Present Rmt.

8/2/2019 Present Rmt.

http://slidepdf.com/reader/full/present-rmt 1/13

History:

In 1998 it became the first British retailer to make a pre-tax profit of over £1 billion, [4] though a few years later it plunged into a crisis whichlasted for several years. In November 2009, it was announced that Marc

Bolland, formerly of Morrisons, [5] would take over as chief executivefrom Stuart Rose in early 2010; Rose will remain with the company untilmid-2011. [6] [7]

Classification of Ownership===============================4.2 Marks and Spencer can be classified as a public limited company;it can be also called an incorporated business. Marks and Spencer is abusiness that provides good and services e.g. clothes, finance. Ittherefore comes under the tertiary sector. Marks and Spencer is aprofit making company, which belongs to the private sector. The

private sector includes all those business that are set up byindividuals or groups, of individuals. Most with the aim of making aprofit.5.0 Benefits of Ownership5.2 The benefits of Marks and Spencer’s being a public limited 03-02-2011 Report on the Business of Marks and … www.123helpme.com/view.asp?id=14… 2/25 company is that all members have limited liability, this means thatthe firm continues to trade if one of the owners dies and more poweris enjoyed due to its large size. The benefits as follows:· 5.3 Huge amount of money can be raised from the sale of the sharesto the public. So this means any one is able to buy shares from them.· 5.4 Production cost may be lower as firms may gain economies of

scale; this means that when they buy large amounts at a reduction incost per unit, bulk buying reduces the cost. The company can also addvalue towards the goods to make a profit and to pay staff and anyother cost.· 5.5 As a result of their size, public limited company can oftendominate the market. This shows that being a plc is a strong positionon the market.· 5.6 It becomes easier to raise finances, as institutions are morewilling to lend to a public limited company because they are reliable.For example institutions are not likely to lend big amounts of moneyto partnership or a sole trader because it would be a high risk.6.0 Constraints of Ownership============================

6.1· The constraints of marks and Spencers being a plc ownership are asfollows:· 6.2 Since anyone can buy their shares it is possible for an outsideinterest to take control of the company. In order to do this theperson will have to buy a huge amount of shares.· 6.3 All of Marks and Spencers accounts can be inspected by membersof the public. Competitors may be able to use some of thisinformation to their advantage. They have to publish more informationthan private limited companies.· 6.4 As a result of Marks and Spencer’s size, they are not able to deal with their customers at a personal level.· 6.5 They way they operate are controlled by various company acts

which aim to protect shareholders. The reason this is because mostpeople that invest in a company like to see an increase in thedividend yield.



· 6.6 If marks and Spencer’s do not make enough profits, then fewer people will invest in the company. If this happens the company wouldthen find it hard to raise capital for the public

RFID Technology used in M&S supply chain:

Each container has an RFID transponder with a unique identification number and the tare (weight of the empty

container).The containers are carried by conveyor to the loading entrance where they are verified before going

to the filling stations.

Each container is weighed after being filled. A blend code, lot number, net weight, date, hour and sequence

number are automatically recorded on each transponder and also printed on a paper label adhered to the outside

of the container. All of the information is held in a database linked to the SAP system so that manufacturing

processes and schedules can be constantly monitored.

When the containers are put into the tipcarts, the readers compare the information on the transponders to the

database ensuring that the product blend inside the container coincides with the programmed one in the tipcart.

If it is correct, the container is authorized to be turned over. An operator completes the process by registering

his/her identification card at a reader at the tipcart station.

The primary benefits of the RFID system include the reliable tracking of raw material and containers throughout

the manufacturing process, the consistent implementation of FIFO (first in, first out) inventory management, and

quality control of the final product.

The M&S partnerships extend to textile, as well as clothing, suppliers and deeply permeate the business

practices of these suppliers. Lean retailing has increased the frequency with which replenishment is occurring.

The movement towards faster replenishment of stocks is leading to a variety of innovations in these retailer

supplier partnerships. However, there is a sense among suppliers that much of the development of closer

relations is one-sided in that it largely benefits the retailer.

Examples include insufficient allowances for the added costs of services provided and the scaling back on

purchasing commitments in the middle of the season.

IT Capacity in supply chain

IT developments are also gradually supporting greater integration between textile and clothing manufacturers

and retailers. Developments in CAD technology facilitate quicker product development and later confirmation

of specifications, while computerized knitting and dyeing and finishing provide greater flexibility for quick

response production and for changes in style.



In addition, ―CAD/ CAM and EDI have emerged as pre -requisites of carrying out business off-shore‖ and those

firms that have invested significantly in overseas sourcing or manufacture have installed the most sophisticated

communications technologies3.

The survey shows that supply chains must deal with at least 8 different types ordering and replenishment

strategies by retailers. These include:

Forward orders with no replenishment

Forward orders with one replenishment during the season

Domestic fast track replenishment for imported goods, where local suppliers are used to ensure stock

availability of best sellers

Forward orders with regular replenishment scheduled, used mainly for basic items with a long product

lifecycle.

Forward orders with a type of replenishment often referred to as ―call-off‖.

Call off is a system that enables the retailer to place an order for the anticipated seasonal requirement

of an item, but to take delivery of only a small initial quantity and to draw as needed from the total

order as goods are sold. Call off goods are often replenished from inventories of finished goods held by

the supplier.

Forward order with phased delivery. Goods are ordered in advance and a delivery schedule agreed for

the forthcoming season that enables manufacturers to pre-plan production schedules and both

manufacturer and retailer to avoid inventory costs.

Forward orders with fast track repeats where replenishment stock is not arranged in advance, but in

response to sales performance. Fast track orders for fashion forward products launched throughout the season. This system depends on

rapid manufacture as well as delivery.

Driving a Multi-channel business Customers shop with M&S in many ways. Whether they are shopping in

store, at home, in the office or over the phone, company‘s aim is that every customer receives the same

consistently high level of service from purchase through to delivery. Shop Your Way Launched on a trial basis

in July 2009, company‘s ‗Shop Your Way‘ service enables customers to place clothing, beauty and home ware

orders either in stores, online or over the phone. They can then opt for delivery to either a nominated address orfree to their nearest store for collection.

Since roll-out, the latter has proved very popular, with around 13% of customers who order online choosing to

collect in store and driving footfall as a result.

‗Shop Your Way‘ has been welcomed by smaller stores, as the service brings the wider M&S product catalogueto their local customers. Weekly orders now stand at £2.5m and following the successful trial, ‗Shop Your Way‘

has been rolled-out to over 300 UK stores, with a roll-out to Simply Food stores underway in 2010.

Consolidation of warehouses



One of company‘s biggest projects is the consolidation of company‘s GM warehouse

network, moving from 110 smaller warehouses to a small number of ‗super‘ warehouses,

based in prime central locations and a dedicated e-commerce distribution centre in the

Midlands. This is a long-term project but the first phase is well underway and they have

begun the closure of 21 sites. Work has progressed quickly and the first of the new ‗super‘

warehouses, a 1 million sq ft site in Bradford, is due to open in summer 2010. Company‘s e-

commerce site in the Midlands has been identified and they plan to start construction this

year. All of company‘s new warehouses will have a state of the art design, with the aim of

achieving an excellent rating under BREEAM, a voluntary measurement rating for ‗green‘

buildings.

Simplification

In addition to company‘s consolidation program, they have simplified operating processes in

company‘s warehouses to enable us to move products through company‘s supply chain more

quickly. They have done this in two ways, firstly by streamlining day-to-day processes – such

as reviewing the floor layout of warehouses to reduce picking times and introducing a loose

loading initiative, which has enabled us to carry more products on company‘s trucks – and

secondly by reducing the number of times they handle stock. Currently all stock goes to a

sorting centre and then a regional distribution centre before being moved to a store.

Following a successful trial this year, all stock will go via just one place in the future.

International supply chain:

Company‘s international supply chain To support future international growth, over the next

three years they will make company‘s international supply chain more cost efficient and

deliver more products direct to company‘s international partners as opposed to going via the

UK.

This year they have made good progress and delivered 9.8 million singles direct to

company‘s overseas stores, company‘s plan is to increase this to 30 million by 2013.

IT and systems



This year they completed the in-store pilot of a new Point of Sale System (POS) and will

begin the roll-out to all stores later this year. The new system is not only more cost efficient

but also helps deliver a better customer experience, through a simplified process for

transactions and refunds.

Following another pilot, they have introduced new software to improve stock management.Staff representatives from all stores are receiving training in the new system and this will berolling-out during 2010. The new centralized system provides real-time data from stores to ahead office team, providing an accurate picture of stock levels at all times.

SWOT chart

Strengths - SWOT

• Marks & Spencer well-known and trusted company/brand

• excellent reputation for underwear and food

• presence in high streets

• increase in traditional older shoppers

• experience in running other brands e.g. Brooks Brothers

• discussion about chairman successor

Weaknesses - SWOT

• high cost of IT investment

• brand perception problems (M&S) for younger age group

• outer wear expectations of older female age group not met

• high cost of UK -based suppliers

• lack of efficient segmentation – one store for all target customers

• distribution/stock system (sold out articles, home shopping service)

• limited means of payment possibilities (no credit cards)

• offering poor value lingerie (risking market pre-eminent position)

• difficulty of stretching St Michael brand

• problems in product design and delivery

• high prices for food

• unfavourable located M&S stores in city centres (parking, etc)

• unsuccessful overseas operations in USA and Europe



Opportunities - SWOT

• cheaper sourcing from overseas (strong pound sterling)

• aging UK population with high income (empty nesters)

• dressing down on Fridays

• demand for category breadth and modern outerwear

• busier lifestyles – shopping ―on the go‖

• aspirational shopping in clothing and home furnishing

Threats - SWOT

• overall decline of department stores in the UK

• overseas turmoil – riots and currency – in Thailand, Malaysia and Indonesia

• recession in the far east

• planning constraints greenfield vs brownfield

• shopping over the Internet

• acceptance of discounters

• brand labels (Hugo Boss, Paul Smith) for aspiration purchasing for younger consumer

• specialist, trend and niche competitors e.g. Benetton

• mail order operations e.g. Lands End, Cotton Trade

• low cost financial services by Virgin, Legal & General

• mainstream competitors in food (―designer boutiqued food‖) and clothing (discounters to

niche operators)

Summary - SWOT

• M&S didn‘t react to changes in customer trends

• investments in the ailing distribution and SCM weren‘t realized

• opportunities (internet shopping, credit cards) were not used

• the competitive advantage ―serving the mass market with innovative, high-quality goods at

competitive prices‖ didn‘t comply with reality (poor value, lack in style, cut, etc)

• lack of efficient target customer segmentation

• change to more overseas supply • focus on home market (unsuccessful overseas operations)



• market segmentation

• change management board because of a ignorance and retrenchment strategy; implement

mayor adoption with new management

• investment in distribution and information system

Strategic responses

ediTRACK Case Study for M&S:

In today's highly competitive and dynamic retail market, where product is sourced from all

corners of the world, having the ability to control what, how and when stock is being moved

is essential for maintaining supply chain efficiency and ensuring that the right product

reaches the right customer at the right time.



Marks & Spencer have achieved this by implementing the ediTRACK business process

tracking system throughout their international supply chain and now use the system to give

visibil ity and control over all of their directly sourced merchandise. In 2005, ediTRACK was

used to manage over £800 million of stock.

ediTRACK's event based structure tracks the progress of purchase orders all the way through

the supply chain; holding detailed information on the activities performed to the orders,

whether they have been consolidated at origin, loaded at the factory or if they have travelled

by road, sea or air.

Integration with M&S's supply chain partners means that real time information on shipments

is available, in addition to a complete audit history of all orders.

Tolerance levels are held within the system for each supplier and automated authorization

means that any event that falls outside the defined service levels is flagged. For example,

when a supplier makes a request to ship goods and the requested quantity or despatch date do

not meet the predefined tolerance, the supply chain manager is alerted for authorisation.

At the heart of the ediTRACK system, the event-based process architecture allows agile

solutions to be built using modern, rapid application development techniques.

This abil ity to deliver quality solutions within short time-scales has given the M&S supply

chain team the flexibility to be innovative and to respond to business needs no matter what

the scenario. Paddy McLaughlin, Head of Supply Chain Operations, commented

―ediTRACK's independence, speed and flexibility has allowed us to drive performance,

visibility and control across a number of disciplines and regions, while using multiple

logistics providers.‖

One of the many examples where ediTRACK has allowed the Supply Chain team to quickly

respond to dynamic commercial requirements has been through the implementation of a tool

to track and record quality audits and planned and unplanned reprocessing.

The systems structure means that secure, restricted access can be given to external



reprocessors enabling them to view only orders assigned to them. Reprocessors use the tool

to plan their work-load and record the reprocessing of garments, detail ing the quantity of

stock received, the type of reprocessing which has been carried out and the associated costs.

Warehouse bookings and the movement of stock on trailers is also recorded and integrated

into the warehouse systems to ensure early visibility of stock in the pipeline and accurate

receiving against despatched goods.

Having such a rich source of both current and historical data means that M&S have the ability

to optimise their supply chain by performing real-time supplier KPI reports and responding to

changing demands; expediting quick moving stock for example.

M&S also conduct detailed historical analysis on their supply chain performance by reporting

on areas such as container utilisation and cost-per-single. For this reason the integrity of the

data held within ediTRACK is of paramount importance to M&S and it is critical that the

information provided by all sources is complete, timely and accurate. To monitor data

integrity, ediTRACK has an error reporting facility that filters data before it is loaded and

produces automated alerts to notify the relevant parties if the data does not comply and needs

to be repaired.

M&S recognise the value that ediTRACK gives to the supply chain operation and see the tool

as integral to the future growth of the direct business. Looking back over the last 3 years

Steve

Foster commented: "ediTRACK continues to provide fast, flexible solutions which are

allowing our business to develop and grow with real pace."

New developments include a critical path system for deployment to M&S sourcing teams

throughout their regional offices. This system will be used to monitor product development

and integrated directly into the order tracking system.

Like all ediTRACK‘s solutions, the system is accessed by users with a standard web browser

and is available twenty four hours a day, opening up the M&S supply chain to newopportunities for international collaboration.



RFID Technology Case study:

In this issue:Ø UK Retailer Marks & Spencer Creates RFID Supply Chain for Refrigerated Foods

Ø Integrity For You Introduces Personal Recognition Dining Loyalty Program

Ø RFID Improves Tobacco Tracking and Inventory Management

Ø Pre-Register for a Free Exhibit Pass to Retail Systems 2002

TI-RFid Systems announced that UK retailer Marks & Spencer is replacing existing barcodes

with a TI RFid-based electronic tagging system. Using TI-RFid Tag-itÔ smart labels, UK-based systems integrator Intellident will create a system to track almost 3.5 million reusable

trays, dollies and roll cages used throughout the store‘s refrigerated food supply chain.

TI-RFid technology will provide Marks & Spencer with a significant cost and speed

advantage in tracking and managing its refrigerated food products. During Marks

& Spencer‘s extensive trials of electronic smart labels, the TI tags reduced the time taken to

read a stack of multiple trays by approximately 80 percent, compared with bar coding. A

complete dolly with more than 25 trays can be scanned in a single pass through a portal in

just 5 seconds with high accuracy and reliability – compared with 29 seconds for

conventional barcode scanning.

More than 70 percent of Marks & Spencer‘s food business is in refrigerated fresh foods. Its

supply chain needs to be very fast since the majority of its items are ordered at 6 a.m. and

delivered the next day beginning at 7:30 a.m.

In addition to compliance with international standards, other advantages of the RFID system

include faster, more accurate scanning and data capture, simultaneous read, lower labeling

costs, and more efficient communication throughout the entire supply chain.



Electronic tags are reusable and their fixed costs can be spread over a long period of time,

whereas barcodes are used once. Marks & Spencer estimates the capital cost of an RFID

system will be less than a tenth of the annual cost of using barcodes.

Personal Recognition program participants are given an Integrity For You sticker embedded

with a TI-RFid Tag- itÔ smart label that can be attached to any card or object, such as a

driver‘s license or wallet. At the point-of-sale or in the restaurant, customers pass the sticker

over an RFID reader, allowing them to pay for their purchases quickly, without cash or a

credit card.

RFID technology automatically links customers with their transactions using a unique

Each container has an RFID transponder with a unique identification number and the tare(weight of the empty container).

The containers are carried by conveyor to the loading entrance where they are verified before

going to the filling stations.

Each container is weighed after being filled. A blend code, lot number, net weight, date, hour

and sequence number are automatically recorded on each transponder and also printed on apaper label adhered to the outside of the container. All of the information is held in a database

linked to the SAP system so that manufacturing processes and schedules can be constantly

monitored.

When the containers are put into the tipcarts, the readers compare the information on the

transponders to the database ensuring that the product blend inside the container coincides

with the programmed one in the tipcart. If it is correct, the container is authorized to be

turned over. An operator completes the process by registering his/her identification card at a

reader at the tipcart station.

The primary benefits of the RFID system include the reliable tracking of raw material andcontainers throughout the manufacturing process, the consistent implementation of FIFO(first in, first out) inventory management, and quality control of the final product.



With Marks and Spencers you don't have to compromise on the quality of your coverto cut the cost of Home Insurance. At Marks & Spencer, we have a choice of 2policies, Premier and Standard, to give you the cover you need at a price you want topay.Apply online today and you can save 10% off our standard premiums, on newpolicies. With Marks & Spencer you get unlimited cover for buildings and contents(money limit up to £500) and generous liability limits which mean you are neverknowingly under insured. You don't have the hassle of estimating rebuilding costs, orwhat it would cost you to replace your belongings. All we ask is that you let usknow about any item, set or collection that is worth £4,000 or more. It's as easy asthat. If you do need to make a claim, our fast efficient telephone claims service willtake care of everything on your behalf. Your contents are covered on a new for oldbasis, and there's no excess to pay unless you choose to, apart from £1,000 forsubsidence.Social and environmental policy

1. Look Behind the LabelIn 2006 the Look Behind the Label marketing campaign was introduced.[32] The aim of this campaign was to highlight to customers the variousethical and environmentally friendly aspects of the production andsourcing methods engaged in by M&S including: Fairtrade products,sustainable fishing and environmentally friendly textile dyes. All coffeeand tea sold in M&S stores is now Fairtrade. [33] in addition the companyoffers clothing lines made from Fairtrade Cotton in selected departments.[34]

At Christmas the company introduces a range of food products tosupport the housing charity Shelter [35] predominantly in the food to gorange including a range of seasonal Christmas sandwiches.2. Plan AOn 15 January 2007, M&S launched an initiative, known as "Plan A", [36]

to dramatically increase the environmental sustainability of the businesswithin 5 years and expected to cost £200 million. [37]

The plan covers "100 commitments over 5 years to address the key socialand environmental challenges facing M&S today and in the future" withthe tag-line "Because there is no Plan B". The commitments span fivethemes: climate change, waste, sustainable raw materials, 'fairpartnership' and health, [36] with the aim that, by 2012, it will: [38]

Become carbon neutralSend no waste to landfillExtend sustainable sourcingHelp improve the lives of people in their supply chainHelp customers and employees live a healthier life-styleDespite an 18% fall in the share price in January 2008, followingpublication of their latest trading statement, the company confirmed thatthey would be continuing with the plan, saying that there were'compelling commercial — as well as moral — reasons to do so'. [39]

The now iconic brown, reusable, hessian bag was first introduced in 2007as an early part of this plan. It is hoped that this will reduce the use of

plastic carrier bags over the next few years. [10]

May 2008 saw the introduction of the 5p carrier bag scheme at M&S



stores, with customers now paying 5p per standard sized vest carrier bagfor food purchases. This implementation was brought about through thePlan A scheme, [36] to try to discourage use of the traditional plastic bag.[40] All profits from the sale of food bags go to Groundwork UK. [41]

Wapedia - Wiki: Marks & Spencer http://wapedia.mobi/en/Marks_&_Spencer

7 of 8 29-01-2011 19:02In becoming carbon neutral the company has committed to only usecarbon offsetting as a last resort, [42] restricted to cases "where it isrequired by government or where the technology for green air or roadtransport will not be available for the foreseeable future". [43]

As of August 2008, M&S had three wind turbines in operation, one atMethlick and two near Strichen, generating enough power to supply threestores via the National Grid. [44] In April 2009 the company beganpurchasing 2.6 TWh of renewable energy (wind and hydroelectric) fromNpower, enough to power all Marks & Spencer stores and offices inEngland and Wales. [45]

Company chairman Sir Stuart Rose is personally committed to furtherpromoting green issues and the recycling of plastic bottles. He has alsopledged to reduce non-glass wastage by 25% and plastic carrier bagusage by 33% in the near future. [10]

3. Charity workM&S has sold a wide range of charitable women's clothes forBreakthrough Breast Cancer [46] for many years and the Ashbourne storecollected a total of £2,000 for a local Derbyshire hospital's new ECGmachine in 2010. [47] . Other charities are also represented at individualstores from time to time.

Present Rmt.

Documents

Transcript of Present Rmt.