Businesses focusing on cost reduction during the recession could benefit from taking a closer look at their supply chain management, if the results of one leading retailer are anything to go by.
Supermarket giant Marks and Spencer released its second-quarter results for 2009 last week, with sales up 2.7 per cent compared with the previous three months.
The figures surprised many analysts, who had expected sales to fall by between 0.5 and 2.2 per cent, according to a Reuters poll.
Despite remaining cautious about a potentially tough year in 2010, the chain's chief executive officer Stuart Rose said he was pleased with the improvement.
"This demonstrates that the actions we are taking are working," he commented.
Mr Rose cited greater efficiencies in the supply chain as the main contributor to the turnaround, with better stock control, sourcing and supply chain management all helping to improve cost reduction.
The results come after analysts at the Aberdeen Group claimed last month that a centralised and clearly-defined supply chain strategy in order for businesses to remain responsive to customers during the recession.
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