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marks and spencer supply chain case study

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marks and spencer supply chain case study

Marks & Spencer: Achieving Procurement Excellence

One year after the UK first locked down, COVID-19 has accelerated procurement transformation. Non-essential retail has re-opened—but according to British multinational Marks & Spencer (M&S), the most important shift has been in mindset. “[Before the pandemic], we had tried to change the hearts and minds of the team”, said Andrew Newnham, Director of Group Procurement at Marks & Spencer. “[But it was difficult] to make our people think differently about the role of procurement.” 

If nothing else, the pandemic forced even successful retailers to think outside the box.  At one point in 2020, M&S’s clothing and home sales dropped to 15% of what they had been prior to the pandemic. “At one point just before the first lockdown point, our CEO, Steve Rowe, came through the office and said, ‘Go home now’,” Newnham said. “The pandemic was a kickstart to an entirely new way of working.” 

Throughout 2020, Marks & Spencer gathered information about the strength of its data and processes, its agility, and its supplier knowledge. “We were empowered to make decisions”, Newnham said. He recalled telling his team that they’d look back on the moment as an exciting time: “We made a real difference to the business.” 

A year later, M&S emerged from the pandemic stronger than ever. Certain procurement practices, however, have shifted—especially those revolving around risk management. “It doesn’t mean you can’t have risks,'' Newnham said. “You should have risks. But companies also need knowledge, transparency, and understanding.” 

When Newnham joined M&S, risk mitigation was one of the pillars he implemented in his new procurement strategy. When the pandemic hit, risk suddenly took centre stage. “Marks & Spencer talked about decision-making”, he said. “Suddenly, we were at the forefront of asking: ‘What’s the risk in our supply chain?’” 

Immediately, the company took steps to understand its supplier base, work with individual suppliers, and keep its operations moving. “How do we start making risk-based decisions on a data-led basis rather than what we think we know?” Newnham asked. “Do we understand which suppliers have no cash problems, which suppliers are too reliant on M&S, and which suppliers have untenable financial and legal risks going forward?” 

When Marks & Spencer initially shut down, the company had tried to review contracts and, in line with many retailers, mitigate supplier costs. But Newnham and his team members discovered that they didn’t have clear immediate data to know which contracts could end easily and which couldn’t. This led to more revelations. “Before COVID, we’d talked about supply chain risks, but not necessarily operational risk”, Newnham said. “Certain suppliers could shut down a store. So what plan did we have in place to ensure that didn’t happen?” 

To mitigate future operational risks, M&S Procurement spent significant time putting a new risk framework in place. Yet, the company decided not to spend large sums of money to buy pre-made solutions. “If you do that, the team doesn’t own the problem”, Newnham told us. “We made a conscious decision to use tools that [our team members] could use… that had accessible information and data. They needed to have a stake in the solution.”

One of the biggest motivators for Procurement at Marks & Spencer, after all, is the direct link between what they accomplish and the success of the company. “M&S is a great place to work if you want to work somewhere where you can deliver, make changes, and be empowered”, Newnham said. “This team understood what we were trying to do. One of the major achievements [of 2020] was with hearts and minds—getting the team to believe we needed to change.” 

Throughout its decades of supply chain and procurement operations, Marks & Spencer has focused on building an inclusive, tightly-knit culture. As a result, when the UK lockdown started, many third-party suppliers stepped up to help M&S through its most difficult months. Said Newnham: “They were part of the solution.” 

From here on out, the company intends to find not just tier-one partners but the right partners. “Sometimes the tier-two vendors are more flexible”, Newnham said. “It’s important that our suppliers share our values and are prepared to buy into our values.” How important is this cultural fit at Marks & Spencer? “Almost a defining thing”, Newnham said. “We’re a brand with a lot of heritage and a lot of legacy. Culture—and how we look after our people—is important.” 

But successful partnerships take two to tango—and Marks & Spencer is determined to hold up its end of the bargain. Moving forward, the company aims to strengthen its supplier relationships by lending its expertise. “This isn’t just the right thing to do”, Newnham said. “We’re going to try to change things.” He pointed out that now, ESG supply chain measures affect how consumers buy and shop. “Our customers are diverse”, he said. “Our customers want sustainability. As a procurement team, it’s up to us to understand those concerns and help our third-party providers understand and deliver our values.” 

While Marks & Spencer has historically focused on RFPs (requests for proposals) to close good deals, Newnham argued that the company should also be commercial advisors. “We’ll start with what we’re trying to achieve”, Newnham said. “Then we’ll work back from that. [We can decide] whether an RFP is the right route to take, or whether we take a more direct approach with a key partner.” 

First, the company covers the basics. “You’ve got to understand the business objectives; you’ve got to handle the sourcing process”, Newnham said. “If you don’t negotiate a good deal, run a good competitive process, and reduce risk by getting the right contract in place with a good indemnity clause, you’re not really in procurement.” 

Certainly, Marks & Spencer is excellent at focusing on key business outcomes. While the company has a distinguished history, it doesn’t shy away from keeping up with the times. “If you’re not involved in the commercial discussions all the way through the lifetime of the contract”, Newnham said, “how can you be expected to understand the service and do a great deal going forward?” 

Still, to Newnham, procurement excellence is all about strategy. “Once we’ve got the data, how do we make different decisions?” he asked. “How do we look at our supplier resilience and either help them to change the way they operate or switch to alternative supply sources?” 

Compared to other retailers, this mindset sets Marks & Spencer apart. “You need to build a strong foundation and become business partners”, Newnham said. “You need to be known as a good negotiator. You need to be known as understanding the market.” 

All in all, Newnham believes the pandemic has made Marks & Spencer stronger. “Our procurement organisation is an unstoppable force”, he said. “You can’t let perfect be the enemy of the good. During COVID, the team had to drive operations forward. “Better to achieve our targets on time rather than reach an absolutely perfect bar”, he said. “We reach 80% perfect, and then we can ask: ‘How can we do things better?’” 

As for the evolving role of procurement, Newnham is thrilled that his team’s recent work is helping Marks & Spencer adapt: “Nothing’s too small. You’d be surprised—deliver a lot of 1% changes and you make a real difference, it’s the British Cycling Marginal Gains rule.” 

Going forward, the foundations of the company’s procurement strategy will be much more solid. After a transformative year, the company has stress-tested its systems, evaluated which ones work, and targeted those that it needs to improve. Newnham explained: “We learned what we were good at.”

In some sense of the word, COVID-19 helped Marks & Spencer change its perspective on what it meant to be in procurement. Currently, the company is re-envisioning its role in the global supply chain as well as its core strategies. “Now we’re about agility”, Newnham concluded. “We’re about making decisions. We’re about being empowered. We’re about effecting change.”

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SCM Insight

Marks and spencer supply chain management .

The supply chain and suppliers play a significant role in the growth and success of the Marks and Spencer business. Working with partners and suppliers is crucial for the daily functions and operations of the company. Today, we’ll discuss Marks and Spencer Supply Chain Management; its SCM policy for the supplier relationship.

Key statistical facts and figures about Marks and Spencer are as follows;

  • 21 million people visit M&S stores weekly
  • More than 75000 employees are working for the company to manage its worldwide operations
  • Network of over 600 stores across the UK and the globe
  • Procures food from over 600 suppliers and 100,000 small farmers across the world

Some of the business ventures M&S is operating its business are as follows;

  • High-quality and stylish clothes
  • Done online
  • Home Business
  • Childrenswear and menswear

Marks and Spencer has established a strong relationship with suppliers in the following countries;

  • South Africa

Marks and Spencer SCM Policy for Supplier Relationship 

Supplier analysis.

M&S implements on-site analysis for its suppliers and does so every 3 weeks; it makes sure that the company and suppliers follow the SC standards and principles. It allows suppliers to deal with complicated issues as follows;

  • Conferences
  • Working conditions

M&S collaborates with suppliers to make sure that it follows a high level of quality standards. It encourages and motivates them to implement the most effective and efficient modern practices and methods.

The certification of fair trade makes sure to its customers that M&S is giving a fair price to its farmers that are producing food crops. It also ensures that the company is investing in the welfare of the community and society. For instance, M&S invested and allocated 340,000 pounds for the fair-trade premium project and it directly went into the welfare of the community and farmers. Resultantly, the company’s sales have increased by 5%.

Welfare of Animal

M&S makes sure that its suppliers and vendors aren’t exploiting the animals in the production of raw materials. Suppliers and vendors should follow the industry-recognized standards and protocols of animal protection and welfare. In fact, the retail brand coordinates and collaborates with such suppliers and farmers.

The company outlines specific instructions and guidelines for the suppliers and vendors for the following categories;

  • Nonfood items like bred prepared from not animals
  • Nonfood items produced from the slaughtering of the endangered species
  • Mentioning raw material clearly on the labels
  • Clarifying Synthetic material that is alike animal products to avoid confusion
  • No producing products that are jeopardizing animals

Ethical Dealing

M&S clearly outlines that it is a secular organization and it respects and accepts all races, religions, cultures, and nationalities. The retail brand doesn’t have any association with political parties, countries, nations, religions, governments, or states. However, the company lets its customer know not just to purchase a particular good based on the label.

The company makes sure that the suppliers should follow the health and safety rules and regulations of the country relevant to the following;

  • Terms of employment
  • Minimum employment age
  • Health and Safety

It is the responsibility of suppliers to improve the working conditions by following ethical initiatives. Human rights groups, and trade unions.

Sourcing & Finding Methods

M&S follows global product sourcing methods and practices by developing partnerships and alliances with suppliers. They need to follow a set of standards and regulations relevant to the manufacturing of the product. However, M&S makes sure that all the employees working for the supplier companies should be respected. The official should regularly analyze the production sites for supplies and make any needed improvements.

The employees working the supplier organizations should have proper human rights, health, safety, and dignity. The supplier with agree with the regulations and standards of production sites for every order; not just subcontract orders from the agreed location.

Quality Management System

M&S follows the quality standards and management practices that are relevant in the industry. In fact, the company should follow the top-to-bottom management approach. The management process should be simple and clear and it comprises every store implementing a central direction on the following;

  • Merchandizing

Conclusion: Marks and Spencer Supply Chain Management 

After an in-depth study of Marks and Spencer Supply chain management; we have realized M&S is the world’s leading retail chain brand that follows quality SCM practices. If you are learning about the SCM policies of M&S for the development of supplier relationships, then you should keep in mind the abovementioned factors and elements.

Ahsan Ali Shaw

Ahsan is an accomplished researcher and has a deep insight in worldly life affairs. He goes Live 3 days a week on various social media platforms. Other than research writing, he’s a very interesting person.

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An exploratory approach to Marks and Spencer's major supply chain risk and vulnerability sources through sustainable logistics and supply chain management

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2022, DLMM27 - Sustainable Logistics and Integrated Supply Chain Design

This mini-conference paper explores Marks and Spencer's (M&S) significant supply chain risk and vulnerability sources through sustainable logistics and supply chain management (SCM). Its objective is to take the context of M&S' external environment as its supply chain scale impacts engagement with external parties. Prompt through its strategy, transformation programme, core operations, internal environment revolving as sustainable logistics and SCM. It also recognises M&S's overview of principal risks and uncertainties as significant supply chain vulnerability sources. More so, the stipulating risk to the re-launch of its corporate strategy Plan A does not only improve the organisations' and supply chains' environmental and social performance. It also drives value as opportunities for M&S to acquire new competencies, enabling competitive advantage through sustainable procurement decisions within and outside M&S's boundaries as a sustainable business model.

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marks and spencer supply chain case study

There is ample anecdotal evidence suggesting that firms can experience serious losses from social, ecological or ethical problems that exist in their supply chains. So far, however, research on supply chain risk management has largely neglected these sustainability issues. Most importantly, little is known about how sustainability issues manifest themselves as risks and how they create losses for focal firms. Without an in-depth understanding of this materialization process, conceptualizations of sustainability risks will remain vague and effective management frameworks cannot be developed. We address this important research gap by means of a transdisciplinary approach and provide a concise description of how sustainability issues in supply chains materialize as risks for focal firms. Building on this mechanism and drawing on stakeholder theory, we develop a conceptual-ization of sustainability risks which lays the basis for future investigations in this respective field. In addition, we devise a viable management concept for sustainability-related supply chain risks. The proposed concept can help firms to mitigate sustainability issues in global supply chains, thus making them less vulnerable to losses resulting from these risks. Its application will also foster sustainability standards within supply chains.

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Contrary to the considerable development of Sustainable Supply Chain Management (SSCM) research, the level of conceptual clarity falls short in unveiling the strategic implications of sustainability integration into core business practices. This leads to dilemmas with respect to aspired and achieved levels of business responsibility increasing exposure to financial and sustainability hazards. Given the various incidents of supplier misconduct and cases where no apparent breaches still impose threats to buying firms, it is undeniably mesmeric experiencing the defiance of “common sense” law: just because risks are classified, and responses are deployed, it would be wrong to assume that vulnerability is eradicated. To overcome impediments, we need to discern between uncertainty and risk. To this end, literature supports that firms address issues based on instrumental and moral rationales encompassing fundamentally different justifications. Building on work from risk management, SSCM, p...

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— Academic and corporate interest in Sustainable Supply Chain Management has risen considerably in recent years. This can be seen by the number of papers published and in particular by journal special issues. Sustainable Supply Chains Management (SSCM) extends the scope of Supply Chain Management (SCM) by environmental and social issues and it attempts to consider all the dimensions of sustainability in optimizing supply chain. Indeed, suppliers, focal companies and customers are linked by information, material and capital flows. In line with the value of the product comes the environmental and social burden incurred during different stages of production. With regard to this, companies are asked to consider the environmental and social problems present in their entire supply chain. Studies linking environmental and social sustainability to firm performance have been increasing as more companies are contemplating the implementation of sustainable practices internally and in coordination with other firms along their supply chains. The integration of sustainability practices in supply chains is relatively new but growing for over a decade and the concept is receiving global acceptance In this context, the purpose of this paper is to study the practices used to develop a SCM and make it 'sustainable'. Thereby, we will carry out a review of the literature on the SSCM, then we will study the practices used to make a SCM sustainable, finally we will try to study the impact of a sustainable Supply Chain on the competitiveness of the organization.

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So much pressure abounds for supply chains to deliver goods and services in the right quantity, quality, to the right place and at the right time and least cost possible. It is an acceptable fact that supply chain operations, local or global, face numerous unforeseen challenges that expose them to ineffective and inefficient performance. It is evident that organisations that manage environmental, social and economic risks are better positioned to deliver sustainable supply chain operations. The next generation of supply chain management should not be comfortable with the old adage of out-of-sight out-of-mind behaviour as this presents an unacceptable reputational risk level to the sustainability of logistics business operations.

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marks and spencer supply chain case study

Marks & Spencer Food: Sustainability Scorecard for Suppliers

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Executive Summary > Introduction > Business Strategy: The Sustainability Scorecard > Three Key Elements of the Scorecard > Approaches > Performance > Prognosis >

Executive Summary

Business Background

Marks and Spencer (M&S) is a major British retailer of household items, food products and clothing. Founded in 1884, M&S is now a public limited company, with over 1,000 stores across the world, 852 of which are located in the United Kingdom. It has over 80,000 employees and revenues of over GBP 10 billion.

Ecosystem Pain Point

Although M&S’s own operations have an impact on the environment, its biggest impact comes through the products it sells and the way in which those products are used. Rising raw material and energy costs, availability and costs of labour, as well as the costs of managing waste, pose significant challenges for M&S’s supply base. At the same time as these challenges arise, customers are increasingly aware of their personal impact on the natural world. [1]

Therefore, M&S wants to show leadership on sustainability. To this end, it works hard to build and maintain customers trust. M&S believes that a long-term relationship of trust with its suppliers helps ensure that the suppliers both understand and put into practice the values M&S has set for itself. [2] As part of the Supplier Collaboration Programme, M&S supports suppliers through training and development opportunities aimed at improving its sustainability performance.

Business Strategy

M&S’s work with suppliers is part of the company’s aspiration to become the world’s most sustainable major retailer. [3] Its Sustainability Scorecard initiative seeks to improve performance in the M&S food supply chain by focusing on tracking and incentivising environmental, human resources, ethical sourcing and lean manufacturing practices.

Additionally, the programme allows M&S to understand its supply chain better. The Sustainability Scorecard helps to ensure positive trade relationships with employees, suppliers and consumers – a recognised aspect of the M&S brand.

Performance

As a result of the Sustainability Scorecard programme, M&S’s direct suppliers have reduced waste by over 250,000 tonnes. Further, over 60% of suppliers send no waste to landfill. Over half of all sites have improved their energy and water efficiency. This programme has also shown a positive impact on employees. Research has shown that 72% of suppliers score 65% or above on positivity in employee feedback.

In 2016, 56 supplier-sites were validated for the Sustainability Scorecard programme. [4] Currently, 385 supplier-sites are part of the programme. M&S aims to source 100% of its products from at least Silver level suppliers by 2020 and to have a sustainability story for each product.

____________

[1] “Plan A/2025: Plan A 2025 Commitments,” corporate.marksandspencer.com . Link . [2] “Case Study: Marks and Spencer – supply chain standards,” Financial Reporting Council . Link . [3] “Sustainability Benchmarks & Indices: Delivering Plan A,” corporate.marksandspencer.com . Link . [4] “M&S Supplier Map,” interactivemap.marksandspencer.com . Link .

Introduction

About the Company

Marks and Spencer (M&S) is a major British retailer of household items, food products and clothing. Founded in 1884, M&S is now a public limited company, with over 1,000 stores across the world, 852 of which are located in the United Kingdom. It has over 80,000 employees and revenues of over GBP 10 billion. In the United Kingdom, M&S has 368 direct supplier-sites, which employ over 119,000 people. These include 302 food factories and 38 drinks factories.

Over 90% of M&S’s impacts fall within the supply chain and outside of its own operation. Even though 98% of M&S products are sold under its own brand, M&S does not manufacture any products and relies instead directly on its suppliers. For this reason, M&S takes special interest developing relationships with its suppliers.

There are benefits for M&S that can be gained through engaging with suppliers around sustainability. These include:

Lower costs through more effective supply chain collaboration. Using sustainability as a basis for collaborating with supply chain partners can help to reduce many commercial barriers. Examples include optimised packaging design, optimised transportation with load-sharing to increase truck fill and reduce empty running, reduction in transit packaging, better alignment of ordering and replenishment to reduce raw material waste that can occur through over-supply or from short production runs aimed at rapid response.

Improved products through a collaborative approach to addressing sustainability issues and encouraging innovation. By working jointly on alternative product designs or formulations, products can be made more sustainable. Examples include: reduction in, or substitution of, non-renewable materials; use of lower impact modes of raw material transportation or use of returnable containers; and, local sourcing where greater assurance of supply offsets the potential increased costs compared with sourcing from distant lower cost countries.

Reduced environmental risks, such as through improving the sourcing of materials from regions with scarce natural resources.

Reduced social/ethical risks, such as through improving labour standards at suppliers.

Reduced supply or reputational risks through enabling greater transparency across the supply chain.

The abovementioned benefits accrue from engaging suppliers on issues of sustainability. There are, however, challenges associated with implementing new approaches to supply chain sustainability. As an industry report explains:

Most companies in the grocery sector initially approached supply chain sustainability from a need to ensure compliance and to minimise supply and reputational risks from across the supply chain. Whilst some industry wide initiatives, such as Sedex (Supplier Ethical Data Exchange) have been successful in providing an effective framework for this risk management approach, this can result in defensive behaviour by suppliers and can reinforce relationships that are characterised by a “tick-box” process for ensuring compliance. [5]

Effective supply chain management, as this report suggests, comes into play when implementing new business strategies around sustainability. In order to offset potential risk, M&S needed to innovate new means by which to align suppliers with M&S’s broader sustainability goals.

[5] Chris Stanley, “Topic Guide: Engaging Suppliers in Sustainability,” Best Foot Forward , May 2013. Link .

Business Strategy: The Sustainability Scorecard

The supply chain forms a critical part of the M&S Sustainability Programme – Plan A. The Sustainability Scorecard initiative, on which this case focuses, is a key component of Plan A. It provides a crucial example of M&S’s efforts to improve supply chain performance and practices. The scorecard initiative advances a series of high-level goals for the company, particularly in the area of supply chain management. M&S’s supply chain aims to be ethical, resource efficient and lean:

Ethical: Good working conditions throughout supply chains and to source products with integrity.

Resource Efficient: To increase supply efficiency and reduce costs associated with raw material, energy and waste.

Lean: To incentivise and facilitate better and leaner practices amongst suppliers.6

As an M&S brief explains, the Sustainability Scorecard endeavours to align suppliers with M&S’s wider sustainability goals:

We’ve developed a Sustainability Scorecard to help suppliers of M&S food & household products understand the business case for sustainability through progressively reducing their environmental impacts, increasing their efficiency and positively benefiting their workforce.7

In 2010, M&S established a sustainability scorecard that tracks the progress of suppliers’ sustainability activities.8 This scorecard enables M&S to award Provisional, Silver, Bronze , and Gold ratings to participating suppliers.

The scores are calculated based on three pillars: Environment, Human Resources and Ethical Trade, and Lean Manufacturing. As stated in the company’s Plan A Commitments report, this scorecard system is part of a larger effort to align suppliers with the company’s sustainability objectives:

We’ve been working with our business partners to develop best practices. We’ve taken these best practices and turned them into a set of factory and farm sustainability standards that we are now going to drive across thousands of farms and factories in our supply chain. These standards are vital. They will make Plan A how our suppliers do business too.9

At least once a year each of the direct suppliers’ sites work through the scorecard’s framework and complete self-assessment questionnaires.10 As a case study by the Financial Reporting Council describes, suppliers take process of generating and auditing these scorecards seriously:

A critical part of the process is audit and assurance where it must both satisfy itself that the required standards are being met and avoid alienating its suppliers by being too strict…The company has opted to give a window for when audits will take place, so that the suppliers know that the assurance team will arrive at some point within the space of, say, a month. The period is short enough to limit the disruption but long enough to prevent bad practice being temporarily hidden.11

In this way, M&S addresses the need to collect excellent data without overburdening suppliers. The practice of providing suppliers with a “window” during which the audit will take place helps foster goodwill and promote accountability, without disrupting production.

Buyers take these scores into account. Furthermore, only products from Silver and Gold factories are eligible for recognition as having “Plan A product attributes” for sale to consumers. By 2020, M&S plans to source 100% products from sites that are scored Silver or Gold. In recognition for their efforts, Silver suppliers are awarded certificates at the M&S annual commercial conference.12

M&S’s sustainability-related interactions with its suppliers started with a Supplier Collaboration Programme, which continues to support the scorecard framework. The Supplier Collaboration Programme has three main areas of focus: to facilitate supplier exchange meetings; to provide skills training and development opportunities for suppliers; and to deliver financial benefits and improved ways of working.

[6] “Sustainability Scorecard: Capacity Building Initiatives,” corporate.marksandspencer.com. Link . [7] Ibid. [8] C.B. Bhattacharya, “How Companies Can Tap Sustainability to Motivate Staff,” Knowledge@WhartonPartners , September 2016. Link . [9] “Our Plan A Commitments 2010-2015,” Marks and Spencer Group , March 2010. Link . [10] “Sustainability Scorecard: Capacity Building Initiatives,” corporate.marksandspencer.com. Link . [11] “Our Plan A Commitments 2010-2015,” Marks and Spencer Group, March 2010. Link . [12] Hazel Cully, “Silver and Beyond – Foods Sustainable Factory Programme”. Link .

Three Key Elements of the Scorecard

Environment

The first element of the scorecard is the environmental measures. These measures focus on energy use, water use, waste and carbon outputs. In particular, this part of the scorecard includes environmental impact assessment, risk assessment of key raw materials, sustainable procurement plan and tracks the percentage of renewable energy at site.

M&S has particularly identified waste as an issue, both in production and in packaging. The current goal is to source 25% of food produced in zero-waste factories. To advance this goal, M&S works with suppliers. As the company’s Plan A Commitments report describes:

Different parts of M&S supply chain face different challenges on waste. Food supply chains create more waste, but much of this is currently recycled. M&S works with food suppliers to help them recycle their remaining volumes that still go to landfill, by using the most carbon efficient approach available, for example anaerobic digestion or composting. We’ll also work with our suppliers to minimise food packaging write-offs.[13]

As this example of food supply chain demonstrates, many opportunities for increasing sustainable business practices exist along the supply chain. Offering increased access to recycling, in this way, helps M&S align its suppliers with its ongoing sustainability goals by tackling the challenges of food waste.

Human Resources & Ethical Trade

A second key aspect of the scorecard is human resource management and ethical trade. This section includes employee representation, staff turnover, workforce cohesion and external accreditation for employee bodies. As the company reports: “We want our food to only come from factories demonstrating leading standards in training, workforce and community engagement, health and safety and employment practices.” [14] The scorecard system helps advance M&S’s human resource and ethical trade goals.

The company’s Global Sourcing Principles draw from key international documents and standards, including UN Universal Declaration of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, the UN Guiding Principles on Business and Human Rights, the UN Women’s Empowerment Principles, the UN Human Right to Water and Sanitation, the Children’s Rights and Business Principles and the UN Global Compact. By aligning the company’s requirements with these international standards, the company is able to encourage engagement and streamline the compliance burden for its suppliers. [15]

Lean Manufacturing

The final element of the scorecard is lean manufacturing. Here the scorecard tracks whether suppliers use formal tools for cross-functional problem solving; employ value stream mapping; and identify of their key suppliers for improved relationships.

[13] Plan A, corpororate.marksandspencer.com , 25. Link . [14] Plan A, corpororate.marksandspencer.com , 28. Link . [15] “Global Sourcing Principles,” Marks and Spencer Corporate , November 2016. Link .

Participatory Approach

M&S seeks to encourage suppliers to own the agenda, and in agreement with M&S are actively seeking to not undertake audits and set compliance: “Instead M&S has chosen to collaborate with key suppliers and have jointly created a number of model factories.”16 Although some of the lessons from the model factories initiated supplier mandates through Plan A commitments, the larger focus was, and continues to be, demonstrating the business case for action. M&S views this as a more powerful incentive of galvanising change across the supply chain.

As a Product Sustainably Forum Report notes, “M&S’s approach has been to support its supplier-based commitments and mandates with lighter touch incentives and collaborative working models.”17 M&S, moreover, “encourages its suppliers to use an online knowledge platform where M&S is able to provide suppliers with advice, case studies and toolkits on how to make practical changes within factories and on farms.”18 These materials also highlight the business benefits of implementing the aforementioned practical changes.

Further encouragement occurs through other incentive and collaborative programmes such as the annual supplier awards programme. The “awards recognise and showcase suppliers that have made tangible and demonstrable improvements in areas such as process innovation or product sustainability.”19

Supplier networking sessions are also held every two-to-three months. The sessions focus on areas of the performance scorecard where suppliers experience difficulties. In these sessions, “[s]uppliers that have made progress on specific challenges are encouraged to share experiences and outcomes with their peers [and] M&S technical experts are also on hand to share operational knowledge and expertise.”20

M&S makes a point of not requiring suppliers to share how much they have saved and how much is due to M&S’s involvement. This approach results from the belief that suppliers may be concerned that M&S’s buying departments would use the information to negotiate on price. This may also reflect the reality that drawing a direct correlation between the company’s supplier engagement and the decision of suppliers to make adjustments is not clear-cut.

The Benefits of the Scorecard Approach

The scorecard enables M&S to understand and manage its supply chain better. This approach helps incentivise best practices. As summarised in a blog post by Hazel Culley, Sustainability Manager, the programme brings to the fore many previously unnoticed aspects of the supply chain:

It’s great to be able to see the real change that’s happening, for example when we started out only 70 of our sites had staff surveys, now more than 200 do. We’ve also seen great environmental improvements including over 40% of our sites sending no waste to land fill and 25% volume is now from sites that have reduced energy by 20%.21

More broadly, through the suppliers’ self-reporting M&S gains insights on the energy, material, waste and carbon performance measurements for those factories; suppliers’ risk assessment of their raw materials; suppliers’ employee representation, gender ratio, employee turnover and employee survey results at those supplier-sites; and the production capabilities of its suppliers. These insights allow M&S to better select and interact with its suppliers for product innovation and other improvements in its products.

[16] Chris Stanley, “Topic Guide: Engaging Suppliers in Sustainability,” Best Foot Forward , May 2013. Link . [17] Ibid. [18] Ibid. [19] Ibid. [20] Chris Stanley, “Topic Guide: Engaging Suppliers in Sustainability,” Best Foot Forward , May 2013. Link . [21] Hazel Cully, “Silver and Beyond – Foods Sustainable Factory Programme.” Link .

Overall, the Plan A programme, of which the scorecard is a component, has delivered significant saving through waste reduction and environmental efficiency. As M&S has noted, “some of these savings accrue to the supply chain.”22 In the 2014/15 business year, these savings totalled GBP 160m. The programme has saved GBP 625 million since 2007.

However, M&S views the value of the programme as extending beyond these savings. As reported in a case published by the Financial Reporting Council:

[T]he company does not seek to measure the financial impact of Plan A in terms of margin, corporate earnings and brand value. It considers this is a number that cannot be calculated, but it believes that the impact of Plan A in terms of the trust it generates with customers, as well as on the morale of its workforce and that of its suppliers, will make the company more resilient and more adaptable, enhancing its sustainability in a rapidly changing world.23

As the report indicates, putting an increasingly sustainable supply chain into practice creates benefits for both M&S and its suppliers. The Sustainability Scorecard initiative bolsters brand value by enhancing relationships among the main business, suppliers and customers.

Examples of Supplier Achievements

As a result of the Sustainability Scorecard programme, M&S created value creation and savings across its supply chain. Below are examples of supplier achievements:

Through the introduction of vacuum packing for fresh meats, an unnamed company calculates it saved GBP 16.3 million in 2011-2012.

Worldwide Fruit, an M&S food supplier, was named supplier of the year in 2012 for its achievements in reducing electricity consumption by 14% a year and water demand by 75%.

Brandix, a designated M&S eco-factory, was named clothing supplier of the year in 2012 for reducing carbon emissions by 80%, energy usage by 46%, and water consumption by 58%.

AMC Grupo Alimentación Fresco y Zumo, a fruit supplier, introduced a closed-loop manufacturing methodology for fruit squeezing. This led to zero fruit waste, with 90% of fruit waste being used elsewhere in the business.

Courtauld, a clothing supplier, developed a new bra made from 100% recycled polyester, with improved durability and guaranteed non-yellowing.24

As this supplier achievements show, the scorecard initiative has the potential to align suppliers with M&S’s sustainability goals in mutually beneficial ways.

[22] “Case Study: Marks and Spencer – supply chain standards,” Financial Reporting Council . Link . [23] “Case Study: Marks and Spencer – supply chain standards,” Financial Reporting Council . Link . [24] Chris Stanley, “Topic Guide: Engaging Suppliers in Sustainability,” Best Foot Forward , May 2013. Link .

Looking ahead, M&S aims to source 100% of products from at least Silver level suppliers by 2020. In addition to meeting its internal standards, the company plans to have a sustainability story for each M&S product. This way, it can demonstrate the origins of its products and highlight the benefits of its new supply chain model.

Additionally, M&S plans to expand its Plan A initiatives to include a wider range of sustainability programmes. To this end, M&S will launch a five-year, GBP 50 million Plan A innovation fund to support new ideas in the business.25 An additional future goal will be to help suppliers create 200 Plan A factories and have 10,000 farmers join the initiative.26 Taken together, these programmes aim to catalyse innovation along M&S’s sustainable supply chain and continue fostering good relations between the company and its suppliers.

[25] “Our Plan A Commitments 2010-2015,” corporate.marksandspencer.com , March 2010. Link . [26] Ibid.

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About This Case Study

First developed for the 2017 Forum by the Mutuality in Business Research Team. The web text is based on the case study written by researchers at Saïd Business School, University of Oxford . The views of the authors and/or the University are distinct from other content on this website.

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Based on research by the by the Mutuality in Business team, Saïd Business School. With contributions from Mike Barry, Marks & Spencer. Edited by Justine Esta Ellis.

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Authors’ Note

This is a descriptive case study, based on publicly available materials as well as on the information shared by the company described. This case study is not meant to provide critical analysis of the literature or information used to develop it. All errors and omissions are the authors’ own.

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The businesses featured in these case studies share a commitment to objectives beyond purely financial performance, as well as a serious intent to implement mutual practices through new forms of ownership, governance, leadership, measurement and management.

Please note: The header photograph is illustrative and does not directly portray the subject matter. Some editorial changes have occurred during the process of converting the paper from the PDF version above into this web page version.

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Marks and Spencer’s Emerging Business Case for Sustainability

Five years into its sustainability efforts, marks and spencer has demonstrated “a strong business case for sustainability, with £185m in net benefits from plan a made available to be reinvested back into our business.”.

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Marks and Spencer has demonstrated “a strong business case for sustainability, with £185m in net benefits” since 1997 available for reinvestment.

Wheelock Place, Singapore. Image courtesy of Flickr user alantankenghoe .

Five years ago, the UK retailer Marks and Spencer announced what it called Plan A , a commitment to tangible steps to make the company more sustainable. T-shirts for associates featured the slogan, “There is no Plan B.”

As it says at the Plan A website today, “We launched Plan A in January 2007, setting out 100 commitments to achieve in 5 years. We’ve now extended Plan A to 180 commitments to achieve by 2015, with the ultimate goal of becoming the world’s most sustainable major retailer.”

The company’s new 56-page “ How We Do Business Report 2012 ” [PDF] details what the company has achieved in the past five years.

Marks and Spencer has also prepared a separate report called “ The key lessons from the Plan A business case .” [PDF]

Of its goals, the company has achieved 138 of its 180 commitments, with 30 ‘on plan’, 6 ‘behind plan’ and 6 ‘not achieved,’ according to the report. Among the report highlights:

Marks and Spencer has a convincing business case for sustainability. The company, says Marc Bolland, CEO, can “demonstrate a strong business case for sustainability, with £185m in net benefits from Plan A made available to be reinvested back into our business over the last five years.” Operational savings include a 28% improvement in energy efficiency per sq ft.

Achievements include becoming carbon neutral, sending no waste to landfill and sourcing 100% of the wild fish it sells “from the most sustainable sources available.”

Customers have embraced a chance to give back. The company launched a so-called ‘shwopping’ initiative (the word combines “shop” with “swap”), encouraging customers to bring in used clothes when they buy new ones, and one-day “Wardrobe Clear-Out” events, with clothes donated to Oxfam second-hand clothing stores. Total number of garments donated: 11 million. Money raised for charity: £20 million.

Sustainability is integrated into financial reporting and review. M&S produced its sustainability report with its Internal Audit team and Ernst & Young. The Board and Audit Committee reviewed Plan A progress every six months.

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Supporting our food supply chain

Responsible Sourcing and Human Rights in Food

Our approach.

We directly contract with suppliers who make our products at over 1000 factories. The majority of these factories are located in the UK, but our supplier companies themselves have global supply chains which span more than 55 countries.

marks and spencer supply chain case study

As part of our risk assessment process for our supply chains, we map our exposure to high-risk areas with systemic risks in the areas of governance, security, human rights, or environmental challenges. To identify the countries with the highest risk, we use the following sources of information:

  • the SEDEX Radar portal to understand country-level human rights-related risks
  • information and intelligence from our projects on the ground, and impact assessments we may carry out
  • the Food Network for Ethical Trade (FNET) product-specific risk assessment to drill down to the specific ingredients and raw materials per country to identify if material to M&S
  • information received through our memberships including Ethical Trading Initiative (ETI) and FNET

In addition, we have identified several global issues as priority areas, and we will continue to monitor and review activity in relation to:

  • Rising social inequality as a result of Covid-19
  • Xinjiang Uygur Autonomous Region (XUAR)
  • Brexit and shortages of low-skilled labour
  • the movement of refugees following crises in Ukraine

Once we have the above information on territory, product and mitigating activities in place, we evaluate the overall level of risk. For all areas identified as higher risk, we review the programmes in place  to understand where further activity is needed to mitigate this risk.

Our suppliers must have in place established and comprehensive management systems, as this is key to ensuring they are capable of complying with all legal and relevant M&S obligations. Within our supply chain, we require that all workers are paid at least the national minimum wage.  Overtime work should always be compensated at a premium rate, and where piece work is used, suppliers must be able to demonstrate that the minimum wage is always met,

We expect our suppliers to engage their workers in line with legal requirements. They are required to check that all workers have a right to work in a particular country and are of legal working age. This applies even if workers are supplied through labour providers, agents or gangmasters. For example, in the UK suppliers are expected to ensure that labour providers they work with have a valid license from the Gangmasters and Labour Abuse Authority (GLAA).

We routinely carry out technical audits of suppliers  to ensure our expectations on worker health and safety and integrity are met.  All suppliers are required to be audited frequently by M&S by approved independent third-party companies and they must commit to taking action as a result of any findings.

In addition to technical audits, we request that all high-risk suppliers (country and product area) undertake semi-announced SMETA (Sedex Members Ethical Trade Audits) bi-annually and share them with M&S. Since 2021, we have been using the Sedex Radar Agricultural Risk Tool to determine high-risk countries, and we have determined our high-risk industries to be Protein, Horticulture and Produce.

We recognise that ethical audits are only one tool among several to identify areas where human rights may be at risk or best practices not followed.  Whilst ongoing monitoring of compliance is necessary and useful, solely focusing on individual non-compliances can result in underlying issues being missed. In addition, this approach may not identify emerging issues or support the development of a continuous improvement culture within our supply base.

As a result, in 2021, we developed a new M&S Food Human Rights Standard as a requirement for all our food supplier partners. It aims to protect the customer, maintain brand integrity, and uphold our human rights commitment. It also evolves how we work, by defining six demonstrable outcomes to be achieved by supplier partners in areas such as due diligence, enabling supplier partners to assume responsibility, and training those who need help. It encourages a ‘beyond compliance’ approach, with the aim of working with our suppliers to define areas of continuous improvement. It also sets out our ethical audit requirements for suppliers and several supporting policies and guidelines on ethical trade such as our robust procedure for managing instances of child labour if found within our supply chain.

The six demonstrable outcomes of our standard are:

Since 2021, we have implemented three key programmes to support our supply base to deliver our standard.

1. Due Diligence

A fundamental requirement of our new 2021 Human Rights Standard is the annual Human Rights Due Diligence (HRDD) process. While all suppliers are now expected to be undertaking their own HRDD, in 2021 we asked a nominated set of 56 suppliers to present their approach, activity and forward-looking plans to our teams at M&S. These reviews included our top 30 supplier partners of high-risk products from a human rights perspective. This work between supplier partners and our commercial, technical and human rights teams is transforming how M&S colleagues build human rights into business decisions. The first year of these due diligence review meetings focused on information-gathering and awareness raising, but already we see an increased appetite for further action, both internally and from our supplier partners. We have shared our learnings from our first year with our supplier partners to drive forward our programme next year, and will conduct a series of similar reviews each year.

To help all our suppliers on their HRDD journey, we have created specific guidance on human rights due diligence (HRDD )   and remedy. Drawing on existing recognised resources and practices, this is freely available and easily accessible. We have also offered webinars, supplier partner networking, and direct support.

A supplier partner applying the guidance  will understand and be able to adopt the six steps of HRDD in line with the requirements of the UN Guiding Principles (UNGPs)  policy commitment, assessing and prioritising, preventing, reducing, and mitigating, tracking and monitoring, remediating and communicating .

2. Worker Voice

In order to try and address some of the gaps that a solely audit-focused approach to human rights may leave, we launched a worker voice programme for workers in our supply chain in 2021 in partnership with nGaje. Participation in this survey programme is now a mandatory requirement for suppliers in the UK and Republic of Ireland (ROI).

We are clear that this does not replace supplier partners’ own surveys. The programme asks colleagues to agree or disagree with 13 statements to help us understand worker sentiment at our supplier partner sites. Surveys are completely anonymous and can be undertaken in multiple languages. We also offer the opportunity for workers to input their comments directly.

Since its launch, we have heard from over 30,000 workers.  Closer engagement with workers is providing insight into working conditions and worker sentiment in our supply chain. We are able to provide supplier partners with their overall score for each area of focus and we are using the survey results in our ongoing conversations with our supplier partners to identify any issues and encourage continuous improvement.

3. Capacity Building

We are working to build capacity and capability to understand, develop and implement good human rights practices both in our supply chain and our own business.

  • In our supply chain .  We expect suppliers to take a progressive attitude to employee training and ensure that staff are competent to perform their duties. This also applies where temporary staff are used.  For example, we expect that basic training should cover general health and safety and fire safety, and induction training should cover worker rights and responsibilities.

We are committed to working with our suppliers to help them develop the necessary skills and competencies to meet our requirements by offering a range of training and development opportunities.  We have designed training programmes to educate suppliers about local laws, their rights at work, and our Global Sourcing Principles. We provide a range of capacity building tools and incentives to align our respective goals and objectives. This includes capacity in terms of resources, technical skills, knowledge, as well as research and development. In 2020/21 we focused on the conclusion of our previous supplier programme and launched three toolkits for suppliers on the issues of Ethical Trade, Environmental Sustainability, and Lean Manufacturing.

Over the past year we have offered various training sessions on our updated Standard, 3 training sessions on HRDD for all suppliers and 2 supplier ‘exchange’ conferences, where we have focused on bringing our suppliers together to share best practice and learn from each other.  

  • Colleague training .   In 2021, in response to an external evaluation of our supply chains by Oxfam, we committed to update the human rights training we provide to colleagues. The result was an online training module, ‘People Behind the Product’, sponsored by our senior executives and launched in January 2022. It has been completed by 95% of colleagues across our Food, Clothing & Home, International, Bank and Services, and Support Centre functions (Corporate Governance, Procurement, Digital and Data, HR and Property functions). The module will be completed every two years and will be part of the e-learning for any new joiners to the business.    

Building on the ‘People Behind the Product’ training, we have gone further with tailored training for our food buying teams on human rights risks in their day-to-day decisions. The first two-hour interactive course is sponsored by our Food Commercial Director and uses case studies from our own supply chain; it was attended by 65 of our commercial buyers. The training is part of a broader programme of responsible sourcing training that we will deliver over the next year, helping to make our colleagues more aware of how the buying decisions they make may impact on people’s lives further down our supply chain.

marks and spencer supply chain case study

Our programmes

We support a number of programmes that help improve working conditions in our supply base, in partnership with organisations such as Emerging Leaders and Fairtrade Foundation.

There is no place for modern slavery in any business. Employment must be chosen freely. We recognise that modern slavery is a growing global issue, and we understand the responsibility to prevent, mitigate and remediate as understood and carried out in accordance with the responsibility to respect human rights under the UNGPs. M&S colleagues and supplier partners play a major role in helping us to achieve this.

We work in partnership with the Ethical Trade Initiative Working Group on Italian Produce, Spanish Ethical Forums and The Issara Institute to adopt more robust labour practices and strengthen due diligence. We have a zero-tolerance approach to forced labour of any kind within our operations and supply chain. We take any incidents very seriously and work with the relevant authorities and experts to ensure that individuals are protected.

We also require our suppliers to take part in Stronger Together training, utilise the Responsible Recruitment Toolkit and sponsor of the Modern Slavery and Exploitation helpline and intelligence from the portal helps us to investigate live issues within our supply chains.

M&S is a founding member of the Modern Slavery Intelligence Network (MSIN), a pioneering non-profit collaboration in the UK food and agriculture sector created in response to the findings of Operation Fort, the UK’s largest ever modern slavery investigation. Members are coming together to achieve effective ways of working and to ensure, as far as possible, that robust mechanisms are in place to safeguard those who may be impacted by modern slavery and/or worker exploitation

At M&S, we are committed to inclusion and diversity and believe everyone should feel comfortable to come to work and be themselves. We have a zero tolerance approach to discrimination and unacceptable behaviour.

As part of our Human Rights Strategy in Food we have committed to undertake human rights impact assessments (HRIA), which provide an in-depth analysis of the salient risks to people in our supply chains. They include desk-based research and, most importantly, field research including interviews with stakeholders, rightsholders (workers and smallholders), and our own business.

In 2021 we undertook an HRIA within our Kenyan tea supply chains, working in partnership with our supplier partners and another retailer with whom we share the same Fairtrade-certified supply chains. The assessment particularly focuses on the challenges faced by smallholder farmers and women in Kenya. Field research took place at the end of 2021, with a validation workshop following in early 2022. We plan to work alongside key stakeholders in the Kenyan tea sector to develop actions that address the assessment’s forthcoming recommendations

M&S has a long history of working with NGO and development partners such as Emerging Leaders, across the globe with the aim of enhancing livelihoods in our supply chains. For example, when Covid-19 hit the Kenyan flower industry, we played our part to ensure that the people working within it would be able to make it through the pandemic.

CASE STUDY: KENYAN FLOWER INDUSTRY The Kenyan flower industry is worth $1.15bn annually, employing 150,000 people and 2 million more indirectly. But the Covid-19 pandemic devastated the industry, with up to 50 tonnes of flowers a day being destroyed in March 2020. 50,000 people lost their jobs instantly, and had no financial safety net. Those who kept their jobs often lacked PPE and access to water. Women – around 65% of the workforce – were disproportionately affected. To support the industry, we worked alongside MM Flowers, the Fairtrade Foundation, Coventry University, Co-op and Tesco for 12 months to improve the situation. 68 farms were covered by this collaborative project, with 6,000 workers offered health packs that could protect them from Covid-19. The project also worked on improving food security and enhancing worker voice, and helped workers to diversify their farms and undertake other income-generating activities. Retailer roundtables included procurement and growers, and recommendations on policy were delivered to the Kenyan and UK governments, proposing action in four areas to build up the resilience of Kenya’s flower industry: emergency preparedness, living wages, climate change and gender equality  

With the support of IDH, the Sustainable Trade Initiative, we have begun reviewing our banana supply chain to understand wage levels. Our supplier partners in five countries of origin (Ecuador, Dominican Republic, Ghana, Costa Rica, and Côte d’Ivoire) have completed a worker salary assessment. We will next verify this information and then use the information to understand the gap that we have per origin to reach the living wage.

Partnerships, advocacy and collaboration

We’re working with a large number of organisations to support our supplier management activities.

We were founding members of the  Supplier Ethical Data Exchange (Sedex) , which aims to drive improvements and convergence in responsible sourcing practices. Operationally we’re supported by a number of organisations including the  Groceries Code Adjudicator , FSIG,  SAI Global , and  BRC Global Standards , and  3Keel  to name but a few.

We support a number of programmes that help improve working conditions in our supply base, in partnership with organisations such as  Emerging Leaders  and  Fairtrade Foundation . 

We are very aware that we can’t work on this issue alone. Partnerships and collaboration are key in ensuring sustainable supply chains that can protect and enhance livelihoods.

Work voice

We support a number of programmes that help improve working conditions in our supply base, in partnership with organisations such as   Emerging Leaders   and   Fairtrade Foundation.  

Ethical Trade Initative (ETI) : We are a member of the ETI, which is a leading alliance of companies, trade unions and NGOs that promotes respect for workers' rights around the globe. As a member, we have adopted the ETI Base Code of labour practice, which is based on the standards of the International Labour Organisation (ILO)

Fairtrade : M&S are one of the UK’s leading Fairtrade retail supporters: we have worked in partnership since 2004 and were the first major retailer to switch all our coffee and non-speciality tea to Fairtrade in 2006.   

Fairtrade is a global certification system that aims to ensure a strict set of social and environmental standards are met in the production and supply of a product or ingredient. For farmers and workers, Fairtrade means workers’ rights, safer working conditions, environmental protection and fairer pay. For shoppers, it means high quality, ethically produced products. 

Across M&S Food, we sell a wide selection of   Fairtrade   wines, chocolate, flowers, as well as biscuits and jams made with   Fairtrade   sugar.   We have a commitment to 100% Fairtrade tea and coffee and sell more own-label Fairtrade tea and coffee than any other UK retailer.   

In 2021, M&S raised over £1.7 million of Fairtrade Premium for farmers and workers.  The Fairtrade Premium is an extra sum of money, paid on top of the selling price, that farmers or workers invest in projects of their choice.  Last year, for example, Fairtrade Premium raised by M&S funded projects such as housing, clean water, education and tree planting.    

Stronger Together : We continue to work with Stronger Together, a multi-stakeholder business-led initiative aiming to reduce modern slavery by providing guidance, training and resources in the UK, Spain, and South Africa. Through the programme this year, we have reached 1,370 individuals with 380 suppliers across the UK; 26 new sites became Stronger Together Business Partners and six became Advanced Business Partners.

Responsible Recruitment Toolkit : We are a founding sponsor of the Responsible Recruitment Toolkit, which provides support to our supply chains in ensuring responsible recruitment. We are committed to fair and transparent payment practices.

Emerging Leaders : We also worked with Emerging Leaders to provide leadership training to around 50,000 supply chain workers in Kenya, east Africa and South Africa, India, Sri Lanka and Bangladesh. The training takes participants on an incredible journey to a new mindset and empowers them to take others on the same journey as leaders in their communities. Many tell us that the programme has led to improved productivity, better retention of high quality, motivated employees, and less dependency on casual labour. 

Sedex : We were founding members of the   Supplier Ethical Data Exchange (Sedex), which aims to drive improvements and convergence in responsible sourcing practices.

Food Network for Ethical Trade (FNET)

FNET is a key vehicle to drive ethical trading down the supply chain and work with industry partners and suppliers on challenging ethical issues. It played a pivotal role over the last year during Covid-19 – M&S was a founding member.

Fair Labour Association

In collaboration with Fair Labour Association and other brands we are part of the Harvest for the Future programme aiming to support our sultana and raisin supply chain partners in Turkey to ensure good working conditions for their seasonal workforce. 

Leadership Group for Responsible Recruitment

We are a member of the Leadership Group for Responsible Recruitment and are committed to the Employer Pays Principle.

Operationally, we’re supported by several organisations including the   Groceries Code Adjudicator, FSIG,   SAI Global, and   BRC Global Standards, and   3Keel   to name but a few.

Groceries Supply Code of Practice (GSCOP)

We are committed to building strong relationships with our suppliers. This is reinforced by the systems and controls we’ve put in place to comply with the Groceries (Supply Chain Practices) Market Investigation Order (the Order) and the  Groceries Supply Code of Practice (GSCOP) . 

We have reflected the requirements of GSCOP into our Terms of Trade which govern the trading relationship between M&S and our suppliers of food and household products. 

We have appointed a Code Compliance Officer who is supported by our in-house legal department. We also provide training on the requirements of GSCOP which includes refresher programmes and training for new starters. We believe we are in full compliance with the Order and GSCOP and work closely with our suppliers to resolve any concerns.

If you would like to know more about GSCOP, watch this brief video introduction from our Code Compliance Officer .

Each year we prepare an annual compliance report which we submit to the Competition and Markets Authority and Groceries Code Adjudicator. We include a summary of our compliance report in our Annual Report.

GSCOP Contacts

If you are an M&S supplier and have a GSCOP related query, please contact our Code Compliance Officer [email protected]

If you are an M&S supplier and have an invoice or payment related query please contact our Vendor Support help desk [email protected]

Below is a list of our Senior Trading Team, if you are an M&S supplier and have a GSCOP query related to the products that you supply, please contact the relevant person in the first instance

[email protected]  : Fresh Food – Meat, Fish, Poultry, Dairy, Delicatessen

[email protected]  : Convenience and Frozen

[email protected] : Fruit, Salads, Vegetables, Flowers/Plants

[email protected]  : Groceries, Bakery, In store Bakery, Non Food and Branded

[email protected] : Biscuits, Savouries, Confectionery, Celebration and Gifting, Soft Drinks and Juice

[email protected]  – Beers, Wines and Spirits

[email protected]  : Hospitality

The Groceries Code Adjudicator (GCA)  

Contact details for the GCA and more information can be found on the GCA website Groceries Code Adjudicator

marks and spencer supply chain case study

Responsible Sourcing and Human Rights

marks and spencer supply chain case study

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DATE TITLE DOWNLOADS
July 2024 M&S Human Rights Standard
May 2024 Identifying and addressing risk in our Almerian produce supply chain (2021 - present)
March 2024 M&S and Waitrose Kenya Team HRIA Joint Action Plan Update
Dec 2022 M&S and Waitrose Joint Action Plan in Response to the Human Rights Impact Assessment of the Kenyan Smallholder Tea Supply Chain by Partner Africa
Dec 2022 Human Rights Impact Assessment of the Kenyan Smallholder Farmer Tea Supply Chain 
July 2022 Human Rights Due Diligence and Remedy Guidance  
Jan 2023 Global Sourcing Principles
Aug 2022 Ethical Audit - Food
March 2021 Food Commercial Terms of Trade Supply Agreement
March 2021 Systems for Success: Environmental Toolkit
March 2021 Systems for Success: Lean Toolkit
March 2021 Systems for Success: Ethical Toolkit
August 2020  Child Labour Procedure
April 2019 Food Commercial Terms of Trade Supply Agreement
April 2019 Food Logistics Handbook - Ambient
April 2019 Food Logistics Handbook - Chilled
November 2016 Ethical Trade Business Standard

Marks and Spencer (M&S): Aspects Analysis Case Study

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Reasons why M&S are in this predicament

Marks and Spencer (M&S) experienced relatively fast growth from its inception until the end of 1998, where an unexpected recession hit it. It was during the recession that the problems of M&S began to surface, with the primary issue being ineffective communication throughout the supply chain. For instance, there was poor communication between M&S and its suppliers. Due to the increase in the production cost within the UK, M&S started compelling its suppliers to shift their production overseas without taking into consideration factors like political stability, and textile import quota (Christopher & Peck 2001). This decision was made independent of the viewpoint of suppliers.

Secondly, there was poor communication between upper and lower-level management in M&S. Children’s clothing was withdrawn from smaller stores, and this resulted in 4% in sales (Christopher & Peck 2001). Last but not least, there was insufficient communication between M&S and its customers. M&S did not have an accurate depiction of what its clients want; for example, it sold clothes that had poor sizing and had a limited lingerie range. The inefficient communication in the supply chain resulted in a “Bullwhip effect” that significantly hampered the system. Concurrently, this led to the recovery strategy having minor impacts on revenue generated.

Effect of increased overseas sourcing on M&S marketplace performance

In the early 1990s, M&S considered and commenced shifting from local to offshore sourcing. Although M&S had reduced the proportion of UK suppliers, it still heavily relied on them to maintain their “buy British” marketing stance. Its strength was grounded in providing middle-class individuals with quality and reasonably priced clothing. However, this market segment was polarized by niche rivals and discount stores.

Therefore, to enhance its consumer value, M&S resorted to reduce the cost-base by coercing its suppliers to outsource from locations with relatively low labour costs. However, increased outsourcing hindered its market performance. For instance, it extended the replenishment lead times; thus, this limited the availability of clothing on showrooms. Dewhirst, M&S’s oldest supplier, highlighted some of the few inefficiencies in the distribution system by stating that Moroccan manufactured goods were being shipped to the UK through France before some were redistributed back to France (Christopher & Peck 2001).

Moreover, M&S lost most of its suppliers since some of them could not afford the huge investments associated with offshore sourcing. Coats Viyella terminated in a 70-year relationship with the company based on the fact that establishing their business overseas would consume a lot of time and investment (Christopher & Peck 2001). Lastly, M&S’s favourable oversea location, Sri-Lanka, was characterized by a textile import quota that had to be considered before sourcing there (Christopher & Peck 2001). However, the management did not recognize the quota until the quota of that year was depleted by June. This led to customs declaration issues.

How M&S can capture the potential benefits of low-cost sourcing whilst still improving responsiveness, given that costs must be reduced

Overseas sourcing is the most common and efficient way for low-cost sourcing. Therefore, to ensure that the risks associated with overseas sourcing are reduced, M&S should establish ways of ensuring that such risks are either eliminated or reduced. For instance, M&S should identify low-cost locations that are geographically closer to the UK, headquarters of M&S, with examples being Poland and Romania. This will reduce replenishment lead times. Moreover, M&S should ensure that it is updated with regards to local restrictions on labour laws and import quota. Lastly, the company should establish and maintain a sound communication system with its suppliers. M&S can use the Electronic Data Exchange (EDI) to create a more-streamlined business communication process.

Effectiveness of the “one-size-fits all” approach to M&S’s supply chain management strategy

The “one size fits it all” approached negatively impacted M&S’s profitability in the late 1990s. Varying customer requirements should result in the introduction of different products and the use of several distribution channels. However, M&S instead homogenized the location where clothing is manufactured. By doing so, M&S strived to build effective processes for their high-volume items to reduce the supply chain costs. Therefore, they risked disappointing customers by inappropriately responding to peaks in demand for slower-moving products. When they took steps to avoid stock-outs, the additional costs had a ripple effect throughout the supply chain.

A sound supply chain system has to be agile; therefore, as competition intensifies, M&S has to think beyond the traditional view of the supply chain, which stresses on operational efficiency and speed. It will need to incorporate a value-creation approach when designing supply chain strategies. Therefore, the alternative supply chain management strategy should combine both value creation and operational supply chain perspectives.

How a total end-to-end supply chain strategy might be developed in M&S

Historically, M&S had a close partnership arrangement with its suppliers. However, after it began outsourcing its products, it started experiencing a negative trend. The primary cause of the negative trend was the inefficient communication system in the M&S supply chain. Therefore, the only way through which a total end-to-end supply chain, that is, the re-establishment of its relationship with the suppliers, can be achieved is through fine-tuning communication.

Moreover, it should also improve communication both within the organization and between them and its customers. A sound communication system coupled with an effective Vendor Management Inventory will result in reduced lead time and cost of inventory, increase in customer satisfaction, improved quality of clothing and overall M&S will remain competitive in the market.

Christopher, M & Peck, H 2001, Moving mountains at Marks & Spencer , case study. Web.

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Marks and Spencer – supply chain standards

Published: 25 September 2023

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Headquartered in London, Marks and Spencer is a leading retailer of clothing, home products and food. With revenue of £10.3bn in the year to March 2015, it employs 83,000 people. It aims to create value through a comprehensive approach to sustainability based on respect for the environment and long term relationships of trust with all stakeholders. This is embodied in Plan A, a detailed programme of sustainability targets in every relevant area.

Marks and Spencer’s business model aims to create long term value through the effective use of its resources and relationships. It manages these in line with its core values of inspiration, innovation, integrity and in touch. Plan A is the embodiment of these values. It consists of a wide range of targets and commitments which are measured and updated regularly. Progress is overseen by an Executive Committee which includes several main board directors and by an Advisory Board which includes external stakeholders.

The supply chain forms a critical part of this programme. This partly reflects the fact that 98% of what Marks and Spencer sells are its own products. A breach of trust in one product area could therefore have consequences for the brand as a whole. Also, the supply chain is a much bigger universe than the company itself. The company deals with about 700 factories in each of its food and general merchandise divisions and with about 20,000 individual farms. The company believes that a long term relationship of trust with its suppliers helps ensure that they understand and reflect the values that the company has set for itself.

Its approach to the supply chain is based around Global Sourcing Principles which set standards in areas such as human rights, gender equality and fairness to all suppliers, including small ones. Its standards are demanding, but it seeks to help its suppliers to meet them for example through the training of its sponsors.

Measurable targets in food production relate among other things to sustainability, wildlife conservation, responsible fish farming and addressing deforestation. Targets in general merchandise include energy efficiency, chemical and effluent management, living wage, use of sustainable cotton and training. The company works with its suppliers and partners to provide a training and education programme covering employees’ roles, responsibilities and rights, health care and, where possible, numeracy and literacy. Around 650,000 workers in its general merchandise supply chain have received training since 2010.

A feature of Plan A is that new targets are introduced as existing targets are met. Among new commitments, it aims to work with industrial bodies, opinion formers and suppliers to deliver innovation and working practices that will reduce hazardous waste discharges from clothing manufacture to zero by 2020. The company has also introduced a new target of removing plastic micro-beads from all own brand personal care products from this year onwards.

In food production, it has created an incentive for suppliers through a Gold/Silver/Bronze benchmarking standard for human resources, environmental and resource efficiency management. Orders will flow to suppliers that meet the highest standards. The company has now met its original target of buying 30% of product by volume from suppliers meeting the Silver standard. The figure was 32% in 2015, up from 19% the previous year. It is now looking to buy 100% of product by 2020 from factories that have met at least the Silver level. This target itself has been increased from 75% previously.

In some areas, the company realises it must work with others. Deforestation is an example where it works with other global retailers and food producers through the Consumer Goods Forum to promote sustainably produced palm oil, low carbon refrigeration and eliminate food waste. This should help the company meet its own target of zero deforestation from the use of palm oil, soy, cattle and paper materials in the company’s products by 2020.

A critical part of the process is audit and assurance where it must both satisfy itself that the required standards are being met and avoid alienating its suppliers by being too strict. A policy of unannounced audit in which the assurance team can arrive at any time can be disruptive, especially when the bulk of suppliers are meeting the expected standards. On the other hand, previously announced audits allow the supplier to hide bad practice. The company has opted to give a window for when audits will take place, so that the suppliers know that the assurance team will arrive at some point within the space of, say, a month. The period is short enough to limit the disruption but long enough to prevent bad practice being temporarily hidden.

Marks and Spencer says that Plan A as a whole has delivered measurable savings of £160m in the 2014/15 business year and a total of £625m since 2007. The figure relates to savings generated through reduction of waste and environmental efficiency. Some of these savings accrue to the supply chain where, for example, it has required its top clothing suppliers to install energy efficient lighting, and improved insulation and temperature controls. The aim was to reduce energy consumption by 10% by 2015.

However, the company does not seek to measure the financial impact of Plan A in terms of margin, corporate earnings and brand value. It considers this is a number that cannot be calculated, but it believes that the impact of Plan A in terms of the trust it generates with customers, as well as on the morale of its workforce and that of its suppliers, will make the company more resilient and more adaptable, enhancing its sustainability in a rapidly changing world.

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Supply Chain Collaboration and Sustainability: Multiple Case Study from Moroccan Food Industry

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marks and spencer supply chain case study

  • Fatima Gouiferda   ORCID: orcid.org/0009-0003-5077-2172 14 &
  • Saadia Iddik   ORCID: orcid.org/0000-0002-6266-3921 15  

Part of the book series: Lecture Notes in Networks and Systems ((LNNS,volume 1104))

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  • INTERNATIONAL CONFERENCE ON LOGISTICS OPERATIONS MANAGEMENT

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This article examines the relationship between supply chain collaboration, sustainable supply chain and supply chain performance by providing answers to the following research question: how does collaboration among supply chain companies contribute to the performance of sustainability in the Moroccan industry?

The data of this multiple-case study was collected from semi-structured interviews in three case-companies in Morocco. By examining multiple cases, the research aims to capture variations and commonalities, allowing for a more robust analysis of the research question. The findings emphasize how supply chain collaboration and sustainability synergistically reinforce each other, leading to enhanced sustainability outcomes, improved risk management, and greater overall organizational resilience. This research contributes to the understanding of how Moroccan firms leverage collaborative networks to drive sustainability, positioning them at the forefront of sustainable business practices in the global arena. The research relied on qualitative data collected through semi-structured interviews. While this approach provides rich insights, it might not capture quantitative trends or statistical relationships that can be analyzed using more extensive data sets. Managers should recognize the significance of collaboration among supply chain companies. Implementing structured collaboration strategies, such as joint planning, information sharing, and coordinated decision-making, can contribute to the overall performance of sustainable practices.

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Fatima Gouiferda

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Gouiferda, F., Iddik, S. (2024). Supply Chain Collaboration and Sustainability: Multiple Case Study from Moroccan Food Industry. In: Benadada, Y., Mhada, FZ., Boukachour, J., Ouzayd, F., El Hilali Alaoui, A. (eds) Proceeding of the 7th International Conference on Logistics Operations Management, GOL'24. GOL 2024. Lecture Notes in Networks and Systems, vol 1104. Springer, Cham. https://doi.org/10.1007/978-3-031-68628-3_38

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  1. Marks Spencer Case Study

    Marks Spencer Case Study - The Supply Chain Academy. The brief from Jason was about "horizontal awareness". He leads a high performance team managing a large change programme, a complex network and a broad international scope. The team is made up of highly experienced specialists incorporating warehouse engineering and design, distribution ...

  2. Marks & Spencer: Improving Supply-Chain Sustainability

    Murthy, Sudhir Rama, Mike Barry, and Justine Esta Ellis, 'Marks & Spencer: Improving Supply-Chain Sustainability', in Colin Mayer, and Bruno Roche (eds), ... direct suppliers' sites works through the scorecard's framework and completes self-assessment questionnaires. 3 As a case study by the Financial Reporting Council describes, ...

  3. Marks & Spencer: Achieving Procurement Excellence

    Throughout its decades of supply chain and procurement operations, Marks & Spencer has focused on building an inclusive, tightly-knit culture. As a result, when the UK lockdown started, many third-party suppliers stepped up to help M&S through its most difficult months. Said Newnham: "They were part of the solution.".

  4. Marks and Spencer Supply Chain Management

    Conclusion: Marks and Spencer Supply Chain Management . After an in-depth study of Marks and Spencer Supply chain management; we have realized M&S is the world's leading retail chain brand that follows quality SCM practices. If you are learning about the SCM policies of M&S for the development of supplier relationships, then you should keep ...

  5. Marks & Spencer Company's New Supply Chain Strategies Case Study

    The strategy was to make the buying of clothes easier using clear displays, appropriate labeling with distinctive characteristics based on different pricing strategies addressing different market tastes and segments. Get a custom case study on Marks & Spencer Company's New Supply Chain Strategies. 185 writers online. Learn More.

  6. PDF A case study on introduction of CSR to Marks & Spencer's supply chain

    A case study on introduction of CSR to Marks & Spencer's supply chain Client: Marks and Spencer (M&S) Industry: Retail Assignment: Introducing SR in the Supply chain Country: UK, India, Bangladesh & Sri Lanka The Company: Marks & Spencer M&S is a major British multinational retailer that was founded in 1884 and headquartered in the City of ...

  7. Marks & Spencer: Improving Supply-Chain Sustainability

    Putting Purpose into Practice: The Economics of Mutuality. Over the past decade, Marks & Spencer (M&S)—a major British retailer of household items, food products, and clothing—has increased its focus on fostering sustainability throughout its supply chain. In response to both business needs and a growing customer demand for sustainable ...

  8. Marks & Spencer: Improving Supply-Chain SustainabilityImproving Supply

    Abstract. The case of Marks & Spencer illustrates how a company has used a sustainability scorecard that awards provisional, bronze, silver, and gold ratings to participating suppliers to promote ...

  9. An exploratory approach to Marks and Spencer's major supply chain risk

    This mini-conference paper explores Marks and Spencer's (M&S) significant supply chain risk and vulnerability sources through sustainable logistics and supply chain management (SCM). Its objective is to take the context of M&S' external environment as its supply chain scale impacts engagement with external parties.

  10. Marks & Spencer Food: Sustainability Scorecard for Suppliers

    [22] "Case Study: Marks and Spencer - supply chain standards," Financial Reporting Council. Link. [23] "Case Study: Marks and Spencer - supply chain standards," Financial Reporting Council. Link. [24] Chris Stanley, "Topic Guide: Engaging Suppliers in Sustainability," Best Foot Forward, May 2013. Link.

  11. Tough Decisions at Marks and Spencer

    Abstract. In 2007, under the leadership of CEO Stuart Rose, the iconic British retailer Marks and Spencer, with great fanfare, announced its "Plan A" initiative. Based on the five essential pillars of climate change, waste, sustainable materials, fair partnership, and health, the plan sought to transform the company's practices.

  12. Marks & Spencer Case Studies with downloads and lesson plans

    Learn about Marks & Spencer with real-life examples within their case studies constructed around the key elements of the business curriculum. Business Case Studies. 17.2 C ... Supply Chain. Marketing solutions via technology. New Technology. Managing a store relocation project.

  13. PDF M&S Response to Covid-19: Workers in Supply Chains

    to share best practices and case studies to support factories and farms on ways they can improve their sites during the pandemic. • We used the nGaje tool with protein suppliers, so that we could directly hear workers speaking about their experience of working in factories during the pandemic and the questions they had in relation to Covid-19.

  14. Plan a Our Planet

    Sustainability. Plan a Our Planet. To reflect the climate emergency we all face, we reset Plan A with a singular focus on becoming a net zero business across all our operations and our entire value chain by 2039/40 - ten years earlier than the Government's UK-wide strategy. We've set interim targets for 2025/26, 2029/30 and 2034/35 and a ...

  15. Marks & Spencer Expands Climate Targets to Tackle Supply Chain

    Green. Climate Adaptation. Marks & Spencer Expands Climate Targets to Tackle Supply Chain. U.K. retailer aims to be net-zero in scope 3 emissions by 2040. M&S sees offsets accounting for 14% of ...

  16. PDF Marks & Spencer Food

    2 "Case Study: Marks and Spencer - supply chain standards," Financial Reporting Council, ... The supply chain forms a critical part of the M&S Sustainability Programme - Plan A. The Sustainability Scorecard initiative, on which this case focuses, is a key component of Plan A.

  17. Supply Chain Strategy study for Marks and Spencer

    The purpose of this report to analyse and discuss supply chain strategy for four different product sections adopted by Marks and Spencer. The study is carried out by visiting store and identifying products. Objective of visiting store is to look at various department and product category.

  18. Marks and Spencer's Emerging Business Case for Sustainability

    Marks and Spencer has a convincing business case for sustainability. The company, says Marc Bolland, CEO, can "demonstrate a strong business case for sustainability, with £185m in net benefits from Plan A made available to be reinvested back into our business over the last five years.". Operational savings include a 28% improvement in ...

  19. Supporting Our Food Supply Chain

    The first two-hour interactive course is sponsored by our Food Commercial Director and uses case studies from our own supply chain; it was attended by 65 of our commercial buyers. The training is part of a broader programme of responsible sourcing training that we will deliver over the next year, helping to make our colleagues more aware of how ...

  20. Marks and Spencer (M&S): Aspects Analysis Case Study

    This decision was made independent of the viewpoint of suppliers. Get a custom case study on Marks and Spencer (M&S): Aspects Analysis. Secondly, there was poor communication between upper and lower-level management in M&S. Children's clothing was withdrawn from smaller stores, and this resulted in 4% in sales (Christopher & Peck 2001).

  21. PDF Marks & Spencer breaks through barriers to smarter working

    CASE STUDY Marks & Spencer breaks through barriers to smarter working Background Marks and Spencer plc (M&S) is a major British multinational retailer. M&S ... when using a headset," said a supply chain consultant. About Marks & Spencer plc Marks & Spencer plc is one of the UK's leading retailers. Founded in 1864 M&S

  22. Marks & Spencer: A Global Expansion to Acquire Lost Momentum?

    For instance the case of Zara is often quoted when talking about Supply Chain excellence is clothing retail industry. Zara is a vertically integrated company with almost all operations in-house and fully owned unlike M&S that has several sourcing agents and has several operations of the supply chain outsourced.

  23. Marks and Spencer

    Marks and Spencer - supply chain standards. Headquartered in London, Marks and Spencer is a leading retailer of clothing, home products and food. With revenue of £10.3bn in the year to March 2015, it employs 83,000 people. It aims to create value through a comprehensive approach to sustainability based on respect for the environment and long ...

  24. Supply Chain Collaboration and Sustainability: Multiple Case Study from

    Over the last decade, supply chain collaboration has been considered a key issue for effective supply chain management. The reason for the collaborative efforts that have become essential is the continuous evolution of technology and the required responsiveness in the supply chain environment [].Supply chain collaboration refers to the joint internal efforts of the company and the coordination ...