marks and Spencer is one of the most leading businesses in retail sector in UK. In 2014, the business has 914 stores located in United Kingdom only and 468 stores across the country. The assessment of Marks and Spencer structure and profile can help in determining trends to make predictions. The study includes trends related to consumer behaviour, employment, technological advancements, new product development, competition, government norms and other factors that impact the industry. There are so many trends that help to shape the next decade as well. It can be said that the trends are directly connected to customer behaviour, technological advancements and development of overall business. These can be achieved by managing customer base and satisfaction which is important for firm. Technology is also improving day by day that the firm should adopt the latest technologies in order to drive their operational activities and make cope up with the latest trends effectively. In addition to this, trends of an industry work as a guideline for firm that helps to set new goals according to the global changes in trends and culture. Norms refers to the expectation of customers in the market according to the brand image and promises (Harrison and Rouse, 2014). For example, a customer tends to receive quality and effective products and services from business.

The key trends should be considered by business in order to develop and improve market growth which helps to increase profitability and production. This will also help to achieve competitive advantage by knowing needs and requirements of potential customers in the market effectively. Marks and Spencer is a British brand, continue to expand its market, and also has a presence in India. There are a total number of 58 stores in 27 Indian cities of Marks and Spencer. The firm also tries to achieve internet market by leading fashion platforms such as Ajio and Myntra. This will help to make a joint venture such as Reliance Retail in order to make an effective presence in Indian retail market.

Retail trends in Marks and Spencer has put to reduce their cost in market of product and increase the ability in challenging market where customers spending is being squeezed and prices are rising. They have needed to invest in online business. They have to refresh their core system. Also develop smarter and personalized offers for addition to thinking about the role of their stores. Trends in marks and Spencer are:

Pricing play an important role in trends to get profit in marks and Spencer. Reimagine the store in this trend marks and Spencer looks for more than a store in which retailer needs to ensure the place where the consumer want to come back. This Important for a company to look there store at relevant place(Brindley and et.al, 2017).

Put digital in trend in which company has to need put digital affect in their stores. Some innovative and compelling stores put digital a core part of their store experience. Marks and Spencer selling online offline, it is a recent trend that online retailer are turning to stores to keep them grow their business and helps to their customer by service.

Experiment with experience is the way of new trend in which company gives innovative way in business by experiment. Shop in magical reality is trend of experiment in which reality are set to change or transform the retail experience both online and offline often connecting the two with extra immersive experience.

In recent retail trends getting personal in artificial intelligence allow company to personalise the shopping take experience of product and to do so at scale also utilising the amount of data. Customer wants to associate themselves with a brand that have objected of purpose and represent their views beliefs and value. Mobiles play an important role in new trends by which customers can directly contact with companies online (Fahimnia and et.al, 2015). Company looks for innovation time to time and focus onn offering new trend as well as update their product designs. Online business success is depended on the home delivery of product on a time. Customer satisfaction depends on the loyalty of a company, Marks and Spencer focus maintaining the loyalty to customers. Pricing can be changed according to the situation of a market. Pricing affect the profit of business and it is needed to be set according to customers. (Bag and et.al, 2017).

REFERENCES

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• Gold, S., Seuring, S. and Beske, P., 2010. Sustainable supply chain management and interorganizational resources: a literature review. Corporate social responsibility and environmental management. 17(4). pp.230-245.
• Hahladakis, J.N. and Iacovidou, E., 2018. Closing the loop on plastic packaging materials: What is quality and how does it affect their circularity?.Science of the Total Environment630 pp.1394-1400.
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