Marks and Spencer saves money with supply-base refocusing

Marks and Spencer saves money with supply-base refocusing
Tags: Retail - Apparel, Specialty Stores, Supermarkets & Grocery Stores, Supply Chain
December 19, 2007

A.T. Kearney worked with Marks and Spencer and their leading suppliers to deliver cost savings from supply-base re-focusing, joint retailer/supplier process improvements and greater production and logistics efficiencies worldwide. Suppliers' performance was evaluated across multiple dimensions from product development to delivery compliance, and new relationships were formed accordingly.

This resulted in reductions in the cost of goods on the clothing side of 10 to 20 percent, which provided breathing space while working to improve the product offering. At the same time availability of product on-shelf was increased by five percent through supply-chain improvements covering store operations through supplier production scheduling.