M&S Direct Building Ecommerce International Delivery

16 June 2009

Dasha Melyushkina

Email: dasha.melyushkina@marks-and-spencer.com

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Marks & Spencer

• One of the UK’s leading retailers

• 21 million people visit our stores and shop on-line each week

• No1 provider of womenswear and lingerie in the UK

• 49% of our business is clothing and homeware

• 51% is in food

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Ecommerce International Delivery

• Mainly apparel• Selected Home products• Selected Beauty products

• Mainly apparel• Selected Home products• Selected Beauty products

What?What?

• CarriersSystems

• CarriersSystemsHow?How?

• www.marksandspencer.com/internationaldelivery• Delivery terms – DDU (duty unpaid)• Our proposition is in English, in GBP

• www.marksandspencer.com/internationaldelivery• Delivery terms – DDU (duty unpaid)• Our proposition is in English, in GBP

Website?Website?

Target countries1. Phase 1 : France, Germany, Spain, US, Canada, Australia, NZ (Live since Nov 08)2. New countries in Europe and ROW: eg. Italy, Portugal, China, Japan, India, Brazil3. Ordering in UK stores only : franchising countries, eg. Russia, Saudi Arabia

Target countries1. Phase 1 : France, Germany, Spain, US, Canada, Australia, NZ (Live since Nov 08)2. New countries in Europe and ROW: eg. Italy, Portugal, China, Japan, India, Brazil3. Ordering in UK stores only : franchising countries, eg. Russia, Saudi Arabia

Where?Where?

Target customers1. ‘Gifters’ – UK customers sending gifts to friends and family abroad2. ‘Expats’ – British expatriates abroad

Target customers1. ‘Gifters’ – UK customers sending gifts to friends and family abroad2. ‘Expats’ – British expatriates abroad

Who?Who?

• To grow revenue and attract genuinely new customers who couldn’t shop with us before• To allow British expats to shop with M&S online• To allow UK customers to send gifts to their friends and family abroad• To allow foreign nationals in the UK to send gifts back home• To make sure we do not cannibalise existing businesses abroad

• To grow revenue and attract genuinely new customers who couldn’t shop with us before• To allow British expats to shop with M&S online• To allow UK customers to send gifts to their friends and family abroad• To allow foreign nationals in the UK to send gifts back home• To make sure we do not cannibalise existing businesses abroad

Why?Why?

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International Delivery in Europe

FranceFrance

GermanyGermany

SpainSpain

AustriaAustria

BelgiumBelgium

DenmarkDenmark

FinlandFinland

ItalyItaly

NetherlandsNetherlands

NorwayNorway

PortugalPortugal

SwedenSweden

SwitzerlandSwitzerland

CyprusCyprus

Czech RepCzech Rep

GibraltarGibraltar

GreeceGreece

HungaryHungary

PolandPoland

RussiaRussia

SerbiaSerbia

UkraineUkraineLive regions Live regions

New regionsNew regions

Legend

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International delivery in the rest of the world

JapanJapan

ChinaChina

Hong KongHong Kong

IndiaIndia

PakistanPakistan

South AfricaSouth Africa

EgyptEgypt

KenyaKenya

JordanJordan

LebanonLebanon

SyriaSyria

ArgentinaArgentina

BrazilBrazil

BarbadosBarbados

JamaicaJamaicaIndonesiaIndonesiaSaudi ArabiaSaudi Arabia

OmanOman

KuwaitKuwait

BahrainBahrain

QatarQatar

LibyaLibya

ThailandThailand

FranceFrance

GermanyGermany

SpainSpain

United StatesUnited States

CanadaCanada

AustraliaAustralia

New ZealandNew Zealand

Live regions Live regions

New regionsNew regions

Legend

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Existing

New

Ecommerce International delivery customer promise

Regions Delivery changes Delivery terms, working days

W. Europe – France, Germany, Spain

W. Europe – France, Germany, Spain

11£ 10.00 6-9 days*

N. America – US, Canada

N. America – US, Canada

22£ 20.00 7-10 days*

Australasia – Australia, New Zeland

Australasia – Australia, New Zeland

33£ 20.00 10-14 days*

Delivery terms is DDU (Delivery Duty Unpaid). Custom duties or formal customs entry, if

applicable is a responsibility of a customer. *Currently under review

Delivery terms is DDU (Delivery Duty Unpaid). Custom duties or formal customs entry, if

applicable is a responsibility of a customer. *Currently under review

Europe 2 – eg. Italy, Austria, BelgiumEurope 2 –

eg. Italy, Austria, Belgium

44£ 12.50 7-10 days

Rest of the world – Japan, China, India

Rest of the world – Japan, China, India

55£ 25.00 10-14 days

Order in UK store – Russia, Saudi Arabia

Order in UK store – Russia, Saudi Arabia

66£ 15.00 10-14 days

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Some facts about International delivery

• Our biggest country is France. And for the country thought of as the heartland of high fashion, we are surprised by the popularity of our womenswear and lingerie

• In just six months since the launch, M&S has sold more ladies knickers to the Aussies, than any other nation

• We have delivered products as far-a-field as Mossman in the Daintree Rainforest and Kalgoorlie in the Western Australia goldfields

Julie from France said: I've been wearing this bra for as long as I can remember

and when we moved to France it really upset me that I could no longer get it. However, now that M&S have thankfully

decided to do international online orders i can buy it again - and I have in all colourways.

Sarah in Hawaii said: So pleased with this bra, and its excellent value too! Perfect

support for a larger breasted woman. Excellent shape. Marks and Spencer make the best lingerie in the world. I have had to go without M&S, until they finally started delivering to the US. So

welcome ,but welll overdue!

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We had a number of Logistics challenges and have chosen MetaPack to help us launch International delivery

1. We couldn’t find a single carrier which could meet our requirements

1. We couldn’t find a single carrier which could meet our requirements

ChallengesChallenges

2. Different carriers have different requirements for export documentation

2. Different carriers have different requirements for export documentation

3. Export documentation requirements differ depending on destination country

3. Export documentation requirements differ depending on destination country

4. Ability to choose the most appropriate carrier option based on cost / weight / dimensions / destination criteria

4. Ability to choose the most appropriate carrier option based on cost / weight / dimensions / destination criteria

ApproachApproach

•Decision was made to implement a carrier management system in one of our warehouses

•The project was tendered out to three companies

•MetaPack had been chosen as they could satisfy M&S requirements

•Volume testing at 50,000 parcel/labels an hour piloted by MetaPack in tender

•Six month project was set up to integrate MetaPack Dispatch Manager (DMS) with M&S Logistics systems

•Took advise from the carrier experts - MetaPack

•Decision was made to implement a carrier management system in one of our warehouses

•The project was tendered out to three companies

•MetaPack had been chosen as they could satisfy M&S requirements

•Volume testing at 50,000 parcel/labels an hour piloted by MetaPack in tender

•Six month project was set up to integrate MetaPack Dispatch Manager (DMS) with M&S Logistics systems

•Took advise from the carrier experts - MetaPack

5. M&S were very keen to launch International Delivery pre-peak 08/09 to benefit from Christmas sales

5. M&S were very keen to launch International Delivery pre-peak 08/09 to benefit from Christmas sales

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What does MetaPack do for Marks & Spencer

Benefits from implementing MetaPackBenefits from implementing MetaPack

MetaPack Dispatch Manager (DMS) is implemented as a most downstream system for M&S International Delivery in November 2008 just before Christmas peak

MetaPack Dispatch Manager (DMS) is implemented as a most downstream system for M&S International Delivery in November 2008 just before Christmas peak

MetaPack produces address labels, customs documentation and pre-advice manifests for the carriers

MetaPack produces address labels, customs documentation and pre-advice manifests for the carriers

When a consignment is packed and weighed, MetaPack makes a decision on the most appropriate carrier based on cost / weight / dimensions / destination criteria and carrier availability

When a consignment is packed and weighed, MetaPack makes a decision on the most appropriate carrier based on cost / weight / dimensions / destination criteria and carrier availability

Dan Finnegan, M&S GM Operations Manager says:

‘Considering the size and complexity of the

M&S system and operational

platforms, a truly fantastic result to introduce a new

International Channel in 26 weeks. Also

commercially rewarding that we

know each order is being dispatched with the lowest

carrier cost possible and we are

consistently meeting our promise to the

customer.’

MetaPack provides audit of the carrier selection and management of tracking data to close off the delivery

MetaPack provides audit of the carrier selection and management of tracking data to close off the delivery

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MetaPack supports management of delivery proposition and supports invoice validation process

MetaPack supports management of delivery proposition and supports invoice validation process

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