Marks and Spencer 2010 Annual Report Download - page 39

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Financial statements p78 
Governance
Operating & financial review
Brand & marketplace p20 
Performance & KPIs p14 
Overview p01 
stores are receiving training in the new
system and this will be rolling-out during
2010. The new centralised system provides
real-time data from stores to a head office
team, providing an accurate picture of stock
levels at all times.
Business Foundation Programme
Having reviewed the operational processes
across the business we established that our
old core head office systems were no longer
suitable to support the business’ needs.
We decided the best way to solve this was
to launch a Business Foundation Programme,
rolling out a new integrated software
application called SAP Retail.
The roll out of the new system will mean
that M&S data is held in just one centralised
location, replacing a myriad of old systems
and will standardise core business processes
across Clothing, Home and Food. The new
systems will improve our visibility of sales,
stock and margin data leading to better
decision making and improvements in the
way we manage our promotional spend.
To ensure a smooth transition the project
is being phased in and to date, we have
successfully implemented SAP software
across finance, purchasing and International.
Looking ahead
Our work to date has already achieved cost
savings and efficiencies. But there is still
more we need to do to build an infrastructure
that will enable us to meet our ambitions
of becoming a truly multi-channel retailer,
with a stronger international presence.
We are confident we have an
experienced team in place to implement
these changes, without disruption to the
day-to-day running of the business.
The result will be a simplified, more efficient
business that can respond flexibly to
changing customer demands and give
M&S a solid platform for growth.
such as reviewing the floor layout of
warehouses to reduce picking times and
introducing a loose loading initiative, which
has enabled us to carry more products on
our trucks – and secondly by reducing the
number of times we handle stock. Currently
all stock goes to a sorting centre and then a
regional distribution centre before being
moved to a store. Following a successful
trial this year, all stock will go via just one
place in the future.
Our international supply chain
To support future international growth,
over the next three years we will make our
international supply chain more cost efficient
and deliver more products direct to our
international partners as opposed to going
via the UK. This year we have made good
progress and delivered 9.8 million singles
direct to our overseas stores, our plan is to
increase this to 30 million by 2013.
IT and systems
This year we completed the in-store pilot of a
new Point of Sale System (POS) and will begin
the roll-out to all stores later this year. The new
system is not only more cost efficient but also
helps deliver a better customer experience,
through a simplified process for transactions
and refunds.
Following another pilot, we have
introduced new software to improve stock
management. Staff representatives from all
SERVICE
Above: Our new GM Warehouse in Bradford
is 1 million sq ft – it could fit 12 Wembley pitches
inside and it’s a one mile walk around the outside
of the building. In the service yard there is a
2.1 metre diameter rainwater storage tank, which
when full holds 4 million litres of water.
SERVICE
Above: On shelf service Staff across our
stores are receiving training on the new stock
management software, which provides real time
data to help us improve on shelf availability.
SERVICE
Right: Meeting customers’ needs ‘Shop
your Way’ is underpinned by our new improved
customer ordering system, delivering greater
flexibility to customers and improving fulfilment.
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p50 