Supply Chain News Bites - Only from SCDigest

-May 23, 2007


Retail Supply Chain: UK’s Marks and Spencer Dramatically Increases Spending on Supply Chain Technology


Investment in RFID, Logistics Systems and More Increase 290% in Past Year


SCDigest Editorial Staff


Marks and Spencer, a leading UK-based department store retailer, announced it had increases spending on supply chain related technology by about 290% in the past year, led by continued investment in RFID as well as in it distribution centers and point of sale systems.

In the last fiscal year, Marks and Spencer spent 114 million euros on supply chain related technology, a substantial increase over the 39 million euros the previous year.

Marks and Spencer has been one of the most aggressive testers and adopters of RFID in the retail supply chain. It said it is making these strong investments in RFID and point-of-sale systems "to support the future growth of the business and improve the customer experience in store."

It has also built new distribution centers for its general merchandise business.

Notes Supply Chain Digest editor Dan Gilmore, “Across the board, we’re seeing companies get more aggressive in their investments in supply chain. For example, in retail we’ve recently seen companies like Home Depot and Williams-Sonoma announce a substantial investment in their supply chain technology and infrastructure.” (See Williams-Sonoma Continues to Use Supply Chain to Drive Shareholder Value, Home Depot says it's Ready for Supply Chain Transformation).

This is clearly a trend, Gilmore added, as “more companies understand the necessity of supply chain excellence, and frankly need to keep pace with competitors in the market.”

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