SUMMATIVE ASSESSMENT OF SUPPLY CHAIN

STRATEGY & PROCESSES OF MARKS & SPENCER AND ITS

COMPETITOR TESCO

Module Title: Supply Chain Strategy & Processes

Module Code:

Module Convener:

Student ID:

Student Name:

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Contents
1. Introduction to Report and Background of Marks & Spence and Tesco................................3

1.1. Introduction.................................................................................................................... 3

1.2. Overview of Marks & Spencer and Its competitor Tesco Inc..........................................3

1.3. Objective....................................................................................................................... 5

2. Quality of the operations performance..................................................................................6

3. Analysis the global supply chain of Marks & Spence company by identifying its supply chain
members...................................................................................................................................... 7

3.1. Upstream Supply Chain Members.................................................................................8

3.2. Downstream Supply Chain Members............................................................................9

4. Explain Marks & Spencer Operations Performance Objective Sustainability and Compare with
Tesco......................................................................................................................................... 10

4.1. Marks & Spencer (M&S).................................................................................................11

4.2. Tesco............................................................................................................................. 11

4.3. Comparison between Marks & Spencer and Tesco........................................................11

5. Recommendation.................................................................................................................. 13

6. Conclusion............................................................................................................................ 14

7. Reference List...................................................................................................................... 15

Appendix.................................................................................................................................... 18

Own Report Plan.................................................................................................................... 18

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1. Introduction to Report and Background of Marks & Spence and
Tesco

1.1. Introduction

An organization's long-term plans and choices to efficiently manage the movement of

products, services, information, and money from the point of origin to the point of
consumption are referred to as supply chain strategy. It entails creating a framework
that improves customer happiness, maximizes supply chain performance overall, and
gives the company a competitive edge. The supply chain strategy covers a wide range
of tasks, including customer service, inventory management, production, transportation,
and warehousing (Jacobs el at., 2014). Along with taking into account elements like cost
effectiveness, quality, flexibility, and responsiveness, it seeks to match these activities
with the organization's goals and objectives. Organizations may streamline operations,
lower costs, improve customer happiness, and gain a competitive edge in the market
with the help of an efficient supply chain strategy and well-executed processes. To
produce a smooth flow of goods and information from beginning to end, it takes
cooperation and coordination across numerous stakeholders, including suppliers,
manufacturers, distributors, retailers, and customers.

1.2. Overview of Marks & Spencer and Its competitor Tesco Inc.

Founded in 1884, Marks & Spencer (M&S) is a well-known British global retailer. It sells
a wide variety of goods, such as food, home goods, and clothing. The business is well
known for its commitment to sustainability, value, and quality. Let's concentrate on
M&S's food product group for the duration of this talk since it has been a key component
of their overall business. Fresh vegetables, prepared meals, snacks, beverages, and
bakery goods are just a few of the many food products that M&S sells (Grayson, 2011).
The business is renowned for emphasizing premium ingredients, moral sourcing, and
cutting-edge product offers. The sweet "Percy Pig" is a standout item in M&S's culinary

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selection. The fruit-flavored gummy candy line Percy Pig has become incredibly well-
known and has taken on an iconic status for M&S. Candy from Percy Pig is renowned
for its odd pig shape and outlandish flavor combinations, like raspberry and grape. The
product has a strong fan base and has come to symbolize M&S's commitment to
creating enticing and luxurious dining experiences. M&S created the Percy Pig brand to
encompass goods like Percy Pig ice cream and Percy Piglets, which are little versions
of the original chocolates. M&S has successfully marketed Percy Pig as a standalone
product. Additionally, M&S utilized effective branding and marketing strategies to
promote Percy Pig (Taylor, 2019). Customers are drawn to the product's distinctive
packaging design, which also contributes to its recognizable personality. Additionally,
M&S has engaged with customers on Facebook and Twitter and other online
advertising platforms to promote a sense of community inside the Percy Pig moniker. A
great example of M&S's ability to create extremely well-liked and iconic merchandise
within its dietary product category is Percy Pig. The company has been able to gain
customers' devotion and fascination thanks to their commitment to quality, long-term

sustainability, and innovative branding, further consolidating their position as a leading

retailer in the food industry.

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 Figure 1: Marks & Spencer Market
Tesco plc serves as a popular global retailer with its head office in the UK. Since its
founding in 1919, Tesco has grown to become one of the biggest grocery stores in the
world, with operations spread throughout multiple cities in both Europe and Asia. Tesco,
which has its international base in Welwyn Garden City, Hertfordshire in provides a
broad network of physical stores, online shopping channels, and a wide selection of
products to millions of customers. Tesco offers a wide range of goods, including food,
clothing, electronics, household goods, and financial products and services. In order to
meet the demands of various customers in various places, the company operates under
a variety of store formats, including Tesco Extra, Tesco Superstores, Tesco Metro, and
Tesco Express (Felgate and Fearne, 2014). Tesco has built a solid reputation as a
reliable and cost-effective retailer thanks to its dedication to provide high-quality goods
at low costs. Overall, Tesco's lengthy history, wide selection of products, focus to
pricing, spending on technology, and commitment to sustainability have all helped it
become a top retailer. The business keeps adjusting and innovating to satisfy changing
client wants in a retail environment that is constantly shifting.

1.3. Objective

Gaining a thorough grasp of how firms may efficiently handle the flow of products,
services, information, and money across the supply chain is the goal of studying supply
chain strategy and operations. Determine tactics and procedures to enhance resource
utilization, reduce costs, and optimize supply chain operations. Create policies and
procedures that are geared toward exceeding and meeting consumer expectations. To
ensure client happiness, this entails comprehending consumer demand trends,
enhancing order fulfillment procedures, and raising general service standards
(Krajewski el at., 2010). Utilize the chain of custody as an asset of differentiation by
putting forward cutting-edge plans and methods. Develop strategies and procedures to
manage supply chain risks after identifying any that may exist. This entails dealing with

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problems like supply disruptions, managing inventory difficulties, conformity to
regulations, and geopolitical variables that could affect the stability of the supply chain.

2. Quality of the operations performance

The extent that an item or operation surpasses or meets consumer expectations is

referred to as quality, which is a crucial productivity objective. It includes a number of
factors, such as dependability, adherence to requirements, robustness, usefulness, and
general client satisfaction (Chopra and Meindl, 2015). Because it has a direct impact on
consumer loyalty, image of the company, and long-term profitability, businesses strive
for high-quality operations. Companies that place a high priority on quality seek to
supply customers with items and offerings that consistently satisfy the minimum
requirements, are error-free, and are worthwhile.
Designing for Quality: Ensuring that goods and services are created with
functionality in mind while taking user needs, practicality, safety, and sturdiness
into consideration. This requires taking into account variables including product
testing, choosing the material, and factoring user feedback throughout the design
approach (Harrison el at., 2014).
Quality Control: Putting in place thorough quality control procedures all through
the entire manufacturing process to find and get rid of flaws. This entails carrying
out tests, inspections, and quality verification activities to make sure that goods
adhere to predetermined standards.
Supplier Management: To assure the quality of arriving parts and supplies,
close cooperation with suppliers is necessary (Baird el at., 2011). To guarantee
constant quality along the whole supply chain, this entails creating explicit quality
expectations, performing supplier audits, and cultivating strong partnerships.
Continuous Improvement: Putting an emphasis on a culture of ongoing
development to raise operational excellence. In order to generate continuous
improvements in processes, goods, and services, this entails gathering and

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 evaluating data, putting corrective measures into place, and using quality
improvement approaches like Six Sigma or Agile.
Employee Training and Engagement: Supplying staff with the education and
abilities required to uphold and enhance quality standards. involving workers in
quality projects and encouraging a sense of responsibility and accountability for
producing high-quality results.
Customer Satisfaction: Quality has a big impact on customer satisfaction. The
customer experience is enhanced and client loyalty is raised when products and
services are dependable, efficient, long-lasting, and leave customers delighted
overall. High-quality offerings can lead to happy consumers, repeat business,
and enduring business relationships.
Brand Reputation: Quality has a direct bearing on a company's brand
reputation. Delivering top-notch products or services frequently builds a
company's reputation and customer confidence (Christopher el at., 2011). In
addition to attracting clients, a strong brand reputation distinguishes the company
from competitors and permits premium pricing.

3. Analysis the global supply chain of Marks & Spence company by

identifying its supply chain members

The numerous upstream and downstream supply chain actors in Marks & Spencer's
global supply chain are essential to maintaining the effective flow of materials, products,
and information. Vendors and suppliers are the first links in the supply chain because
they furnish the items' basic materials (Sadikoglu and Zehir, 2010). These inputs are
acquired by manufacturers, who turn them into a finished good. The product is
subsequently delivered to the customer by a distributor from the manufacturer.
Wholesalers, retailers, and e-commerce partners are a few examples of potential

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distributors. The following list of the principal Marks & Spencer global supply chain
participants is provided:
Figure 2: Supply Chine
3.1. Upstream Supply Chain Members

 Raw Material Suppliers: M&S purchases raw materials from suppliers all over
the world, including fabrics, textiles, ingredients, and packaging components.
These suppliers might be producers of leather goods, textiles, agricultural
products, and packaging.
 Manufacturers: M&S collaborates with producers all around the world to
transform raw resources into finished goods (Cole el at., 2019). In addition to
contract manufactures who produce M&S's products in accordance with their
standards, these manufacturers might additionally include processed food plants,
apparel manufactures, and food manufacturing facilities.
 Co-packers: Marks & Spencer also makes use of co-packers to handle product
packing. These partners can ensure that products are packed in accordance with
Marks & Spencer policies and brand standards due to their expertise in
packaging design, labeling, and final product assembly (Villena and Dhanorkar,
2020). Co-packers who are pros at creating and designing packaging are used
by Marks & Spencer. These partners work together with those teams to create
distinctive and alluring packaging for Marks & Spencer items.

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 Figure 3: Upstream Supply Chain Members

3.2. Downstream Supply Chain Members

 Retail Stores: M&S runs a global network of retail locations where clients can
buy the company's items directly. To guarantee product availability and
presentation in these stores, interaction with store managers, staff members, and
visual merchandising teams is necessary.
 E-commerce Platforms: M&S has a website and probably works with e-
commerce sites to provide things online. These platforms make it easier to
process orders, complete transactions online, and deliver goods to clients
(Peters el at., 2011).
 Wholesale and Distribution Channels: Distributors and wholesalers are
essential parts of the downstream supply chain for Marks & Spencer. They are
necessary for the distribution of Marks & Spencer products to stores,
marketplaces, and other sales channels. Marks & Spencer's distributors act as a
link between the company and consumers or retailers (Savitz and Weber 2014).
In order to connect with a range of merchants or sales outlets within a specific
geographic area, distributors usually have a well-established infrastructure and
network. The supply chain of the business includes wholesalers, who buy
products directly from Marks & Spencer and then resale them to retailers or other
businesses. Wholesalers purchase Marks & Spencer goods in large quantities,
dividing the stock into smaller quantities for distribution to retailers.
 Consumers: The consumer is the last link in the Marks & Spencer supply chain.
They have a big impact on demand as well as the company's marketing and
product development strategies because they are the ones who will really use
Marks & Spencer items. Marks & Spencer strives to comprehend consumer
preferences, fulfill their needs, and promote brand loyalty. Individuals purchase
goods from Marks & Spencer for their own use. They are the residences,
individuals, and households that buy Marks & Spencer goods from shops,

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 markets, c-stores, or online shopping sites. Some of the products Marks &
Spencer makes are marketed toward businesses and institutions (Lawrence el
at., 2011). Strongly identifying customers who purchase Marks & Spencer
products and brands have the potential to become brand advocates and
influencers.

Figure 4: Downstream Supply Chain Members

4. Explain Marks & Spencer Operations Performance Objective

Sustainability and Compare with Tesco

Tesco and Marks & Spencer (M&S) are two well-known retailers with various
operational strategies and performance goals. A corporation sets operational
performance goals for certain performance areas in an effort to satisfy corporate
strategy. A corporation would establish the pertinent operational performance targets to
measure and set up the environment in order to achieve the objectives after defining
corporate strategy (Dirisu el at., 2013). To increase production efficiency across your
whole operation, it's critical to grasp the goals of operational performance inside a
manufacturing operation. Let's compare and contrast their operational performance
objectives:

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4.1. Marks & Spencer (M&S)

Quality has long been one of M&S's top operational performance goals. Delivering high-
quality products across its whole line, including apparel, home goods, and food items, is
a top priority for the company. M&S wants to offer clients high-quality goods that, in
terms of design, construction, and usability, are on par with or better than their
expectations. This emphasis on quality appeals to customers who value quality above
money and is consistent with M&S's brand image and target market.

4.2. Tesco

As its primary operating objectives, Tesco, on one another hand, places a high
importance on a combination of cost, stability, and speed. Tesco, an established
company, places a strong emphasis on offering shoppers’ affordable prices in attempt
to give them good value. This cost goal is consistent with Tesco's desire to attract a
range of customers, including budget-conscious ones. Tesco likewise places a high
importance on steadiness and responsiveness in order to maintain a steady supply of
items and respond quickly to consumer requests. Tesco is able to accomplish these
goals thanks to its robust supply chain and logistics capabilities.

4.3. Comparison between Marks & Spencer and Tesco

 Quality: In order to attract clients who are prepared to shell out more for superior
items, M&S places a great priority on having the highest specifications. Tesco, on
the other hand, places a strong emphasis on price within an effort to provide
value for money and entice more customers (Iglesias el at., 2023). This provides
examples of different target markets and price strategies.

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 Dependability and Speed: Both M&S and Tesco understand the value of
dependability and quickness, making sure that customers can get products
quickly. However, Tesco has an advantage in terms of effectively managing
inventory and delivering goods swiftly thanks to its sizable operations and wide
supply network.
 Sustainability: While both businesses have sustainability programs, M&S has
given ethical sourcing and sustainability a higher priority in their business
practices (Mirvis, 2011). This emphasis is consistent with M&S's brand image
and appeals to clients who value sustainability principles.
 Range of Products: Tesco largely concentrates on groceries and other
household things, whereas M&S operates in a variety of product categories,
including apparel, home goods, and food (Ho el at., 2023). Their different product
offerings result in varying levels of supply chain complexity and operational
difficulties.
 Scope and Scale: M&S has long been regarded as a pioneer in the retail sector
when it comes to sustainability, setting high standards and putting in place
extensive programs that apply to every aspect of its business. While Tesco is
similarly devoted to sustainability, it may operate on a larger scale overall, which
can make it more difficult to implement sustainability measures throughout the
entire supply chain.
 Ethical Sourcing: M&S places a high priority on ethical sourcing and
encouraging ethical behavior throughout its supply chain. To guarantee worker
well-being, encourage fair trade, and assist local communities, they have created
specialized standards and initiatives. Tesco may have a longer and more
complicated supply chain, despite its involvement in responsible sourcing,
necessitating continual efforts to maintain ethical business practices across all
suppliers.
 Transparency and Communication: M&S has been aggressive in informing
stakeholders, such as customers and investors, about its sustainability efforts
and advancement. They place a big emphasis on transparency and have
reported on sustainability performance and goals in yearly reports. Tesco also

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 discloses details about its sustainability initiatives, but there can be variations in
the breadth and prominence of their reporting processes (Tang and Musa, 2011)
 Competitive Landscape: Both M&S and Tesco operate in a cutthroat retail
market where consumers now place a high value on sustainability. The
importance of sustainability in business operations is rising across M&S and
Tesco's rivals, including other significant retailers. This industry-wide competition
fosters constant innovation and advancement in sustainability techniques.

It's critical to keep in mind that sustainability is a dynamic sector, and businesses
frequently modify their sustainability policies and plans. While Tesco and other rivals are
making considerable gains in integrating sustainability into their operations to fulfill
customer expectations and contribute to a more sustainable future, M&S has been a
leader in sustainability.

5. Recommendation

 Collaborative Supplier Relationships: Fostering long-term relationships based on

faith, transparent communication, and common objectives will strengthen
cooperation with suppliers (Menguc el at., 2010). Strong supplier connections
may increase the resilience of the supply chain, lower costs, and foster
innovation.
 Demand-Driven Approach: Utilize data analytics and market insights to
implement a demand-driven supply chain strategy and increase the precision of
demand forecasts.
 Agile and Responsive Operations: Adopting agile and lean principles will improve
operational agility. Adopting agile operations can help M&S respond more
rapidly to changing market demands, cut down on waste, and increase
responsiveness.
 Supply Chain Digitization: To improve the visibility, transparency, and efficiency
of the supply chain, invest in digital technology and data-driven solutions.

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  Engage and Educate Consumers: M&S needs to keep informing and educating
customers about the value of sustainability and the beneficial effects of their
purchasing choices.

6. Conclusion

With an emphasis on quality, sustainability, and customer pleasure, Marks &

Spencer (M&S) manages a complicated worldwide supply chain. The company
places a great emphasis on ethical business methods and responsible sourcing in
addition to providing high-quality items across its entire product line. Ambitious
sustainability measures and goals are set by M&S with the intention of lowering
environmental impact and enhancing supply chain transparency. The supply chain
for M&S has a number of upstream participants, including producers of agricultural
goods, manufacturers, and raw material suppliers. Distributors, retail establishments,
and e-commerce platforms are examples of downstream members (Jurietti, el at.,
2017). M&S may increase the effectiveness of its supply chain by collaborating with
suppliers and using demand-driven operations, agile methods, and supply chain
digitization. Additionally, M&S may boost its supply chain strategy and procedures by
integrating sustainability principles, encouraging cooperative supplier relationships,
and putting into practice continued enhancement and risk management techniques.
M&S may improve its competitive position, promote sustainability, and satisfy
changing demands from consumers by implementing these suggestions. In general,
M&S's focus to providing value to clients while guaranteeing ethical and responsible
business practices is demonstrated by its commitment to quality, long-term
sustainability, and flawless operations throughout its supply chain.

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Appendix

Own Report Plan

The main goal of this report plan is to present information on the chosen organization
for this paper, the selected product category, and the specific operational performance
aim. The company chosen for this project was Marks & Spencer, a renowned retailer of
clothes in the UK. This company is primarily recognized for its rapid fashion trends. By
using the vertical integration strategy, this corporation is able to smoothly control every
part of its supply chain (Xuejie el at., 2019). Marks & Spencer has been able to meet the
needs of its clients by keeping an eye on the shifting trends of the market. With the aid
of its retail sites and eye-catching window displays, Marks & Spencer focuses on
creating buzz. Marks & Spencer always maintains fewer products on hand to create a
sense of scarcity among customers. Additionally, Marks & Spencer has concentrated on
sustaining sustainability by taking into account sustainability strategies, such as using
recyclable materials for its products, in order to improve its sustainability policies.
Therefore, this unrivaled quality aids Marks & Spencer in forging a solid market position.
Zara, on the other hand, chose to focus on the clothing category. Based on this, it can
be said that Marks & Spencer's apparel department serves as an example of how to
adapt to the swiftly changing trends of fast fashion by offering products that are stylish
and cheaply priced (Xiang, 2019). The Quality performance target was the Marks &
Spencer's chosen operation performance objective. Given that the primary objective of
the selected company is to offer clients clothing that is both well-designed and long-
lasting, Marks & Spencer places a high priority on the quality of its goods. The Marks &
Spencer product quality is influenced by a number of factors, including store
experience, cost control, supply chain efficiency, and so forth.

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