The first stage in Primarks supply chain is harvesting the cotton. This is epitomised by brands like H&M, Primark, Boohoo, and Forever21 churning out affordable garments. 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. Credit: I:CO spirit, Photo: Industrial textile factory - Lucian Coman | Dreamstime.com Poco_bw | Dreamstime.com, Photo: Primark store in Madrid. Case study on Primark sustainability, ethics, supply chain. "For Primark, the pandemic stopped our only revenue stream in its tracks in an instant," Vanoli explained. Our manufacturing supply chain includes both internal facilities that are owned and directly managed by Gucci and external facilities managed by trusted suppliers. To maintain this strategy Primark always focuses on buying, logistics and supply chain management. Credit: Primark. For inorganic growth it made strategic acquisitions. But now our customers are asking us about it, so we are talking about it moreespecially now that our customers are getting older, they want to know more. Over the years Primark has implemented a series of strategies and initiatives which vary from improving the livelihoods of its garment workers, to reducing its carbon footprint as well its chemical usage, water usage and waste output, to using more sustainable materials. In the supply chain strategy you are going to plan out how you are going to work with distributors, customers and suppliers. But in order to properly tackle many consumers perception and predisposed disposition against Primark and its products, the value fashion retailer may have to dig a little deeper. Here are six supply-chain strategies designed to help enterprises thrive in the current environment. The initiative is called Treadler and the company hopes that collaboration will help build collective knowledge in the fashion industry. We pay for all our audits ourselves as well, adds Stewart. Credit: PRIs The World, Video: PRIMARK | Rana Plaza: Kushi Mela. As a leading member of ETI, Primarks Code of Conduct is founded on the ETI Base Code which stresses that wages and benefits paid for a standard working week meet, at a minimum, national legal standards or industry benchmarks, whichever is higher. Origin coordination is critical with factories and suppliers. And thanks to Primarks low prices shoppers can easily fill a recycled paper bag full of garments for 50 pounds or less. In addition, the fashion retailer received the worst score on the Ethical Consumer 5 rating, an independent public consumer rating, for its cotton supply chain. However, some pioneering companies, like Filippa K and Nudie Jeans are beginning to break this mould and commonly report their factory lists, audit outcomes, and other data. [At the flagship stores] you have tourists coming from abroad, where there isnt a Primark store. 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. 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. FashionUnited shares its findings in its first long-form story looking into the value retailers sustainability and ethical initiatives. Founded in Ireland in 1969 under the name Penneys. The audits include onsite waste management practices, review of store emissions and ensuring all equipment is properly maintained. 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. 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. 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. Its not something new, its business as usual and we have been doing it for a very long time. Primark is pursuing a living wage for workers in the supply chain and support with financial literacy training and access to social protection by 2030. 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. But the Spanish view it as a major chain store. In the US, Primark has partnered with the charity Delivering Good, in which stores donate unsold items to those in need. REWARD. As a business we care about the impact. Develop and maintain relationships with all Primark suppliers, internal Primark teams and external traceability partners to support the Traceability strategy; Support the traceability team to train, onboard and support suppliers to comply with Primark traceability requirements In a new initiative, Primark will: Make clothing from recycled or sustainably sourced materials. The company was forced to do a u-turn after a public outcry and stated that it would create a fund to supply garment workers. Can Primark really offer responsible fashion at an amazing price? 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. . Photos: Primark Sustainable Cotton Programme. This does not do justice to the hard working garment workers, but into the production of the clothing. This strategy is pursued by companies selling affordable products across all sectors. 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. 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. It relies on some kind of exploitation, of people or resources. To solve it we need more time and a concerted effort on behalf of us all, to buy a little less and demand a whole lot better for our garment workers., A closer look at Primarks stance on responsible fashion. The programme covers key issues workers should be aware of, such as health and safety responsibilities, hazard identification, and manual handling. People. The most recent report released in July 2016, ranks Primark in Evolution Mode, with Greenpeace stating that although the brand performs well on the elimination of perfluorinated chemicals (PFCs) and transparency, it fails to take individual responsibility for the main tools it needs to meet its Detox 2020 plan. The report notes that Primark chooses to rely on the ZDHCs flawed methodology, which means the retailer is not selecting new target chemicals for eradication, or ensuring when it does test for their elimination, it is as close to possible to zero. Greenpeace encourages Primark to adopt a clean factory approach, which sees chemical elimination targets applied to suppliers entire factory floor and not just to Primarks own production lines. Does Primarks Low Prices equal Low Quality and Disposable Fashion? 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. A factory is detailed on the Map only after it has produced products for Primark for a year and has become an established supplier. 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. These teams based in its nine key sourcing locations, such as China, India, Bangladesh and Turkey, act as the retailer's "eyes and ears on the ground," according to Katharine Stewart, Primarks Director of Ethical Trade & Environmental Sustainability. Its chief executive, Paul Marchant, said: "Our ambition is to offer customers the. India currently ranks 130 out of 188 countries in the UNs Gender Inequality Index, as gender equality is seen as one of the most pressing development challenges facing the country. It is hard to resist the allure of a good bargain, but fast fashion means were consuming and trashing fashion at a higher rate than our planet can handle, warns Kirsten Brodde, head of Greenpeaces Detox My Fashion campaign 11 in a statement. The factories featured on the map are Primark's suppliers' production sites which represent approximately 94% of Primark products for sale in our stores. Photo factory via Pexels. At the moment 57 percent of all Primarks GHG emissions result from the transporting of its goods and as Primark continues to grow, this percentage is only likely to increase. A high-tech procurement strategy that's reaping rewards. Our engagement with . 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. We would suggest Primark increase its use of sustainable fibres, including developing further sustainable cotton programmes and using recycled fibres, along with tencel and modal instead of the less sustainable viscose fibre, says FitzGerald. Primarks parent company Associated British Foods (ABF) is listed in the 20-29 percent band range, together with the likes of Next, Kering and TJX Companies. With limited resources for apparel production, there is only so much retailers like Primark can due to limit the negative impacts of its current business model. 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. Primark adopted computerized customs clearance for improving the speed of business operations. Hover your mouse over the photos to learn more. 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. 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. In addition Primark has also achieved the Carbon Trust Standard for Waste for its waste management systems in store and is working to assume direct control over as much of its recyclable materials used during packing and transport as possible. 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. Primark is a member of the Sustainable Apparel Coalition. Here, you'll find a case study on Starbucks' supply chain strategy. The thing about Primark is that we communicate the things that we have done - rather than the things we want to do, explains Stewart. Subsequently, efficient and responsive supply chain strategies are distinguished. 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. All senior members of staff have been trained to make sure safety culture and employee well being are embedded into role descriptions and that workers follow a thorough training programme before being allowed to work the shop floor. 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. "You are constantly hounded and monitored by managers and supervisors to work faster/better. But if it isnt available, then consumers should also be proactively asking why not, and what retailers are doing on certain subjects. 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. We'll assume you're ok with this, but you can opt-out if you wish. Primark employs a total of approximately 4,800 workers in the Netherlands. 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. 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.. 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 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. 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. As a globalization strategy, Primark carries out its operation in 61 countries. Crafting and Executing Strategy . 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. 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. 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 move builds on Primarks previous efforts to promote social and environmental sustainability in its supply chain. This includes guidance on onsite environmental health and safety issues, as well as waste and energy management.. Primark has been able to gain and sustain competitive advantage by focusing on inbound logistics (supply chain), outbound logistics (distribution network), manufacturing (outsourcing . Credit: Primark. I believe it is more important to show, as transparently as possible, proof of the good we have already done, than to set a target of what we may do in the future, However, others disagree and argue transparency, as well as setting targets, are still not enough to make a real difference. Credit: ABF plc. Primark, the Irish fashion retailer owned by Associated British Foods (ABF), is seen as one biggest fashion retail success stories of the past decade. One of the key lessons learnt during the pandemic and its aftermath, is that there is a need for increased resilience in supply chains. Unfortunately cheaper prices are also more likely to trigger consumers into making an impulse purchase in store. Instead, they receive external feedback from Primark and a checklist of areas they may need to improve on going forward. 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. Fair Wear Foundation 12 has done interesting research revealing the possibilities. Cotton for us is a priority given the amount we use. 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. Strong union representation can bring labour violations to light. The clothing must also be recyclable. Primark has already begun to train 5,000 new cotton farmers and plans to scale this up in time. 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. 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. Credit: Simon Trel for FashionUnited. Female garment workers often face numerous issues such as sexual harassment, threats of violence and prejudice within the workplace. It must involve end-to-end supply chain processes like sourcing goods, delivery and logistics . Video: The garment industry in Bangladesh: Made in Bangladesh | Primark 2014. Credit: Primark. One of the many places that Primark gets its cotton from is Gujarat in India. We share 98 percent of our factories with other high street retailers, stresses Stewart. Photo: Amsterdam Flagshipstore. About a 4 minute read. tailored to your instructions. Photo: Primark Employees at Primark Den Haag. These complaints from the UK have come even after Primark implemented the national living wage 4, which aims to ensure its workers are paid enough to live off of. On its website, the value retailer has a dedicated area under its Ethics page which explains how they are able to offer the lowest prices on the high street. 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. Credit: Zakir Hossain Chowdhury / ANADOLU AGENCY, Podcast: Primark Offers Compensation to Dhaka Factory Victims. 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. An Ireland-based retailer of value clothing, Primark operates in 14 countries and owns around 400 stores. Finally, the issues of supply chain resilience and sustainability are discussed. The Company has been said to be the biggest Company across Europe with . We have to find a more holistic way to share what we do., We have to find a more holistic way to share what we do. I think that the results of the pilot in relationship to the impact theyve had on the cotton farmers have been significant - theyve just been phenomenal.. 76% company name: primark module: strategic management bachelor business studies lecturer: dr. sharon feeney names of all group members: caoln kennedy: . Primarks buying and merchandising teams in Dublin (Republic of Ireland) and Reading (UK) travel internationally to source and buy fashion items that best reflect each seasons key fashion trends. At the end of the day, the fashion industry remains one of the most polluting sectors in the world. 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. In the second part, the bullwhip-effect in the supply chain and mitigating coordination strategies such. Primark. Input costs were reduced by 19.2 percent on average. Credit: Primark. 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. 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. Until recently that is. This means we get the savings from buying in bulk, explains Stewart. We are trying to look collaboratively as to what best practice looks like to build a framework to offer suppliers a consistent message on how this is the standard, and what implementation looks like. The Central Supply Chain Team is accountable for critical activities like planning, data & analytics, operational excellence, supply chain business systems development and . Can Primark really offer responsible fashion at an amazing price Primark gets its from... 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