The supply chain and suppliers play a significant role in the growth and success of the Marks and Spencer business. Working with partners and suppliers is crucial for the daily functions and operations of the company. Today, we’ll discuss Marks and Spencer Supply Chain Management; its SCM policy for the supplier relationship.
Key statistical facts and figures about Marks and Spencer are as follows;
- 21 million people visit M&S stores weekly
- More than 75000 employees are working for the company to manage its worldwide operations
- Network of over 600 stores across the UK and the globe
- Procures food from over 600 suppliers and 100,000 small farmers across the world
Some of the business ventures M&S is operating its business are as follows;
- High-quality and stylish clothes
- Food items
- Done online
- Home Business
- Childrenswear and menswear
Marks and Spencer has established a strong relationship with suppliers in the following countries;
- South Africa
Marks and Spencer SCM Policy for Supplier Relationship
M&S implements on-site analysis for its suppliers and does so every 3 weeks; it makes sure that the company and suppliers follow the SC standards and principles. It allows suppliers to deal with complicated issues as follows;
- Working conditions
M&S collaborates with suppliers to make sure that it follows a high level of quality standards. It encourages and motivates them to implement the most effective and efficient modern practices and methods.
The certification of fair trade makes sure to its customers that M&S is giving a fair price to its farmers that are producing food crops. It also ensures that the company is investing in the welfare of the community and society. For instance, M&S invested and allocated 340,000 pounds for the fair-trade premium project and it directly went into the welfare of the community and farmers. Resultantly, the company’s sales have increased by 5%.
Welfare of Animal
M&S makes sure that its suppliers and vendors aren’t exploiting the animals in the production of raw materials. Suppliers and vendors should follow the industry-recognized standards and protocols of animal protection and welfare. In fact, the retail brand coordinates and collaborates with such suppliers and farmers.
The company outlines specific instructions and guidelines for the suppliers and vendors for the following categories;
- Nonfood items like bred prepared from not animals
- Nonfood items produced from the slaughtering of the endangered species
- Mentioning raw material clearly on the labels
- Clarifying Synthetic material that is alike animal products to avoid confusion
- No producing products that are jeopardizing animals
M&S clearly outlines that it is a secular organization and it respects and accepts all races, religions, cultures, and nationalities. The retail brand doesn’t have any association with political parties, countries, nations, religions, governments, or states. However, the company lets its customer know not just to purchase a particular good based on the label.
The company makes sure that the suppliers should follow the health and safety rules and regulations of the country relevant to the following;
- Terms of employment
- Minimum employment age
- Pay rate
- Working conditions
- Health and Safety
It is the responsibility of suppliers to improve the working conditions by following ethical initiatives. Human rights groups, and trade unions.
Sourcing & Finding Methods
M&S follows global product sourcing methods and practices by developing partnerships and alliances with suppliers. They need to follow a set of standards and regulations relevant to the manufacturing of the product. However, M&S makes sure that all the employees working for the supplier companies should be respected. The official should regularly analyze the production sites for supplies and make any needed improvements.
The employees working the supplier organizations should have proper human rights, health, safety, and dignity. The supplier with agree with the regulations and standards of production sites for every order; not just subcontract orders from the agreed location.
Quality Management System
M&S follows the quality standards and management practices that are relevant in the industry. In fact, the company should follow the top-to-bottom management approach. The management process should be simple and clear and it comprises every store implementing a central direction on the following;
Conclusion: Marks and Spencer Supply Chain Management
After an in-depth study of Marks and Spencer Supply chain management; we have realized M&S is the world’s leading retail chain brand that follows quality SCM practices. If you are learning about the SCM policies of M&S for the development of supplier relationships, then you should keep in mind the abovementioned factors and elements.
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