High street chain Marks and Spencer (M&S) has announced that it plans to revamp its supply chain to the tune of £300 million.
The store, which has seen tumultuous forecasts over recent years, has recently announced that it will make the changes to its supply chain in order to widen profit margins throughout the company, highlighting the importance of such changes to an organisation.
Sir Stuart Rose, the company’s chairman, told the annual general meeting that the changes must be made, despite M&S hitting £1 billion of profits for the first time in its history.
The profits come on the back of a £9 billion sales revenue however, and it is that margin that is hoped to be improved through a supply chain revamp.
As well as the supply chain makeover, M&S is hoping to increase online sales in a further attempt to streamline the delivery process.
Having grown 70 per cent in the past year, it is hoped that online sales will continue to increase, and hit the £500 million mark by 2010.
Currently J Sainsbury is hoping for a tie up with the company, arguing that both businesses would be more streamlined after a merger.
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