M&S in drive to complete supply chain restructuring

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Supply chain and IT was the biggest area of investment for Marks & Spencer yet again last year, accounting for £191m of a total capital expenditure of £492m.

In 2009-10, supply chain and IT accounted for £194m of the total capital expenditure of £389m.

In its annual results, the group said: “We made good progress against our plan to restructure our supply chain, implement new information systems and improve operational execution. In November we increased the benefits case from £250m to £300m without increasing the capital investment, and brought forward the completion of the plan to 2015/16. We remain firmly on track to deliver against this target.”

It has now closed 31 of the 110 warehouses which are being replaced by four giant distribution centres.

With the new Bradford site open, the focus has moved to the East Midlands, where M&S is building a combines national distribution centre and dedicated e-commerce facility.

It plans to complete the new logistics network with two sites in the south.

A new stock management system for the stores has been installed and a new point of sale system is due to be installed in all stores before Christmas. The second phase of the SAP roll-out, our new core business system, is also complete, with the final phase, which will include the new stock ledger, due to commence this financial year.

The retailer also highlighted the progress of Plan A. “Excellent progress has been made on waste with total waste down 33 per cent and on average 94 per cent of waste from our stores, offices and warehouses now being recycled,” it said.

M&S, in partnership with DHL Supply Chain, won the 2010 European Supply Chain Excellence Award for Contribution to Environmental Improvement.

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