Benefits Marks & Spencer derives from EC

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Marks and Spencer is one of the largest retailers in the United Kingdom. In 1999, Marks and Spencer suffered from an economic slowdown. As a result of this economic slowdown Marks and Spencer presented several initiatives. They included,

* Security

* Warehouse Management

* Merchandise Receiving

* Inventory Control

* Speeding up the supply of fashion garments

* Collaborative Commerce

There are lots of benefits Marks and Spencer derives from E-commerce. These benefits we can categorise into three.

* Benefits to Company

* Benefits to Consumer

* Benefits to Society

Benefits to company, they includes.

* Global Reach

* Cost Reduction

* Supply Chain Improvements

* Extend hours of service availability to customer

* Rapid-time-to-market

* Efficient Procurement

* Improve Customer Relationship

* Up-to-date stock availability in company

Benefits to Consumer

* Instant Delivery

* Information Availability

* Cost Reduction

Benefits to Society

* Higher Standard of Living

* Global Reach

Like other companies in United Kingdom, Marks and Spencer also sell their products to the customers through online. The Internet has emerged as a major worldwide distribution channel for goods and services. Expanding the communication framework to the internet, Marks & Spencer was able to bring their customers into value chain. If a United Kingdom customer orders their product through online, they will receive their relevant product within one day. The online shoppers are instructed to provide the Universal Product Code (UPC) of the relevant product, and then the company will provide the product to the customer as they seen in the physical store at a lower price. Through this technique the company reached the global market very quickly. Marks & Spencer reach more people rapidly and allow direct marketing facility through internet.

* Cost Reduction

Also through automated inventory process the company was able to reduce the cost of centralized accounting and inventory.

* Rapid-time-to-market

In Marks and Spencer’s Merchandise Receiving process, matching orders and invoices are automatically done. As a result of this, process makes faster and free of errors. Warehouse and the stores will receive the information about the goods that are arriving and they will be passed to the warehouse and to the stores automatically. By Multi User Warehouse System (MUWS), the company can take a real time check about the stock which is arriving and available. So Marks and Spencer is a rapid time-to-market.

* Supply Chain Improvements

Through Multi User Warehouse System Marks and Spencer was able to pay their suppliers more quickly than earlier. This results, to makes suppliers happier and more cooperative than earlier. This will help to provide goods to the customers on time.

As a result of Multi User Warehouse System (MUWS), Marks and Spencer retails stores will be able to deliver more accurate forecast demand to their suppliers for fast delivery of goods.

Marks & Spencer is able to get real-time information of customers and suppliers through digital customer and supplier communication.

* Up-to-date stock availability in company

Marks and Spencer is providing good service keeping their stocks up to date and delivering the products to their customers at anytime. Generally companies come to an end their stocks by saying the product is out of stock. Usually the customer doesn’t like to hear this sort of answer from the companies. But Marks and Spencer doesn’t make unhappy their customer for this reason. By fulfilling this service to the customers Marks and Spencer create a good name in the industry.

* Improve Customer Relationship

The Marks and Spencer is one of the largest companies in the world which deliver their products to the customers very fast. They use online system to provide the goods to their UK customers within one day. They have approximately 300 stores to provide the products to the customers instantly. The customers will also be happy to receive their needs very quickly and they will be encouraged to do more transaction through the internet. (Microsoft Corporation, 2001)

Through the greater selection and availability via flow of efficient inventory chain, Marks and Spencer was able to increased customer satisfaction and revenue growth. (Microsoft Corporation, 2001)

* Higher Standard of Living

Marks and Spencer offers a higher standard of living conditions for their customers by providing online transactions. No need to waste their time on searching for needs by going here and there. By using online methods people will able to fulfill their needs within their residents. They can search for anything by streaming the internet. This makes their living condition easier.

* Extended hours

Marks and Spencer offers 24 hour service by providing goods to their customers. The customers can order their products at anytime and they will receive it instantly. The company will never hesitate to deliver their items to the customers. This will make the customers happier.

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