Marks and Spencer 2008 Annual Report Download - page 25

marksandspencer.com/annualreport08 MARKS AND SPENCER GROUP PLC 23
From source to store
As we expand our business internationally,
we’re planning to take more control of our
logistics from source to store, allowing us
to monitor our stock more efficiently and
improve margins.
We plan to develop a modern and streamlined
logistics network that consists of new overseas
warehouses, as well as offshore stockholding
and consolidation facilities.
Remodelling our supply chain infrastructure
is a major investment that will help us stay
one step ahead of demand in our market for
the fresh and new. Fast fashion, for example,
is about to get faster still.
Getting our IT in
shape for growth
At the same time as renewing our physical
network, we have also made progress in IT.
We now have an integrated company-wide
IT plan; a three-year roadmap that sets out
how our systems will deliver on every aspect
of our business plan, both within the UK and
internationally. This means, for example, that
our IT strategy for China – where we are
only just establishing a foothold – is already
in place.
Giving goes
electronic at M&S
During the year, we
introduced the electronic
M&S Gift Card. Smaller
and more convenient for
our customers, as well as
being quicker and easier
to process Gift Cards have
been an important success,
with over 80% transition
from paper to plastic.
The plan has helped us to develop faster
and more efficient IT systems throughout our
business. For instance, we are introducing
new point of sale systems, including more
than 2,000 new tills and 258 new handheld
terminals in-store to make stockchecking
easier and more efficient. This will help us
further improve service in our stores. We
extended the trial of our food self-service
tills across the business, as well as a first
trial in general merchandise.
We also made vital behind the scenes
improvements with the introduction of new
financial and back-office systems. Both of
these changes are behind an overall increase
in operational efficiency, with 97% of our
tills fully operational, up from 90% two
years previously.
At the same time as achieving these important
improvements, we also succeeded in reducing
like-for-like IT running costs by 13.5%.
From hand to hanger –
the ethical supply chain
Cotton fields
We use around one third of the world’s
Fairtrade cotton. Our Fairtrade cotton
commitment directly affects the welfare
of over 100,000 small-scale farmers, and
helps improve the standard of living in
local communities.
Sold
The cotton is
spun into yarn,
dyed and sewn
into t-shirts to the
highest ethical
standards.
The t-shirts arrive in our
UK warehouses, and the
stores order what they need.
The t-shirts become part of
the 4.8 million Fairtrade cotton
garments sold by M&S annually.
The t-shirts arrive in our
stores, are offloaded, and
are put on display on the
sales-floor.
The t-shirts are prepped
so they are ready for sale,
and are loaded onto lorries
so they can be transported
to our stores.
Factories
Warehouses
Delivery
In-store
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