When watching the video via a desktop computer, or laptop, please use your mouse to virtually 'look' around the space. This is epitomised by brands like H&M, Primark, Boohoo, and Forever21 churning out affordable garments. At Primark, we are committed more than ever, to . It must involve end-to-end supply chain processes like sourcing goods, delivery and logistics . Primark's supply chain, and indeed business strategy, is based on a highly efficient sourcing model whereby it aims to get products from initial design concept onto shelves in as little as six weeks, with merchandise sourced from all four corners of the globe. On April 24, 2013 a building housing five garment factories which manufactured products for approximately 28 brands, collapsed in near Dhaka, Bangladesh, claiming the lives of 1,138 workers and injuring more than 2,000 individuals. One key avenue Primark has been experimenting with to better communicate their ethics to consumers is video. We try to be proactive and helpful partners when it comes to audits, points out Stewart. Because if there is no support on the systematic implementation of such initiatives, then it makes all the more challenging for suppliers, says Stewart. 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. Zero Discharge of Hazardous Chemicals (ZDHC) Program, Digital RMG Factory Mapping in Bangladesh, comprehensive and accurate data on factories. Primark is using its global scale and reaching across its entire supply chain and its own operations to action the new strategy with nine key commitments, through three key areas. Origin coordination is critical with factories and suppliers. The clothing must also be recyclable. 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 has published the results of their sustainable cotton programme on their website, as well as personal stories from the farmers themselves, but Stewart admits the company is still learning on how to take what they have learned from the pilot all the way through to end production to bring it to scale. We probably do not realise the full potential of the recycling programme yet, as we have not been advertising it, says Stewart. Although Primark has pledged not to knowingly source cotton from Uzbekistan, it does not seem to have any secure policy in place to guarantee it is not sourcing cotton from there, raising concerns about traceability and transparency within Primarks supply chain once more. Unlike some fashion retailers, Primark does not publicly share its audit reports, which raises numerous questions on what exactly Primark is doing to ensure the rights of its garment workers are protected. The project collects comprehensive and accurate data on factories across Bangladesh the names, locations, numbers of workers, product type, export country, certifications and brand customers and disclose it in a publicly available online map. 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. Infographic Living Wage: Clean Clothes Campaign, Tailored wages report 2014. Primarks Ethical Trade and Environmental Sustainability Team will be responsible for providing updates to the Primark Global Sourcing Map on a twice-yearly basis. Strategy No. Credit: Primark. Jobs. 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. 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. However, although fast-fashion retailers like Primark have been working hard to improve working conditions and dramatically decrease their impact on the environment, in reality they have been unable to match their sales gains with corresponding improvements in terms of the social and environmental aspects. In the second part, the bullwhip-effect in the supply chain and mitigating coordination strategies such. We pay for all our audits ourselves as well, adds Stewart. A supply chain strategy is the overarching plan that an organization uses to manage the flow of goods and services, from sourcing raw materials to delivering products to customers. The Global Sourcing Map allows consumers to access information about the 1071 factories and suppliers that make up the company's supply chain. Until there is a general understanding that we all need to slow down and redress this industry, all initiatives, however welcome, however innovative, are just covering the problem, not solving it. Plus, our third-party logistics providers. This technology is still in development for the process to work at scale, but there is exciting potential here for a large reduction in garments being sent to landfill, and the decreased use of virgin raw materials. She encourages Primark to start looking into future options for implementing a circular economy, similar to the goal set by rival fast-fashion retailer H&M. But now that we have a formula that we know works, we can start to look at how we can do that in different locations. For now Primark has chosen to localise their efforts in Northern India, but it has not ruled out expanding the programme to other countries. Yet it is also a challenge for garment and textile companies, who consider their competitive advantage to lie partially in their unique supply chain decisions for example, where they are placing orders, prices paid and forecasting. In a new initiative, Primark will: Make clothing from recycled or sustainably sourced materials. 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. It would be interesting to see how they followed up on the audit findings., It is impossible for us to know the full scope of its audit programme or how frequently individual factories are audited, adds Jacinta FitzGerald, Head of Research at Project JUST 9.The brand does state that all its suppliers must comply with its Code of Conduct, and are audited before any orders are placed. Primark maintains it keeps its audit reports finding private to maintain the authenticity of their results - not even the factories and suppliers audited are given full access to Primarks audit reports. 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. Primark's first U.S. store launches September 10th in Boston's iconic Burnham Building, Downtown Crossing, with a second store opening planned in King of Prussia in November. How Primarks Sustainable Cotton Program is impacting the lives of female cotton farmers, The reported results show that working with farmers at this level can have a number of positive impacts. 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. Publicly showing their wage calculations would be a good start., One brand cannot single handedly raise wages for the workers who make their clothes, Other NGOs agree that the key to implementing fair, livable wages within the industrys supply chain lies within collaboration. In order for Primark, or any fast fashion brand, to improve their practices to be more sustainable, we believe they need to address the full scope of these inputs. 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 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. The Marketing Strategy process displayed in Figure 1, adapted from Hooley et al, (2008) demonstrates the various stages . This paper includes a study of the strengths and weaknesses of Zara Company supply chain management system. And in Portugal, the retailer is considered a fashion expert. Weve always said that we have worked very hard with our suppliers, notes 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. 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. While Primarks work does show that the retailer is committed to improving wages for its garment workers, the value retailer seems to be stuck at the strategy level and research stage and has yet to begin developing long term building blocks to paying livable wages. Photo factory via Pexels. For inorganic growth it made strategic acquisitions. This is crucial to achieve the standards we require for workers in our supply chain. 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. 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. What impact does Primarks Code of Conduct really have? 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. Our engagement with . Credit: Primark. Primark products are made with respect for people and for the planet. Credit: PRIs The World, Video: PRIMARK | Rana Plaza: Kushi Mela. We do share information on which countries we are sourcing from with the public, but not specific factories., Primarks battle against modern day slavery in its supply chains, Rather than cutting ties with suppliers who do employ vulnerable refugees, Primark works with suppliers and local partners to help them get papers for legal employment and proper payment. Fashion supply chains tend to be very long and complex, involving thousands of workers across the board. The first stage in Primarks supply chain is harvesting the cotton. As Primark has also expanded into new regions over the last few years, the retailer has ensured that all its new locations are supported by safety specialists who help uphold its safety standards. 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.. But we do share our supplier information with other partners we are in collaboration with, for example with the Bangladesh Accord 10. Primark was one of the first companies to cancel millions of pounds worth of orders from suppliers during the coronavirus pandemic, putting workers in its supply chains at risk of redundancy. It has been using paper bags instead of plastic bags since 2002, and has also introduced initiatives to reduce waste and packaging. Primark also received our worst rating for likely use of tax avoidance strategies. 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. The one in the UK, which covers all our European stores, is Newlife 8, a foundation which supports children who are either terminally ill or very physical disabled, explains Stewart. Primark has already begun to train 5,000 new cotton farmers and plans to scale this up in time. In the supply chain strategy you are going to plan out how you are going to work with distributors, customers and suppliers. As Primark does not directly own any of the factories or suppliers it works with, an overall lack of transparency concerning their audit reports can make it hard to ensure their core working principles are constantly being maintained. Primark adopted computerized customs clearance for improving the speed of business operations. This short film explores the challenges the garment industry in Bangladesh faces as it. But just how reliable is Primarks Code of Conduct? "Our continued partnership with Primark as part of this industry-leading programme is materially changing the lives of farmers and their families in rural cotton communities," Ward concluded. Additionally, other fast fashion brands are researching circularity, where used garments can be returned to the brand, the garment broken down (either mechanically or chemically) and respun into new yarn, then made into a new garment, adds FitzGerald. Primark's supply chain took centre stage during the event and notably, management went into detail on the price-points of Primark's goods and how they were able to keep them so low. Average farmer profit increased 247 percent during its third year. 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. We share 98 percent of our factories with other high street retailers, stresses Stewart. 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 are looking at it. We wanted to develop a deeper understanding concerning the manufacturing processes behind cotton. The programme was originally designed to introduce sustainable farming methods, improve cotton yields and increase the cotton farmers income. This written down reality says nothing about what is really happening within the supply chain. Credit: Primark. For Stewart, the community impact of the programme and the knowledge the farmers have gained thanks to the programme has been the most rewarding to witness. Credit: Zakir Hossain Chowdhury / ANADOLU AGENCY, Podcast: Primark Offers Compensation to Dhaka Factory Victims. 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. During the first year a factory has to demonstrate that it . 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. As a 100% brick-and-mortar operation with nearly 400 stores across 13 countries, Primark felt these challenges across its retail footprint and inventory supply chains and learned new strategies along the way. Why Primark's sustainable cotton push is good for female farmers. However, the Government of Uzbekistan forces more than a million people 8 to work in the cotton fields each harvesting season and numerous reports highlight cases of human rights violations and forced child labour are rifein Uzbek cotton production. 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. We can pre-empt where practical, supply chain risks and propose alternative sources if and when required. On their website, under Our Ethics, 8 Primark claims that all factories are inspected and audited. The incident came just months after it emerged that Primark clothes were being made in India by factories using child labour. Its not something new, its business as usual and we have been doing it for a very long time. 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. The ERICC system offers real-time information on the primary energy drivers within any store and indicates how a store should be performing from an energy management point of view. Can Primark really offer responsible fashion at an amazing price? But the Spanish view it as a major chain store. Partners have extended from bodies such as the Ethical Trading Initiative to organizations monitoring industry standards, notably the International Labor Organizations Better Work program.. Twelve factories have already benefited from the programme to date, and an additional seven are currently benefitting from the PaCT training through Primarks nominations. This set of guiding principles is based on the internationally recognised labour standards from the International Labour Organization (ILO) Conventions 3 and the ETIs Base Code. Video: The garment industry in Bangladesh: Made in Bangladesh | Primark 2014. Credit: Primark. It relies on some kind of exploitation, of people or resources. 3 Supply Chain Strategies: Which is Best for Your Business? Subsequently, efficient and responsive supply chain strategies are distinguished. 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. We are big business and people talk a lot about us because we are big., Lets just level the plane and get rid of this assumption that paying more for an item somehow makes it more ethical - price is not an indication of good or bad ethics. For us, we felt there was a natural cadence for getting this information out and launching the website was the first step, with the Global Sourcing Map following on as a second phase, Katherine Stewart, Ethical Trade and Environmental Sustainability Director at Primark, told Edie.net. But if it isnt available, then consumers should also be proactively asking why not, and what retailers are doing on certain subjects. Primark Business Strategy Analysis - Assignment Desk Mar. The social, sustainable and ethical impacts of the industry - both good and bad - continue to grow as the number of garments produced does. 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. Considering that the majority of Primarks products are made from cotton, we would suggest the brand dramatically increase its initiatives in this area by supporting similar programmes to achieve 100 percent sustainably grown cotton. In fact, the results of the cotton pilot programme were so successful they exceeded all Primark's expectations, which is why the value retailer has expanded the programme to support an additional 10,000 farmers in Gujarat over the next six years. 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. Primark also increased the number of fun, team-based projects with employees to boost direct engagement, which led to over 100 employees taking part in the wellbeing summer challenge. Prospect Analysis Stores at Primark Primark has joined sustainable apparel coalition (SAC) for improving environmental and ethical impact on their supply chain. But the lack of transparency Primark has concerning its supply chain and workers is still problematic for many organisations. What steps Primark has taken to become more responsible following Rana Plaza. And thanks to Primarks low prices shoppers can easily fill a recycled paper bag full of garments for 50 pounds or less. However many consumers still believe that Primark is less ethical than high street rivals H&M, Zara or Mango, which is false according to Primark. Brands can work very hard on improving their purchasing practices - on forecasting, on production planning all of which can reduce their risk of causing overtime - but if they are a small player and other brands have poor management practices, the results on the factory floor can still be disappointing. Photo: Primark Employees at Primark Den Haag. We know that as well as ensuring worker rights are protected within the factories we work with, we can positively impact lives outside of the factory too. It is a shame that so much hard work of workers worldwide ends up as waste, Tara Scally, Dutch Campaign Coordinator for Clean Clothes Campaign (CCC) 11. However, Primark does ensure that all its workers undertake an online health and safety induction programme in their local language, at a time and pace which is suitable for them. However, some worry that confidential worker interviews and audits are not enough to protect vulnerable garment workers. Founded in Ireland in 1969 under the name Penneys. The ranking awarded Primark points for having appropriate policies in place against excessive overtime, forced labour and child labour, but did not award any points to Primark later on, as they did not take sufficient action against alleged impacts of these issues. Depending on how consumers respond to the video, Primark may consider creating more - but for now the value retailer is pleased with their first 360 degree video. We measure the total environmental footprint of our suppliers and transparently publish the results every year via our Digital EP&L . TheIllustration 1: Supply chain management company has recently joined with 40 other brands such as Adidas, Nike, Disney, Mark and Spencers and Burberry. Copyright Primark Stores LTD 2012. 95% of our manufacturers are based in Italy. Its suppliers factories. Since then Primark has continued to work with local partners and non-profit organisations to ensure any funds or support they gave to workers and their families would be secure by offering financial advice and guidance. I think that this is something we made a decision on very early on and it gives us the confidence that the audit paints a clear picture of what is going on in that factory at that point in time.. Credit: Primark. 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. However for others, like Primark, it was a call to take a closer look at its supply chain and operations to see where it could make even a larger impact through its sustainable and ethical initiatives. This website uses cookies for analytics, advertising and to improve our site. Our Environmental Policy, which sits within our Code of Conduct. Our purpose is to provide safe, nutritious, affordable food and clothing that is great value for money. 8 June 2022. In the second part, the bullwhip-effect in the supply chain and mitigating coordination strategies such as Vendor-managed Inventory (VMI) and Collaborative Planning, Forecasting, and Replenishment (CPFR) are presented. for only $13.00 $11.05/page. But is Primark doing enough? Credit: Primark, Video: Primark HERproject. Primark Current business strategies Primark is the most growing retail company in UK. We currently feel that information is competitive intel we do not want to share. The rise of haul style shopping videos on YouTube is just one example of how the value retailers pricing is affecting the way people shop and how they view their products. "You are constantly hounded and monitored by managers and supervisors to work faster/better. As Primark has become more actively involved in the recycling process of its materials, it has been able to significantly reduce the volume and frequency of waste collections at each store and aims to expand this system to additional regions. We also believe Primark could do more to educate its shoppers on how to care for their clothes and encourage them to look after them and keep them for longer.. Our manufacturing supply chain includes both internal facilities that are owned and directly managed by Gucci and external facilities managed by trusted suppliers. Please note, Greenpeace no longer recognized Primark as a Detox Leader, says FitzGerald. "Although, at this point, the disruption is causing limited availability on a small number of lines, our warehouse . Demand-prediction capabilities continue to mature as supply chain management teams utilize ever-more powerful . The strategic plan of Primark consisted of the strategy of growing inorganically as well as organically. A key part of the programme focuses on sharing lessons Primark and DFID learnt following the Rana Plaza incident, including the retailers initiatives with local partners to provide both long-term and short-term aid. Primarks expansive product range includes womenswear, lingerie, childrenswear, menswear, footwear, accessories, beauty, hosiery and homeware. We suggest Primark share more data with its shoppers concerning the workers that make its clothing, and show how the brand is working to ensure they are treated ethically, so shoppers can see first hand the stories behind their clothes, says Jacinta FitzGerald, Head of Research at Project JUST 7. This has included, for example, details of our suppliers, their factories, as well as our supply chain practices, said a spokesperson for Primark. Primark is experiencing "limited availability" on some of its product lines due to supply chain disruption, the retailer's owner has said. Primark launches jeans with . Work is in the early stages, notes Stewart, so it has yet to be seen what, if any achievable impact, the initiative has on the wages of garment workers. 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 Hence whenever we see that there are more member companies sourcing from the same factories, we encourage them to exchange information on audits, remediate together and cooperate on further improvement plans., What Primark is doing to produce clothing with the least amount of harm to the environment, Our aim is for all our stores to be as sustainable as possible with the technology and infrastructure thats available at the time. We want to be able talk about the things we have done and show what results we have achieved. So it is important to remember that these flagship stores attract huge amounts of people and we shouldnt get side tracked as to what is looks like across the board., As long as we stimulate seeing clothing as a disposable product instead of an investment, the race to the bottom will continue, Stewart adds Primark has also been investing in creating better quality clothing to help combat the stigma that its offers throw-away clothing and ensure their products last longer. There are some new collaborations now coming through which could have a real impactful change. As Primark has made sure its five pillars of corporate responsibility have become an integrated part of the company, its Sustainable Cotton Programme has become a prime example of how such an initiative can positively impact both workers livelihoods, as well as the retailers cotton products - even if they do not directly own any farms. 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