Introduction
The purpose of the paper is to evaluate the approach of Marks and Spencer, a giant multi-channel retailer located in the UK based on sustainable products and managing waste (EY). The report aims to identify the main sustainability challenges that M &S recognize in their reporting and summarize the M & S sustainability strategy to highlight the obstacles, benchmarking against its rival Zara and Adidas. The report will provide an evaluation of M &S approach to sustainable products and manage waste drawing upon information available in the firm’s sustainability reporting material and concerning the speculative academic theory and models. The final goal of this report is to reveal how responsible M & S as a firm is and how comprehensive the company’s sustainability reporting is (ibid).
M &S is a leading retailer company that boasts of 20 million persons that shops in its retail chains on a weekly basis. The retailer was launched in 1884, whose headquarters is currently in the city of Westminster. It now runs 766 stores that are scattered in airports, shopping malls, and railway stations. On the other hand, it has 418 global stores in 51 regions across the continents of Asia, the Middle East, and Europe. The platforms that this retailer uses to sell its products are online, mobile site, telephone, in-store ordering and home catalogue. M & S vendors clothing, home and food products that it obtains from its 2000 suppliers internationally. The retailer perceives itself as the largest brand of lingerie and women wear in the UK (Marks and Spencer Group LLC). The company continues to gain a lion market share of home products, menswear and kids wear. The primary goal of M &S is to become a multi-channel retailer (ibid).
Marks &Spencer contextual information
Sustainable Challenges
There are several sustainability challenges that Mark & Spenser faces around the globe today. Manaf (2009) says that the firm faces the challenge of reducing waste that it conveys to landfills (p.2903). The sources of these wastes are plastics, packaging, cardboards and food. Another challenge is that the corporation finds it difficult to create energy efficiency technologies that can reduce the consumptions and increase the energy savings rates. Nonetheless, the firm faces store energy inefficiency and fuel inefficiency of delivery fleets. Furthermore, the company finds it difficult to shift to renewable energy because it uses a significant amount of energy to cater for lighting, air conditioning, and refrigeration practices. The source of the energy is carbon-based fuels such as natural gas which generates carbon dioxide and coal which are the largest contributors to climate change (ibid).
Sustainability strategy
M & S Company has liaised with Philips Corporation to tackle the sustainable challenge of energy inefficiency. The new lighting installations will facilitate the reduction of the company’s non-merchandize lighting expenses. The significant costs savings in each retail chain will be attributed to Philips’s low energy lighting systems. The lighting systems will be environmental friendly. On the second stage of the partnership, these two firms will adopt sustainable programs such as energy monitoring and waterless urinals will be fixed into the warehouses to reduce the energy consumption effectively. Continuous improvements to the metering tools will be addressed to quantify energy and capability to assess the stores consumption trends. The widespread visibility will imply that the retail chains can quickly identify and swiftly react to where the energy is greater due to faulty equipment. Balfour Beatty Engineering Services (BBES) will liaise with M & S firm on the developing systems to enable them to control lighting, food refrigeration, heating and ventilation systems from a far destination. As a result, these modifications will imply that less maintenance-related callouts and positive environmental effects.
The firm has appointed a waste management partner to discuss on sustainable solutions rather than the landfill (EY) Reducing waste is another milestone outlined in Plan A. M & Seeks to reduce the volume of waste it sends to landfill. M & S works with the suppliers to ensure an improvement in stock planning by creating the accuracy for predicting alternative disposal (EY). The other remnants of the food waste will undergo composition and anaerobic digestion. The retailer has decided to use a grooved receptacle that would allow the organic garbage to be dumped directly from the shelf. This tool would allow proper separation of organic waste (EY).
The impact of M & S measures on the society and environment
Marks and Spencer Company can apply the Institutional and Organizational Assessment Model (IOA) to measure and evaluate its impact on the environment and the society at large. The IOA is the most comprehensive frameworks that have been applied by Mark and Spencer to evaluate its progress. The model outlooks Marks and Spencer performance as a multidimensional idea. Through it, the organization is well-placed to measure its relevance, effectiveness, efficiency, and environmental sustainability. The IOA framework postulates also postulates that the performance of Marks and Spencer should be assessed on the basis of the firm’s motivation, capabilities, and external environment. The model measures how the organization utilizes the internal resources that includes human, financial, and technological assets in dealing with the external environment. The Institutional and Organizational Assessment Model is decried in the figure below
(BetterEvaluation)
Sustainable Supply Chain Management
Baumgartner (2006, p.13) presents the M&S focuses on reducing expenses in its supply chains. The corporation has terminated the production facilities in the UK and hired the services of suppliers in Asia. M & S allows its suppliers to manufacture products for other brands. These suppliers don’t require to offer a devoted production facility which leads to a no investment cost. The ability to use the local raw materials allow the firm to save more. Moreover, the firm evaluates the capability of any supplier and decrease if appropriate. For instance, they ask the lower cost producers to make value items and ask the established vendors to develop creative products (Baumgartner, 2006, p.13).
The firm aims to perceive the warehouse positioned at Donington as the hub to support M & S plan to reach its goal as a giant multi-channel retailer. The warehouse will automate all the orders placed via the company social media accounts and will play the significant role as a distribution hub for stores across the United Kingdom.
The warehouse will transform the supply chain management to become more flexible, agile and faster. Christopher, Helen & Denis (2006, p.6) views that other preceding practices will include purchasing efficient buying and administration systems for clothing, and gift products as well as products directly from suppliers .
The M & S seeks to introduce a sustainable supply chain that enhances the management of inventory and distribution. The company had focused on increasing the regional hubs and decreased shipping within its global products. Moreover, it has introduced a new stock management system that is characterized by accurate, and updated stock-based information that allows it to control supplies more efficiently. Nevertheless, the company stresses to formalize the SAP cost management system in its structure.
According to Christopher, Helen & Denis (2006), M & S strives to develop operating processes and systems that enable the supply chains to be more responsive and flexible. Responsive supply chains create more emphasis on high service levels and client feedback (7). The inventory locations tend to be in proximity to the customer. The main argument is to assure consistent supply if there is a sudden change in market forces of demand. Hence, the supply chain is viewed as flexible if has the capability to house uncertainties. All these concepts explain responsive flexibility as agility. M & S emphasizes on the notion of agility as the firm concentrates on market demand continuously (ibid)
Christopher, Helen & Denis (2006, p.5) addresses that the giant retailer seeks to achieve an efficient supply chain that helps the procurement team to control the supply chain efficiently. The efficient supply chain principles assist M &S to maintain a low level of inventory at the retail chains. This assists the firm to focus more on manufacturing and related functions, making the inventory costs and expenses lower. Christopher, Helen & Denis (5) views that to convey information from the M & S to the particular manufacturers becomes rapid. Lean supply chain Controls the supply chain by providing extremely high demand period with flexible lead time. The lean supply chain notion will be effective in reducing delays in M & S supply chain operations (Christopher, Helen & Denis, 2009, p.5).
I will discuss the supply chain approaches of Zara and Adidas, which compete with Marks and Spenser in fashion retailing industry. Adidas applies the Mass Communization strategy in the dynamic market forces of demand. The firm strives to create, market and deliver the product variety that majority of the client will prefer (SupplyChainopz). Strategic product choices to the consumers allow Adidas to make the first procedure in this strategy. Adidas inquiries the same leading suppliers to create flexible components to attain the economies of scales. Adidas seeks the services of an air freight or courier to compensate the long waiting time. The customized products are retailed directly to clients, so they can have greater gross margins to compensate the alarming transportation expenses SupplyChainopz).
SupplyChainopz states that Zara applies the time-based technique in its supply chain strategy. A new product that is released in the market tends to undergo testing, and this improves the brand trust. The consumers view that the Zara products are unique (SupplyChainopz). The vertical integration in Zara brand is useful because quick response can be implemented. Additionally, the automated systems are positioned between the hubs of populations so that products are transported to stores rapidly. Nevertheless, it liaises with individual airlines to make outbound shipments to its retail chains (SupplyChainopz).
M & S approach to responsible business drivers
Sustainable products
This section of the report seeks to analyse M &S performance about sustainable products as a facilitator of responsible business. Marks and Spencer Group LLC states that the Marks and Spencer group are a retail-based company that provides a broad range of food, lingerie and kid wear across their brand portfolio. M &S has a unique approach to sustainable products it sells to the loyal consumers (Marks and Spencer Group LLC). The giant retailer strives to make one of the total three billion M & S products they sell annually to have one or more Plan A attribute. Plan A attributes the quality attached to a product that has a positive illustration or extremely lower environmental or social effect on the period of sourcing, production, supply, consumption, and disposal (Marks and Spencer Group LLC).
The corporation views that every product within product A attribute must attain the minimal standards outlined in the responsive sourcing about the brand. The retailer continues to evaluate the Plan A attribute list and update it as the stakeholder anticipations progress and the experience increases. The corporation plans to use graphical icons on their website and store communications to assist the customers identify and choose products with plan A attributes.
Moon (2006) asserts that despite their sound and effective approach to product sustainability, the retailer reveals that it would take more time to achieve these goals (p.298). The aims and objectives of the corporation based on product sustainability are to make systemic upgrades across the entire product offers. Moon (2006) believes a strict adherence to the social and environmental policies by taking into considerations the individual’s products (298). Achievement of this sustainability product approach will assist the clients to be confident that any M &S product they purchase is better for their consumption, environment and the manufacturers (ibid).
Managing Waste
This section of the report aims to evaluate M &S performance based on managing wastes a driver of responsible business. Grayson (2011) reveals that the approach of the retailer towards managing waste is outlined in the Plan A (1020). First, it attempts to grow as a zero net waste firm by increasing the amount they reduce and recycle and transport no waste to landfill. Another procedure is to assist their existing suppliers in recycling and reducing waste. Nevertheless, Grayson (2011) posits that M &S will pursue to create crucial partnerships and collaborations with the clients to reuse and recycle their merchandises and packaging (1020). Lastly, they seek to highlight business model innovation and implement the circular economy (ibid).
Most of the wastes are transit packaging or unsold food that cannot be given to charities. Several measures have approached to ensure a zero waste retailer a reality. The company has liaised with firms such as Oxfam and Newlife where they offer damaged clothing to reduce wastes (Christopher, Helen & Denis, 2006, 8). Sometimes the retailer enables the clients to reuse Christmas cards that are significant in driving the success of Woodland Trust to carry out afforestation practice in the UK. The firm develops creative solutions to reuse and refurbish machines.
M & S collaborates with the suppliers to decrease the supply chain waste and has already launched industry programs detailing manufacturing and farming excellence in managing waste (Marks and Spencer Group LLC). The firm assesses its waste performance on a monthly interval. The overall monthly performances are added again to form an annual performance that is outlined in Plan A report. Marks and Spencer Group LLC believes that since the birth of Plan A report, the company has made several strides to attain the aims and objectives related to managing waste and product sustainability. M&S runs joint-venture retail chains, warehouses and delivery fleets that have become carbon neutral. The dumping and recycling of waste are encompassed within the reporting boundaries (ibid).
I will examine the approaches to managing waste and product sustainability strategies by Zara and Adidas. The approach of Zara towards managing waste I to reduce waste production and motivate the reusing of goods. The retailer has a specific collection system in retail chains for hangers and alarms that assure the wastes will be recycled. This reduces wastes and increases the shelf life. For instance, the card boxes are re-used at the possible ways of their shelf life starting in supplier manufacturing firms and transporting them to the head office of other materials like hangers. In the period that these items appear imperfect, they are reused. On the other hand, its product sustainability strategy involves using raw materials sourced from sustainable resources. The objective is to decrease the consumption of natural resources thereby minimizing each stage of procurement and safeguarding biodiversity. Zara backs up manufacturing of items from organic cotton. Nonetheless, it supports the use of cotton and polyester to decrease the consumption of natural resources such as trees.
The Adidas uses a four pillar product sustainability approach. It allows sourcing of environmentally friendly products. Creating green materials is another pillar adopted by Adidas. Other pillars are enforcing human rights and reducing water pollution. The company applies the four pillars conceptual framework to comprehend, evaluate and reach the long term milestones of the company towards product sustainability.
Conclusion
Marks and Spencer Company have demonstrated an approach to the responsible business facilitators of sustainable products and managing waste. The firm’s vast product range has seen advancements in the reduction of carbon fingerprint which reflects the process of decarbonisation in strive for sustainable products. Zara Company has highlighted improvements in their packaging, suggesting that the sector has realized the importance of and opportunities that sustainable products is associated with Zara. Adidas has highlighted progress in their manufacturing of cotton products, suggesting that the sector has realized the significance of sustainable products. M & S approach to managing waste in business has led to the formulation of waste management policies in the firm. The waste management outlines have received a lot of criticisms. The Adidas and Zara approach although similar are in alignment with the formal and legal requirements.
The clarity and comprehensiveness of M & S sustainability reporting are undeniable to a higher standard. The recent sustainable development reports illustrate qualification for the FTSEGood, as well as data sources in environment and hygiene. Furthermore, the M &S sustainable development report showcases a CDP climate disclosure leader standard which would imply a precise consideration of business-specific risks and potential opportunities based on climate change and proper data management practices for managing greenhouse gasses emissions. Research suggests that a further illustration of complete sustainability reporting of M & S to their adherence to the articulated global reporting guidelines in the literary source.
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