POST-PANDEMIC , BRITISH RETAILER MARKS & SPENCER PURSUES NEW PROCUREMENT STRATEGIES AND SUPPLIER PARTNERSHIPS TO EMERGE STRONGER THAN EVER
“ ONE OF THE MAJOR ACHIEVEMENTS OF 2020 WAS WITH HEARTS AND MINDS — GETTING PEOPLE TO BELIEVE WE NEEDED TO CHANGE ”
MARKS & SPENCER
POST-PANDEMIC , BRITISH RETAILER MARKS & SPENCER PURSUES NEW PROCUREMENT STRATEGIES AND SUPPLIER PARTNERSHIPS TO EMERGE STRONGER THAN EVER
One year after the UK first locked down , COVID-19 has accelerated procurement transformation . Non-essential retail has re-opened — but according to British multinational Marks & Spencer ( M & S ), the most important shift has been in mindset . “[ Before the pandemic ], we had tried to change the hearts and minds of the team ”, said Andrew Newnham , Director of Group Procurement at Marks & Spencer . “[ But it was difficult ] to make our people think differently about the role of procurement .”
If nothing else , the pandemic forced even successful retailers to think outside the box . At one point in 2020 , M & S ’ s clothing and home sales dropped to 15 % of what they had been prior to the pandemic . “ At one point just before the first lockdown point , our CEO , Steve Rowe , came through the office and said , ‘ Go home now ’,” Newnham said . “ The pandemic was a kickstart to an entirely new way of working .”
Throughout 2020 , Marks & Spencer gathered information about the strength of its data and processes , its agility , and its supplier knowledge . “ We were empowered to make decisions ”, Newnham said . He recalled telling his team that they ’ d look back on the moment
“ ONE OF THE MAJOR ACHIEVEMENTS OF 2020 WAS WITH HEARTS AND MINDS — GETTING PEOPLE TO BELIEVE WE NEEDED TO CHANGE ”
ANDREW NEWNHAM DIRECTOR OF GROUP PROCUREMENT AT MARKS & SPENCER
as an exciting time : “ We made a real difference to the business .”
A year later , M & S emerged from the pandemic stronger than ever . Certain procurement practices , however , have shifted — especially those revolving around risk management . “ It doesn ’ t mean you can ’ t have risks ,'' Newnham said . “ You should have risks . But companies also need knowledge , transparency , and understanding .”
When Newnham joined M & S , risk mitigation was one of the pillars he implemented in his new procurement strategy . When the pandemic hit , risk suddenly took centre stage . “ Marks & Spencer talked about decision-making ”, he said . “ Suddenly , we were at the forefront of asking : ‘ What ’ s the risk in our supply chain ?’”
Immediately , the company took steps to understand its supplier base , work with individual suppliers , and keep its operations moving . “ How do we start making risk-based decisions on a data-led basis rather than what we think we know ?” Newnham asked . “ Do we understand which suppliers have no cash problems , which suppliers are too reliant on M & S , and which suppliers have untenable financial and legal risks going forward ?”
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