"Primark is often (mis)judged to have poor supply chain ethics, due to its GBP4 price point, and has come under scrutiny from investors, consumers and . The product strategy and mix in Primark marketing strategy can be explained as follows: Primark is one of the leading retailer brands having multi-brand products available. These posters depict the separate principles of the Code of Conduct in a cartoon-style images which can easily be understood by all workers. For example, back in 2014 and 2015 British shoppers are said to have found letters and hand stitched labels in garments pleading for help, which aimed to raise awareness for the terrible conditions workers were apparently forced to endure. But now, we are all sharing factories and therefore human rights has to be a prerequisite for us, as it should be for all., Although some may argue that not a lot seems to have changed within the fashion industry concerning the lives and rights garment workers since Rana Plaza, Steward disagrees. [At the flagship stores] you have tourists coming from abroad, where there isnt a Primark store. In total 6,279 workers in 436 groups have been trained through the programme since 2009, which has impacted the lives of approximately 30,000 garment workers. Primark will strengthen the position of women across its supply chain through skills development and addressing barriers to progression by 2030, by expanding current supply chain training programmes to reach more than half of all female workers by 2025 and 80% by 2030, extending its support for female worker career progression and promotion . In doing these things well we know we contribute to making millions of people's lives better," says George Weston, Chief Executive Officer of Associated British Foods, parent company of Primark in ABF 2016 Corporate Responsibility Update. Regarding Primark's China sourcing strategy, on the one hand, Primark sources from as many as 475 suppliers located in China, far more than any other Asian country. Nevertheless cotton, a natural fibre, makes up a large percentage of its apparel range, even though it remains a labour and resource intensive product. We do get many queries concerning our sustainable practices and we do answer those as best we can. Primark even has a FAQs section on its website under its Ethics section which answers it's most commonly asked questions. How we collaborate and innovate with our suppliers and partners. Sustainability is a complex issue, stresses Jacinta FitzGerald, Head of Research at Project JUST 3. As we launch the Primark Sustainability and Ethics Progress Report, we reflect on a foundational year, which was focused on developing the internal processes and programmes that will underpin the changes needed within Primark and across our value chain to deliver on our Primark Cares strategy. Primark does agree that it could be sharing more information on its sustainable and ethical practices with the public, even if consumers are not always asking for it. New Coalition Hailing Blockchain as Linchpin of Successful Climate Action, Global Citizen, Authentic Team Up to Rally Consumers to Help #EndExtremePovertyNOW, Rise in Balance Sheet Activism Swells CNotes Community Investment Platform to $300M, Addressing Fashions Footprint at Farm Level Through Verified Sustainability Data, Most Businesses Dont Understand Scope 3 Emissions Heres Why. May 4, 2022 Primark is one of the first brands that come to mind in fast fashion. In order to ensure garment workers can have easy access to their bank accounts, Geosansar bank kiosks are located close to factories and worker communities. Credit: Zoella. Weve always said that we have worked very hard with our suppliers, notes Stewart. All the stock we have in store which we cant sell, all our buying office samples and excess stock, is donated to Newlife. Primark first started working with Newlife in 2010, and since then has managed to generate more than 2 million pounds in donations, which has been used to purchase equipment such as wheelchairs, nurse services and fund medical research. It divides the supply chain process into three distinct phases. Almost all companies have a Code of Conduct, it is just a formality, counters Tara Scally, Campaign Coordinator for the Dutch branch of the Clean Clothes Campaign 7 (CCC). How transparent is Primarks supply chain? So while Primarks work does show that the retailer is committed to improving wages for its garment workers, the retailer seems stuck at the strategy level and research stage and has yet to begin developing long term building blocks to paying livable wages. But is Primark doing enough? Give arguments to support the statement that Wal-Mart has achieved very good strategic fit between its competitive and supply chain strategies. In the States we set up a similar model with an organisation called KIDS Fashion Delivers 9. All of Primarks stores in the US have been donating their excess stock to the non-profit organisation since 2015, which goes to those in need in 50 states throughout America. Some may think the Rana Plaza factory collapse 2013 was a turning point for the fashion industry - a wake up call for the retailers producing their garments there to band together to make a change for good. The value retailer said it was both quite shocked and moved by the results of FNV online survey and noted that it has been working for several months to launch its workers council. But this also means consumers are more tempted to buy something without trying it and will be less inclined to return an ill-fitting garment, as it could cost them more in travel costs going back to the store than the actual garment itself. The incident came just months after it emerged that Primark clothes were being made in India by factories using child labour. It can help with this initial scoping phase of strategy development. Primark notes it is constantly reviewing its routes, type of vehicles used and shared services to ensure it minimise miles and the resultant emissions as the company expands. A quick Google search shows exactly how fast Primark haul videos are growing in popularity - with 3.63 million results showing up for Primark haul 2017 versus 2.95 million hits for Primark haul 2016. Many of these videos attract millions of views - for instance YouTube favourite Zoellas latest Primark Haul, entitled The Biggest Primark Haul I've Ever Done, was uploaded on March 21, 2017 and already counts over 2.6 millions views. Credit: Primark, Video: Primark HERproject. The places of production are shared - they are the same working conditions, the same wages - lets just level the plane and get rid of this assumption that paying more for an item somehow makes it more ethical. When asked on Primarks current opinion on adopting a circular business model, Stewart acknowledges that it is an area the value retailer is exploring, but is not ready to take on as a future goal. Credit: Primark. Learn more: Supply Chain Planning Your Strategic Guide to What, Why and How We try to be proactive and helpful partners when it comes to audits, points out Stewart. Brands like Primark should use their power to make sure union members are protected. Scally also encourages Primark to join a multi-stakeholder initiative, like FWF, who can verify what is really happening in the supply chain. The results are truly shocking. According to WRAP, approximately 140 million pounds worth of used clothing is sent to landfills in the UK each year - accounting for 30 percent of consumers unwanted clothing. Should Primark be more open with consumers concerning sustainability? Primark sets out 'ambitious' sustainability strategy Manage Cookie Consent To provide the best experiences, we use technologies like cookies to store and/or access device information. That's why we work in partnership with global and local experts to help deliver change. The Company has been said to be the biggest Company across Europe with . Primark launches jeans with . Purpose of role: The role is critical to ensuring Primark can plan and execute an on time and in full departure of all our stock, with the contracted suppliers within the lead times agreed to the business. TheIllustration 1: Supply chain management company has recently joined with 40 other brands such as Adidas, Nike, Disney, Mark and Spencers and Burberry. We'll assume you're ok with this, but you can opt-out if you wish. There's no secret. Publishing more information on its website, training its members of staff and creating behind the scenes videos of the factories it works with, are just a handful of avenues Primark has taken on share what it does in terms of sustainability and social responsibility. The move builds on Primarks previous efforts to promote social and environmental sustainability in its supply chain. . Business Cards Small to Medium View All Business Cards Basic Business Card Gold Business Card Platinum Business Card Large/Corporate View All Corporate Cards Green Corporate Card Gold Corporate Card Platinum Corporate Card BA Corporate Card BA Plus Corporate Card Payment Solutions Milan, Italy Primark store photo. Female garment workers often face numerous issues such as sexual harassment, threats of violence and prejudice within the workplace. The retailer has also been expanding its back of house environment in both new and existing stores to ensure store staff have a positive work space. But with 98 percent of its factories also manufacturing products for other brands several of whom have begun to publish the details of their sourcing practices the company felt the time was right to share this information. According to the ranking, the large majority of the low performing companies , which includes ABF, are falling overwhelmingly behind, with all the dangers for human rights abuse of workers and communities that this implies., But these rankings have not discouraged Primark from looking for new ways to improve the wellbeing of its garment workers in developing markets. But very often union members are threatened or fired for the work they do. I know people will often say that the quality isnt very good at Primark, but we have invested a lot in quality over the last few years, says Stewart. All Primark staff complete online training as part of their induction on Environmental Health and Safety, adds Stewart. Primark also conducts energy audits in all its stores and reviews how much energy each store consumes. Next to its textile and garment recycling initiative, Primark has been working with two organisations to efficiently manage its textile waste while helping those in need. Primark Stores Limited has devised an effective market positioning strategy. It operates stores in the UK, Republic of Ireland, Spain, Portugal, Germany, the Netherlands, Belgium, Austria, France, Italy and the US, directly employing 68,000 people. A link to the sourcing map is available here. It involves looking at a product's full set of inputs, including raw material, water, energy and chemical use, along with the social inputs, manufacturing, consumer use and end-of-life. The value retailer has had a similar system in place in the UK for a number of years now, which ensures all recyclables are collected from its stores via its delivery trucks and transported back to the central distribution centre. [Sustainability] is not about little capsule collections. By sharing our supplier base information it enables the Accord to map all the factories that everyone is using in the region as effectively as possible. The value retailer states it is targeting efforts in certain countries where national safety standards differ from its own standards, but does not outline in detail which countries it is focusing on at the moment. In addition, Primark failed to score very high in the first Corporate Human Rights Benchmark 12, the first public ranking of corporate human rights performance. RECYCLE. 1: Inventory and capacity buffers Buffer capacity is the most straightforward way to enhance resilience, whether in the form of underutilized production facilities or inventory in excess of safety stock requirements. In addition, 81 percent of respondents said they felt that Primark was missing a workers council who could negotiate agreements on their behalf concerning use of store cameras in relation to their privacy - even though the council is required by law in the Netherlands for any company with more than 50 employees. One of the key lessons learnt during the pandemic and its aftermath, is that there is a need for increased resilience in supply chains. Credit: Pixabay, Video: An introduction to Love Your Clothes. What steps Primark has taken to become more responsible following Rana Plaza. Soaring wages failing to stop supply chain staff 'quitting in droves' . For a number of years, weve been working closely with industry partners sharing information about where Primark products are made. Following the expansion of its Sustainable Cotton Programme, which sees Primark working with CottonConnect and the Self-Employed Womens Association (SEWA) to support over 11,000 female cotton farmers in India, as well as increasing consumer interest in Primarks own sustainable and ethical practices, Primark has decided to become more vocal concerning its commitments to producing responsible fashion. This paper includes a study of the strengths and weaknesses of Zara Company supply chain management system. Unlike other clothes shops, people often come to Primark because they know theyll be able to afford a whole outfit, [But] I do not think we are actively encouraging people to buy more than they need with our low prices, we are providing affordable fashion, argues Stewart. We actively engage with our suppliers, chemical experts, other retailers and organisations to help bring about sustainable change, states Primark in its Corporate Responsibility Report 2016. Primark adds that it does acknowledge the inherent challenges in defining and calculating a living wage, but it believes that a negotiated approach remains the most practical and sustainable move and supports the development of all industrial strides taken to achieve this. At Primark, we're proud of our low prices. We want to be able talk about the things we have done and show what results we have achieved. Primark will continue collaborating with industry experts such as CottonConnect to drive this change. Our engagement with . Discount fashion chain Primark has said it could face disruption from global supply chain issues into 2023, but it assured customers that "we are getting the goods we need". Working with supplier factories through its Ethical Trade program and having in-country teams analyzing payroll data is part of the company's strategy, as well as following fair purchasing practices. Bangladesh posters: These posters were created in conjunction with workers, with support from SHEVA NARI O SHISHU KALLYAN KENDRA. They discussed a number of HR-specific trends, including . The first stage in Primarks supply chain is harvesting the cotton. Its one of our challenges we have to deal with. A survey conducted by the Business Continuity Institute showed that of the 526 responders across 64 countries, 34% of organizations reported an increased annual cost of 1 million or above, caused by supply chain disruptions. Credit: Simon Trel for FashionUnited. What Would the Naturalist President, Teddy Roosevelt, Make of the Business-Nature Relationship in 2023? A factory is detailed on the Map only after it has produced products for Primark for a year and has become an established supplier. The sourcing map features information about Primarks suppliers factories in 31 countries, including the names, addresses, number of workers and gender split of the workforce at each. One of the many places that Primark gets its cotton from is Gujarat in India. If you think about the cotton project for example, we only started communicating that last year, when we have been working on it for three years. Primark also runs its Retail Manager Development Programme (RMDP), a bespoke supervisor development programme in the UK and northern Europe and is in the process of rolling it out to its other countries. At the moment it remains unclear what percentage of Primarks apparel collections consist of recycled materials, or if they use recycled fibres in their clothing at all, an area which they should consider moving into according to international organisations. In 2018 Primark executives George Weston and John Bason were paid 3.8m and 2.7m respectively. That is why we have begun to explore how we can better measure what we do so that we might provide more credible and tangible evidence of our impact.. Rather than giving customers a discount voucher for their next purchase in-store, Primark gave customers an organic cotton bag in return for a clothing donation. Associated British Foods (ABF) said Primark had been hit by temporary closures and congestion at ports and a shortage of shipping containers. In August 2017, Bangladesh launched an initiative of its own to map all of its apparel factories. We believe Primark could do more to educate its shoppers on how to care for their clothes, Primark is also updating its website to offer consumers more information on its ethical and sustainable activities. Nevertheless, Primark cannot argue with the fact that many consumers do shop excessively at Primark and are more likely to make an unnecessary, or unneeded purchase if the price is low enough. Plus, our third-party logistics providers. Instead, they receive external feedback from Primark and a checklist of areas they may need to improve on going forward. For me, its really all about education. "We made a 360 degree video of one of suppliers factories in Bangladesh, says Stewart. However, in order to reach its goal of creating clothing with the least amount of harm done to the environment, the value retailer should be looking into additional avenues to increase its use of sustainable resources, as well as its use of recycled materials. Whether its financial literacy, health education or helping workers understand their rights, weve seen that simple initiatives with local partners can make a huge difference., What Primark is doing to improve the lives & wages of its garment workers. But is Primark doing enough to boost wages for garment workers? For example, Primark is working on improving its injury rate as part of its wider scheme to boost its safety performance, according to its Corporate Responsibility Report 2016. However, this boost in income also brought on a new set of concerns for the female cotton farmers who participate in the pilot, as they were not used to managing a large cash flow. Primark has saved approximately 30 million kWh of energy through its bespoke software system called ERICC (Energy Reduction Information and Control Console). A supply chain strategy is a process that manages networks and services between suppliers and companies without causing friction. The thing about Primark is that we communicate the things that we have done - rather than the things we want to do, explains Stewart. Credit: Primark. We would suggest Primark share the long term intentions of its recycling program, the anticipated impact of diverting these textiles from the waste stream and the current and future destination of the textiles collected from these programs.. An improved sales, inventory and operations planning process to ensure continuity of supply in line with your customer . Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. The strategic plan of Primark consisted of the strategy of growing inorganically as well as organically. But I find it more difficult to share what we are doing sustainably because we do not make capsule collections and cant just hang a little label on it. It is about sharing how we do it and then moving it to scale. Last financial year, 94 percent of waste generated by all of Primarks stores and warehouses was recycled or beneficially reused, points out Stewart. The push-pull supply chain strategy in turn helps to reduce their order-to-delivery lead time to stores, reduce inventory holding level and minimize both physical costs and market mediation. Primarks margins are also said to half a high as those of its fast-fashion competitors. In order for Primark to improve their practices to be more sustainable, we believe they need to address the full scope of these inputs, Although Primark has been transparent with its energy efficiency and waste management, it is clear the value retailer still has some ways to go to ensuring both its supply chain and vast store network become more sustainable. So what is Primark doing to reassure its consumers that its products should be cherished and that people should not buy more than they need? They include decision-making and analytical processes that define roadmaps for products, services and market interactions. Demand-prediction capabilities continue to mature as supply chain management teams utilize ever-more powerful . As a globalization strategy, Primark carries out its operation in 61 countries. This short film shows how I:CO works with retailers to initiate clothing recycling drives in store, and encourages consumers to be more mindful with their unwanted textiles. Additional business activities that the companies related to the integration of sustainability into corporate strategy were the creation of a sustainable product, adoption of a social and environmental management system, sustainable management of the value chain, satisfaction of unmet social needs, and reporting on financial and non-financial Primark should focus on building a solid, long-term relationship with their suppliers based on trust; ensuring labour unions are allowed within the factories they source from and are protected enough so they can do their work freely without threats, or harassment, notes Scally. When companies discount to shift stock, margins are compromised. It has stores across Europe and in the United States. The Gartner Matrix for Supply Chain Strategy offers a construct by which to map supply chain strategy, priorities and interdependencies. Zero Discharge of Hazardous Chemicals (ZDHC) Program, Digital RMG Factory Mapping in Bangladesh, comprehensive and accurate data on factories. At Primark, we are committed more than ever, to . Credit: Primark. Implemented by Dhakas BRAC Universitys Center for Entrepreneurship Development in collaboration with BRAC USA, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and C&A Foundation, the Digital RMG Factory Mapping in Bangladesh (DRFM-B) project is the first of its kind to attempt to digitally map the entire garment industry in Bangladesh and marks a critical industry shift toward more transparency. The value retailer makes sure each supplier it works with has a full formal audit once a year, which is carried out by Primarks own team or approved external auditors. Primark opened it first store in Rotterdam, the Netherlands in 2008. Some factories need help improving certain areas, so we make sure we work together with them by explaining the implications and solutions on the audit checklist. Primark also runs an online supplier management system which offers training programmes on how suppliers can improve their working standards. However, although Primarks Code of Conduct remains an internationally recognised code of labour conduct, ensuring all its eight principles are consistently upheld at all of its suppliers around the world is another issue in its own right. So far this tactic has enabled the budget fashion giant to multiply its store openings without saturating its market for consumers. Through our Supply Chain modeling and analytics capabilities, we enable fact-based decision making around your supply chain strategy and network (footprint) design that will drive speed, agility and efficiency. Twelve factories have already benefited from the programme to date, and an additional seven are currently benefitting from the PaCT training through Primarks nominations. From my point of view, I have seen real change coming through. For example, Primark has a team of specialist auditors who conduct audits in all of its stores across 11 countries. Primark has been grappling with the best way to tackle this assumption over the past few years. Primark regularly visits factories where it holds a lead role in respect to the Accord and is in frequent contact with all other factories which it supplies from. People. Fair Wear Foundation 12 has done interesting research revealing the possibilities. Supply chain leaders can pursue six major strategies to build greater resilience into their networks. Primark shares a number of core principles within its Code of Conduct with the Fair Wear Foundation Code. At the moment Primark has a team of over 80 experts dedicated to sustainability, ethical fashion and worker training as part of their Ethical Trade Team. We are often asked how we can combine low prices with good standards in the supply chain. Credit: Zakir Hossain Chowdhury / ANADOLU AGENCY, Podcast: Primark Offers Compensation to Dhaka Factory Victims. For the value retailer, a living wage is seen as one which includes the total cost of living, healthcare, food, education and housing. At the end of the day, the fashion industry remains one of the most polluting sectors in the world. The reported results show that working with farmers at this level can have a number of positive impacts on yields, chemical and water use reduction and increased income, says Jacinta FitzGerald, Head of Research at Project JUST 2. The training focuses on denim and jersey production, paying attention to the environmental impact of the main technologies used during the dyeing and washing processes. Many workers take pride in the work they do and the clothing they make and do not deserve to be exploited as they are now. Skip to main content Skip to navigation hot-topics Trending Four-day week Recognizing that climate change cannot be tackled alone, H&M recently announced it will make its sustainable supply chain available to third parties, including rival fashion companies. Credit: Primark. This website uses cookies for analytics, advertising and to improve our site. But how sustainable is Primarks sourced cotton? However, since then there have been no further updates or concrete outcomes on record of what exactly has been done to date. The audits include onsite waste management practices, review of store emissions and ensuring all equipment is properly maintained. Partners have extended from bodies such as the Ethical Trading Initiative to organizations monitoring industry standards, notably the International Labor Organizations Better Work program.. The social, sustainable and ethical impacts of the industry - both good and bad - continue to grow as the number of garments produced does. The steps Primark is taking to improve garment workers wages. Primark also consulted with workers to ensure the posters were displayed in the best possible areas throughout the factories for maximum impact. Where possible we encourage our members and all other garment brands- to increase leverage. 76% company name: primark module: strategic management bachelor business studies lecturer: dr. sharon feeney names of all group members: caoln kennedy: . In these regions a lot of the knowledge concerning the best practices for growing cotton, as well as the most environmental friendly tactics available to do so, tends to be rather limited. "Although, at this point, the disruption is causing limited availability on a small number of lines, our warehouse . The value retailer was even awarded the Carbon Trust Energy Standard 1 in recognition of its continued commitment to energy efficiency in its stores in 2014. Primark offers customers quality, up-to-the-minute fashion at value-for-money prices. However, in spite of the numerous initiatives Primark has undertaken to combat its chemical usage, the value retailer may not be able to reach its Detox commitment to Greenpeace by 2020. They concentrate on improving the efficiency of supply chain management. The value retailer believes that collaboration is one of the keys to improving environmental standards and working conditions across the industry in main manufacturing hubs. Following the tragic collapse of Rana Plaza, the most deadly accident in the history of the garment industry, more and more people begun to question how a t-shirt costing as little as 2 pounds could ever be responsibly made. In addition Primark has joined a number of partnerships to ensure its products are made as sustainably and responsibly as possible, with as little harm to the environment. Our experts can deliver a Starbucks Company's Supply Chain Management Strategies essay. We are building things to last. She claims she has had a suedette jacket she is wearing from Primark for years, and that her co-workers have even begun to joke about how often she wears it. The new depot will serve as Primark's distribution centre for the Northeast, where the company plans to open eight retail stores by the end of 2016. Sustainable Brands The reason we started our Sustainable Cotton Pilot programme four years ago is because cotton is one of the main fibres we use in our products, and we wanted to achieve greater visibility in our cotton supply chain to better understand how it works, says Katherine Stewart, Primarks Director of Ethical Trade & Environmental Sustainability. 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