Marks and Spencer 2015 Annual Report Download - page 13

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OUR BUSINESSOUR PERFORMANCE
GOVERNANCE
FINANCIAL STATEMENTS OUR BUSINESSOUR PERFORMANCEGOVERNANCE
FINANCIAL STATEMENTS
11
ANNUAL REPORT AND FINANCIAL STATEMENTS 2015
OUR PLAN IN ACTION:
GM GROSS MARGIN
IMPROVEMENT
A better buying process has helped
increase our margins, for example
through the way that we procure our
fabric . We used to source our l inen
from 28 f abric mill s. Now, we use eight.
Consolidating the number of mills has
allowed us to create e ciencies, save
time and be smarter in how we buy.
Bet t er av ai l abi l it y is k ey t o b oos tin g
our margins, but some of the behind-
the-scenes systems and processes
which regulate this are over 25 years old.
Our GM4 Programme is changing this –
we are overhauling everything from our
merchandise planning systems to our
allocation and replenishment systems.
GM4 wi ll make us more e cient and
more profi table.
As part of our strategy to improve our margins, we
are bringing much of our design in-house. 35% of our
clothing is now created, designed and sourced by our own
teams, up from 20% at the end of last year, and our target
is 60% by 2016/17. Our Direct Design strategy has led to
greater collaboration between our buying teams, our
design teams and our regional Sourcing O ces.
See more in Financial review on p16-19 and
General Merchandise on p27