Marks & Spencer now believes three rather than four DCs will serve its future needs, as it continues the transformation of its supply chain to match consumers’ changing shopping patterns.
In its full year results released today, the retailer said that to fulfil its multi-channel ambitions, including meeting the demands of rapid e-commerce sales growth, it had reviewed its logistics road map started in 2009 again, and decided three DCs are now the magic number.
A spokesman for the retailer told Motortransport.co.uk: “In 2009 we began the process of addressing our legacy system, as we call it, which at that time meant we had some 110 warehouses. We’ve since opened a DC in Bradford [in 2010] and now Castle Donington.”
The spokesman added that as part of the process it had now been deemed three rather than four DCs will suffice. “We’ve previously said the third DC will be somewhere within the south-east,” he said.
The retailer opened a new 900,000ft² NDC serving as its main e-commerce warehouse in Castle Donington earlier this month. Transport to the facility is being handled by transport partner DHL, with M&S e-commerce customer deliveries handled by City Link and Royal Mail.
Marks & Spencer aims to have completed its network restructuring by the 2015/16 financial year.
