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M&S Solutions

In: Business and Management

Submitted By joelalvarado123
Words 517
Pages 3
Joel A Alvarado Perez

1. Why are M&S in this predicament? Has increased overseas sourcing helped or hindered their marketplace performance?

Business was only getting worse for M&S through the 1990’s. The company started off on top of the department store chain, but by 1998, sales began dropping. By 1998, sales had dropped by 6%. As oppose to helping themselves by increasing the sourcing overseas, they spread out too fast and were not able to manage all of their new factories. 5 Factories were closed in that same time period. As they were losing control of their business, competitors made their arrival and easily took over the fashion industry knocking M&S off their throne for some years

2. Given that costs must be reduced, how can M&S capture the potential benefits of low-cost sourcing whilst still improving responsiveness?

* M&S was one of the first companies to buy directly from the manufacturer, which reduced some costs. On top of that, worked with the largest suppliers in order to reduce the cost of manufacturing and shipping the goods, thus allowing the reduced costs. By having a consolidation warehouse, it was easier and more efficient for M&S to be able to ship it’s own product to its stores as oppose to having to set up different ship locations with the manufacturer. M&S was then able to perfect this Supply chain as they were more in control of the distribution of their goods

3. Is the current one-size-fits all approach to supply chain management strategy the best way forward for the company, or are there better alternatives?

* I do not believe that the current one-size-fits-all approach is the best strategy for this company. As the competitors begin to grow more efficient, the supply chain of M&S has to change to. There is no need to dramatically change the supply chain, but there should…...

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