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. 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. After reaching out to the shoppers who found these letters and labels and conducting its own research, Primark claimed the distress calls were all part of an elaborate hoax looking to sully its name. Pursue a living wage for workers in its supply chain. 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. Primark Current business strategies Primark is the most growing retail company in UK. One of the key lessons learnt during the pandemic and its aftermath, is that there is a need for increased resilience in supply chains. Primark has also committed to pursuing a living wage for workers in its global supply chain by 2030. "You are constantly hounded and monitored by managers and supervisors to work faster/better. Primark, a member of the Sustainable Apparel Coalition, has developed a new online tool that is helping usher in a new era of transparency for the retailer. Crafting and Executing Strategy . Average farmer profit increased 247 percent during its third year. Taking into consideration fast-fashions current business model, which is focused on high volume, low price and disposable products, this cannot by definition nor intention, go hand in hand with sustainability, she adds. Consistently providing a wide variety of goods at low prices . For years Primark has been fighting against the stigma that cheap fashion is not sustainable or ethical, even though the value fashion retailer shares 98 percent of its suppliers and factories with other high street retailers, such as H&M, Zara and Mango. Use of chemical pesticides were reduced by 44 percent. 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. 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. 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. Primark is not the first fashion high street retailer to initiate an in-store recycling scheme with I:CO, but one key difference between the Primark clothing recycling pilot and other fashion retailers textile recycling programmes is the customer incentive. Primark also conducts energy audits in all its stores and reviews how much energy each store consumes. The Global Sourcing Map allows consumers to access information about the 1071 factories and suppliers that make up the company's supply chain. It outlines the key processes, technologies, and partnerships that the organization will use to optimize the efficiency and effectiveness of its supply chain. The value retailer pledged to give both short and long-term financial compensation to those affected by the factory collapse and has paid a total of 14 million dollars to date - 11 million of which has gone to workers and families employed by its supplier, New Waves Bottom. The move builds on Primarks previous efforts to promote social and environmental sustainability in its supply chain. 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. 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 maintains it is able to keep its prices so low because all of its orders are placed in bulk and not because its does not pay its workers enough. 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. Introduction to Operations and Supply Chain Management (Cecil C. Bozarth; Robert B. Handfield) Signals and Systems (Simon S. Haykin; Barry Van Veen) . The programme helps raise awareness on a wide range of topics, such as the importance of children's education, financial planning, general health and workers rights through the formation of worker education groups. "By working closely with Primark and their . Credit: FashionUnited. Even before the Rana Plaza factory collapse, one of Primarks main points of focus looked to improve safety standards and worker wellbeing for all its employees around the world. 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. 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. Its own in-house teams are supported by independent, third-party auditing companies, which are said to be critical to ensuring Primark upholds its monitoring standards. For us sustainability is just about doing it across the board, notes Stewart. To maintain this strategy Primark always focuses on buying, logistics and supply chain management. 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. Copyright Primark Stores LTD 2012. But the inspection reports are not made public, so it is impossible to verify if these inspections are really taking place; what is monitored; what problems are found and what corrective actions come out of these audits., Being honest about the issues and problems and the steps brands are taking to improve labour conditions, is key, adds Schuurman. Since the global emergence of fast-fashion retailers like Primark back in 2000, the number of garments produced annually has doubled, exceeding 100 billion garments in 2014 - which is equal to nearly 14 items of clothing for every person on earth according to data from McKinsey & Company 3. [At the flagship stores] you have tourists coming from abroad, where there isnt a Primark store. So we are sharing that information - we are just not making it public. Hover your mouse over the photos to learn more. 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". 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. 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. Our purpose is to provide safe, nutritious, affordable food and clothing that is great value for money. Combined, these tactics are said to ensure Primark remains accessible and affordable to all shoppers, while offer good value for money - a goal the company has always kept in sight, according to Primarks Director of Ethical Trade & Environmental Sustainability. [Giving a voucher] just seems a little counter-intuitive in my opinion., Primarks partnership with I:CO is a good example of how collaboration can bring around positive change in terms of sustainability. In the video Zoella shows off each item one by one to her viewers: young, impressionable women who all want to look and dress just like her - which leads to many of them also shopping in bulk at Primark. May 4, 2022 Primark is one of the first brands that come to mind in fast fashion. Plus, our third-party logistics providers. We deliver. And in Portugal, the retailer is considered a fashion expert. But we know an ethical supply chain can't be a solo project. Credit: Primark, Video: Primark HERproject. As a globalization strategy, Primark carries out its operation in 61 countries. Learn more: Supply Chain Planning Your Strategic Guide to What, Why and How However, despite of all its initiatives aimed at modern slavery issues, Primark is still regularly accused of sourcing from sweatshops and forced labour camps. 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. In addition to the online course, Primarks safety platform also includes additional information on safety topics, like office safety and emergency procedures. 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. Right from the start, when the buyers are developing the product, we ensure we have the quality team looking at the design of product. (Black Well). 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. . In addition, Primark also works with the ILO Better Work Programme 4 in countries such as Vietnam, which aims to help factories meet and uphold international working standards. Primark, the Irish fashion retailer owned by Associated British Foods (ABF), is seen as one biggest fashion retail success stories of the past decade. However, the opposing views on the quality of Primarks clothing does not change the fact that a large percentage of its clothing - as well as that produced by other fast-fashion retailers - ends up going to waste once it is discarded by consumers. 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. Primark has saved approximately 30 million kWh of energy through its bespoke software system called ERICC (Energy Reduction Information and Control Console). We are all quite focused on the flagship stores, where you see people coming out of Primark with piles of bags. At the same time Primark decided to exclusively work with female cotton farmers in Gujarat, Northern India during the pilot because they realised many other cotton initiatives lacked gender focus. Supply chain leaders can pursue six major strategies to build greater resilience into their networks. Milan, Italy Primark in-store photo. It is mainly sourced from countries like China, India, Pakistan, Turkey, Brazil or the United States. Primarks Ethical Trade and Environmental Sustainability Team will be responsible for providing updates to the Primark Global Sourcing Map on a twice-yearly basis. Primarks margins are also said to half a high as those of its fast-fashion competitors. We are looking at it. In addition Primarks European stores donated a total of 100,000 cartons apparel goods to the European Red Cross Refugee Appeal 10 in 2015 to help refugees and migrants. Input costs were reduced by 19.2 percent on average. Should Primark be more open with consumers concerning sustainability? But the lack of transparency Primark has concerning its supply chain and workers is still problematic for many organisations. In addition the Farmers Field School has made Primark realise how important education truly is for farmers and what impact it can have on their lives. It turned out to be such a success that the participating farmers achieved the following results by the third year: This short film follows the impact Primark's Sustainable Cotton Programme has had on female farmers in Northern India and includes interviews with some of the women involved. As these results show, the company is doing well. With such rapid growth, the retailer's technology needs have changed considerably over time and having the . Credit: Primark. How transparent is Primarks supply chain? This is epitomised by brands like H&M, Primark, Boohoo, and Forever21 churning out affordable garments. Primark. Our experts can deliver a custom Primark Stores Limited's Supply Chain Management paper for only $13.00 $11/page. 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. 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. To be included on the map, factories must have produced products for Primark for at least a year and be an established supplier. Primarks Code of Conduct lays out the core principles their suppliers and their factories must adhere to when it comes to working conditions, such as working hours, fair wages and workers rights in order to do business with them. The pilot was well received by Primarks shoppers in the test stores, and at the moment Primark is currently working out all the legal requirements to roll out the initiative to all its stores in all its markets. So even though Primark may have a number of initiatives in place aimed at improving employee wellbeing, it seems as if the effects of these programmes are not as beneficial or effective for all its workers - in particular its store employees. I just think its incredibly insightful because it follows the lifecycle of a product, from the cutting room all the way through the factory floor. Primark has shared the video on their website, under their Ethics section as consumers often requested what a supplier factory from the value retailer looks like. The incident came just months after it emerged that Primark clothes were being made in India by factories using child labour. Full-year operating profits at Primark are expected to be ahead of last year's 1bn, as the retail chain benefited from "a significant reduction in store labour costs and lower store operating. Company value proposition. 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. However Primark does not tackle its factory audits alone. Photo: Amsterdam Flagshipstore. This short film shows how Primark's programme in Bangladesh has help provide essential health, hygiene and nutritional education for garment workers. One of our long-term goals is to source all of our cotton more sustainably, says Stewart. Wal-Mart's competitive strategy is based on three dimensions: high product availability, a wide variety of goods, and everyday low pricing. 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). 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. 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. Primark governs with hard hard, says Niels Suijker, union member at FNV in a statement. Primark adopted computerized customs clearance for improving the speed of business operations. 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. Video: PRIMARK | Take a 360 virtual tour of a factory in Bangladesh. Because if there is no support on the systematic implementation of such initiatives, then it makes all the more challenging for suppliers, says Stewart. This website uses cookies for analytics, advertising and to improve our site. The factories featured on the map are Primark's suppliers' production sites which represent approximately 94% of Primark products for sale in our stores. Credit: Simon Trel for FashionUnited. This written down reality says nothing about what is really happening within the supply chain. This is Primark's first 360 degree video. . Does Primarks Low Prices equal Low Quality and Disposable Fashion? Weve always said that we have worked very hard with our suppliers, notes Stewart. Primark also received our worst rating for likely use of tax avoidance strategies. We provide suppliers and their factories with formal training, tools and support to enable improvements to be made throughout the manufacturing process.. 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. For example, Cambodia was the first country in which the ACT initiative began its first process to develop an industry-wide collective bargaining for higher wages. Garment brands should use their power to make sure union members are protected., Primark does what it can do to help workers employed without the proper legal papers, but in the case of undisclosed sub-contracting, where approved suppliers outsource production to unapproved factories which use methods of forced labour, the value retailer takes decisive action, as it takes any breaches extremely seriously. Over the years Primark has ensured that they work with local organisations in all of its sourcing locations in order to create a support net for any employment challenges that may occur, according to Stewart. 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. The 20-minute video features numerous items from Primarks Spring/Summer 2017 collection including boyfriend style jeans, striped cropped tops and lacy triangle bras - all in several colours and sizes. Historically when we did not say anything, people believed that we were not being sustainable at all, when we were just trying to find our comfort level in communicating this, explains Stewart. However, most of Primark's China factories are small and medium-sized, and fewer than 1% report having 1,000+ workers. But Primarks ethical and sustainable initiatives go much further than Rana Plaza. 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. The results are truly shocking. 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. Credit: Primark. An improved sales, inventory and operations planning process to ensure continuity of supply in line with your customer . Cotton for us is a priority given the amount we use. We'll assume you're ok with this, but you can opt-out if you wish. 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. Get some inspiration for your paper by reading our sample! Transparency is essential for accountability and credibility, counters Schuurman. RECYCLE. 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. 76% company name: primark module: strategic management bachelor business studies lecturer: dr. sharon feeney names of all group members: caoln kennedy: . Primark shares a number of core principles within its Code of Conduct with the Fair Wear Foundation Code. "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. A supply chain strategy is a process that manages networks and services between suppliers and companies without causing friction. NGOs applaud the move from Primark and agree the retailer should explore further avenues on how it can share more information on its sustainable and ethical programmes. 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. Credit: Primark. 1: Adopt a demand-driven planning and business operating model based on real-time demand insights and demand shaping. FashionUnited shares its findings in its first long-form story looking into the value retailers sustainability and ethical initiatives. 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