M&S: M&S to shake-up clothing supply chain with new centre
Marks
& Spencer said on Wednesday it would open a huge new clothing and homeware
logistics centre in 2019, as part of the British retailer''s strategy of
simplifying its distribution network.M&S revised its strategy in November,
two months after retail veteran Archie Norman joined as chairman, saying it
needed further changes to modernise the clothing and homeware supply chain to
reduce costs and make it faster.
The firm said it would open a 495,000 square feet mechanised clothing and
homeware distribution centre at a former Tesco site in Hertfordshire, southern
England, next year.The centre, serving 150 M&S stores, will be operated by
a third-party logistics supplier, employing more than 500 people.The move forms
part of M&S''s strategy to create a "single-tier" clothing and
homeware distribution network, where products from suppliers go directly to
warehouses and then straight to stores, which means the retailer only moves
products once.
With its existing system, the retailer moves clothing more than once to reach
stores.As part the logistics shake-up, M&S said it would cease operations
at its Neasden distribution centre in London.M&S said Neasden''s closure was
not directly related to the Hertfordshire opening. Neasden''s work would be
transferred to other sites in the M&S network, it said.
The Neasden site is run by XPO
Logistics with
transport operations provided by DHL. Both companies have entered into a period
of consultation with the site''s 380 workers.M&S declined to comment on the
cost of the programme. The firm guided in November that capital expenditure for
the full year 2017-18 would be 300 million to 350 million pounds.Last week
M&S disappointed investors with its Christmas trading update.
Source: Et.retail.com,India
Friday, 19 January 2018