What goes wrong in Marks & Spencer's DC anyway?

Author without image icon
Editorial
15 January 2015
2 min

Marks & Spencer continues to struggle with its high-tech distribution centre in England even after the holidays. During the holidays, customers already complained a lot about late delivery times, but even in January, Marks & Spencer does not seem to be keeping its promises. At the department store, which opened 18 months ago, the retailer processed more than a third fewer items than expected.

Emergency measures
During peak periods in the run-up to Black Friday and Christmas, the retailer had to implement emergency measures, according to insiders at the distribution centre speaking to The Guardian. For example, a lot of goods were stored in a nearby department store, and items intended for shop stock were, out of necessity, used to fulfil online orders

Communication problems between different systems
The problems at the distribution centre in Castle Donington are reportedly caused primarily by communication issues between the various product-handling systems. This is quite a setback, given that the new distribution centre is part of a £1 billion programme to modernise the retailer’s outdated IT and distribution systems. M&S had hoped this would ensure it always had the right items in stock and could keep pace with the growth in online orders.

Social media complaints
The retailer itself denies the allegations and claims to have always delivered on its promised next-day delivery. However, the complaints on social media paint a different picture. Orders are reportedly being cancelled suddenly days after they are placed because the products turn out to be out of stock.

M&S hoped to cut costs by moving from 50 department stores in Britain to six large, central distribution centres. That plan should be realised by 2016/2017.

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