M&S moves forward with supply chain restructure

Marks & Spencer (M&S) is on track to cut £175m from its logistics bill ahead of target, the retail giant has confirmed.

M&S says that in the year to 2 April it made good progress with its supply chain restructure plan, including with its warehouse consolidation programme, shutting 31 sites with a remaining 79 scheduled to close. In addition construction has started on a second East Midlands DC, which will also offer dedicated e-commerce facilities.

As a result, the supermarket has brought forward its target of reducing logistics cost by £175m, to 2015/16 from 2020.

Distribution costs broadly remained flat during the period, but improved slightly to £393.5m from £394.4m the previous year.

M&S says: “Distribution costs were very well managed despite volumes increases and inflationary pressure, as we continued to see the benefits of initiatives to improve supply chain efficiency.”

Article Source: Roadtransport.com, Joanna Bourke, 26-05-11.